By Albert N. Link

Study and improvement (R and D) ends up in innovation, and innovation ends up in technological swap. Technological swap, in flip, is the first driving force of monetary progress. Public/private partnerships -- cooperative relationships between undefined, govt, and/or universities -- leverage the potency of R and D and are therefore a serious point of a nation’s innovation procedure. this article is meant for upper-level undergraduate and MBA classes similar to Economics and expertise, Economics of Innovation, and Economics of technological know-how and expertise, between others. the 1st bankruptcy introduces the idea that of public/private study partnerships besides different innovations primary to an realizing of innovation and know-how coverage. The framework chapters (2-5) set forth a controversy for the public’s function – government’s position – in innovation regularly and in public/private partnership specifically. the remainder chapters (6-14) describe a few public/private partnerships and, to the level attainable, review their social impression.

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Applied research and development activities are primarily funded by industry and performed by industry.

Basic research is defined as research that advances scientific knowledge but does not have specific immediate commercial objectives, although it may be in fields of present or potential commercial interest. Much of the scientific research that takes place at universities is basic research. Applied research is aimed at gaining the knowledge or understanding to meet a specific recognized need. Applied research includes investigations oriented to discovering new scientific knowledge that has specific commercial objectives with respect to products, processes, or services.

There are other important dimensions to the performance of industrial R&D. Approximately three-fourths of total industrial R&D is performed in manufacturing industries. The dominant manufacturing industries in terms of dollars of R&D performed are chemicals and allied products, electrical equipment (including computers), and transportation equipment. The remaining one-fourth is performed in the non-manufacturing sector, including services. Computer-related services are the leaders therein. The steep growth of R&D performed in the services is a relatively recent phenomenon.

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