Industrial Research 



13 



contain the setting that has made research so construc- 

 tive in the petroleum industry, for example. To a 

 lesser degree, the railroad industry is in the same po- 

 sition. If this is a fault, it docs not necessarily lie with 

 the industries but rather with the fact that the problem 

 of how to initiate and support research within an in- 

 dustry not generally making reasonable progress has not 

 been solved adequately. The subject needs study. 



Location and Extent of Research 

 Activity in the United States 



An extensive analysis of the incidence of industrial 

 research, based upon directories pubHshed by the 

 National Research Council has recently been made.''^ 

 The present report therefore devotes relatively brief 

 space to the subject. The few charts presented, how- 

 ever, are based upon additional recent data obtained 

 by canvass made for this purpose. Only such charts 

 are included as bear upon policy matters with which 

 this survey and report are directly concerned. Supple- 

 menting a questionnaire canvass of all laboratories 

 known to the Council and of members of the National 

 Association of Manufacturers and other companies, mem- 

 bers of the survey staff personally canvassed a repre- 

 sentative sample of industry, seeking answers to specific 

 questions. It is believed that the information presented 

 as a result of this sampling can be accepted as objective 

 and representative. 



Organized research laboratories arc found in all the 

 industrial areas in the country and in most types of 

 industry. It is apparent that research has become 

 well established as a continuing function and that its 

 further spread may be anticipated. Of particular 

 interest is the chart" showing the rate at which the 

 number of laboratories has been increasing — and it 

 should be borne in mind constantly that the list of 

 organized research laboratories recorded in the directory 

 is by no means a complete record of the provision for 

 research in American industry. 



Research Abroad 



Industrial research was well developed in Europe 

 before its general adoption in America, but the United 

 States now leads in total spent on research and except 

 possibly for the Soviet Union in ratio of research expend- 

 itures to national income. Satisfactory figures are 

 not available, but Bernal has estimated that we spend 

 more on research than all the rest of the world, 

 outside the Soviet Union, and that England and 

 Germany spend possibly a tenth as much, France and 

 Italy appreciably less.'* 



>' See footnote 10. 



I' Cooper, Franklin S. Location and extent of industrial research activity in the 

 United States. This volume, figure 46, p. 176. 



Excellent and extensive laboratories arc found in 

 Soviet Russia and Japan. Each of the smaller indus- 

 trial countries provides for research. Switzerland, for 

 example, makes up in quality for part of its lack in 

 quantity. Research is generally recognized as a factor 

 in mternational as well as in national industrial com- 

 petition and development. 



England's Department of Scientific and Industrial 

 Research is an outstanding example of government 

 encouragement and support of research for the benefit 

 of industry. The World War had shown the competi- 

 tive power of research — ■ 



and there was general awakening to the fact that for success 

 in times of peace as well as of war, it was desirable that the 

 sources of science should be utilized to the full. The perils of 

 war furnished precepts for peace, and it was realized that on 

 the conclusion of the conflict a situation would arise in the 

 world of industry which would call for increased effort if British 

 industrial supremacy was to be maintained, and if the manu- 

 factured products of the nation were to continue to hold their 

 own in the world's markets. In anticipation of that situation 

 the Government of the day set up the Department of Scientific 

 and Industrial Research and as part of the financial provision 

 placed at its disposal. Parliament voted a capital sum of one 

 million pounds for the encouragement of industrial research. 

 The most effective way of promoting this aim was the subject 

 of careful consideration by our predecessors in consultation 

 with leaders of industry and the scheme of cooperative research 

 was devised." 



The aim of the Department was to demonstrate to 

 industry the usefulness of research with the thought 

 that government aid would be withdrawn once the 

 demonstration was made. About half the country's 

 industry — principally the new industries — subscribed. 

 Research associations were formed witliin various in- 

 dustries and research activities were financed by the 

 joint contribution, pound for pound, of government 

 and industry. Estimates of accomplishment from such 

 research cannot be checked satisfactorily, but specific 

 results have been achieved, and in one report enormous 

 returns were claimed from total annual expenditures — 

 of the order of 800 percent. It is perhaps significant 

 that after careful study, industrial associations were 

 considered the best means of providing subsidy, of 

 demonstrating the value of research to industry im- 

 familiar with it, and of giving aid throughout industry. 

 Even with sucii close contact with industry, there 

 ex"ists the same difficulty reported for the subsidy of 

 agricultural research in Great Britain — 



. . . There are, however, seme live farmers who make constant 

 use of the facilities placed at their disposal by the State, with the 

 result that the race is more than ever to the swift and intelligent. 

 It is still unfortunately true that the very farmers who would 

 benefit most from the help of the research workers are those who 



'I Bernal, J. D., F. R. S. The soi-ial function of science. New York, The Mac- 

 millan Co., 1939, p. 6.5, etc. 



" Report of the advisory council— 1932-33. Department of scientific and industrial 

 research. Report for the year 1932-33. London, His Majesty's Stationery OflSce, 

 1934, p. 7. 



