Government R&D Funding and Company Behaviour

How does government funding of business R&D affect the behaviour of firms?  Ongoing efforts to boost business investment in R&D demand better methods of evaluating the effectiveness of government policy instruments. Evaluations should investigate not only how much additional business R&D spending is stimulated by government support or how much additional output is generated as a result, but also how government funding influences the conduct and direction of business R&D. Do