Consider a situation where an activity, such as a firm conducting foundational scientific research, generates widespread benefits for society (e.g., new knowledge that other firms can use) that extend far beyond the revenue the firm itself can capture. Because the firm cannot charge all beneficiaries, it is likely to invest less in this research than would be ideal for society as a whole. Propose two distinct government policies to address this issue and encourage more of this beneficial activity. For each policy, critically evaluate its potential effectiveness and identify one significant challenge or drawback to its implementation.