The impact of funding on the formulation of research policy

Using an accounting and political perspective, this paper explores how funding impacts on the formulation of research policy, through the governmental budgeting process and through the activity of corporate America, especially in the university arena. Initial discussion focuses on the public sector funding process, especially the concept of incrementalism in the budget process. Next, the political aspects of earmarking and pork-barreling are developed in the context of the university. Then, the relationships between government, corporate America and the university are briefly explored using a self-interest vs. public-interest model. Finally, the university's research and education contribution to the process was shown in order to prove that the corporate-university relationship was not entirely unilateral in nature. This paper does not offer a "correct solution"; to the problems presented. It does present a number of important issues and divergent opinions concerning the funding of research and development and encourages further research into this highly volitile area.