Science and technology policy are even more
important in the “new” economy, with its greater
emphasis on the role of intellectual property and
knowledge transfer. Thus, it is unfortunate that
most individuals rarely have the opportunity to
study this subject. As a result, the general public
poorly understands the antecedents and consequences
of technological change.
It is clear in the report that most Americans
are not well-informed about public policy issues
relating to science and technology. As shown in
Table I, individuals rank science and technology
policy issues relatively high in terms of interest,
yet noticeably lower in terms of their self-assessed
knowledge about the issues. However, it is precisely
these issues that may be most critical in
determining long-run economic growth.
The purpose of this paper is to provide an
overview of salient topics in the economics of
science and technology. We devote considerable
attention to historical and institutional information
concerning these issues, because we believe
that an understanding of the current situation
depends to a large extent on an understanding of
how this literature and the institutions that support
science and technology evolved.1
The remainder of this paper is organized as
follows. Section 2 provides some initial definitions.
In Section 3, we summarize major public
policy initiatives toward science and technology
in the United States from the colonial period
to the present. Our up-front emphasis on policy
underscores the subtlety of partnerships involving
the public and private sectors that have emerged