The primary objective of R&D in economics is to drive productivity growth and stimulate economic expansion.

While market demand, government support, and technological advancements are crucial factors, the cost of R&D activities is not a key determinant of R&D investments.

Commercialization refers to the process of bringing new products and services developed through R&D to the market.

R&D investments typically lead to the development of new products and services, which can increase demand rather than diminish it.

Knowledge spillover refers to the positive impact of R&D investments on the productivity of other firms in the same industry.

R&D investments involve high costs and uncertain returns, and there is no guarantee of success or profitability.

Positive externalities occur when firms benefit from R&D investments made by other firms, even if they did not directly contribute to those investments.

R&D investments typically lead to job creation and economic growth, rather than diminished job opportunities.

Innovation diffusion refers to the process by which new technologies and knowledge developed through R&D are disseminated throughout the economy.

While governments may impose regulations and standards related to R&D activities, this is not a primary role in promoting R&D investments.

Technology transfer refers to the process by which firms acquire new technologies and knowledge developed through R&D.

Knowledge spillover can lead to free riding by other firms and increased competition, but it does not guarantee success or profitability.

University-industry collaboration refers to the process by which firms collaborate with universities and research institutions to conduct R&D activities.

University-industry collaboration typically leads to increased job opportunities, rather than diminished ones.

Imitative innovation refers to the phenomenon where firms invest in R&D activities to imitate or improve upon the products and services of their competitors.