Question

Suppose Turing Inc. creates the first ever solar powered cell phone battery, absorbs ambient light and converts it into electrical power. Furthermore, the battery stores excess absorbed light as an internal battery that lasts up to 10 hours in the dark. At a conference, a Turing Inc. representative presents the battery to representatives from many other companies, proclaiming the invention will revolutionize the cell phone industry. A few months later, Algos creates a solar powered cell phone battery that lasts 12 hours in the dark.

Answer 1

Answer:

This is an example of technology spillover and positive externalities.

Explanation:

Technology Spillover: The advantageous outcomes of new technological expertise on the productivity and creative capacity of other firms and nations are summoned as technology spillover.

Positive Externalities: When the consumption of goods and services leads to the benefits of other people, the term is known as positive externalities. If I become an educationist (assuming education as a good), it will help me to receive the private benefit. Besides the individual interest, I can help others to educate people.

Therefore, when Turning Inc. creates the first solar-powered cell phone battery, and it lasts up to 10 hours, it produces spillover technology.

When another company encourages to formulate technology with more lasting power, it creates a benefit for the other people as well as the technology spillover.