Think tanks and their roles in the global economy

What is a think tank?

A think tank is a research group that studies issues and gives evidence-based advice to governments, businesses, and the public.

• Think tanks act as brokers of policy knowledge and hubs for new ideas.
• They come in many types, from independent to corporate and government-linked.
• Businesses also use them to close skill gaps and push innovation.

Ever wonder how companies research their products and services? That is where think tanks enter the picture. Beyond lead generation and marketing, most firms shape their offers from market research. So this work pays off in a crowded market.

In fact, the the market research industry has grown into a multi-billion-dollar global market. Firms that change the world tend to create innovations such as laptops, online tools, and even the internet. At some point, research even pushes them to give back and build advocacies into their work.

Think tanks play a key role in shaping the global economy. They do this by giving research and analysis to policymakers. In the global economy, they form a third group of experts, alongside governments and businesses. As a result, they help drive decisions at national and international levels. However, not all firms can fund R&D teams to learn what customers want.

What is a think tank, and what’s it good for?

A think tank is a group set up to research and solve issues for many parties. These include the federal government, policymakers, and the general public. They are also called “policy institutes.” In fact, according to a New York Times article, they position themselves as “universities without students.”

As part of their work, think tanks post articles, studies, and draft policies for certain countries. However, their research does not just cover socio-political topics. As much as they push policy, some may also push agendas that their corporate donors value.

The role of think tanks in society

Primarily, think tanks act “as brokers of policy knowledge, centers for research, and incubators of new ideas,” per the Center for International Private Enterprise. So their main role is to raise awareness of economic issues. They also show policymakers how to act on them.

In addition, think tanks are seen as key to measuring and improving society. Still, they need to define their roles clearly. That is because some could be used in harmful practices. In short, they provide research and analysis to help governments and parties with policy. As a result, they shape the process with evidence-based advice on social issues. One key trait is their independence. Because their funding comes from foundations, corporations, and government grants, many can operate freely.

Types of think tanks

Think tanks are classified in different ways. For example, they differ by affiliation, interest, and function. Here are some of the most common types:

• Independent/autonomous. They stay on neutral ground. So they are not tied to any interest group, donor, or government funding.
• Quasi-independent. They are usually not tied to the government. However, interest groups fund them and hold real control over their work.
• University/political party-affiliated. These are officially linked to a university or a political party.
• Government-affiliated. These get funding from the government. As a result, they usually sit inside a government agency or department.
• For-profit. These can be tied to a corporation or run as a standalone entity.
• Corporate think tanks. These get funding only from corporate entities. So they can help a firm further impact its brand and purpose.
• Ideological think tanks. They aim to solve a social or corporate problem based on their beliefs.
• Specialist tank. These focus on a single field, such as foreign policy or education.
• Subnational think tank. They work on a local area of a country. For instance, one may study a single state policy.
• Practical tanks. Lastly, “think-and-do” tanks work like an NGO. So they run charity projects and advocacies.

5 most influential think tanks in the world

Thousands of think tanks operate worldwide. In fact, most of them sit in the United States, Western Europe, and Canada. Large enterprises often tap the most influential think tanks for a set purpose. In a news report, AcademicInfluence listed some of the world’s most influential think tanks.

1. Brooking Institute

The Brookings Institute formed from a merger of three Washington-based research institutes in 1927. It claims to be “non-partisan” and “centrist.” Still, many say most of its donations come from US Democratic party candidates.

2. The Heritage Foundation

Compared with Brookings, The Heritage Foundation leans more conservative. It mostly shapes American society. In short, it aims to “promote conservative public policies based on free enterprise” and other goals.

3. Council on Foreign Relations

Established over a century ago, the Council on Foreign Relations focuses on US foreign policy and world affairs. In fact, it boasts a 5,000-member base. On top of that, it shapes research in fields like information technology, global health, and climate change.

4. Cato Institute

Among the list, the Cato Institute is seen as more libertarian. It also voices strong support for people and groups in the peaceful fight for civil liberties worldwide.

5. Center for Strategic and International Studies

Last but not least, the Center for Strategic and International Studies started in 1962 under Georgetown University. In short, it focuses on analysis of world relations and economies tied to US national security.

Will a think tank help my business forward?

Beyond politics, think tanks also serve as advisors to businesses. The idea began as a platform for thinkers to tackle hard social issues. Today, though, they help shape business strategy and drive innovation. In fact, they work with a firm the way consultants and outsourcing suppliers do. So they offer advice on how to run better.

You might think a think tank only serves its political bias. However, most can give you the benefits below.

• Close gaps. Not all firms can invest the time and money to track the latest breakthroughs. So think tanks spot these trends and bring them to market fast.
• Act as a liaison. Think tanks can also be reliable sources of information for citizens and businesses on many topics.
• Push innovation further. Lastly, they help drive innovation beyond simple research. That is because experts like executives, engineers, and marketers freely explore new ideas with them.

Engaging with international think tanks can clearly move your business forward. In short, they offer valuable insights and strategic advice.

Frequently asked questions about think tanks

What does a think tank actually do?

A think tank researches complex issues and shares findings. As a result, it advises governments, businesses, and the public on what to do next.

How are think tanks funded?

Most rely on foundations, corporations, and government grants. Because of this mix, many can research and publish freely.

What are the main types of think tanks?

Common types include independent, government-linked, and corporate groups. Others focus on one field or one region.

Can a think tank help my business?

Yes. For example, it can close skill gaps, share trends, and support innovation. So it works much like a strategic advisor.

Which are the most influential think tanks in the world?

Brookings, The Heritage Foundation, and the Council on Foreign Relations rank high. Cato and CSIS also make the list.

Key takeaways

• A think tank researches issues and gives evidence-based advice.
• Thousands operate worldwide, and most sit in the US, Western Europe, and Canada.
• They range from independent groups to corporate and government-linked ones.
• Leading names include Brookings, Heritage, CFR, Cato, and CSIS.
• Businesses use think tanks to close gaps, track trends, and drive innovation.