To the extent that countries gain from leadership in technologically vibrant industries or from local spillovers arising from inventive activity, the case for government support of R&D within a given country is stronger. On the one hand, the diffusion of scientific and technological research throughout the world potentially benefits everyone by increasing the pace of innovation globally. The technological leadership of the United States was and continues to be built in substantial part on the contributions of foreign-born scientists and engineers, both permanent immigrants and those staying in the country only for a time. Of course, the rationale for government support of R&D would be weakened if governments had consistently performed poorly in this sphere. Governments in many countries directly support scientific and technical research; for example, through grant-providing agencies (like the National Science Foundation in the United States) or through tax incentives (like the R&D tax credit). For example, technological prowess may help a country reap the financial and employment benefits of leadership in a strategic industry.
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