One of the Important Points of Criticism of Industrial Policy

question 41

Multiple Choice

One of the important points of criticism of industrial policy is that:

• A)it can lead to stiff competition among the domestic firms in an economy.
• B)small domestic firms will not be able to survive economic clustering.
• C)government sponsored research will end up benefitting foreign countries.
• D)it can prohibit regional innovations.
• E)the knowhow in one firm will not spill over to other firms in an economy.

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Definitions:

Organizations

Social inventions for accomplishing common goals through group effort.

Diffusion

The manner in which a novel concept is transmitted across designated networks over time within a community.

Process Innovations

Improvements or significant changes in the methods or procedures by which goods and services are produced or delivered.

Diffusion

A method where a new idea is spread via specific pathways over a period among individuals within a societal structure.