bring new ideas and new technologies to the marketplace.39 Government procurement and awards are especially powerful in the development of new technologies to fulfill national missions in defense, health, and the environment.40 Collectively, these public policies have played and continue to play a central role in the development of the modern economy. The collective contributions of these technologies, especially information technology, are contributing to structural change in the U.S. economy.

Adapted from National Research Council, Measuring and Sustaining the New Economy, D. Jorgenson and C. Wessner, eds., Washington, D.C.: National Academy Press, 2002.


In addition to government-funded research, intellectual property protection plays an essential role in the continued development of the biotechnology industry. See Wesley M. Cohen and John Walsh, “Public Research, Patents and Implications for Industrial R&D in the Drug, Biotechnology, Semiconductor and Computer Industries” in National Research Council, Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies, op. cit.


For example, government support played a critical role in the early development of computers. See Kenneth Flamm, Creating the Computer, Washington, D.C.: Brookings, 1988. The Committee’s study of public-private partnerships has not systematically explored the important role of government procurement.

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