KNOW-HOW ECONOMICS This symposium on Know-How Economics i s indicative of the ever deeper and wider interest in chemical engineering economics. It was suggested by the increasing use of the term know-how. While originally “know-how” applied to that intimate process knowledge derived from extensive operating experience, it has now broadened to mean that organized knowledge concerning the manufacture and sale of a chemical which is necessary to its chemical success. Know-how thus includes knowledge of the things to be done and those to be avoided; it is the knowledge of use and application as well as the ability to produce economically. Know-how has its origins in the research laboratory; it i s enlarged in the pilot plant, comes to maturity in full scale manufacture, and receives its final economic finishing and refinement in the sale and use of the products. Know-how is obviously valuable and equally obviously costs money to acquire. This symposium i s believed to be the first public discussion as to the costs involved in acquiring knowhow. It i s too much to expect that this pioneering effort can give the definitive statements on these matters. Rather it i s the purpose to make a preliminary exploration of know-how economics with the hope of stimulating discussion and further study of this important phase of chemical engineering economics, JAMES H. BOYD, Chairman
OTHER ARTICLES Costs in Developing Process Know-How J. S. Rearick , , Process Know-How through Licensing Gustaf Egloff , Costs in Developing Marketing Know-How Ralph L. Ericsson and Lester E. Johnson. ,
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Importance of Know-How in
Chemical Development A. W. FLEER, Shell Chemical Corp., New York, N.
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The Symposium on Know-How Economics was a presentation o f the ACS Division o f Chemical Marketing and Economics at the 726th Meeting o f the American Chemicol Society, N e w York, N. Y.
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A. J. JOHNSON AND C. R. NELSON, Shell Developmenf Coo, Emeryville, Calif.
Information is presented to account for the rapid increase in industrial chemical research expenditures over the past few years. Although licensing is a means of minimizing research expenses and shortening the time required to complete process developments, the most important source of information on which to base such improvements is one’s own research and development know-how on related processes. As an example of the utilization of ,know-how and the savings afforded by its use, the Shell ethyl chloride commercial process development i s described. A research idea to integrate the substitutive chlorination of ethane with the hydrochlorination of ethylene for the production of ethyl chloride appeared to have considerable merit for application in a new plant projected for the Associated Ethyl Co., Ltd., of Great Britain. By utilizing know-how accumulated from previous development and design work on the chlorination and hydrochlorination processes at the Emeryville Research Center of the Shell Development Co., the assigned project was completed within the desired 12-month period. It has been estimated that a project of this complexity carried out in the absence of such knowhow would have required at least 3 years for completion.
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INDUSTRIAL AND ENGINEERING CHEMISTRY
Vol. 47, No 5
