"Researching gets teeters" EE times November 7, 2005

basic research funding at DARPA and NSF is cut short

USA has a model of funding. i.e. Governement funds basic research to small companies and universities. But now due to Iraq war Department of Defence is cut shorting the funds so basic research is get effected. New trend is China is funding more money in basic research than ever.

US develops DVD players and earns 1 billion dollars but China does the production and earns 60 to 70 billion dollars from the DVD players. If China invests only 20% of the money then it is big money.

Darpa is cut shorting the money money for basic research in univs. It is pretty disappointing. It is changing the entire research model of USA. Earlier government used to spend more time in basic research and then small companies develop from those projects in turns pays taxes to government but now due to Iraq war etc. it is changing. How can you expect companies to invest more in basic research when they are already fighing over small profits. Any CEO will never be fired because he didnot invest for long time research in the company.