Cambridge Science Festival, March 2011 Jonathan Haskel, Imperial College Business School Science, innovation and growth: some economics © Imperial College.

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Cambridge Science Festival, March 2011 Jonathan Haskel, Imperial College Business School Science, innovation and growth: some economics © Imperial College Business School 1

Science in the October 2010 spending review FT, 20 th October 2010 Science escaped the big cuts that some researchers had feared from the government’s spending review. Asked what had changed since the 1980s, when the Thatcher government slashed research spending, David Willetts, science minister, replied: “The scientific community has been able to produce empirical evidence about the economic returns from research. The Treasury buys the argument that scientific research contributes to long-term growth.”

The wide scope of science and innovation policies…. Science policy menu Protect inventions and let firms get on with it Longer/shorter patents Extend copyright/reduce it Subsidise private sector R&D Large firms/small firms Domestic/international Patent box/R&D tax credit Subsidise public sector R&D Health/engineering/the arts Broader knowledge policy menu Immigration Foreign firms Entry of new firms And knowledge industries compete for demands for subsidies Farmers, the Olympics, bankers etc.

Who gets the returns from investing in new goods?

The future of science and innovation in one slide… Innovation Spending (UK, 2008, £bn) R&D 16.0 Design23.3 Marketing15.0 Training27.1 Software21.6 Bus process30.7 Artistic originals3.8 Total 137.5

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