Getting better value from public sector research ... - CentreForum

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Getting better value from Public Sector Research Establishments : Key findings CentreForum has undertaken a research project, based on case studies, looking at the performance of the UK’s Public Sector Research establishments (PSREs) of which: : : : : : : 10 remain in public ownership (£2.3 billion annual government expenditure and 20,000 staff) 7 laboratories are Government Owned Government Operated (£1.3 billion p.a. and 14,000 staff) 3 laboratories are Government Owned Contractor Operated (£1 billion p.a. and 6,000 staff) 7 organisations were privatised (£2 billion per annum turnover and 14,000 staff) 3 are non profit distributing (£0.1 billion p.a. and 1,000 staff) 4 are profit distributing (£1.9 billion p.a. and 13,000) We conclude that: : : the main difference in performance between the organisations was financial and organisational. One of the Government Owned Government Operated labs (Forensic Science Service) has made significant losses in a very competitive market, and will close in 2012. Some of the privatised organisations, such as LGC and QinetiQ, have grown strongly and profitably since privatisation the success of some of the privatised organisations, and to some extent that of the contractorised laboratories,
Getting better value from Public Sector Research Establishments : : : : directly resulted from the removal of public sector operating constraints, including slow decision making, adverse culture, high overheads and lack of access to capital removing these constraints would yield value for money benefits and savings, although some activities need to remain in the public sector for reasons of security and the need for impartiality privatised labs were particularly effective in employing technology transfer at the heart of their business models to drive profitable growth and increase employment there was evidence that some former public sector scientists were positive and enthusiastic about furthering their careers in the private sector clarity about the scientific/technical advice and services government needs from PSREs is key to getting the best performance from them, but has not always been present There is clearly the potential to free more PSREs from public sector operating constraints to get better value and save money. Given the squeeze on public spending - and the desire to promote technology transfer and innovation to help economic growth - now is the moment to reopen the question of the appropriate status of publicly owned PSREs.
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