Universities: Research & Development subsidy for big companies

Austerity in education is nothing new. Since the 1970’s Thatcher and Reagan, public institutions have been gradually starved for cash. At first sight, one might dismiss this as an ‘academic problem’. But that couldn’t be further from the truth.

Academia is already heavily reliant on collaborations with the private sector. Initiatives such as HealthHolland, and Horizon Europe encourage public-private partnerships. This is not bad in and of itself, both sectors benefit from collaborations and there are numerous advantages. But cutting the funding to universities weakens their independence and makes them further dependent on private collaborations and funding. This gives the private sector increased bargaining power and say in the direction of innovation. This could induce a technological determinism where the good of society does not guide innovation, but rather the interests of profit-motivated private companies.

Why university funding matters for society

Despite the government’s talk of innovation (it appears in the coalition agreement 85 times), there’s a disconnect when it cuts university budgets by a billion euros.? This logic propagates the myth that the private sector is the driver of innovation, real innovation that is. Take the smartphone as an example. All the components that make it ‘smart’ -? the internet, GPS, touchscreens - were funded by public money, developed within universities and publicly initiated programs. This is all possible by separating innovation from the profit motive, something universities and the public sector do, but the private sector avoids at all costs. Private companies may claim innovation, but it’s the universities that educate the innovators and foster the breakthroughs. Suggesting that cutting university funding will foster more innovation is a logical fallacy.

The real source of knowledge

Of course, we can always tell ourselves that private companies operating in fields such as health, MedTech, and pharmaceuticals are noble and make lives better. But the truth is that the public-private partnerships are in many ways taxpayer-funded, in the form of academic staff and funding providing the “R” in R&D. It is about time that policymakers acknowledge the real importance of universities as the real sources of knowledge and research that drives innovations. The internet, GPS, and even seatbelts are all outcomes of the research done at universities. Universities and public institutes do research regardless of its potential profits.?

Public corporations prioritize profit

If we do want to tackle the national and global problems that are piling up, we need strong and independent academic institutions. Money for research must come from somewhere, if not the government, then the private sector. This will weaken the independence of universities and force them to abide by the whims of large corporations, the very same as drive up the cost of living, emissions and inequality. Publicly traded corporations prioritize profit. They do not care about the good of the people. If the government really wants a strong and prosperous society, then it should put its money where its mouth is and support academia, society's real source of innovation.

by Olafur Thorarensen