WASHINGTON — Federal Reserve Chairman Ben Bernanke Monday said government spending on research and development can help boost economic growth, signaling support for policies favored by President Barack Obama.
“The primary economic rationale for a government role in R&D is that, absent such intervention, the private market would not adequately supply certain types of research,” the Fed chief noted in making the case for public research funding. But he cautioned that, given the current budgetary constraints, the U.S. needs to weigh its decisions cautiously.
Speaking at a Georgetown University conference, Bernanke noted how innovation and technological change have played a key role in lifting economic growth. He said the government could also help by trying to increase the number of U.S. students who pick science and engineering, as well as favoring immigration of skilled scientists and researchers.
Even as the U.S. struggles to put a lid on its growing public deficit, Obama has been making the case for more government spending in research and innovation to boost growth. He wants to invest more in clean energy, information technology and biomedical research.
Innovation and advances have transformed economies around the world over the past two centuries, Bernanke said.
The U.S. has witnessed many examples where federal research initiatives and government support enabled the emergence of new technologies in areas including agriculture, chemicals, health care and information technology.
