I’m from the government, I’m here to help The case for more state spending on R&D It is a strong one HERE IS nothing new about economists arguing for more government spending on research and development ( R&D). Theoretical work done by Kenneth Arrow in the 1960s convinced his colleagues that the private sector would not on its own provide the amount of innovation that economies need to maximise their growth. Empirically the coincidence, in the 1950s, of increased government R&D spending and excellent rates of productivity and GDP growth strengthened the case further. Listen to this story