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Comment by Whoppertime | Hacker News Reader

It seems like the government has a soft Monopsony. There are many universities willing to sell research, but the government is the biggest buyer and controls the research grant market

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Universities don't sell or do research. They provide facilities, equipment, services, and sometimes funding for research. The actual research is done by individuals, who are nominally employed by the university but largely independent from it. If a researcher doesn't like a particular university, they can usually take their funding and projects to another university.

When grants are revoked for political reasons, it affects individuals who happen to be affiliated with the university more than the university itself. And it particularly affects people doing STEM research, because humanities and social sciences receive much less external funding. If the decline in public funding is permanent, it makes humanities and social sciences relatively stronger within the university. They are more viable without public subsidies than the more expensive STEM fields.

Research is often (usually?) the property of the host university, though. Yeah labs are independently managed but the university is in at least one sense, and imo many more, still the institution both doing and selling the work

By default, research belongs to the researchers. That's an essential part of academic freedom. The main exceptions are research funded by grants and contracts that specify otherwise, and when you start looking for patents and other commercialization opportunities.

In other words, the university may have some property rights to your work if you deal too closely with for-profit businesses or national security interests. But if you are just doing normal research with normal grants, you'll probably never see those exceptions in your career.

This isn't close to a monopsony but it's more directionally correct than it is wrong. Keep in mind research institutes can be funded by private foundations, state and local governments, industry (e.g. pharma), venture, or even foreign governments. The federal government is undoubtedly the largest buyer though. I do think there are other motivations to rely primarily on federal grants beyond number of dollars. In particular, funding sources other than federal grant money is often looked down on from an academic prestige perspective. Until now federal money came with very few strings attached compared to the perceived loss of objectivity that could occur when receiving money from other sources. The current situation may alter or relax the prevailing view on which sources of research money are perceived of as potentially compromising.

It's not a very good analogy because federally-funded research is a public investment, a public good like roads. The research is supported by the public (the government) and becomes available for anyone to use, learn from, and build off of. And in fact most successful U.S. business are built on the backs of technological innovation that was originally funded by the government, or at the very least, innovation from PhD's whose educations were largely federally funded. (Disclaimer: federally funded researcher)

You couldn't replace that with a private company "buying" research and expect the same societal benefits.

Anyone whose research is profitable is free to work for a private entity. The government is a "monopsony" in "buying" unprofitable research the same way it's a "monopsony" subsidizing any industry that would otherwise fail in a free market. That is not typically how the concept of monopsony is meant.

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