Question

How does profit motive affect innovation and economic productivity?

Answer 1

Profit motive positively affect innovation and economic productivity.

It is so because profit motive is to earn more profit, which many ways,such as increase the price of the product, increases the quantity of sale or to decrease the cost of production.

So, Profit motive derive individuals and businesses to make decisions to improve their material well-being.

Profit motive increases innovations as from innovations, the sale increases also cost falls.

Also it improves economic productivity because the  individuals and businesses will reduce cost by increasing the productivity or efficiency.