Applied versus Pure Research

An interesting question arises as universities become increasingly interested and involved in commercialization: what is the role of the university?

Should it be pursuing pure research that would not be conducted without the assistance of research funding set aside specifically for this type of research? What percentage of its resources should be directed toward applied research activities? Should universities devote the majority - or all - of their time on applied research?

Where is knowledge created? Particularly knowledge that requires an investment of millions of dollars and hundreds of hours to produce something that may not be commercially useful - at least not yet?