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American Economic Review 1988

The Private R&D Investment Response to Federal Design and Technical Competitions

Frank R. Lichtenberg

Abstract

It is the federal government's role to promote in research and development (RD and (2) contracting with private firms and nonprofit organizations (such as universities) to perform RD the winning firm recovered its development costs in the form of profits on the sale of the airplanes, and the losing firms did not recoup their R&D investment (Mansfield, 1971, p. 122).

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