By MATHIS WACKERNAGEL and CHAD MONFREDA
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Extra resources for Ecological Footprintsand Energy
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First, it is a public good: the stock of this form of capital is not depleted with use. This is important because it implies that the knowledge stock can be stored over time, even when it is being used. Second, it generates positive externalities in production: although the firm doing R&D obtains benefits from the knowledge acquired, others benefit too—the benefits that the firm accrues when it learns and innovates are only partly appropriated by itself. There are beneficial spillovers to the economy from the R&D process so that the social benefits of innovation exceed the private benefits to the original innovator.
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