The Research Sector

This sector produces new ideas and receives the patent from the government for the idea it produced. It sells the patent to the intermediate sector and receives a price for it, this is the main source of revenue for the research sector. The main question is that what price it will receive for its idea. The price received by it will be the present discounted value of the profits that the intermediate firm will earn by using the patent. When an investor thinks of buying a patent, he might consider two options:
i) Buying the patent, earning profit from it, and then selling it after some time.
ii) Saving it in a bank and earning interest r.