Because the benefits of basic research are obvious and easy to measure, it is likely that the public sector pays for the right amount and the right kinds of basic research.
The correct answer and explanation is :
The statement “Because the benefits of basic research are obvious and easy to measure, it is likely that the public sector pays for the right amount and the right kinds of basic research” is incorrect.
Explanation:
Basic research refers to the foundational or exploratory research aimed at gaining knowledge without immediate commercial applications in mind. While the potential benefits of basic research are significant—such as advancements in science, technology, and medicine—the benefits are not always obvious or easy to measure in the short term.
Here are some reasons why the public sector may not necessarily fund the right amount and the right kinds of basic research:
- Unpredictable Outcomes: The benefits of basic research are often uncertain, and the long-term applications can be difficult to foresee. For instance, discoveries made through basic research (like the development of the internet or CRISPR gene editing technology) were not initially understood to have such transformative potential. Because the benefits can be uncertain and speculative, it is difficult to assess exactly how much and what type of basic research is “right.”
- Resource Allocation: Government funding for research is often influenced by political decisions, budget constraints, and current societal needs. While some areas of research may be more immediately pressing (e.g., climate change, disease control), other crucial fields may be underfunded, or less prioritized, because they don’t have immediate, measurable impacts.
- Long-term vs. Short-term Horizon: Basic research often requires years, even decades, to yield tangible results. Public sector funding is sometimes limited to shorter-term projects that may not align with the kind of long-term, high-risk research that has the potential for groundbreaking discoveries.
- Market Failures: Basic research is often underfunded by the private sector because it doesn’t guarantee immediate financial returns. The public sector is critical in filling this gap, but even with the public sector’s involvement, there may still be underinvestment due to the reasons mentioned above.
Thus, the statement overlooks the complexities of funding basic research and fails to recognize the gaps and challenges involved.