No Result
View All Result
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions
Smart Investment Today
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
No Result
View All Result
Smart Investment Today
No Result
View All Result
Home Editor's Pick

Can Private Foundations Replace Federal Funding of University Research?

by
April 17, 2025
in Editor's Pick
0
Can Private Foundations Replace Federal Funding of University Research?
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

Jeffrey Miron and Peter Van Doren

From Peter Van Doren:

My colleague Jeffrey Miron recently argued that the federal government should not fund research. Here I ask a slightly different question: Are the assets of foundations sufficiently large to replace federal support of university research?

In 2023, federal research expenditures at universities were about $60 billion (Table 1). Given the typical 5 percent spending rule of university and nonprofit endowments, the $60 billion in annual expenditures would require $1.2 trillion in private assets in addition to the $134 billion in assets (6.7/.05) used to fund the current nonprofit annual contribution of $6.7 billion (Table 1) to university research.

Total assets of nonprofit foundations that disburse grants are about $960 billion (Page 3); $134 billion is already dedicated to funding university research and development, so that leaves us with $826 billion in assets that could fund about $41 billion. That leaves us about $19 billion (about one-third) short in annual grants. And the $41 billion annual flow would require all private foundations to fund nothing other than university research. 

Jeffrey Miron comments:  

These facts are Interesting; I am happy to learn that foundation assets are this large. These data do not, however, necessarily imply that government should fund research.

First, foundations are not the only possible replacement for government funding; private, for-profit firms can (and already do) fund many types of research at universities.

Second, not all research is the kind that “generates externalities,” meaning it creates new and useful but hard-to-patent ideas that underlie “marketable” research. For applied research, no matter how interesting, the case for government funding does not apply.

We thank Cato interns Austin O’Connell and Preeti Kulkarni for their assistance.

Previous Post

Fancy Houses, Wealth Inequality, and a Lesson in Humility

Next Post

Trump Wants Even More Military Spending

Next Post

Trump Wants Even More Military Spending

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • Trending
    • Comments
    • Latest

    Gold Prices Rise as the Dollar Slowly Dies

    May 25, 2024

    Richard Murphy, The Bank of England, And MMT Confusion

    March 15, 2025

    We Can’t Fix International Organizations like the WTO. Abolish Them.

    March 15, 2025

    Free Markets Promote Peaceful Cooperation and Racial Harmony

    March 15, 2025
    From £800 and a minibus to a £40m global tour business – how two founders built expat explore

    From £800 and a minibus to a £40m global tour business – how two founders built expat explore

    0

    Ana-Maria Coaching Marks Milestone with New Book Release

    0

    The Consequences of California’s New Minimum Wage Law

    0

    Memorial Day

    0
    From £800 and a minibus to a £40m global tour business – how two founders built expat explore

    From £800 and a minibus to a £40m global tour business – how two founders built expat explore

    August 8, 2025

    Vape Smarter: Ninja Vapes Introduces Long-Lasting Alternatives

    August 8, 2025

    Cambridgeshire Chambers Team Celebrated with Global Rising Star Award Nominations

    August 8, 2025

    Win Big at Leyton Orient: BetWright Launches £25,000 Crossbar Contest

    August 8, 2025

    Recent News

    From £800 and a minibus to a £40m global tour business – how two founders built expat explore

    From £800 and a minibus to a £40m global tour business – how two founders built expat explore

    August 8, 2025

    Vape Smarter: Ninja Vapes Introduces Long-Lasting Alternatives

    August 8, 2025

    Cambridgeshire Chambers Team Celebrated with Global Rising Star Award Nominations

    August 8, 2025

    Win Big at Leyton Orient: BetWright Launches £25,000 Crossbar Contest

    August 8, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 smartinvestmenttoday.com | All Rights Reserved

    No Result
    View All Result
    • News
    • Economy
    • Editor’s Pick
    • Investing
    • Stock

    Copyright © 2025 smartinvestmenttoday.com | All Rights Reserved