ABSTRACT
For the US economy to continue to experience historical rates of productivity growth, the future performance of the service sector will be critical. Productivity growth is associated with applying resources to inventive and innovative initiatives as measured by spending on R&D. These expenditures, which currently represent only a few percentage points of GDP, support both basic research and applied research, which includes research into new specialized products for sale to industries and into the development of processes and process improvements internal to the innovating organization.
