U.S. companies are investing less in science: study

LOS ANGELES, Nov. 28 (Xinhua) -- A new study reveals that large American corporations are investing less in science and that the result holds across a range of industries.

According to the research recently published in the Strategic Management Journal, from 1980 to 2006, publications by company scientists have declined over time in a range of industries.

"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," Ashish Arora, co-author of the research, said in a news release.

In this study, researchers combined firm-level financial information with a large and comprehensive data set on firm publications, patents and acquisitions to quantify the withdrawal from science by large American corporations between 1980 and 2006.

They 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.

These trends are unlikely to be driven principally by changes in publication practices. Furthermore, science continues to be useful as an input into innovation.

The study points to a reduction of the private benefits of internal research. Large firms still value the golden eggs of science, as reflected in patents, but seem to be increasingly unwilling to invest in the golden goose itself, the internal scientific capabilities.

There is a widespread belief among commentators that large American corporations are withdrawing from research.

Companies appear to be focusing more on developing existing knowledge and commercializing it, rather than on creating new knowledge through basic research, according to the study.

Next, researchers 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," said Arora. Enditem