Rivalry between Basic and Applied Research in Public Research Labs

Abstract

The purpose of this paper is to investigate the rivalry between basic and applied research within public research labs. Study design considers the international publications a proxy of basic research, whereas the self-financing deriving from technology transfer activities is an indicator of applied research. A case study based on Italian National Research Council, one of the biggest European research bodies shows an interesting organizational behavior of research labs. The results reveal an increasing rivalry between basic and applied research due to shrinking of public research lab budgets. Institutes and researchers pay more attention to applied research, which is capable of attracting new funds from the market necessary to the economic survival of public research institutes but this approach reduces basic research with alarming effects for production of science in the long run. R&D management implications are discussed.