Tag Archives: R&D

Whither R and D? Or, is it wither R &D?

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We know that manufacturing jobs are being exported.  But, now the R&D is being exported, too.  Not only because the US is not producing fantastic scientific and engineering talent, but to afford corporations the ability to tailor their products to the overseas markets…plus, this curries favor with foreign governments by opening R&D centers in their lands. US innovation- high tech, manufacturing and non-manufacturing The US National Science Board (part of the National Science Foundation) reported that US multinationals have grown their R&D employment tallies overseas- with 85% of all new jobs being located outside the US.  Right now, the total employment in US R&D activities is 73% of the total overall (down from 84% in 2004). Before you jump up and down, consider this fact- more than ½ of the engineering degrees being awarded are from Asia (56% in 2008) and only 4% graduate from the US- and that does not include the fact that more than ½ the PhD degrees granted in the US are awarded to foreign students (57%).

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What can one person do?

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Pharmaceutical research has changed.  There’s the soaring price of drug development, the dearth of blockbuster drugs, and the precipitous drop in patents.  That does not include the megamergers that have occurred over the past decade.  Only 11 of the 42 large firms that were members of the Pharmaceutical Research and Manufacturer’s Association (PhRMA) 13 years ago survive today. The pharmaceutical firms have lost favor on Wall Street- with their market capitalization decimated.  That’s true even though the sales of the top 10 drugs have doubled in the past decade and the number of biologics in the top 10 has risen (and will dominate the top 10 soon enough).  The number of blockbuster drugs launched has not really changed- but their value has dropped.

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