This paper has four major objectives. The first is to emphasize the fundamental but mostly overlooked role of instrumentation and experimental technique in linking basic and applied research. The second is to provide an overview of the major economic effects of basic research investments. The third is to discuss reasons for public provision and support of basic research. And the fourth aim is to argue in favour of a reorientation of science policy towards the support of instrumentation and education in experimental laboratories. Copyright Verein fü Socialpolitik und Blackwell Publishers Ltd 2001
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