Perhaps the biggest hole in growth economics is its inability to properly wrestle with the problem of how to build and entertain the communities of engineering practice that have the externalities that fuel so much of economic growth. The 2% per year rate of growth of labor efficiency seen over the past century comes from somewhere, after all. If it comes from activities like R&D and science that together consume 2% of national income, that is a 60%/year net rate of return on such activities. We badly need to understand more about them: Pierre Azoulay, Erica Fuchs, Anna Goldstein, Michael Kearney: Funding Breakthrough Research: Promises and Challenges of the "ARPA Model": "The Advanced Research Projects Agency (ARPA) model for research funding has... spread...

...We propose that the key elements of the ARPA model for research funding are: organizational flexibility on an administrative level, and significant authority given to program directors to design programs, select projects and actively manage projects. We identify the ARPA model’s domain as mission-oriented research on nascent S-curves within an inefficient innovation system. Finally, we describe some of the challenges to implementing the ARPA model, and we comment on the role of ARPA in the landscape of research funding approaches...


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