for example if a private firm cannot fully capitalise on their discoveries either in terms of turning the knowledge into a profitmaking product or in terms of protecting competitors from benefitting from the discovery then there is less incentive for it to invest in rd the uncertainty in rd generating results can also be a hairier for private actors to invest in research eg relating to basic research in terms of icts development there is less incentive to invest in broadband development in rural areas simply because of the high costs in connecting villages over larger distance with low population density in these cases governments need to step in with regulation legislation or direct or indirect financing eg through tax incentives subsidies or directly funding projects the fluctuations are due to the volatility of nonconcessional finance