Unlocking the Secrets of Technology Appropriability

When would a technology have moderate appropriability?

When cost of replication is low and intellectual property protection is tight

When cost of production is high and intellectual property protection is tight

When cost of production is low and intellectual property protection is tight

When cost of replication is high and intellectual property protection is tight

Answer:

A technology would have moderate appropriability when the cost of production is low and intellectual property protection is tight.

When the cost of replication is high, it becomes a barrier for others to reproduce the technology. This could be due to complex manufacturing processes, expensive materials, or specialized equipment required for production. As a result, potential competitors may be deterred from attempting to replicate the technology.

Additionally, when intellectual property protection is tight, there are legal mechanisms in place to prevent unauthorized use or copying of the technology. This can include patents, copyrights, trademarks, or trade secrets. These protections create a legal framework that discourages others from infringing on the intellectual property rights associated with the technology.

By having both high replication costs and tight intellectual property protection, the technology becomes less accessible to potential competitors, making it more difficult for them to benefit from the technology without proper authorization or licensing. This moderate appropriability can provide the technology owner with a competitive advantage and potentially allow them to capitalize on their innovation.