Is research a waste of taxpayers’ money?
The answer to the question is ‘no’, by the way, but there is no shortage of people who will claim otherwise. There appears to be a particular tendency for Irish economists (or at least some of them) to play down the economic impact of research. The tone for this was set by the ‘Special Group on Public Service Numbers and Expenditure Programmes’ (‘An Bord Snip Nua’, chaired by UCD economist Colm McCarthy). Its report in 2009 stated:
‘Research and development (R&D) funding for the third level sector is provided through the Programme for Research in Third-Level Institutions (PRTLI) and the research councils… In general, the Group is strongly of the view that substantial reductions in funding are warranted given the significant amounts invested to date, the lack of verifiable economic benefits resulting from these investments and the inflationary impact of funding on research and administration salaries.’
More recently Michael Hennigan, founder of website Finfacts, wrote the following:
‘Minister Batt O’Keeffe said this week that nearly half of the new projects won in 2010 by IDA Ireland, the inward investment agency, were research and development-based. This claim cannot be relied on as it could range from little to a lot! No detailed information is available. Foreign-owned companies are responsible for about 90% of Ireland’s tradeable goods and services exports and it is believed that very little original research is done in Ireland.’
This follows a fairly frequent pattern of commentators claiming that there is no evidence to support the view that research has a positive economic impact, when in fact such evidence is freely available; just because someone doesn’t look for evidence doesn’t mean it isn’t there. Also, when Hennigan says that ‘it is believed’ that little research is done in Ireland, this is a particularly inappropriate way of backing an argument. ‘Believed’ by whom? What kind of evidence is that? In this case the IDA regularly publishes information confirming the significance of R&D to foreign direct investment. Most recently the IDA has announced that, in 2010, over €500 million was invested by foreign companies in R&D in Ireland, and the volume and significance of original research done here is regularly set out by the various national agencies.
Ireland’s ability to escape from the recession and to build up its economy depends critically on a successful national research programme, allowing the country to be identified as a centre of excellence in a selected number of key areas. This will not only help to secure much of the inward investment which we can now attract, but it will also be the key to a significant proportion of indigenous entrepreneurship.
Funding the national research programme is not an easy decision, given the competing calls on the country’s scarce resources. But that is where our future lies – not particularly because these research projects will themselves create many jobs, but because they will create the conditions in which others will do so. A debate on whether investment in research is money well spent is perfectly legitimate, but contributors to that debate would do well to get their facts straight first.