[HolgerDansk]

It would definitely be in the best interests of VCs making money to have taxpayers fund their risk.

Aside from the risk factor, the real problem is that research usually benefits someone other than the person funding it -- that's just the nature of research. So to be fair, most technology research has to be broadly funded. Up until the Clinton Administration, the vast majority of technology funding came from the federal government for this reason, but was then decried as "corporate welfare", and slashed. Welfare, yeah, show me any other welfare spending that has a 1000% ROIC.

VCs lose a lot of money on technology R&D.

No, they do not. VCs invest in businesses, which involve some development but certainly not research.

[Celtman]

Aside from the risk factor, the real problem is that research usually benefits someone other than the person funding it -- that's just the nature of research.

      Indeed.  Another problem is that any benefits from research are long term; research has a negative impact on the current quarter's bottom line, and American business has become seriously short sighted.

[Moonman62]

No, they do not. VCs invest in businesses, which involve some development but certainly not research.

I agree, and government funded research is the rare exception where government spending really pays off.