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Government as Innovator? You Bet!

by Lee H. Hamilton

Five years ago, the federal government spent $169 billion to fund basic research and development. This fiscal year, it’s down to $134 billion.

People who believe in public belt-tightening applaud drops like that. I understand why: there are many reasons to reduce government spending. But in this case they’re wrong. We need to boost the government’s investment in R&D, not slash it.

Let’s begin with the

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