A mathematical model of applied research is formulated. It views applied research as a search in a given distribution; basic research shifts the distribution searched. The productivity of applied research effort is a function of the gap between technology in practice and basic knowledge. With constant basic and applied research a (stochastic) steady state emerges in which technological change is determined by the rate of progress of basic knowledge, and the technological gap by the level of applied research.

A mathematical model of applied research is formulated. It views applied research as a search in a given distribution; basic research shifts the distribution searched. The productivity of applied research effort is a function of the gap between technology in practice and basic knowledge. With constant basic and applied research a (stochastic) steady state emerges in which technological change is determined by the rate of progress of basic knowledge, and the technological gap by the level of applied research.

A measure of agricultural research output in 75 wheat- and maize-growing countries was utilized to explain increases in yield per unit land in these crops over the period 1948-68. Several alternative specifications were tried, incorporating direct contribution of indigenous research as well as "borrowing" of outside knowledge. Statistical estimates are presented and their economic implications discussed.

A household time-allocative model which explicitly takes into account the economic contribution of children in agricultural areas of less-developed countries is applied to direct-level data pertaining to the rural population of India. Joint family decisions concerning fertility and the allocation of male and female child time to schooling and work activities are examined empirically in a simultaneous equations system. The properties of the formal model are used to derive inferences from the parameter estimates with respect to the shadow price configuration influencing these joint decisions.

Industrial firms in low income countries face somewhat different incentives for investment in R&D than do firms in industrialized countries.In particular, they are at a competitive disadvantage with respect to selling technology upstream in the industrialized countries.Technology supplied from upstream industrial firms provides them with a strong incentive to purchase technology in various forms as opposed to engaging in their own R&D.In this study an econometric analysis of the decisions of Indian firms to invest in their own R&D and to purchase technology (through licensing agreements) is undertaken.These decisions are treated as being jointly determined by characteristics of Indian industries, Indian prices, and the supply of purchasable foreign technology.The study finds that industrial structure, firm size, and public and private ownership influence the mix of own R&D and technology purchase.The pool of purchasable foreign technology induces both increased adaptive R&D and technology purchase by Indian firms.-.