a) When we talk about innovations, the concept of appropriateness is central to economics. Explain what is meant by appropriateness and why it is important for issues related to innovations. We will now look at the development of technology for salmon farming at sea. We assume that the technology does not exist today, but must be developed with costly research and development. We further distinguish between different scenarios and ask you briefly discuss research support in each case. We assume that the state in the first place owns the sea, but can sell licenses for farming in the sea.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: Production And Growth
Section: Chapter Questions
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a) When we talk about innovations, the concept of appropriateness is central to
economics. Explain what is meant by appropriateness and why
it is important for issues related to innovations.
We will now look at the development of technology for salmon farming at sea. We assume
that the technology does not exist today, but must be developed with costly research and
development. We further distinguish between different scenarios and ask you briefly
discuss research support in each case. We assume that the state in the first place
owns the sea, but can sell licenses for farming in the sea.
b) The state has not yet sold licenses to fish at sea. Et
fish farming companies are considering developing technology to do such farming
possible. They are applying to the state for grants for technology development. Should the state
support them financially? Discuss and explain briefly.
Transcribed Image Text:a) When we talk about innovations, the concept of appropriateness is central to economics. Explain what is meant by appropriateness and why it is important for issues related to innovations. We will now look at the development of technology for salmon farming at sea. We assume that the technology does not exist today, but must be developed with costly research and development. We further distinguish between different scenarios and ask you briefly discuss research support in each case. We assume that the state in the first place owns the sea, but can sell licenses for farming in the sea. b) The state has not yet sold licenses to fish at sea. Et fish farming companies are considering developing technology to do such farming possible. They are applying to the state for grants for technology development. Should the state support them financially? Discuss and explain briefly.
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