innovative economy

1. What are the possible advantages to the general welfare when firms make their technology automatically available to others (while, of course, charging a price for use of the technology)?
2. Why may it be unprofitable for a firm to spend much more on R&D than its competitors do?
3. Define the following terms:
a. Externality
b. Public good
c. Ratchet Explain the applicability of these concepts to the innovative economy.