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Government's Role in Innovation (Hardcover, 1992 ed.)
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Government's Role in Innovation (Hardcover, 1992 ed.)
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Inadequate investment in innovation is particularly costly in
today's globally competitive environment where continued
technological advancements are critical to sustaining economic
prosperity. The government has a critical role in ensuring that
society's general interest in innovation, and the public good
associated with innovation, is represented in private-sector
decision making. This can be accomplished through a variety of
programs and initiatives that reward innovation at all levels. The
various activities that make this possible fall into two general
categories: (1) the creation and maintenance of a legal environment
that encourages private sector investment in innovation (patents
and the relaxation of antitrust); and (2) the provision of
incentives to overcome the natural inclination of private parties
to consider only their private benefits when choosing the level of
innovation in which to invest (governmental grants and contracts to
targeted tax incentives). The role of government, more
specifically, can be found in three key areas: (1) funding of
research and development performed in the private sector; (2)
funding of Federal laboratory research activities and the effective
transfer of that knowledge to the private sector; and (3)
encouraging the industry-university collaboration in research and
development. It is these three areas of research that generate
technologies fundamental to increasing the rate of technological
development in the private sector, and it is these areas that are
the focus of this book.
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