This article examines the effects of different government expenditures for R&D on private R&D spending and on private sector productivity. Results are consistent with the hypothesis that $1.00 of government contract R&D performed in industry induced about $.27 of private R&D expenditure. Weak indications are obtained that government-funded R&D done in government and in universities also influenced private R&D positively. Overhead reimbursement of government contractors for R&D, however, apparently reduced private R&D outlays. A positive effect of the stock of government contract R&D on private sector productivity is estimated, but it is smaller and statistically weaker than the effect of private R&D capital.
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Volume (Year): 14 (1983) Issue (Month): 2 (Autumn) Pages: 551-561 Download reference. The following formats are available: HTML
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