Investing in Technological Innovation
ADVANCES IN TECHNOLOGY, we have seen, are a principal driving force leading to economic growth and increased standards of material well-being. They do not for the most part come like manna from heaven, but must be sought through deliberate activity--activity typically motivated by the anticipation of economic gain. To achieve technological advances, investments must be made in research, development, testing, and dissemination or marketing. The financial investments in turn support another crucial input--skilled creative talent or, in the vernacular of economics, human capital.
When individuals and private-sector enterprises make investments, they do so in the expectation of eventual profit returns that repay with interest the amounts committed. Here we encounter