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This aim also meant that firms have to spend much of their accounting budget into research and development. However, these costs are inevitable as firms stand to lose if they are not innovating enough.
The government provides firms with support and helps them innovate in many ways. Some of the examples where the government helps firms to be innovative would be in terms of the many patents that the government grants to protect the innovating firms from being replicated. This in a way helps secure the firm’s revenue after they have spent millions of dollars on research and development. Other than government aid as an incentive for innovation, firms that innovate will normally be able to enjoy the early-mover advantages...
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