Paul A. David and Bronwyn H. Hall. <BR> JEL#: H41, H42, O31, O38<BR> Keywords: R&D, public goods, crowding out, spillovers, supply of scientists and engineers.<BR> This paper is a first step toward closing the analytical gap in the extensive literature on the results of interactions between public and...

Is public R&D spending complementary and thus "additional" to private R&D spending, or does it substitute for and tend to "crowd out" private R&D? Conflicting answers are given to this question. We survey the body of available econometric evidence accumulated over the past 35 years. A framework...