Research and development outside market competition

The effects of the dialogue between the scientific community and the industrial sector should be measured by economic indicators such as turnover, profit, the number of implemented applications, profitable ventures, spin-offs and public offers. It can not be forgotten that a research institute (operating in the field of applied sciences) operates on the border of scientific research and implementation. This means that there is still a need to maintain a balance between purely commercial and research activities. Surprisingly, it is necessary to depart from the market competition between research institutions in the country. The competition can only take place when there are clients for a given product. At the research stage, clients are not yet available and if there is competition for funds and grants between R & D units, two negative phenomena happen:

  • large dispersion of funds for various R & D teams in the case of state funds resulting with too little funds for anyone,
  • the intellectual property sold to industry is undervalued, at understated, “competitive” prices that undermine the intellectual value developed.

Therefore, proper development of the R & D sector requires its concentration and consolidation. Consolidation entails appropriate training of the management staff for the effective implementation of the reform in order to attract the leadership talent of tomorrow in the scientific and business organisations. The capable staff and consolidated R & D sector will require effective methods of promoting knowledge and innovation outside the country.

Leo Turno, January 2019