When technology spillover occurs,
A)it is the government's responsibility to own firms that are engaged in high-tech research.
B)a firm's research yields technological knowledge that can then be used by society as a whole.
C)those firms engaged in technology research should be taxed by the government.
D)firms invest in the latest production technology and the cost of that technology "spills over" to the prices consumers must pay for the product.

Question

Quizplus · Accepted Answer

Technology spillover occurs when a firm's research yields technological knowledge that can then be used by society as a whole. This can lead to benefits for society, such as increased productivity and improved quality of life. It is not necessarily the government's responsibility to own firms engaged in high-tech research, and taxing these firms may disincentivize research and development. The cost of new technology may affect the price of the product, but this is not the same as technology spillover.

When Technology Spillover Occurs