Economic rationale of science policy in the federal establishment

The methodology utilized is the institutional approach. Science policy and the place of economics within science policy is examined. In the process the historical interrelation of science with technology is considered and emphasis is placed on the change in that relationship during recent times. The contact of science and technology with the Federal Government is reviewed particularly as it concerns the early shaping of that relationship. In searching for a basis for economic rationale cost-benefit analysis itself is examined as well as its role in the federal budget. The distinctly different economic nature of research and development vis-a-vis production theory is considered and an attempt is made to determine if R & D allocations are internally consistent with values made manifest through the democratic process. It is concluded that resource allocations to R & D are rational, and increasingly so. A model suggests the Federal Government's more effective pursuit of the goal Economic Growth through allocation of resources to civilian R & D.