Why does the federal government fund R&D when the private sector is already investing so much in it?
Despite its relatively modest share of total U.S. R&D funding, the federal government’s role is critical to the nation’s science and technology enterprise. Federal agencies support a majority of the nation’s basic research and 58 percent of the R&D performed in U.S. colleges and universities (see Table I-8). Basic research is the primary source of the new knowledge that ultimately drives the innovation process. At the same time, federally funded research at colleges and universities plays a key role in educating the next generation of scientists and engineers. (See Chapter 3 for details of basic research in the FY 2003 budget.) Federal applied research and development programs also provide direct support for key government missions, such as improving the nation’s health and medical care, exploring space, and national security.
Related Questions
- Why should individual donors and the private sector fund university and hospital research when there is government funding such as the NIH?
- Why does the federal government fund R&D when the private sector is already investing so much in it?
- Should the federal government continue to fund private school vouchers?
