Who Pays for America’s Research and Development?

Source: War on the Rocks

When the Soviet Union launched Sputnik in 1957, the U.S. government was the unrivaled patron of American science. It funded nearly two-thirds of the nation’s research and development — much of it for defense — defining the early Cold War. In a phenomenon that’s been widely explored in our Arsenal of Innovation series, for several decades federal dollars pushed the technological frontier, and the private sector followed.Today, that arrangement has been inverted. Industry now funds roughly three-quarters of U.S. research and development, while Washington’s share is less than a fifth. Because the cutting edge increasingly emerges from commercial labs, the


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