Science Budget

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We must first understand what the science budget is. It is split into two main categories: capital funding and resource funding. Capital funding is spent on building new scientific infrastructure to increase the productive capacity of the economy. Resource spending is in the running of facilities and to pay for the cost of research. Increasing the science budget thus would not only provide more funding for existing and future research projects but also improve the facilities and infrastructure available to scientists, allowing increased research quality. The breakdown of the current science budget can be seen in figure 3 below.
Figure 3: The science and research budget
Resource spending makes up a large proportion of the spend, which includes …show more content…

A study carried out determined that increased government funding did lead to an increase in the number of articles published, but the effect on quality is harder to measure (Siow & Payne, 2000) The number of citations offers a reasonable metric to judge the impact of a research article. The study conducted showed little change in the number of citations received, suggesting no significant improvement in the quality of research. This creates a problem as if the increased science budget merely leads to more articles that do not influence production, then it will not boost flagging UK productivity …show more content…

The scientists who created the technology that helped lead to the creation of the internet could not have imagined the effect it would have on humanity for years to come. The advent of the internet boosted productivity beyond belief, but the financiers of the research wouldn't have known its impact. Therein lies the biggest problem with the statement proposed, how are governments to know what research will have the largest impact on productivity. The time lags associated with research and its eventual entry into the market or production process is very large, creating an additional problem as we do not know to what extent was the research the cause of the increased productivity.
Insofar as boosting productivity, increasing the science budget is a good idea as it will increase the human capital of labour in the economy and allow for improvements in the quality of capital. Any positive externalities generated are just the cherry on top. But all is not well, if increasing productivity was as easy as increasing the science budget, the government would have already done it. We must consider what effect raising government spending on R&D would do to existing private R&D

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