#5 From Science to Finance: The Quants-equence of PhDs Leaving Research

[Transcript of Episode #5]

...[2. NSF] Thank you for having us on, Camaron. Within this context, the term "quant" stands for quantitative analyst. A quant is someone who uses mathematical and statistical models to analyze financial data and develop investment strategies. They work for hedge funds, banks, and other financial institutions and use their expertise in math and programming to build models that predict market trends and opportunities.

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[3. DoE] As representatives from the Department of Education, we're concerned about the number of PhDs leaving scientific research for careers in finance. We believe that by promoting alternative career paths, such as teaching or working in industry research and development, we can encourage PhDs to pursue careers that have a broader societal impact.

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[4. SEC] We at the Securities and Exchange Commission agree with the Department of Labor that working with companies can be an effective way to promote alternative career paths. In addition, we can encourage more transparency in the financial industry by requiring companies to disclose more information about their investment strategies and the impact of their work on society. This can help PhDs make more informed decisions about the companies they choose to work for.

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[5. DoL] We believe it's crucial to ensure that PhDs can access resources and support to help them succeed in scientific research careers. This includes mentorship programs, professional development opportunities, and access to funding and resources for their research.

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[6. NIH] We at the National Institutes of Health can continue to fund research in areas that have the potential to make a significant impact on public health and society as a whole. By promoting and funding research in areas such as biotechnology, genetics, and neuroscience, we can create more opportunities for PhDs to pursue research that has the potential to improve the lives of millions of people.

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[7. Camaron] Thank you for those insights. How big of an issue is the loss of PhDs from scientific research to finance, and what are some potential reasons for this trend?

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[8. DoE] From our perspective, it's a significant issue that needs to be addressed. Many Ph. D.s are leaving scientific research for careers in finance because they perceive these careers to be more lucrative or because they feel that scientific research careers do not significantly impact society.

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[9. NSF] We agree that this is a significant issue. One potential reason for this trend is the need for more funding and resources for scientific research, making it difficult for PhDs to pursue meaningful careers in the sciences.

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[10. SEC] Another potential reason for this trend is the lack of transparency in the financial industry. PhDs can significantly impact society by working in finance because they largely influence how money is invested in the market.

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[11. DoL] We also believe that the lack of diversity in scientific research is a potential reason for this trend. Many PhDs may feel they need to be more welcome or supported in these fields, which can lead them to pursue careers in finance instead.

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[12. NIH] Another potential reason for this trend is the need for more interdisciplinary research and collaboration. Many PhDs may make a more significant impact on society by working across different scientific fields and disciplines.

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[13. Camaron] Those are all critical points. What potential solutions can these government entities pursue to address this issue?

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[14. DoE ] As the Department of Education, one potential solution is creating more opportunities for Ph.D. students to gain real-world experience in scientific research. This includes providing more internships, apprenticeships, and fellowships that allow students to work on meaningful research projects with broader societal impact. We also need to promote awareness of these opportunities to Ph.D. students so that they are aware of them and can take advantage of them.

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O [15. NSF] Building on that point, we at the National Science Foundation can also provide more funding for research projects that have the potential to make a significant impact on society. By prioritizing funding for research in renewable energy, public health, and climate change, we can create more opportunities for Ph.D. students to pursue research that positively impacts society.

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L [16. DoL] Besides these solutions, working with companies to promote alternative career paths for PhDs with broader societal impact is essential. This includes working with companies to create more opportunities for PhDs to pursue research projects that have real-world impact, as well as providing more mentorship and professional development opportunities for PhDs in these fields.

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D [17. SEC] We at the SEC also believe that we can play a role in promoting scientific research careers that have a broader societal impact. Mandating increased transparency, especially in the finance industry, gives PhDs more insight into their career choices.

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C [18. NIH] Finally, as the National Institutes of Health, we can continue to fund research in areas that have the potential to make a significant impact on public health and society as a whole. By promoting and funding research in areas such as biotechnology, genetics, and neuroscience, we can create more opportunities for Ph.D. students to pursue research that has the potential to improve the lives of millions of people.

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C [19. Camaron] Those are all great potential solutions. How can these government entities work together to address this issue and create more opportunities for Ph.D. students to pursue scientific research careers with broader societal impact?

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O [21. NSF] It's essential to continue to promote and support scientific research in fields that have the potential to make a significant impact on society. By funding research in areas such as renewable energy, biotechnology, and medical research, we can create more opportunities for Ph.D. students to pursue research that can potentially improve the lives of millions of people. In addition, we can also work with universities and research institutions to create more opportunities for students to engage in research and gain hands-on experience.

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K [22. DoE] I agree with the National Science Foundation. Providing more opportunities for students to engage in hands-on experiences and research projects is also important. This can foster a passion for science and encourage students to pursue careers in scientific research.

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C [23. NIH] Finally, the National Institutes of Health can continue to fund research in areas that have the potential to make a significant impact on public health and society as a whole. By promoting and funding research in areas such as biotechnology, genetics, and neuroscience, we can create more opportunities for Ph.D. students to pursue research that has the potential to improve the lives of millions of people.

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[24. Camaron] It's clear that there are a lot of different strategies and solutions that can be pursued. Based on these strategies, what are some potential next steps for these government entities to take in promoting scientific research careers with a broader societal impact?

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K [25. DoE] Another potential next step is to create more opportunities for students to engage in hands-on experiences and research projects. This can foster a passion for science and encourage students to pursue careers in scientific research with broader societal impact.

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C [26. NSF] We agree with the Department of Education, and we also believe that it's essential to continue to promote and support scientific research in fields that have the potential to impact society significantly. By funding research in areas such as renewable energy, biotechnology, and medical research, we can create more opportunities for PhDs to pursue research that has the potential to improve the lives of millions of people.

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D [27. SEC] Another potential next step is encouraging collaboration between academia and industry. By fostering partnerships between universities and financial institutions, we can create more opportunities for PhDs to pursue careers in scientific research that have a broader societal impact while also contributing to the development of the financial industry.

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L [28. DOL] We also need to ensure that Ph.D. can access resources and support to help them succeed in scientific research careers. This includes mentorship programs, professional development opportunities, and access to funding and resources for their research.

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C [29. NIH] Additionally, the National Institutes of Health can continue to fund research in areas that have the potential to make a significant impact on public health and society as a whole. By promoting and funding research in areas such as biotechnology, genetics, and neuroscience, we can create more opportunities for Ph.D.s to pursue research that has the potential to improve the lives of millions of people.

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C [30. Camaron] Those are all excellent next steps. I want to dive deeper into incentivizing Ph.D.s to pursue scientific research careers with broader societal impact. How can these government entities work together to create incentives encouraging Ph. D.s to seek these careers over careers in finance?

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K [31. DOE] One idea is to provide more funding for research and development in fields that have the potential to make a significant impact on society. By providing more opportunities for researchers and scientists to pursue meaningful work in areas such as renewable energy and environmental sustainability, we can create a more sustainable future for everyone.

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O [32. NSF] Additionally, we can create tax incentives or other financial incentives for companies that prioritize hiring and supporting PhDs in scientific research fields with broader societal impact. This can help create a culture that values and prioritizes scientific research that advances society.

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D [33. SEC] Another potential incentive is to promote financial literacy and education, particularly in STEM fields. By providing more education and training on the financial industry and its potential risks and rewards, we can help PhDs make informed decisions about their career paths and better understand the impact of their work.

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L [34. DOL] From our perspective, another critical incentive is ensuring that working conditions in scientific research fields are safe, fair, and compliant with labor laws. We can also create more opportunities for PhDs to contribute their skills to projects with broader societal impact and ensure that their work is not solely focused on maximizing profits for the employer.

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C [35. NIH] Finally, creating more opportunities for PhDs to collaborate with other scientists and researchers within their field and across disciplines can be a powerful incentive. By fostering collaboration and interdisciplinary research, we can significantly create more opportunities for PhDs to impact society through their research.

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C [36. Camaron] Those are all great ideas for incentivizing Ph.D.s to pursue scientific research careers with broader societal impact. Now, what are some potential challenges or barriers that need to be addressed to implement these strategies? How can these government entities work together to overcome these challenges?

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D [37. SEC] One potential challenge is the perception that finance offers more lucrative career opportunities for PhDs. We need to work together to create a culture that values and prioritizes scientific research careers with a broader societal impact and communicates the value of these careers to PhDs.

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O [38. NSF] Additionally, we need to address the issue of funding and resources for scientific research. With adequate funding and resources, it can be easier for Ph. D.s to pursue careers in scientific research fields with broader societal impact.

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K [39. DoE] We also need to address the issue of gender and racial diversity in scientific research fields. By creating more opportunities and support for underrepresented groups, we can ensure that everyone has an equal opportunity to pursue careers in scientific research with a broader societal impact.

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C [40. NIH] Another potential challenge is the need for interdisciplinary collaboration and communication. We must create more opportunities and support for multidisciplinary research and encourage communication and collaboration across scientific fields and disciplines.

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D [41. SEC] Yes, that's correct. We need to ensure that the financial industry is profitable but also responsible and ethical in its actions. As a regulator, we can work towards creating policies and regulations that promote ethical behavior and prevent financial institutions from engaging in harmful practices.

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[42. Camaron] It's clear that there are a lot of potential solutions and strategies that these government entities can pursue to address the issue of PhDs leaving science for finance. Thank you all for your insights and contributions to this vital conversation. As we wrap up, I want to ask each of you one final question: What do you believe is the most critical step government entities can take to promote scientific research careers that have a broader societal impact and prevent the loss of PhDs in the financial industry? Let's start with the Department of Education.

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K [43. DoE] Thank you for the question, Camaron. We believe that one critical step is to increase funding for research and development in fields that have the potential to make a significant impact on society. By providing more opportunities for researchers and scientists to pursue meaningful work in areas such as renewable energy and environmental sustainability, we can create a more sustainable future for everyone.

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O [44. NSF] We agree with the Department of Education. Still, providing more support for early-career scientists and researchers is essential. This can include mentorship programs, funding for research projects, and more opportunities to engage with industry and government partners.

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L [46. DoL] From our perspective, one critical step is ensuring that working conditions in scientific research fields are safe, fair, and compliant with labor laws. We can also create more opportunities for PhDs to contribute their skills to projects with broader societal impact and ensure that their work is not solely focused on maximizing profits for the employer.

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C [47. NIH] Finally, one critical step is to continue funding research in areas that have the potential to make a significant impact on public health and society as a whole. By promoting and funding research in areas such as biotechnology, genetics, and neuroscience, we can create more opportunities for PhDs to pursue research that has the potential to improve the lives of millions of people. It is vital to ensure that these research projects are well-funded and clearly focus on addressing society's biggest challenges. This can be achieved by developing strong partnerships between government entities, academic institutions, and private organizations to promote research that directly and positively impacts the public.

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C [48. Camaron] Thank you for that insightful response. We've covered much ground in this conversation, and I appreciate your perspectives and ideas. Before we wrap up, does anyone have any final thoughts they'd like to share?

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D [49. SEC] I'd like to emphasize the importance of collaboration between government entities, academia, and the private sector in promoting scientific research careers with broader societal impact. By working together, we can identify challenges and opportunities and develop practical solutions that benefit everyone.

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O [50. NSF] I agree with the Securities and Exchange Commission. It's also important to recognize the contributions of PhDs and scientists to society and ensure that they are recognized and rewarded for their work. By valuing and supporting scientific research careers, we can create a culture that encourages more individuals to pursue research that positively impacts society.

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K [51. DoE] I'd like to add that investing in education and training programs that prepare students for careers in scientific research is critical. By providing students with the tools and resources they need to pursue careers in these fields, we can create a pipeline of talented and dedicated individuals passionate about making a difference in the world.

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L [52. DoL] From the Department of Labor's perspective, creating more transparency in the financial industry is essential, and encouraging companies to prioritize hiring and supporting PhDs in scientific research is essential. By working together, we can create a culture that values and supports careers in scientific research and recognizes the critical contributions of these individuals to society.

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[53. NIH] Finally, I'd like to reiterate the importance of funding research in areas that have the potential to make a significant impact on public health and society as a whole. Investing in research and innovation can create a better future for everyone.

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[54. Camaron] Thank you all for those final thoughts. It's clear that there are many different approaches that government entities can take to promote scientific research careers that have a broader societal impact. By working together and focusing on collaboration, transparency, and investment, we can create a more sustainable and equitable future for all. Thank you for joining us today on Mindcast.

Featuring Tarun Venkat as SEC