"If the government and other nonprofit institutions are to compensate for the underallocation of resources to invention by private enterprise, two problems arise: how shall the amount of resources devoted to invention be determined, and how shall efficiency in their use be encouraged? These problems arise whenever the government finds it necessary to engage in economic activities because indivisibilities prevent the private economy from performing adequately (highways, bridges, reclamation projects, for example), but the determination of the relative magnitudes is even more difficult here."
January 1, 1970
https://en.wikiquote.org/wiki/Kenneth_Arrow