Positive externalities in Production A technology spillover is a type of positive externality that exists when a firm's innovation or design not only benefits the firm, but enters societys pool of technological knowledge and benefits society as a whole. H arc Inc items and derived items copyright o 2001 by Harcourt, IncHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Positive Externalities in Production A technology spillover is a type of positive externality that exists when a firm’s innovation or design not only benefits the firm, but enters society’s pool of technological knowledge and benefits society as a whole