Knowledge creation: new frontiers for public investment

The COVID-19 pandemic is an unexpected driver of cultural change. Science and the role governments in promoting investment knowledge creation are now prominent public discourse. Suddenly, laypeople who never paid attention to newspaper articles on scientific discoveries, funding work, socio-economic impact research development (R&D), realized that our life literally depends upon esoteric knowledge. For example we had learn virus existence based molecules ribonucleid acid (RNA), innovative vaccines can be messenger RNA, fast-track sequencing genome tiny SARS COV-2 early detection its mutations essence. We have been exposed a wealth information about “spike” proteins, antibody testing, manufacturing technologies drugs, software for tracking contagions, statistical models forecasting them, much more. Never scientists so prime-time television has news from laboratories quickly disseminated by all kind media, including blogs social media. At deeper level understanding current trends, many people better grasp interrelation between cumulative process different fields, such as medicine, genomics, physics, technology, data science economics. Experts these disciplines needed study strategies tools fight pandemic, advise policy makers. Governments matter weeks reinvent some their established tenets, adjusting budgets debts, decision-making processes regulatory mechanisms. hire personnel somewhat previously neglected health systems, but also find new ways target funds private enterprises bodies. example, Operation Warp Speed US government, managed BARDA (Biomedical Advanced Research Development Authority), channelled 18 billion USD pharmaceutical companies R&D vaccines. Are there more general lessons learned creation? In this special issue authors explore crucial questions with interesting implications. Some papers here published draw XVIII Milan European Economy Workshop large-scale projects, online event co-organized University Milan, Italian Space Agency, CIRIEC International (June 25–26, 2020). Other were submitted following open call journal. I am grateful authors, those whose not accepted because space constraints, over twenty anonymous reviewers generously helped Editor-in-Chief, Professor Marco Marini, reach his final decisions. After brief presentation discussion each seven included issue, suggest topics future my concluding remarks. accustomed notion infrastructure form supporting wide scope services range users, firms households. Water, transport, energy, telecommunications easily identified sectors where essential infrastructures long history. sectors, played pivotal capital formation investors often reluctant take long-term risks, or because, if they took aimed at establishing monopolistic positions order protect interests (Picot et al., 2015). Knowledge economies societies production factor paramount importance, it pervasive electricity transport ability transform economic inputs outputs. However measurement mechanisms appropriation yet fully understood. Particularly, need understand fundamental market failures R&D. failure, just “Act God”. lack preparedness both pharma industry starting point article Florio Gamba. disconnection agenda (that risks) priorities suggests approach. propose biomedical field, aiming discovering other innovations considered less profitable too risky investors, crucially important health, antibiotic resistant bacteria orphan drugs. “an international, interconnected, transparent, science-informed publicly funded combined enterprise: Biomed Europa”. model mind inspired CERN, highly successful Council Nuclear (Geneva), EMBL (European Molecular Biology Laboratory, Heidelberg), knowledge-intensive enterprise industrial mission, ESA Agency). fact, looking organizations concept redefined rejuvenated when conceived good. will discuss again through procurement well known cited ingredient Keynesian-type policies counteract recessions (Seccareccia, 2011). However, increasingly understood may structural effects actively technological innovations. When perspective, observe activate supply chain firms. These challenged hi-tech components equipment using materials, advanced electronics, software, having frequently solve problems. Castelnovo Dal Molin Institute Physics (INFN), set sector research. built unique database hundreds working INFN, provide qualitative evidence case studies, quantitative analyses respectively econometric Bayesian Network approach (Salini & Kennett, 2009). Data survey then complemented company accounts. They clear cooperation INFN innovation, learning, penetration, networking former. show main impacts acquisition technical competencies during relationship physics engineers managers implication create beneficial spillover effects. Hence innovation extended policy. most cases immediately visible direct relations firms, spillovers happen downstream, along pathways easy explore. Catalano, Lopez al. test detailed transition patents. Their ALBA Synchrotron Light source facility located Barcelona operation since 2012. collected around 400 questionnaires indirect users radiation beamlines ALBA, which similar extremely powerful microscope high resolution single molecule. Applications diverse fields batteries, material science, computers, heritage goods. literature supported experimental (both economists physicists) search patents citing literature. interest paper how feasibility pathway analysis. While usually aware output generated unaware originated knowledge, merging publications patent databases citations possible track journey way. principle replicated several waves respectively, one cascade mutual way see arising creation. implications indirectly support downstream investing them strategy. Another innovativeness links together productivity: skills