Recent announcements from Steven Joyce re government grants to the Forestry Sector to enable them to carry out research annoyed me because such grants are unnecessary, and the article referenced below gives a score of good reasons why. Here are the first two-
First, there is little reason to invest your own money when you can get someone else to pay for it. Government-funded research is crowding out research that could be done privately.
Further, these companies may have better uses for their money and may not find the research investments worthwhile. Removing DOE initiatives such as this latest one would prevent the government from nudging private-sector investments in the wrong direction and allow companies to manage their resources as they see fit to capture the most value for their company and the best product for the buyer. The ones that succeed in being entrepreneurial and innovative will be properly rewarded.
It would be excellent if NZ media commentators could write articles with such refreshing views. Like smokers addicted to nicotine, few of them can drag themselves away from the state tit syndrome that infests their thinking.
Footnote- Title should have been “Let companies pay for their own research”, but too late now. 🙂