[m4nu3l]

I agree that that's how things are. The fact that they are like this doesn't mean they must be. I believe there is a huge market for private research. Imagine the company getting to nuclear fusion first. They will be extremely profitable, and investor don't even have to pick a company. They can diversify. So I disagree with the conclusion. I believe this is a big case of Crowding-out. https://en.wikipedia.org/wiki/Crowding_out_(economics).

[mbrodersen]

If there was a huge market for basic research then private companies would be all over it. The reason why there isn’t, and never will be, is because investors would rather invest in companies with a clear ROI than in no goal blue sky research. Kinda obvious when you think about it. Investors want to maximise their chance to make money. So they invest accordingly.

[m4nu3l]

I think we can agree to disagree on many things. But I want to tell you something before I move on. I come from a country where positive rights are hinted in the constitution and applied in practice. The constitution states that "the government has to remove economic and societal obstacles preventing equality among citizens".

My country of origin has subsidized higher education, high redistribution, minimum guaranteed income, a public health system, strong union rights, minimum wage and many regulations of what you can on cannot do with your property.

I left that country, maybe forever. And many many others that got higher education (either in the country or abroad) left and are never going to come back.

The net wage differential of highly skilled jobs with respect to the average income is not enough to justify the long studies if you are going to stay. They even had to create a law that allows people that come back to pay much less taxes if they stay for a given amount of years to try lure some highly skilled people back to the country.

I believe it's because of all these government policies that the economy grows very little in that country. As a result everyone in that country is poorer that other more "negative rights" based countries.

My subjective experience is also that people feel much more entitled in that country and are less able to take personal responsibility. Everything is blamed on the Government (more than in the country I live in now).

I think my country or origin as a social democracy although it's never mentioned because people only talks about the "successful" ones.

I fear that all countries could become like that.

[m4nu3l]

No, you missed the point about Crowding-out. The phenomena is exactly this, there is a market but because the Government does it, it crowds out investments.