The writer is a professor of business at Columbia Business School
Investors are usually focused on the near-term outlook for economic conditions or upcoming earnings reports. But now is a good time to consider the long-term consequences of changes in government policy. Although these may be difficult to price into markets, several actions by the Trump administration do not bode well for the US’s investments in science and innovation.
Proposed cutbacks in government science personnel and spending have been large and wide-ranging. Although some have been held in abeyance by the courts, there have been big headcount reductions at the world-renowned National Institutes of Health, National Science Foundation and Centers for Disease Control among others. In addition, external grants awarded for research at universities may be sharply curtailed, affecting institutions and scientists throughout the country.