How Scientific Funding Cuts Undermine Technological Innovation

• In Event: 540 - Section on Science, Knowledge, and Technology Roundtable Session (one-hour).
  In Refereed Roundtable: Table 09. Science Policy and Governance

Abstract

We show how funding cuts not only slow scientific progress but also undermine technological innovation and industry competiveness. We use the US federal funding moratorium on specific types of Human Embryonic Stem Cell (hESC) research over the period 2001 and 2009 as a case study to highlight the short-term impact of scientific funding cuts beyond the academic work of those directly affected. The US funding moratorium not only slowed down scientific progress but also created broader uncertainty about the future of the stem cell research field. Using industry data, we show how the moratorium limited the transfer of novel technologies from US universities to industry, reduced the number of cell therapy projects initiated by US companies, and increased failure rates for projects that did get underway. These effects were specific to the US, and negatively affected the international competitive position of the US cell therapy sector. Our findings provide lessons that are relevant in current science policy debates.

Authors

• Hsin-I Huang, University College-London

• Simcha Jong, University College-London