The basic argument behind the funding of research and development by the federal government is that

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The fundamental argument for federal funding of research and development is that basic research often yields social benefits that exceed the private benefits accruing to the firms conducting the research. This discrepancy justifies government intervention. Additionally, it's argued that private industry may not conduct an adequate amount of research and development due to various constraints, including financial ones and the inability to capture all the benefits of their research efforts.

The Basic Argument Behind the Funding of Research and Development