Positive Spillovers

This lecture discusses positive spillovers, where the benefits of an innovation extend beyond the innovative firm to benefit society. It explores how innovation generates value beyond the market, leading to larger impacts. The lecture also covers market spillovers, the creation of new products with substantial gains, and the role of innovation in inspiring further advancements. It delves into knowledge spillovers, the imperfections of patent systems, and the challenges in protecting intellectual property. Additionally, it examines intertemporal spillovers, the impact of general-purpose technologies on the economy, and the management of positive spillovers as a dilemma. The lecture concludes by comparing the spillover potential of soft innovations like Harry Potter with tech innovations like laptops, emphasizing the unlimited scope of tech applications.