When technology spillover occurs,
A)it is the government's responsibility to subsidize 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)when firms invest in the latest production technology, 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 have positive effects on productivity and innovation in other firms, leading to overall economic growth. It is not necessarily the government's responsibility to subsidize firms engaged in high-tech research, nor should those firms be taxed. The cost of investing in production technology may affect the price consumers pay for a product, but this is not directly related to technology spillover.

When Technology Spillover Occurs