1. SOSC 111 - Science Technology and Society Today: week 8 Lesson 15 R & D Spending: Who Should Pay for these Innovations? Oct. 21, 1998 Dr. Vincent G. Duffy - IEEM http://www- ieem.ust.hk/dfaculty/duffy/111 email: vduffy@ust.hk 1

2. Today v Questions of the day –based on reading for today (2 - 1 page readings) –‘Alzheimers’ news clip & ‘Pres. Woo’ news clip 2

3. Q1. Why spend Research & Development money? v What is the value? v Investment in the future –future products for consumers –company profitability & economic growth –improve understanding of science, technology and society –maintain or improve quality of life 3

4. Some say….‘Gov’t simply not capable of choosing’ True? Does government know enough to decide spending areas? v On the one hand, it is true, there may be a narrow viewpoint represented. v However, it is true, government is made of a cross- section of different knowledge. So maybe it is ok for government to participate in such decisions. v What does the Alzheimer’s article argue? Q2. Q2. Should government be involved in making decisions about R&D spending? How can government make informed How can government make informed decisions about solving complex problems? decisions about solving complex problems? 4

5. Technology & Health: Alzheimer Gene is Near Identification- reading#1 v What is Alzheimers disease? v Who will benefit from R&D spending? –business or individuals? v The controversy: commercialization of findings –should the researchers also be able to benefit from the commercialization of the research –some would argue, no …and this could form the basis for their argument for ‘hands off’ 5

6. Q.3 What does this article represent? v ‘Programs that attempt to pick winners & losers are corporate welfare’ –just support/handout to corporations. –True? v reasons ‘for’ or ‘against’ a ‘hands off’ policy? –Some advocate for ‘Hands off policy’ –Alzheimer’s article suggests... –Hands off...-no gov’t intervention in spending decisions –In favor of ‘hands off’ policy 7

7. What about problems that are not profitable to study? –Recall: the benefits of science research are sometimes long term –therefore, it may not be profitable for industry to study some problems. –If it is not profitable in short term, industry may not pay… –then... –Will we solve society problems if we ignore? 8

8. Why did Prof. Woo get involved? - reading #2 v UST President comments on ‘technology policy’ –discusses opinions on... –should we have one? –who should pay? v ‘somebody has to talk’ v ‘frustrated by the gov’t hands-off policy’ 9

9. President Woo argues for... v Scientists as political advocates. Why? v Problem: benefits of science are uncertain, unquantifiable and longterm v get technology policy closely coupled w/real problems v applied research v Make elected officials aware of value 10

10. Q.4 Who should pay? v O.K. Maybe government can help decide…but who should pay? v industry?________ v government?_____ v If only industry pays for R&D what is the concern? v Maybe we can let free market decide? v Why might we care if only ‘industry pays for R&D? 11

11. 50 Largest companies How large are they? And H.K.? Will this influence their relationships? Large Countries (based on $ Assets/size of economy) Small Countries (based on $ Assets/size of economy) Recall: Businesses & Governments? 12

12. Let’s Consider: Let industry pay? v Disposable & cloth diapers: environmentally equal v Based on water, power & chemicals to clean cloth diapers v Arthur D. Little Consultants delivered to legislators v Sponsor: Proctor and Gamble, makers of Pampers v White bread will not make you gain weight v Cooper Institute for Aerobic Research v Sponsor: Wonder Bread Company v Chocolate may inhibit cavities v Princeton Dental Research Center v Sponsor: M & M Mars Company v Bias based on the interests of the sponsor 13

13. In summary: The danger of a hands off policy –Key decisions will be left to board rooms of multi- national firms, discussing and deciding away from the public v Q4. Who should pay? –An independent sponsor u with potential benefits to all –where benefit not just to few or just one industry v How to decide? –informed debate in a public forum –those familiar with issues should be involved 14

14. Guest speaker Monday For section 3-special arrangement v We will have a guest speaker on Monday –from ICAC, Karen Ho v the times will be 11am, 12noon, 3pm v Those in the 5pm section can come to 12 noon –room 5564 near lift 27-28 –(or other time if you are not available at 12) –Please advise if you plan to come at 11 or 3pm.