For decades, we’ve been told that scientific progress depends on government funding. But what if that assumption is wrong?
In this episode, Ron and Ed welcome Dr. Terence Kealey—physician, biochemist, former Vice-Chancellor of the University of Buckingham, and Adjunct Scholar at the Cato Institute—to explore one of the most controversial questions in science and public policy. Drawing on his research and books The Economic Laws of Scientific Research and Sex, Science and Profits, Kealey argues that markets, private institutions, and the scientific community itself are more than capable of driving innovation without government direction.
The conversation examines the economics of scientific discovery, the incentives created by public funding, the role of universities, and whether today’s research ecosystem encourages breakthrough innovation or bureaucratic conformity. Whether you agree with Kealey’s conclusions or not, his arguments challenge deeply held assumptions about how knowledge advances and who should pay for it.
If you’ve ever wondered whether science flourishes because of government—or despite it—this episode will give you plenty to think about.
About Dr. Terence Kealey
Dr. Terence Kealey is a British physician, biochemist, and economist of science. He served as Vice-Chancellor of the University of Buckingham from 2001 to 2014 and previously lectured in clinical biochemistry at the University of Cambridge. Now an Adjunct Scholar at the Cato Institute, he is the author of The Economic Laws of Scientific Research, Sex, Science and Profits, and numerous works examining the relationship between scientific innovation, markets, and public policy.
SHOW NOTES
Segment one
Our guest today, Dr. Terence Kealey, has quite a depth of writings at Cato Institute. More at this link: https://www.cato.org/people/terence-kealey
Regarding government funding of science, Dr. Kealey penned this article for Cato - “NIH’s Lost Mission” https://www.cato.org/multimedia/cato-podcast/nihs-lost-mission
Not all government science funding is bad. “Government’s are surprisingly good at mission science.” —Dr. Terence Kealey
“[Universities] want government funding. And, you know, you can’t blame them. We all want government funding. People who go swimming want government funding.” —Dr. Terence Kealey
Segment two
“Until 1957, the American government funded only a tiny amount of mission science. The rest was all done by the private sector, and there’s no sense of important science not being done in those days.” —Dr. Terence Kealey
“Industrial science isn’t peer-reviewed. […] Peer-reviewed science is science that’s removed from reality.” —Dr. Terence Kealey
On peer-reviewed vs industrial science: “It’s technology that keeps science honest.” —Dr. Terence Kealey
One of Dr. Kealey’s recent features is called “Rescuing Science: Recovering Science as Civic Virtue”. More here: https://www.cato.org/multimedia/media-highlights-tv/terence-kealey-featured-lecture-rescuing-science-recovering-science
Segment three
“For every dollar, pound, or euro a government puts into science, up to $3 are taken out of the science budgets of companies. What happens when the government funds science is all those scientists go into government.” —Dr. Terence Kealey
“The Inverted Pyramid of Authority—Why Government Nutrition Advice Deserves Less, Not More, Trust” by Dr. Terence Kealey https://www.cato.org/blog/inverted-pyramid-authority-why-government-nutrition-advice-deserves-less-not-more-trust
“The private sector is an astonishingly generous funder of pure science for the simple reason that it’s as proprietary as any other form of science.” —Dr. Terence Kealey
The Economic Laws of Scientific Research by Dr. Terence Kealey https://www.amazon.com/Economic-Laws-Scientific-Research/dp/0333560450
Segment four
Dr. Terence Kealey wrote “End Government Science Funding” for Cato in 1997. NINETEEN. NINETY. SEVEN. https://www.cato.org/commentary/end-government-science-funding
We touched on space research quite a few times today. Dr. Terence Kealey discussed space entrepreneurship a few years back on Radio America’s Made in America. More at this link: https://www.cato.org/multimedia/media-highlights-radio/terence-kealey-discusses-space-entrepreneurship-radio-americas
A big THANK YOU to Dr. Terence Kealey for joining us today. He has a large body of work at Cato Institute that is worth your time. More here: https://www.cato.org/people/terence-kealey
Bonus Content is Available As Well
Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.
Click the “FANATIC” image to learn more about pricing and member benefits.