To what extent is it acceptable for private companies to be involved in financing scientific research?
It is acceptable to a large extent for private companies to be involved in financing scientific research.
It is acceptable for private corporations to finance scientific research as it serves to promote growth and boost the economy, arguably more so than government-funded research.
• According to an OECD report, it was concluded that it is private sector money and not government money that turns scientific research into economic growth.
• E.g. IBM, despite no government funding, is one of the largest research institutions in the world. IBM funded the research that discovered high temperature supraconductivity
Private funding of scientific research is acceptable as their profit motive results in a more efficient allocation of resources.
• Private decision makers are better at making choices about using resources than the government as they are set to rise or fall on the backs of their decisions.
• On the other hand, the OECD report even concluded that money spent by the government is displacing more efficient public funding. Inefficient government funding of scientific research is displacing more efficient public funding.
• As the market can provide for scientific research, it is better for private companies to undertake this funding instead of the state. The state can then allocate more resources to goods and services which the market does not provide.
• Therefore, private companies’ involvement in funding scientific research is acceptable as it is encourages greater efficiency of resource use than the alternative, which is state funding.
It is also acceptable for private corporations to finance scientific research as they are likely to minimize harms to the environment in the process.
• Private industries generally spend much more time and money...
Please join StudyMode to read the full document