This report compares the success of Public Sector Research Establishments (PSREs) that are privately owned or operated with those still in public hands. It finds that

• privately owned or operated PSREs are particularly effective in employing technology transfer at the heart of their business models to drive profitable growth and increase employment.
• the main difference in performance between government owned, government operated (GOGO) establishments and those now in the private sector is financial and organisational. One GOGO laboratory (Forensic Science Service) has made significant losses in a highly competitive market, and is due to close in 2012. By contrast, privatised laboratories like LGC and QinetiQ have grown strongly and profitably since privatisation.
• the success of some of the privatised establishments, and to some extent those under private management, stems directly from the removal of public sector operating constraints including slow decision making, high overheads and a lack of access to capital.
• removing these constraints would yield value for money benefits and savings. However, CentreForum believes some activities need to remain in the public sector for reasons of security and the need for impartiality.
• there is evidence that former public sector scientists were positive and enthusiastic about furthering their careers in the private sector.
• clarity about the advice and services government needs from public sector research establishments is key to getting the best performance from them, but this clarity has not always been present.

Download the full report and appendices.