Global Competence 50 Training Activities for Succeeding in International Business Book

A. Summary: This book examines how industrial research was established by 2 large corporations. GE formed from a merger of Edison General Electric and Thomas-Houston Electric in 1892. AT&T was the commercial outgrowth of Alexander Bell’s invention of the phone. They both entered into industrial research because it helped to protect their dominance over technology (incandescent lamp and telephone). What is important about these examples are that through patent control these large businesses could dictate how technology would change. Thesis: The IRL gave the corporation more power to control the market by developing and protecting new technologies.
B. The importance of industrial research
1. What is industrial research?
a) Laboratories set apart from production facilities
b) Staffed by people trained in science and engineering
c) The laboratories are protected from short term demands yet are responsible for long term company needs
2. What was the effect of industrial research labs on business: Increased productivity, competitive advantage against other companies, control of technical change, the progressive image of science and technology was linked to business
3. What was the effect of industrial research labs on science and technology: Provided direction for study, provided a new career path, no teaching or directing students, the creation of “high technology” (science+engineering) to create everything from computers to wonder drugs
C. The context; reasons for forming industrial research laboratories in the 19th
1. Technology was becoming more complex in the late 19th (electrical and chemical) and required more skill
2. Universities made available to industry a group of people trained for this new technology
3. Industry itself changed as many technologically based corporations formed
4. Sherman Anti Trust act 1890 removed various ways in which industry could protect itself from competitors
5. The progressive spirit
6. Research bred more research
D. The middle chapters detail the rise of industrial research labs at GE and Bell. Nothing too original here--see American Genesis for the background stuff
1. The specific mission of GE IRL: Maintain the companies hegemony in the electric lighting market
2. The specific mission of Bell IRL: To develop an electronic repeater for telephone service and to control radio technology
E. The impact of industrial research
1. The IRL gave the corporation more power to control the market by developing and protecting new technologies.