In general the investment in scientific research goes to governmental institutions and therefore rarely leads to reforms or system changes. But improving the people's lives means to achieve societal progress e.g. creating justice and equal education, access to public goods and so in.
So even in countries such as Germany or Switzerland scientific research in societal issues does not happen.
By counter they tell us that new technologies will improve the people's lives such as new cars, iPhone, web access.
The technological progress therefore is much higher than the societal one.
Depends what you mean by scientific research. Obviously, science and technology is the main driver of economic development and growth, and it therefore clearly contribute to improving people's lives. However, a lot of research is produced (e.g. in economics and finance) simply because it serves and confirmation of the qualification of the researchers. Such a research is not improving people's lives much, except for authors' lives.
I seem to me that the question requires more specification because there are at least three related but distinct questions here.
First concerns public investments, i.e. should government invest in research or the private sector can do a better job. Second is the organization of research, should it be institutionalized in academia or in private/NGO sector. Finally, what is the connection between research and actual improvements in people's lives, what we mean by improvements and what is the time horizon of the analysis.
Without the specification, your question is too broad and I am not sure that it can be answered by a credible research.
It is very important because Science and knowledge are essential for progress, to organize societies and institutions and to improve our living. Also, it helps us better define and understand ourselves and the real reasons for our existence.