Externalities in Education, Scientific Knowledge and Scientific Research

Abstract

This paper explores how different activities of the State: the outcomes of education, scientific knowledge and research, and technology are interdependent with both positive and negative externalities of society and market structure. It discusses specifically the significance of education, the information wealth of a global knowledge society and the dilemma of the economics of knowledge, which, at the same time have important implications for private investment and intellectual property protections of the new knowledge. This paper aims to examine the complex interactions between the market's role and State intervention in order to achieve two goals: satisfying monetary interests and maintaining balance between technological innovation and productivity gains. Additionally, governmental policy tools play a crucial role in providing equal access to education, open-source knowledge, and research and development opportunities, which allows both society and inventors to benefit from new technology.