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Why Corporate America Gave Up on R&D
American companies used to be at the cutting edge of science and technology. Not anymore.
American businesses have had a long history of being at the cutting edge of technology. Corporate labs at GE, DuPont, and AT&T’s Bell Labs were responsible for significant advances in science and technology in the 20th century, leading the development of innovations like integrated circuits, plastics, and synthetic fibers, which in turn became strong drivers of economic growth.
But are American businesses still as innovative as they used to be? A recent paper by professors at Duke University’s Fuqua School of Business argues that a transition away from formal corporate research toward a more diffuse innovation ecosystem driven by startups and universities has led to a decline in American innovation and economic growth.
Marker spoke with Fuqua professors Ashish Arora and Sharon Belenzon about the death of corporate research labs, how innovation works in the new ecosystem, and why it’s become harder to solve complex problems, including those posed by Covid 19.
This interview has been edited and condensed for clarity.
Marker: What has changed about innovation in American business in recent decades?
