Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Find a Job
  • Tutoring
  • Home
  • Economics, Finance, & Analytics
  • Economic Analysis & Monetary Policy

Government Approaches to Encouraging Innovation

What are some Government Approaches to Encouraging Innovation?

Written by Jason Gordon

Updated at March 27th, 2023

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

What are some Government Approaches to Encouraging Innovation?

The primary government approaches to encouraging innovation include: 

  • Intellectual property - Granting intellectual property rights, a firm is able to earn monopoly profits on its product for a period of time—which offers an incentive for research and development. 
  • Government Spending on Research & Development - Government spending can provide direct financial support for research and development (R&D) conducted at colleges and universities, nonprofit research entities, and sometimes by private firms, as well as at government-run laboratories. 
  • Tax Breaks for Research & Development - The federal government refers to this policy as the research and experimentation (R&E) tax credit aimed at stimulating additional private sector investment. 
  • Cooperative Research -  State and federal governments support research in a variety of ways. Cooperation between government-funded universities, academies, and the private sector can spur product innovation and create whole new industries.

Back to:ECONOMIC ANALYSIS & MONETARY POLICY

Related Topics

  • Market Competition and Innovation
  • New Technology and Positive Externalities
  • Externality
  • Network Externality
  • Pigovian Tax
  • Coase Theorem
  • Agglomeration Diseconomies
  • Education - Private and Social Rate of Return
  • Government Approaches to Encouraging Innovation
  • Public Good
  • Public, Private, Club, Common Goods
  • Excludable and Rivalrous Goods
  • What is the Free Rider Problem for Public Goods?
  • Free Rider
  • Social Loafing
  • Role of Government in Paying for Public Goods
  • What is the Tragedy of Commons for Common Resources?
  • Income Inequality
  • Poverty Line?
  • Poverty Trap
  • Public Safety Net
  • Measuring Income Inequality
  • Lorenz Curve
  • Ladder of Opportunity
  • Tradeoff between Incentives and Income Equality
government encourage innovation promote innovation

Was this article helpful?

Yes
No

Related Articles

  • Repeat Sales Method - Explained
  • Rent Seeking (Economics) - Explained
  • Tax Incidence - Explained
  • Inflection Point - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand