A N A LVTICA L EDITORIAL
May 1971,Vol. 43, No. 6 Editor: HERBERT A. LAITINEN
EDITORIAL HEADQUARTERS Washington D C 20036 1155 Sixtee& ‘st:, N.W. Phone: 202-737-3337Teletype: 710-8220151 Managing Editor (Acting): Virginia E. Stewart Assistant Editor: Alan J. Senzel Editorial Assistant: Sylvia Crawford PRODUCCION STAFF Production Manager: Bacil Guiley Direction of Design: Joseph Jacobs Art Director: Norman W. Favin Associate Production Manager: Charlotte C. Sayre Editorial Assistant: Patricia W. Kener NEW YORKOFFICE 733 Third Avenue New York, N.Y. 10017 212-867-3161 Associate Editor: Josephine M. Petruzzi EDITORIAL PRODUCTION OFFICE,EASTON,PA. Assistant Editor: Elizabeth R. Rufe
ADVISORYBOARD: Norman G. Anderson Klaus Biemann C G Enke James 5.Fritz’ John Funkhoder’ Walter’E. Harris W: Wa ne Meinke, Edwin P. Przybylohcz W d a m C Purdy Eugene M Sallee: Donald T Sawyer Lee Smith h o y d R. Snyder Samuel ’M.’ Tuthill, jam, D. Wmefordner
A
AMERICAN CHEMICAL SOCIETY 1155 16th St N.W. Wahington, D.C. 20036 Frederick T. Wall, Executive Director Books a n d J o u r n a l s Division Director (Acting): John K Crum Head Business Operations Department : Jo&ph H. Kuney Assistant t o t h e Director: Ruth Reynard
REGIONAL EDITORIAL BUREAUS CHICAGO Ill 60603 36 South Wabtbh Ave. SAN FRANCISCO, Calif. 94104 57 Post St. HOUSTON Texas 77002 514 Ma+ Bidg. 1212 Mam St. FRANKFURT/MAIN West Germany 32 Grosse Bockenheim&traeae LONDON W C 2, England 27 John Aham‘St: TOKYO Ja an Villa ~ r i s 4 ’ 2-2-7Azabu 10-Ban M h t o - k u , Tokyo 106 Japan
E
Research and Economic Return a t a time when research funds, both in government and industry, are being cut back, the correlation between investment in research and development and the return in economic output is important to establish. A report entitled “A Review of the Relationship Between Research and Development and Economic Growth/Productivity” issued by the National Science Foundation is of exceptional interest in this connection. The report, prepared in response to a request by the Office of Management and Budget, in September 1970 and issued in February 1971, consists of four reviews of the subject by professors of economics a t major universities, plus summarizing commentary by Leonard L. Lederman of the National Science Found a ti on. It is concluded that, while it is difficult to establish a quantitative relationship in R & D investment and economic growth, existing evidence points t o high rates of return. The return, however, may not be completely, or even mainly, capturable by the sponsoring firm because i t may benefit the industry as a whole, or society as a whole. As a result, it is to be expected that there will in general be an underinvestment in R & D and that the underinvestment would be greatest a t the basic end of the R & D spectrum. These conclusions are especially interesting because they were reached by economists, not by scientists or technologists. The correlation between investment and return is in part based on feeling and hunch, and is more likely to be valid if done by financial experts than by the technical people whose motives might be considered suspect. The report also presents a strong cme for the public support of basic research, on purely economic grounds. Such a justification is important, for otherwise research can make no more claims to the public purse than other high pursuits that make cultural or esthetic contributions. It has been traditional in the chemical industry that basic research can be justified in terms of a time advantage over competition, even if in the long run the results benefit others, including competitors. I n recent years, however, there has been a clear trend in industry away from basic research and toward product-oriented or applied research. Evidently, there has been insufficient proof t o management that the sponsoring company gains returns commensurate with its pure research investment. If, indeed, basic research benefits society as a whole, and not just the sponsoring company or industry, then its support by the public sector becomes logical.
P
ARTICULARLY
Advertising Management CENTURY COMMUNICATIONS CORP. (for Branch 0 5 ~see .page 115 A)
For submission of manuscripts, see page 4 A . ANALYTICAL CHEMISTRY, VOL. 43, NO. 6, MAY 1971
633
