US Companies Are Investing Less in Science

A new article reveals that large corporations are investing less in science. From 1980 to 2006, publications by company scientists have declined in a range of industries.  The result holds across a range of industries.

Investigators also found that the value attributed to scientific research has dropped, whereas the value attributed to technical knowledge (as measured by patents) has remained stable. Companies appear to be focusing more on developing existing knowledge and commercializing it, rather than on creating new knowledge through basic research.

“This decline has taken place even though scientific research continues to be relevant, because the patents filed by these firms continue to cite the scientific literature at the same rate as before. This implies that the societal value of research has not declined,” said Ashish Arora, co-author of the Strategic Management Journal article. “We therefore need to investigate why the private value to corporations on engaging in research has declined. It also suggests that public support of research may be more valuable than ever.”

Additional Information

Link to Study: http://onlinelibrary.wiley.com/doi/10.1002/smj.2693/full

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The journal publishes original material concerned with all aspects of strategic management. It is devoted to the improvement and further development of the theory and practice of strategic management and it is designed to appeal to both practising managers and academics. Papers acceptable to an editorial board acting as referees are published. The journal also publishes communications in the form of research notes or comments from readers on published papers or current issues. Editorial comments and invited papers on practices and developments in strategic management appear from time to time as warranted by new developments. Overall, SMJ provides a communication forum for advancing strategic management theory and practice. Such major topics as strategic resource allocation; organization structure; leadership; entrepreneurship and organizational purpose; methods and techniques for evaluating and understanding competitive, technological, social, and political environments; planning processes; and strategic decision processes are included in the journal.