The Socio-Economic Importance of Scientific Research To Canada

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The Socio-Economic Importance of Scientific Research to Canada Page 25© David A. Wolfe and Ammon SalterThe evidence generated by research into the ways firms use publicly available knowledgeindicates that government funding provides an importance source for expanding thetechnological opportunities open to firms. This result needs to be weighed against thesubstantial costs that firms must still expend to acquire and use this information. Publicationsrarely contain economically useful information, more often they signal the presence ofexpertise or tacit knowledge, as Hicks has suggested (1995). In this respect, governmentfunding contributes to the ability of firms to draw upon available sources of knowledge byextending their ability to contact the body of tacit knowledge signaled by the publication ofacademic papers. Public traditions of disclosure in science remain an important institutionalcondition for the public funding of science. They ensure that the opportunities for firms toaccess the knowledge and skill base in the scientific community are maintained (Dasgupta andDavid 1994).The argument presented here differs significantly from the old information–based view of thebenefits of publicly-funded research. Firms use publications to network, develop contacts, andsignal expertise. Codified knowledge is a handmaiden of tacit knowledge (Hicks 1995).Moreover, access to, and use of, this codified knowledge requires a great deal of investmentby the users. It is costly, time–consuming and difficult, yet frequently holds the key to thedevelopment of important new innovations by the firm.Skilled Graduates:Many studies of the economic benefits of publicly–funded research highlight the role of skilledgraduates as the primary benefit that flows to firms from the government’s investment inscientific research. New graduates, who have had the opportunity to participate in the conductof basic research, enter industry equipped with training, knowledge, networks and expertise.They bring to the firm a knowledge of recent scientific research, as well as an ability to solvecomplex problems, perform research, and develop ideas. The skills developed through theireducational experience with advanced instrumentation, techniques and scientific methods areextremely valuable. Students also bring with them to industry a set of qualifications, helpingset standards for knowledge in an industry.Senker suggests that graduates bring to industry an ‘attitude of the mind’ and a ‘tacit ability’ toacquire and use knowledge in a new and powerful way (1995). Nelson also notes thatacademics may teach what new industrial actors need to know, without actually doing relevantresearch for industry. Basic techniques in scientific research are often essential for a youngscientist or technologist to learn to participate in the industrial activities within the firm (1987).25
The Socio-Economic Importance of Scientific Research to Canada Page 26© David A. Wolfe and Ammon SalterGibbons and Johnston’s research in the 1970s demonstrated that students provide a form ofbenefit that flows from research funding (1974). Studies by Martin and Irvine in the 1980salso showed that students trained in basic research fields, such as radio astronomy, move intoindustry over time and make substantial contributions (1982). Our own research on the recentexperience with Ontario programs to promote international collaborative research indicates thatthe movement of doctoral and post–doctoral students into industry often provides the mosteffective method for transferring research results from the laboratory directly to industry.These benefits are often difficult to anticipate or to measure, yet the evidence collectedindicates that students bring a wide range of skills and techniques to industry. They enablefirms to increase their base of tacit knowledge and expand into new activities.Even in the most applied areas of science and technology, the transfer of students into industryis rarely a smooth process. Often firms still have to make expensive and time–consuminginvestments in the new graduates. In this sense, students come prepared to learn, but need tobe taught industrial practice. 18 Training students can be a costly activity for firms. Rarely canstudents be used immediately by firms to accumulate and expand their technologicalcompetencies. Yet, at the same time, firms also indicate that students fresh from theireducational experience bring to the firm an enthusiasm and critical approach to research anddevelopment that stimulates other members of the research team. Over the entire career of thenew hire, the skills learned in their education are valuable and often serve as a precursor to thedevelopment of more industry–related skills and knowledge that appear over time. 19There is a critical need to maintain the link between student training and government–fundedbasic research. Students provide a key transfer mechanism for the benefits of this funding bythe public sector to be channeled into industry. This provides another justification forconducting basic research and student training in the same institute. There are benefits totraining student in the same research institutes that are engaged in industry–related research(Gibbons et al. 1996). Students involved in industry–related research gain hands–onexperience with firm situations and competencies. Projects designed by, and conducted18 The style of training of scientists and technologists is an important concern of Canadian industry. Numerous reports in the so ftware inqualified software engineers. Even co-op graduates from Waterloo's world class software engineering course need extensive training befirms who hire them. Newbridge has a six-month program to train and reorientate students so that they will be m ore familiar with the co19 For example, Michael Cowpland of M itel used some theoretical concepts developed in his Master’s Thesis at Carleton to develop M iIt was only after some years in industry and more accumulated experience that such an oppo rtunity availed itself to him. This is often thindustry can be used to reassess and evaluate the results of governm ent-funded b asic research.26
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