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Why Do We Have to "Innovate"?

In Innovation Policy + Deficit Reduction = Politics As Usual? I described some of the policy debates concerning the appropriate role of the Federal government in promoting the types of innovation that can eventually simulate the U.S. economy and U.S. employment. There are many different practical, political, and philosophical issues involved in these debates that seem, to me, to boil down to basic and longstanding disagreements about the roles of the Federal government and the private sector.