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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)

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.

Suggested Citation

  • Paul A. David, 2005. "FROM MARKET MAGIC TO CALYPSO SCIENCE POLICY A Review of Terence Kealey's The Economic Laws of Scientific Research," Development and Comp Systems 0502013, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpdc:0502013
    Note: Type of Document - pdf; pages: 48
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    References listed on IDEAS

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    Cited by:

    1. Salter, Ammon J. & Martin, Ben R., 2001. "The economic benefits of publicly funded basic research: a critical review," Research Policy, Elsevier, vol. 30(3), pages 509-532, March.
    2. Antonelli, Cristiano, 2002. "The Governance of Knowledge Commons," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200203, University of Turin.
    3. David, Paul A. & Hall, Bronwyn H., 2000. "Heart of darkness: modeling public-private funding interactions inside the R&D black box," Research Policy, Elsevier, vol. 29(9), pages 1165-1183, December.
    4. Ugo Rizzo & Nicolò Barbieri & Laura Ramaciotti & Demian Iannantuono, 2020. "The division of labour between academia and industry for the generation of radical inventions," The Journal of Technology Transfer, Springer, vol. 45(2), pages 393-413, April.
    5. Archibugi, Daniele & Filippetti, Andrea, 2018. "The retreat of public research and its adverse consequences on innovation," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 97-111.
    6. 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.
    7. Cowan, Robin & David, Paul A & Foray, Dominique, 2000. "The Explicit Economics of Knowledge Codification and Tacitness," Industrial and Corporate Change, Oxford University Press, vol. 9(2), pages 211-253, June.
    8. Klette, Tor Jakob & Moen, Jarle & Griliches, Zvi, 2000. "Do subsidies to commercial R&D reduce market failures? Microeconometric evaluation studies1," Research Policy, Elsevier, vol. 29(4-5), pages 471-495, April.
    9. Heidrun C. Hoppe & Wilhelm Pfähler, 2001. "Ökonomie der Grundlagenforschung und Wissenschaftspolitik," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 2(2), pages 125-144, May.
    10. Andreas Fier & Dietmar Harhoff, 2002. "Die Evolution der bundesdeutschen Forschungs– und Technologiepolitik: Rückblick und Bestandsaufnahme," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 3(3), pages 279-301, August.
    11. Daniele Archibugi & Andrea Filippetti, 2016. "(English) The Retreat of Public Research and its Adverse Consequences on Innovation (Italiano) I cambiamenti nella ricerca pubblica e le conseguenze avverse sull’innovazione," IRPPS Working Papers 94:2016, National Research Council, Institute for Research on Population and Social Policies.
    12. Cristiano Antonelli, 2004. "The Governance of Localized Technological Knowledge and the Evolution of Intellectual Property Rights," Chapters, in: Enrico Colombatto (ed.), The Elgar Companion to the Economics of Property Rights, chapter 19, Edward Elgar Publishing.
    13. Paul A. David & Bronwyn H. Hall, "undated". "Heart of Darkness: Public-Private Interactions Inside the R&D Black Box," Working Papers 99024, Stanford University, Department of Economics.
    14. Nicola Lacetera, 2003. "Incentives and spillovers in R&D activities: an agency-theoretic analysis of industry-university relations," Microeconomics 0312004, University Library of Munich, Germany.
    15. Nightingale, Paul, 1998. "A cognitive model of innovation," Research Policy, Elsevier, vol. 27(7), pages 689-709, November.
    16. Pavitt, Keith, 1998. "The social shaping of the national science base," Research Policy, Elsevier, vol. 27(8), pages 793-805, December.

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

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