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A comment on More Companies Plan to Put R&D Overseas. Parent comment

Re:More Companies Plan to Put R&D Overseas by varjag on Monday February 21, 2011 @05:56PM (#2247667)
> R&D is not a zero sum game like manufacturing. With manufacturing there is only so much demand for the manufactured goods; only so much material with which to make the goods etc.

The material wasn't really a problem in most industries since early 1950s. The demand is also permanently growing, with population levels increasing, wealth being created etc.

R&D however always follows manufacturing, it's just the nature of their relationship. It can not last long in ivory tower, no matter what politicians tell.

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Re:More Companies Plan to Put R&D Overseas by clavalle on Monday February 21, 2011 @08:19PM (#2248169)
"the demand is also permanently growing" I'd argue that nothing is 'permanently growing' but I get your point. That increase in demand, however, is not pulled out of thin air, it is deeply tied to a limited phenomena -- it is far more inelastic.

"R&D however always follows manufacturing, it's just the nature of their relationship" This is true but R&D leads to whole new markets with explosive growth as opposed to commodity plateaus and slower incremental growth based on population or other rate limited market phenomena.

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