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Explain why the government might prefer to provide incentives to private firms to do investment or research and development, rather than simply doing the spending itself?
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25 votes
25 votes
Explain why the government might prefer to provide incentives to private firms to do investment or research and development, rather than simply doing the spending itself?

User Suranga
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1 Answer

21 votes
21 votes

Answer:

One explaination I have heard is that governments are organized for stability and order, which is good, but what they're not good at is creativity and efficiency. The private sector is better at innovation and speed of execuation.

Step-by-step explanation:

This is only one possible answer of many. I would not consider this answer to be complete.

User Tonso
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