Moonshot: Public R&D and Growth
Working Paper 31471
DOI 10.3386/w31471
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We estimate the long-term effect of public R&D on growth in manufacturing by analyzing new data from the Cold War era Space Race. We develop a novel empirical strategy that leverages US-Soviet rivalry in space technology to isolate windfall R&D spending. Our results demonstrate that public R&D conducted by NASA contractors increased manufacturing value added, employment, and capital accumulation in space related sectors. While migration responses were important, they were not sufficient to generate a wedge between local and national effects. The iconic Moonshot R&D program had only modest economic effects for both the local and national space-related sectors.
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Copy CitationShawn Kantor and Alexander T. Whalley, "Moonshot: Public R&D and Growth," NBER Working Paper 31471 (2023), https://doi.org/10.3386/w31471.
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