ABSTRACT

Therelationshipoffederally-financedR&Dtoproductivitygrowth isnotindependentofitsrelationshipwithprivateR&D, andisperhapsnotevendirect.BeginningwithBlankandStigler [30),therehasbeenadebateregardingcomplementarity("pumppriming")vs.substitutioneffectsbetweenprivateandfederalU.S. R&D.Whilemuchempiricalevidencesuggestsacomplementarity relationship,Lichtenberg[191]isskeptical.Hecontendsthatthese resultsstemfromanerrorsinvariableproblems.64