A mathematical model of applied research is formulated. It views applied research as a search in a given distribution; basic research shifts the distribution searched. The productivity of applied research effort is a function of the gap between technology in practice and basic knowledge. With constant basic and applied research a (stochastic) steady state emerges in which technological change is determined by the rate of progress of basic knowledge, and the technological gap by the level of applied research.
No takes yet. Share an insight, caveat, or question.
Evenson et al. (1976) studied this question.
Synapse has enriched one closely related paper. Consider it for comparative context: