Earlier quoted context omitted.
1) Because ROI on that investment is still positive, even if it used to be “free”. 2) Endowments aren’t the only way to fund research, and not all research is equally valuable. Some is probably negative value, given the replication crisis. 3) Investment income from the endowment is taxed at a maximum of 8%. If that’s enough to break the US university research machine, I’m not sure it was ever working in the first pla…
Thanks for your comments. The ROI is not positive because there is no guarantee basic science will lead to any money-making outcome. That's not how basic science works and it is never how it worked, but basic science is absolutely crucial for advancing tech. If you can convince shareholders that it is e.g. worth investigating unusual crystal structures with no intended product in mind then people will gladly share so…
I’m open to the idea that government can play a role here, but only in a very small way. The government is spending hundreds of billions of dollars on research. They are such a huge consumer of talent and resources that they are crowding out private initiative. This ain’t Bell Labs of the 1950’s. And if you asked those researchers what they think of today’s system, I’m sure they’d be appalled.