public research funding and private innovation the case of pharmaceutical industry robert a book gsb uchicago edu february 16 2004 abstract we study dynamic e ects government on sector r&d in increases grants appear to crowd out expenditures for approximately rst four years but start stimulate fth year reasonable interpretation is that direct ect basic short run applied long anecdotal data new class drugs cox 2 inhibitors support this also empirical results show no clear output i would like thank frank r lichtenberg providing me with unpublished he obtained from nih under freedom information act dennis carlton judith chevalier austan goolsbee craig clawson stephanie berg randy cohen reuben ehrlich satadru hore bob kimmel lars lefgren william f sumeet sud trost michael ward arnold zellner especially sam peltzman helpful discussions suggestions
