1 The Economics of Science Paula E. Stephan* Georgia State University and NBER pstephan@gsu.edu Prepared for the Handbook of Economics of Technical Change Bronwyn H. Hall and Nathan Rosenberg, editors Do not quote without author’s permission August 2007 © 2007 by Paula E. Stephan. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. *This chapter draws in part from Stephan (1996). The author would like to thank William Amis, Wesley Cohen and Fiona Murray for their comments. Kelly Wilkin provided research assistance. Work on this chapter was begun while the author was a Wertheim Fellow at Harvard University, spring 2007.