186 National Resources Planning Board 



5. The contribution by newly established laboratories 9. A considerable number of small and medium- 

 to the increase of research employment within the last 2 sized companies conduct research. However, most of 

 years is insignificant. the industrial research effort, as measured by person- 



6. Of the total research personnel reported, slightly nel, is supported by a comparatively small number of 

 more than half are professionally trained, principally large corporations. 



as chemists and engineers. The remainder is about 10. On the average, the size of the research staff is 



equally divided between technical and nontechnical related to the financial size of a corporation as follows: 



workers. , . . Tangible net worth: uuZZaff 



7. Comparison of the extent of research m various $1,000,000. 13 



industries shows very great differences: the number of $10,000,000 38 



research employees differs between industries by more $100,000,000 170 



^, , , If 11 • . $1,000,000,000 1,250 



then a hundredfold m extreme cases. >» . . . 



8. Some industries, even these with long-established 11. Assuming the average total cost of research to 

 technologies have shown a very rapid rate of growth, be $4,000 per man-year, the ratio of the research expen- 

 suggesting that industrial research is more nearly ditures of an "average company" to its sales is 0.6 

 universally applicable than its present use in some percent, and the ratio to its net income is 6 percent, 

 other industries would seem to indicate. This is an average for all industries. 



THE AVERAGE RESEARCH STAFFS MAINTAINED BY VARIOUS CORPORATE 

 UNITS DISTRIBUTED ACCORDING TO SALES AND TO NET INCOME 



1,000 



100 



o 



n: 



10 



I 



1,000 



10,000 



100,000 



1,000,000 



DOLLARS 



NET INCOME-SALES 



10,000,000 



100,000,000 



1,000,000,000 



Figure 55. — The Average Research Stafl's Maintained by Various Corporate Units Distributed According to Sales and to Net 



Income: 1938 



