Conservative economists often criticize government involvement in private markets, arguing that at best it is inefficient and at worst is counterproductive. However, even the great conservative economist Milton Friedman often pointed out that government intervention is necessary when markets fail to allocate resources efficiently.
Even the most conservative economists should support the Small Business Innovation Research (SBIR) program – a scheme in which 11 federal agencies with external research and development budgets of more than $100 million must allocate 2.8 percent of those budgets to grants or contracts with small businesses undertaking projects that both have commercial potential and meet the R&D goals of the funding agency.
