It is argued that high-tech industries typically generate new technolo

It is argued that high-tech industries typically generate new technologies but cannot fully appropriate the commercial benefits associated with their inventions or discoveries.

If this is true then in order to maximize a country’s real income, the government should A) tax the high-tech firms.
B) subsidize the high-tech firms.
C) protect the high-tech firms.
D) outsource high-tech production.
E) discourage high-tech investments.

ANSWER

B