According to the endogenous growth model, public sector spending on basic research may:

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The endogenous growth model suggests that public sector spending on basic research may have long-term benefits to society by increasing the productivity and efficiency of the private sector. This is because public sector research can lead to new technological advancements, which can be utilized by private firms to improve their production processes and create new products. Therefore, public sector spending on basic research is considered to have a positive impact on economic growth and development in the long term.

According to the Endogenous Growth Model, Public Sector Spending on Basic