Businesses should be smart, invest in R&D
Lisa Duke's letter (Aug. 21) was "right on." We cannot recoup business lost to foreign companies who have won not through head-on competition, but by their government's complicity in a system that remunerates them for losses incurred during the "underselling" phase of their attack.
R&D has always been the "life's breath" of American business. Now, however, companies with dwindling profits have chosen to cut operations that do not directly affect short-term profits. R&D is an especially ripe target because it is typically populated by highly qualified (and highly paid) people.
The financial and investment communities put severe pressure on CEOs to perform and scrutinize this quarterly. It's no surprise when they take the "easy" road, slashing R&D instead of nurturing it for their companies' future benefit.
More intestinal fortitude is needed among industry leaders to emphasize R&D, and analysts should stop merely focusing on yesterday's bottom line and begin to recognize that effective R&D can hugely affect future profit. Universities should require a minor in technology for business students, to avoid graduating only "bean counters" with limited appreciation for the effort required to develop and produce products.
Ronald Depoe
McLeansville
Comments (4)
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Most universities have technology deeply inbedded in the current business curriculum. I think requiring a minor may be going a little overboard when you consider the economy versus the cost of attendance.
Otherwise, I wholly agree with the sentiment of your letter.
Posted on September 1, 2005 5:00 PM
R&D is where it's at, and frankly someting America is the best at.
Here's the problem from my chair:
A new widget is invented (an old one improved). Often this is done at the university level, and the professor gets a patent on his student's work and declares personal royalties from then on. I personally know of at least one example of this.
A new widget is invented (an old one improved). The Directors know they can get more profit by having it made in China - so limited good for America results. We all know of hundreds of examples of this.
A new widget is invented (an old one improved). The Directors try to keep manufacturing in America, but someone in China starts to make it anyway, and either bootleg editions or open market imitations flood the market, - so limited good for America results. We all know of hundreds of examples of this.
A new widget is invented (an old one improved). The Directors build a new manufacturing plant in China, but to get the permits, China requires a full submittal of the design and manufacturing process. The American factory in China soon notices a China factory in China that looks remarkable close to the submitted plans. Iimited good for America results. I personally know of one example of this.
Posted on September 2, 2005 5:50 AM
weather
Posted on September 3, 2005 10:00 AM
weather
Posted on September 3, 2005 10:04 AM