Dr.Vernon Smith, Visiting Rasmuson Chair at UAA and a Nobel Laureate in economics, takes on issues of university research support derived from private businesses in an article in the August 19 Wall Street Journal.

The issues include the independence of university education and research and conflict of interest concerns.

Smith asks three questions: “How can existing consulting policies and practices be restructured into an instrument for the funding of university research? How can it be made compatible with, and used as an instrument for enhancing, university education, research and community outreach services? How can the independence and integrity of the university be assured?”

He argues that the answer lies in “the consulting research contract, struck between faculty research teams and external business entities, and not restricted to proprietary uses of the research result.

 Such contracts are beneficial to both faculty and students and they permit paying consulting fees, paying commercial rental rates for lab space and rental earnings that are placed in a “revenue account”, with the research team getting primary access to the fund.

How can the university make sure research activity is compatible with the its mission?

Make the results available for publication by the faculty, to graduate students for dissertations and for other public uses, says Smith.

What he says shouldn’t be allowed is proprietary research.

“I do not believe that proprietary research can be conducted without compromising the university's independent scientific mission; faculty should either say "no" or do it as independent consultants,” says Smith.

A believer that faculty must learn as well as teach, Smith makes a strong case for research that furthers knowledge. Do research for knowledge, not just for the consulting fees, he says.