In other words (and this ties in with my comments on the HTML subthread), technological progress is largely demand-driven. If you want progress you have to create demand for advanced technology. You can choose the form your keynesian stimulus will take: will it be bis science or big guns? And other public spending is also in the same category? Do you want to drive development of medical treatment? Improvements in construction techniques and materials? Improvements in transportation technology? Energy technology? The way to do this is to publicly fund projects which push the boundaries of what's possible. The private sector could do this, too, but they can't afford the solvency risk of sinking money into failed research. The public sector can. It's just a matter of priorities.

We have met the enemy, and he is us — Pogo