Industrial Research 



183 



units of various sizes. This is shown in figure 53. The 

 left-hand portion of the curve suggests the reahty of an 

 "average small laboratory" employing 6 to 10 workers 

 and serving a company of almost any size under half a 

 million dollars. Individual cases, of course, deviate 

 markedly from the average. Above $10,000,000, the 

 average research staff — and average research e.vpendi- 

 ture — increase rapidly with the size of the corporate 

 unit, but less, however, than proportionately. Between 

 $10,000,000 and $1,000,000,000, a hundredfold increase 

 of corporate size, the corresponding increase in average 

 research employment is thirtyfold. 



In considering correlations such as those of figure 53, 

 the question naturally arises as to how closely individual 

 cases correspond to the average. Figure 54 presents 

 the situation in the chemical industry. The curve 

 represents average research employment versus cor- 



porate size; the individual dots correspond to total 

 research employment by individual corporate units. 

 The scatter of the points is indicative of the difference 

 in amount of research done by companies of substan- 

 tially the same financial strength. The correlation is 

 rather better than might be expected in an industry 

 so diverse in both composition and activities. ^^ 



Relation of Research to Sales 

 and Net Income 



As an index to the money spent for research, the 

 ratio of research expenditures to sales is frequently 

 used. This ratio has, to recommend it, the similarity 



" Another factor contributing to the apparent differences is llie laolc of uniformity 

 In reporting technical assistants, etc., on the questionnaires. This coulj easily 

 account for an apparent ratio of as much as 2:1. 



NUMBER OF RESEARCH WORKERS EMPLOYED BY THE CORPORATE 



UNITS IN VARIOUS SIZE GROUPS 



5,000 



1,000 (2,000) 



10,000 



100,000 



10,000,000 



1,000,000 

 DOLLARS 

 TANGIBLE NET WORTH OF INDIVIDUAL CORPORATE UNITS 



100,000,000 



1,000,000,000 



Figure 52. — Number of Research Workers Employed by the Corporate Units in Various Sized Groups: 1940 



