Can public research be as effective as private sector research?

     Can public research be as effective as private sector research? In general, the answer is “no”. I think that the main reason is that private sector has very clear and client-oriented objective compared to the public that may have several objectives. Normally the public research may concern about the client, for example, the agricultural scientist want their research to benefit farmer, but at the same time researchers may also concern the possibility of publishing the research result at academic journals, and the requirement of the funding agency. So, normally the public research may be multi-objectives oriented that may leading to low efficiency.

     Before launch a research program, the private sector may first considerate that output of research must be acceptable to their clients and value-added. The profit of the product should access the cost of the research and marketing of the product. The private sector will launch the research program only if the benefit cost ratio meets the certain standard. 

     To make sure that new research will be rewarded from market, private sector has to consider the value added of their new research project/program. The private sectors consider their value as following ways:

RV=UV × CrV × ComV

Where:

RV= Recognized value

UV= Understood Value

ComV = Communicated value

     The value of a product consist products quality (PQ), service quality (SQ), and total consumer cost (TTC). At the same time the private sector may also consider the value package to the consumer that consists financial value (consumer pay money), time value (consume spent time to shopping) and psychological value (satisfaction of consumer).

     But the question is that what kind of value will private sector added to products? Will they add the value as public research that will benefit society or only value benefit private sector only or both?