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Evaluating Innovation Policies
A government wants to accelerate innovation in a critical technology sector. It is considering two policies, each with the same budget:
Policy A: Provide a large research grant to the single most promising private company in the sector. The company would retain exclusive control over any resulting discoveries.
Policy B: Fund research at public universities, with a requirement that all findings be published and made freely available to all firms and the public.
Evaluate these two policies. Which policy is more likely to overcome the tendency for private markets to produce less research than is ideal for society as a whole? Justify your choice using the economic principles related to the creation and spread of new knowledge.
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Social Science
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CORE Econ
Economy
Economics
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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Evaluating Innovation Policies