fundamental characteristic of innovation. These
are common issues that all technologies face, and
there are various frictions. Misaligned economic
incentives between investors and society give
rise to additional issues. This occurs most
prominently when externalities exist. Whenever
an innovation has a positive externality that
benefits a third party or creates a common good,
it is unlikely that it will be fully appreciated by
the private sector, as the social gains cannot be
Table 2 The chosen case studies cover a range of interventions and learnings
Source Vivid Economics
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S. Zifeng and N. Dickens