career researchers, PhD students postdoc, employed outside industry, finance, government. Giffoni Morretta develop human Large Hadron Collider (LHC), particle accelerator world, CERN. proxy measurable term effect increase life-long salary former young researchers after completed experience LHC variety roles. use three sources data: firstly, CERN Alumni; secondly, professors (“team leaders”) supervised CERN; thirdly, skilled fields. developed transferred generate “salary premium”—that is, positive difference earnings enjoyed hands training compared did training. average lifelong premium 8% (or 5% 11%), notable terms underlying value productivity economy. should expand experiential learning traditional academic environment, taking advantage “knowledge factories” complement universities. A founding infrastructures, particularly Europe, “Open Science” policy, “OpenData” approach, meaning widely disseminated, typically online, limited lag time good ELIXIR, data, 21 Member countries, co-sponsored Laboratory. As happens, do tangible objects, virtual architectures linking making available whole planet, academia, governmental bodies, business. question asked Martin identify five challenges answer question: analysis distributed relational capital; responding stakeholders evidence-based specific indicators, assessments reference indicators international organizations, OECD ESFRI (the Strategy Forum Infrastructures); integrating performance (case studies narratives); building internal capacity Clearly, created, measure cannot price services, almost zero. This applies any principles Open Science. Ultimately, mission produce contemporary world publications. Many bodies performing own external scientists. provided Vurchio Giunta consider Agency (ASI) universities/research institutes. performed systematic acknowledge ASI period 1989–2017. whether grants received quality research, proxied number Citations empirical scientometric contribute testing parametric estimates multiple levels fixed (year, author coauthors). With strategy able mentioning associated higher citation respect control group same financially ASI. encouraging result donors funds, because—to say least—it teams reached outcome grants. points administered versus schemes, probably selection receivers donor side appropriate background. Survey Health, Ageing Retirement Europe (SHARE) studying social, environmental life-course citizens beyond. From 2004 until today, 480,000 in-depth interviews 140,000 aged 50 older 28 countries Israel conducted. Thus, SHARE largest pan-European panel providing internationally comparable longitudinal micro allow insights living conditions individuals. achieved objectives: i. Building key political makers covers child well-being national agencies tasked infrastructural spending collection ii. Develop scientifically excellent design iii. Establish robust operational framework ensure logistic integrity EuroCohort. article, Ecchia, O'Leary Messori try benefits platform children adults. Looking saved platform, probability exceed costs high. methodological perspective elsewhere, full cost–benefit feasible. Big model, Manhattan Project (atomic bomb) fame top-down approach; linked military ambitions characterized secrecy restricted access methods data. contrast, paradigm production, exemplified “Geneva model” bottom-up involves coalition funders, accessible adopts hundred major RIs coalitions perhaps thousand significant ones mostly EU.33 https://www.riportal.eu evolving panorama, shows related sciences, exploration, applied sciences. core identification proxies impact, net drug discovery, publication patents, premium”, combination evidence, methods, switching values monetized (in terms, cash flow below). good, knowledge-based oligopolies inequality. paradox adopted one: side, created taxpayers, oligopolistic companies, Tech Giants Pharma, privatize happens protecting intellectual property rights designed incentives individual inventor, while times collective e venture. imbalance donation everybody World Wide Web (exactly 30 years ago, 1991) fortunes owners Facebook, Google, Amazon web-based striking. depth large share origin investment, money employees. Social RI assessment. energy telecoms, provide—at least principle—rigorous (CBA). Public valued book-keeping concepts return equity. why CBA was invented France 19th century assessment infrastructure. challenge seen science. colleagues Centre Industrial Studies shown National Hadrontherapy (CNAO) Pavia (Italy), synchrotron treatment radio-resistant tumors (Florio, 2019). currently Europe. It unfortunate still misunderstanding what achieve, confusion theory welfare based, business economics supports appraisal “value money” perspective. arises association neoclassical (Mazzucato, 2021), although does proceed 2014). technology missions enterprises. third topic recently Handbook State-Owned Enterprises (Bernier 2020): actual potential SOEs patient promote telecom, privatization correlated declining expenditures (Jamasb Pollitt, 2008). Less known, though expected, decline fewer filed privatized than controlled participated (Clò missions. An global warming climate To so, EU institutions tend rely taxes targeted “carbon price”, tax emissions, offer subsidies adopting certain carbon-free (such photovoltaic panels generation). would like mimic counterparts instead invest disruptive world. sum up view, recent book Gruber Johnson (2019), two MIT professors, suggested reversing USA. proposed federal 0.5% GDP. amount $100 per year. proposal basic (including drugs), partnership sector, education, parks. Biden administration seems listening, Senate going pass bipartisan bill lagging behind China government GDP (0.65% 1.30% latter; Leonhardt, 2021). UK even percentage, only Germany above (with 0.93% GDP). There frontier pay changing panorama.