Why does a patent stimulate research?
A) Patents give firms time to do research.
B) Patents give firms the opportunity to recover research costs and thus serve as a profit motive.
C) Without patents, firms would not research as much.
D) They don't.

Question

Quizplus · Accepted Answer

Patents give firms the exclusive right to produce and sell their invention, which allows them to recover the costs of research and development through profits. This serves as a strong incentive for firms to invest in research and development, as they can potentially earn significant profits if they are able to invent something valuable and unique. Without patents, firms would be less likely to invest in research and development, as they would have no way to protect their inventions from being copied and sold by others.

Why Does a Patent Stimulate Research