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FROM MARKET MAGIC TO CALYPSO SCIENCE POLICY A Review of Terence Kealey's The Economic Laws of Scientific Research

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Paul A. David (All Souls College, Oxford & Stanford University)

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Abstract

The current reconsideration of public research funding policies in the U.S., and U.K. and other industrialized economies makes it important that policy makers and the public understand the valid economic grounds for government support of science. This review article of a book that which argues for the ending of all government support of non-military R&D, provides an occasion to take stock of what is known about the subject. The review concludes that the extreme laissez-faire science policy arguments adroitly advanced by Terrance Kealey's book are analytically without foundation, and are based upon distortions and misinterpretations of the evidence of economic history, as well as on the misuse of econometric methods. The problem is that Mr. Kealey is an engaging writer and there still is in some policy circles an audience for his message, hence to undo the damage will call for concerted and persistent efforts on the part of economists specializing in the economics of science and technology.

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File URL: http://129.3.20.41/eps/dev/papers/0502/0502013.pdf
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Paper provided by EconWPA in its series Development and Comp Systems with number 0502013.

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Length: 48 pages
Date of creation: 11 Feb 2005
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Handle: RePEc:wpa:wuwpdc:0502013

Note: Type of Document - pdf; pages: 48
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Web page: http://129.3.20.41

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O - Economic Development, Technological Change, and Growth
P - Economic Systems

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  1. Giovanni Dosi & Patrick Llerena & Mauro Sylos Labini, 2005. "Science-Technology-Industry Links and the ”European Paradox”: Some Notes on the Dynamics of Scientific and Technological Research in Europe," LEM Papers Series 2005/02, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
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  2. Paul A. David & Bronwyn H. Hall, 2000. "Heart of Darkness: Modeling Public-Private Funding Interactions Inside the R&D Black Box," NBER Working Papers 7538, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Mariani,Myriam, 1999. "Next to Production or to Technological Clusters? The Economics and Management of R&D Location," Research Memoranda 027, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  4. Nicola Lacetera, 2003. "Incentives and spillovers in R&D activities: an agency-theoretic analysis of industry-university relations," Microeconomics 0312004, EconWPA. [Downloadable!]
  5. Antonelli Cristiano, 2002. "The governance of knowledge commons," Dipartimento di Economia "S. Cognetti de Martiis" LEI & BRICK - Laboratorio di economia dell'innovazione "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo 200203, University of Turin. [Downloadable!]
  6. Fier, Andreas & Harhoff, Dietmar, 2001. "Die Evolution der bundesdeutschen Forschungs- und Technologiepolitik : Rückblick und Bestandsaufnahme," ZEW Discussion Papers 01-61, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  7. Antonelli Cristiano, 2003. "The governance of localized technological knowledge and the evolution of intellectual property rights," Dipartimento di Economia "S. Cognetti de Martiis" LEI & BRICK - Laboratorio di economia dell'innovazione "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo 200301, University of Turin. [Downloadable!]
  8. Paul A. David & Bronwyn H. Hall, . "Heart of Darkness: Public-Private Interactions Inside the R&D Black Box," Working Papers 99024, Stanford University, Department of Economics. [Downloadable!]
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  9. Robin Cowan & Paul A. David & Dominique Foray, 1999. "The Explicit Economics of Knowledge Codification and Tacitness," Working Papers 99027, Stanford University, Department of Economics. [Downloadable!]
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