Government's Role in Innovation Book

	List of Figures
	List of Tables
	Acknowledgements
Ch. 1	Defining Government's Role in Innovation	1
Ch. 2	The Influence of Federally-Financed R&D	13
	History of Federal R&D Support	13
	The Effect on Private R&D	15
	The Effect on Productivity Growth	15
Ch. 3	The Production of Technical Knowledge	19
	Theoretical Framework	21
	R&D Production Processes	21
	Decisionmaking With No Governmental R&D Allocation	29
	Decisionmaking With a Governmental R&D Allocation	35
	Empirical Evidence	41
	Descriptive Analysis	41
	The Empirical Model	44
	The Empirical Results	47
	Conclusions	49
	Appendix:Government as a Risk-Averse Bureaucrat	55
	Governmental R&D Conducted In-House	56
	Contracting with a Risk-Neutral Firm	60
	Contracting with a Risk-Averse Firm	67
	Conclusions	68
Ch. 4	Investments in Infratechnology Research	73
	Investments in Infratechnology	74
	Investments by Federal Laboratories	74
	Investments by Industrial Laboratories	75
	Infratechnology and Productivity	76
	Conclusions	80
Ch. 5	Economic Impact of Federal Investments in Infratechnology	83
	Evaluating Infratechnology Research	84
	NIST's Investments to Implement Standards for Optical Fiber	87
	The Optical Fiber Industry	87
	Implementing Optical Fiber Standards	93
	Estimating the Economic Impacts of NIST-Supported Standards	98
	Implications of the Findings	103
	NIST's Research Program on Electromigration Characterization	106
	Electromigration Characterization	106
	The U.S. Semiconductor Industry	110
	Estimating the Economic Impact of Electromigration Research	113
	Implications of the Findings	118
	Conclusions	120
Ch. 6	The Impact of External Research Relationships	127
	Description of the Data	128
	External Research Relationships	131
	University-Based Research Programs	131
	State-Funded Science and Technology Center Research Programs	136
	Empirical Analysis	143
	Explaining Utilization of External Research	143
	External Research Relationships and the Size Elasticity of R&D	144
	External Research Relationships and the Efficiency of R&D	147
	Conclusions	148
Ch. 7	Policy Initiatives to Support Innovation	153
	The Research and Development Tax Credit	154
	Tax Incentives as a Policy Tool	154
	Tax Policies Affecting R&D	159
	Effectiveness of the R&E Tax Credit	164
	Conclusions	166
Ch. 8	Restating Government's Role in Innovation	171
	References	175