The Color of the Money
The distribution of knowledge generates yet more knowledge, as Machlup ( 1980) has indicated. Flows ofknowledge from one party to another increase stocks of knowledge for both parties. Flow is a critical concept, and it can be tracked, as Machlup says, by "the measuring rod of money" (p. 175). To the extent that R&D converts information to knowledge, Machlup's rule of knowledge production attains at the Pentagon. The flows of knowledge follow the flows of money.