John Rae emigrated from Britain to Canada in the nineteenth century. In Chapter 1 of his book “New Principles on the Subject of Political Economy” (1834) he reaches the following conclusions about the role of government in improving productivity and adding to the “Wealth of Nations” (NB: What Rae calls “art” we would now call “technology”):

In the following cases it would at least seem not improbable, that the power of the legislator so directed, might be beneficial.

I. In promoting the progress of science.

II. In promoting the progress of art.

1. By encouraging the discovery of new arts.

2. By encouraging the discovery of improvements in the arts already practised in the country .

3. By encouraging the discovery of methods of adapting arts, already practised in other countries to the particular circumstances of the territory and community for which he legislates.

In the attainment of all these objects, the aid of the inventive faculty is required. Our judgment of their propriety or impropriety, as far as this is determined by their direct tendency to promote the wealth of the community, would seem to depend on two circumstances.

1. On the probability of their success, and of this success enabling the industry of its members to acquire with increased facility some of the necessaries, conveniences, or amusements of life, the capacity for producing which, measures the general revenue and riches.

2. On the probability of the future wealth to be derived from this new source, being sufficient to repay the expenditure of present wealth necessary to open it up.

Notice that Rae tells us that private incentives to innovate depend ultimately on the fertility and appropriability of research. Plus ça change….