The purpose of this submission is to offer economic arguments in favour ofgovernmental support of science and innovation. The submission here reflectsthe latest economic research on the impacts of science and innovation as wellas the structure of the institutions that favour it. It is intended more as a guideto key issues in the latest literature as opposed to a comprehensive re-statement of findings there. My purpose here is to identify issues and trade-offs rather than resolve them completely.There are three important conclusions that can be drawn from recent research:
(Science & Innovation)
Arguments for science based on the‘linear model’ of the production of innovation are false and alsolead to inadequate arguments for the public support of science.Instead, recognising the deeper linkages between pure scientificresearch and technological innovation gives a clearer andsubtler picture for support and how that support is bestachieved.
(Innovation & Growth)
There is a significant econometricrelationship between domestic expenditure on R&D andeconomic growth in Australia.
(Support & Science and Innovation)
Public decision-variablesare a key driver of national innovative capacity.In each of these cases, the argument is based on empirical findings and notmere conjecture or theorising. It is those findings that I will highlight in thissubmission.The outline of this submission is as follows and is structured with the abovethree conclusions in mind. Section 2 considers economic arguments forscience while Section 3 considers economic arguments for domesticinnovation. Section 4 looks at the drivers of national innovative capacity. Afinal section concludes.