There is no private market entity with an incentive to provide research to the public, so in this sense there is no crowding out. Providing research to the public enables the discovery of new products which would otherwise have not been created. Public research is a public good that makes our nation happier, healthier, and wealthier.
tomrod|7 months ago
Outside software technology: there is a series of papers from Grossman (going back to the 80s!) that analyzes basic versus applied research in a macroeconomic framework. Basic research _can_ be a public good, applied research can be crowded out. Combined with microeconomic research that monopolies can be dynamically efficient (investing in applied and basic R&D, like Bell Labs) and you get several examples and theories that contradict your statement that "there is no private market entity with an incentive to provide research to the public."
Another real world example in hardware that contradicts this claim is the evolution of building control systems. Before the advent of IOT, so, circa 1980s - 2010s, you saw increasing sharing and harmonization of competing electronics standards because it turned out to be more efficient to be modular, not have to re-hire subcontractors at exorbitant rates to maintain or replace components that go haywire, etc.
edwardbernays|7 months ago
Economic analysis? Another intelligence product that requires essentially no staff, no actual R&D, no equipment besides computers? Brother, you have to be kidding me.
The hardware thing is just companies evolving to a shared standard.
Do you have even a little bit of a clue how hard it is to do good pharmacological research? Toxicological? Biological? Chemical? Physical? You have mentioned intelligence products with 0 investment cost and 0 risk of failure.
This is perhaps one of the most fart-sniffing tech-centric perspectives I have ever been exposed to. Go read some actual research by actual scientists and come back when you can tell me why, for instance, Eli Lilley would ever make their data or internal R&D public.
Jonas Salk did it. He is an extremely rare exception, and his incentive was public health. Notice that his incentive was markedly not financial.
Market entities with a financial incentive, whose entire business model and success is predicated on their unique R&D results, have 0 incentive to release research to the public.
ricardobeat|7 months ago
They were also forced in the 1950s to license all their innovations freely, as compensation for holding a monopoly. Which only strengthens the parent’s point that private institutions have little incentive to work for public benefit.
egberts1|7 months ago