I'm not the only one who believes so. I believe I would disagree with almost every thing that author Russel Korobkin states in his book Stem Cell Century, but even he agrees that this line of reasoning is mistaken. Guest blogging at the Volokh Conspiracy, he says this about the economic estimates from destructive ESCR:
How much of a return will the investment provide for New Jersey? To say the answer is uncertain would be an understatement. The projections that have been published ($2 billion is bandied about by supporters of the bill) are hardly better than wild guesses. Direct tax revenues and potential revenue-sharing from the developers of blockbuster inventions will return only a small portion of the expenditure to state coffers.