Microeconomics › Section M · Positive externalities and public goods › Topic M.2
How governments encourage innovation
The spillover leak has three plugs in a government's toolbox: exclusive rights that let inventors charge for their ideas, public money that pays for research directly, and partnerships that stitch universities to firms. Each plug has a price - and the art of innovation policy is knowing which plug fits which leak.
In this topic
- Three policies, one leak
- Policy one: intellectual property
- The patent bargain's fine print
- Copyright and the extension debate
- Policy two, part A: paying directly
- Who funds what: the mix
- Policy two, part B: the tax credit
- Policy three: cooperative ventures
- Worked example: matching the tool to the idea
- Worked example: the patent-term trade-off
- Common mistakes to avoid
- Key takeaways
This topic is part of Wuanberri Pro. Checking your access…