Final answer:
The appropriability and fertility of research can impact R&D spending. Appropriability refers to a firm's ability to capture the benefits of its research, which affects motivation to invest in R&D. Fertility refers to the ability of research to generate valuable discoveries, influencing investment in R&D.
Step-by-step explanation:
The appropriability and fertility of research can have an impact on the amount of R&D spending. Appropriability refers to the ability of a firm to capture the benefits of its research and development activities. If research outcomes can be easily imitated or copied by competitors, the firm may be less motivated to invest in R&D due to the lack of exclusivity. On the other hand, if a firm can protect its research outcomes through patents or other means, it can secure the benefits of its R&D investments and may be more willing to spend on research and development.
Fertility, in the context of research, refers to the ability of research to generate new ideas and innovations. If research is highly fertile, meaning it consistently leads to valuable discoveries and breakthroughs, firms are more likely to see a positive return on their R&D investments and may be more willing to spend on research and development. Conversely, if research is not very fertile and does not yield significant results, firms may be less motivated to invest in R&D.
Overall, the appropriability and fertility of research play important roles in shaping the amount of R&D spending by firms. If research outcomes can be protected and if research is highly productive in generating new ideas and innovations, firms are more likely to allocate resources towards R&D.