The article examines the impact of U.S. government R&D appropriations on innovation and productivity, revealing that increases in nondefense R&D funding significantly boost innovative activity and long-term business productivity. It estimates returns on government R&D investments to be between 140 to 210 percent, highlighting that such funding has contributed to roughly one-fifth of total factor productivity growth in the business sector since World War II, suggesting a need for increased investment in nondefense R&D.