An idea has high commercial value when the innovator's (commercial) share is large and an idea...

 

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An idea has high commercial value when the innovator's (commercial) share is large and an idea has high social value when the consumer's (society's) share m is large. Recall that a + m + | = 1. For simplicity, suppose for this question that I = 0 and R = T. Using our discussion and graph of which ideas should be invested in (efficiency) versus those that will be invested in by a profit- maximizing innovator, what will happen to ideas with high social value but little commercial value when relying solely on private innovation by profit-maximizers? What does this outcome suggest regarding public (government) and nonprofit investment in innovation (e.g. should the government / nonprofits target specific types of ideas)? Provide a real-world example of such an innovation. An idea has high commercial value when the innovator's (commercial) share is large and an idea has high social value when the consumer's (society's) share m is large. Recall that a + m + | = 1. For simplicity, suppose for this question that I = 0 and R = T. Using our discussion and graph of which ideas should be invested in (efficiency) versus those that will be invested in by a profit- maximizing innovator, what will happen to ideas with high social value but little commercial value when relying solely on private innovation by profit-maximizers? What does this outcome suggest regarding public (government) and nonprofit investment in innovation (e.g. should the government / nonprofits target specific types of ideas)? Provide a real-world example of such an innovation.

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Consider that innovators share and consumers share m And m1 Ideas with high social value i... View the full answer