BusinessWeek makes a compelling argument for a return to the heyday of large scale scientific research funded by a combination of public and private funds as a necessary antidote for our struggling economy. This “pure” research can lead to the kind of breakthroughs and innovations that can create new industries and improve old ones, which in turn leads to long term job creation and a stronger economy.

As companies have moved to focus on building shareholder in the short term, R&D is one of the first things to go, as it typically take a long time to achieve results that can be monetized and is an immediate cost-cutting measure, but over time, it leads to stagnation. A real problem in the US economy right now, where we’re lagging behind in a number of emerging industries such as biotech and clean energy solutions.

In order to change the current climate, we need to speed the cycle of innovation and provide incentives for corporations to grow their R&D. The government can play an integral role in this by providing clear direction in specific areas – think Kennedy’s push to build the space program – and providing tax credits to businesses that are willing to spend the money to do the work. For its part, private industry has to rise to the challenge and capitalize on this new knowledge pool with intriguing commercial offerings.

[image via Hey Paul]