The Microeconomic Study of Development
No one disputes that the production of new knowledge — Research and Development — is crucial to economic growth and to other national goals. Understanding the Research and Development process, however, must precede the formulation of intelligent policy, which aims to set the goals and the size of a nation’s Research and Development effort, or to improve its management, or to insure that the institutions of a free economy direct resources to Research and Development in a satisfactory way. This book explores a number of distinct ways in which our understanding of the Research and Development process can be deepened.
KeywordsTechnical Change Knowledge Production Competitive Equilibrium Total Budget Good Allocation
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- 1.Notably the application of Department of Defense Directive 3200.9, “Initiation of Engineering and Operational Systems Development,” July 1, 1965.Google Scholar
- 3.The conjecture may be stated and investigated in the spirit of the models of Chap¬ter 5.Google Scholar
- 4.See Kenneth J. Arrow: The Allocation of Resources to Inventive Activity, in R. R. Nelson, ed.: The Rate and Direction of Inventive Activity: Economic and Social Factors, Princeton: Princeton University Press, 1962; R. R. Nelson: The Simple Economics of Basic Scientific Research, Journal of Political Economy, Vol. 67, No. 3, June 1959, pp. 297–306.Google Scholar
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