Suppose the gain to an innovating firm is $200,000 a year and the patent the firm obtains has a life of 20 years. The interest rate is 10%. What is the Present Value of innovation to the innovating firms? In the patent race, what might each firm be willing to spend on research and development (R&D)?

Answer rating: 100% (QA)

To find the present value of innovation to the innovating firm we can use the ... View the full answer