The creation of knowledge is a public good. Because knowledge is a public good, profit-seeking firms tend to free-ride on the knowledge created by others and, as a result, devote too few resources to the creation of knowledge. How does the government correct for this apparent market failure?

Question

Ellie

Mathematics

3 August, 00:46

The creation of knowledge is a public good. Because knowledge is a public good, profit-seeking firms tend to free-ride on the knowledge created by others and, as a result, devote too few resources to the creation of knowledge. How does the government correct for this apparent market failure?

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Answers (1)

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Edgar · Answer 1

Answer:Specific, technological knowledge can be patented. The inventor thus obtains much of the

benefit of his invention. Our government also subsidizes basic research in many different fields.

Step-by-step explanation:Patent law is the branch of intellectual property law which specifically caters to new inventions.

Patents protect valuable scientific inventions but it has evolved in a way that it now also protects business practices, coding algorithm and other crucial inventions.