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Title: GOVERNMENT ROLE IN FOSTERING INNOVATION
Accession Number: 00376328
Record Type: Component
Availability: Find a library where document is available Abstract: The paper observes that there is a consensus among economic and business analysis that the national investment in R & D needs to be increased from current levels if future gains in productivity and the standard of living are to be ensured. Considering the uncertainty over the private sector's willingness to significantly increase R & D investment especially in areas such as hazardous material safety, the federal government may be the only significant source for much of the needed additional research funds. The reasons why the private sector underfunds R & D are discussed in the paper. It is noted that since extra costs and delays are incurred in obtaining government approval for new designs, regulated firms will underinvest in new technology. Also, new product prohibition increases the uncertainty of R & D activity and technological innovation. An example of restrictive regulation in hazardous material transportation is the use of design specifications for packaging. This paper also discusses the benefits and problems associated with conversion to performance standards. Specific areas in which the government could intervene in R & D to increase the general public welfare are difficult to define. Before specific public intervention in the R & D process can be justified, it is necessary to compare each option's prospects for remedying the market defects with the disbenefits that the option could generate. The government should evaluate the merits of technological R & D investments so that the uncertainty of estimates of public benefits and costs may be narrowed. The federal government can intervene in the R & D process in the following areas: tax policy; reputation, and direct finding. Ways of increasing private sector involvement are noted.
Supplemental Notes: Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved. This paper appeared in Transportation Research Special Report No. 197, Transportation of Hazardous Materials: Toward a National Strategy (Volume 2).
Monograph Accession #: 00376315
Corporate Authors: Transportation Research Board 500 Fifth Street, NW Authors: Prensky, SimonPagination: pp 60-62
Publication Date: 1983
Media Type: Digital/other
Features: References
(5)
TRT Terms: Uncontrolled Terms: Geographic Terms: Subject Areas: Finance; Freight Transportation; Highways; Law; Research; Safety and Human Factors; I81: Accident Statistics
Files: TRIS, TRB, ATRI
Created Date: Sep 30 1983 12:00AM
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