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I will focus on one important component of innovation policy: government support for R&D. The economic arguments for government support of innovation generally imply that governments should focus particularly on fostering basic, or foundational, research. Economic policy affects innovation and long-run economic growth in many ways. Indeed, some economists have argued that because of the potentially high social return to basic research, expanded government support for R&D could, over time, significantly boost economic growth. This research suggests that technological progress and the accumulation of intangible capital have together accounted for well over half of the increase in output per hour in the United States during the past several decades. Similarly, I don't give too much thought to the multitude of provisions for sharing revenues from foreign translations, from selling the rights to produce my books as stage plays and movies (yep, those provisions are in the contracts), etc. There are other things I care about more than those things, so I leave my editor alone on those topics and save my political capital for other matters. Certainly there have been disappointments; for example, the surge in federal investment in energy technology research in the 1970s, a response to the energy crisis of that decade, achieved less than its initiators hoped.
SRC:MixSentence, IDs:6A61B579;F8FC3409;48263096;4BCDBA06;6F620AFD;4F45A2FE;61585BF1;102124F4;9E236019;226B4CE6;12AE9F64;0E3D6250;232D6C6D;D70F9551;E2103668;B818CE07;183CDF30;5E804A06;19616DB7;00C312E8;8AA5A084;07405E10;5B7C9030;723A698E;60570297;938FB7EA;C5FF299B;63624C40;BACBF0FD;DCA74BA0;451E5718;9E8834C4;E73F66B8;AF24C528;1BB88423;33F4E1AB;3F3E5ECC;FCA73D64;2271CE72;1CB5D976;4001EF39;31FB9E5A;A363888D;DDF36E88;3AD5669B;45417567;59BFF157;62457DA4;1862EB87 Compression: Audio and video works when converted to full-resolution digital form comprise vast amounts of data. These advances include the following: Digital Copying: Analog copies of audio and video works degrade in quality with each generation. REGIONAL PLAYBACK CONTROL FOR DVD VIDEO Introduction1 Advances in both analog and digital technology offer content owners new opportunities for distributing their works and offer consumers new means for receiving and enjoying these works.2 Such advances, however, also pose a serious challenge: how can works be protected in a world where: (i) duplication is easy and inexpensive, (ii) every copy made (whether from the original or another copy) is perfect, and (iii) distribution to users around the world can be accomplished virtually cost-free and immediately over the Internet? These vast advances in compression technology mean that it will become increasingly easier, faster and more convenient to transmit full-length high quality audio and video works over networks such as the Internet.
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