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What is present value of innovation to the innovating firm

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Reference no: EM13874558

Suppose the gain to an innovating firm is $200,000 a year and the patent the firm obtains has a life of 20 years. The interest rate is 10%. What is the present value of innovation to the innovating firm? In a patent race, what might each firm be willing to spend on research and development?

Reference no: EM13874558

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