Public investment in research has a positive socioeconomic impact and creates new jobs.
This is the conclusion of The economics of research – three socioeconomic impact assessments of investing in research in Denmark, a new report from the Novo Nordisk Foundation being presented at a conference today.
The report shows, among other things, that life-science companies that receive public research money spend DKK 4–11 on investment in private research every time they receive DKK 1 of support over a period of 13 years.
“Investing in public research in life-science companies provides distinct benefits for our society because companies that receive support go on to make considerably more investment in research. This research increases the international competitiveness of the companies and strengthens the basis of Denmark’s future prosperity,” says Thomas Alslev Christensen, Head of Operations, Novo Nordisk Foundation.
The report also shows that more investment in public research already has a socioeconomic impact in the short term.
“The report shows that more investment in public research during the next 6 years will not simply affect the individual researcher or company but will also lead to positive socioeconomic impact on such areas as gross domestic product (GDP), employment, public and private consumption and investment,” says Thomas Alslev Christensen.
In addition, the report shows major benefits from attracting 200 highly qualified researchers from abroad each year to boost public research in Denmark.
“This has a visible impact, because highly qualified researchers from abroad contribute to increasing GDP, creating jobs and enhancing public and private investment,” says Thomas Alslev Christensen.
The new report is being presented today at a conference hosted by the Novo Nordisk Foundation. The conference brings together 150 representatives from higher education, companies, interest organizations and politicians, including Ulla Tørnæs, Minister for Higher Education and Science of Denmark, and guests from both Denmark and abroad.
In 2014, more than DKK 22 billion (€2.9 billion) was spent on public research in Denmark, especially in the university and hospital sectors. The Danish state provides 80% of the funds, with 10% from private foundations, 8% from the European Union and other international sources and 2% from companies.
View the full report (In Danish) here.
Christian Mostrup Scheel, Press Officer, Novo Nordisk Foundation, [email protected], mobile: +45 3067 4805