The applied research built on this basic research ultimately yields productivity gains far into the future.6 Consequently, the decline in government-funded R&D is disturbing. 3/8  BIS central bankers' speeches  To raise productivity and economic well-being, firms must adopt innovations that emerge from R&D as quickly as possible.
But an equally important observation is that we do have the infrastructure that could support a strong and very active bond market in times of stress or inadequate competition. In this way, this infrastructure provides a form of insurance.