Positive externality
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For example, when a company develops and commercializes new technology, other companies can also use part of that technology to create further innovation.
Therefore, in terms of research and development investment, the marginal benefit to society as a whole is greater than the marginal benefit to each individual company. As long as companies are solving the Individual Profit Maximization Problem, research and development investment is considered to be set so that the marginal cost and marginal benefit of each company are equal, and therefore the investment level is less than socially desirable.
from Direction of review of the Small and Medium-sized Enterprise Technology Innovation System (Japanese version of the SBIR system)
The basis for the research and development investment budget proposed by companies is that the marginal benefit of each company becomes the upper limit Previous companies, interviews and appearances related to oneself.icon.
It is impossible to allocate a budget above the threshold, so each company can only invest up to the limit of future economic growth.
As shown in the image of "how to implement in society in the field that I can work on for a lifetime #600ce42409c5f200000717cc", the government needs to take on the role of "invent".