Tag Archives: Economics

The Economic Significance of the UK Science Base

A new independent report for the Campaign for Science & Engineering (CaSE) published today shows that investing public money in science and engineering is good for the economy. The Economic Significance of the UK Science Base examines the economic impact of public investment in the UK science base.

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The report looks in detail at the relationship between public funding of science and engineering and three levels of economic activity: total factor productivity growth in industries; ability of universities to attract external income; and interaction between individual researchers and the wider economy.

The report shows that, at the level of industries, universities and individual researchers, public investment in science and engineering leads to economic growth. CaSE is thus calling for current and future governments to recognise that public spending on science and engineering is an investment with significant benefits for the economy and society.

The report was written by Professor Jonathan Haskel (Imperial College Business School), Professor Alan Hughes and Dr Elif Bascavusoglu-Moreau (both University of Cambridge). It was funded by a consortium of six CaSE members: British Pharmacological Society, The Geological Society, The Institution of Engineering and Technology, Institute of Physics, Royal Society of Chemistry and Society of Biology.

Read the full report or the key messages from the two page briefing note.

(N.B. I sit on the board of directors of CaSE)

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Bezos’ Law

The future of cloud computing is the availability of more computing power at a much lower cost; Moore’s law thus gives way to Bezos’ law:

Over the history of cloud, a unit of computing power price is reduced by 50% approximately every three years.

 
The cost of cloud computing should naturally track Moore’s law (as the cost of computing is related to the cost of hardware); however, the cost of utilities such as electricity clearly do not follow the same demand curve. Nevertheless, with Amazon Elastic Compute Cloud, Google Compute Engine and Microsoft Azure increasingly competitive on pricing, cloud, as opposed to building or maintaining a data centre, would appear to be a much better economic delivery approach for many companies.

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