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Should the Government Subsidize Supply or Demand in the Market for Scientists and Engineers?

Paul M. Romer
Stanford Graduate School of Business; National Bureau of Economic Research (NBER)


June 2000

NBER Working Paper No. W7723

Abstract:     
This paper suggests that innovation policy in the United States has erred by subsidizing the private sector demand for scientists and engineers without asking whether the educational system provides that supply response necessary for these subsidies to work. It suggests that the existing institutional arrangements in higher education limit this supply response. To illustrate the path not taken, the paper considers specific programs that could increase the numbers of scientists and engineers available to the private sector.

JEL Classifications: O3

Working Paper Series

Date posted: May 30, 2000 ; Last revised: February 08, 2002

Suggested Citation

Romer, Paul M., Should the Government Subsidize Supply or Demand in the Market for Scientists and Engineers? (June 2000). NBER Working Paper No. W7723. Available at SSRN: http://ssrn.com/abstract=230163


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Contact Information

Paul M. Romer (Contact Author)
Stanford Graduate School of Business ( email )
L235 Littlefield
Stanford, CA 94305-5015
United States
650-723-3025 (Phone)
650-725-9932 (Fax)

National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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Citations: 13

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