On the efficiency of federal R&D spending: A public choice approach

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Albert N. Link, Professor (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: Technical knowledge is the product of innovation and innovation the result of R&D. If technical knowledge is considered a public good, then public sector participation should be evaluated in terms of efficiency characteristics. Generally, the supply of goods and services by the public sector is related to the division of costs among recipients and to their collective demand; however, in the case of funding among industries the incidence of cost rests primarily with society while benefits from the production of knowledge accrue to both. Consequently, if an efficient allocation of funds is to be achieved, priority should be shown to those industries generating the largest positive externality from R&D induced innovations.

Additional Information

Publication
Public Choice, 1977, 31: 129-133
Language: English
Date: 1977
Keywords
R and D, public goods, federal spending

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