SYMPOSIUM CHAIRMEN

WILLIAM COPULSKY, W. R. Grace &Co . , Cambr idge, Mass.

PAUL WOODBERRY, W. R. Grace &Co. , New York, N.Y.

The Challenge of

®$ττ$

PLANNING FOR RESEARCH

. . . AS A PART OF TOTAL PLANNING

DR. JAMES B. QUINN, Dar tmouth College, Hanover, Ν.Η.

. . . THE PROBLEMS INVOLVED

DR. ROBERT W. CAIRNS, Hercules Powder Co., Wi lmington, Del.

. . . AS VIEWED BY INVESTORS

WALTER K. GUTMAN, Stearns & Co., New York, N.Y.

. . . THE ROLE OF THE PATENT DEPARTMENT

DR. E. JANET BERRY, U.S. Industr ia l Chemicals Co., Division of Nat ional Disti l lers and Chemical Corp., New York, N.Y.

. . . BY A MAJOR COMPANY

DR. A. B. KINZEL, Union Carbide Corp., New York, N.Y.

. . . CONTRASTS BETWEEN INDUSTRY, UNIVERSITY, AND GOVERNMENT RESEARCH

DR. RAYMOND EWELL, University of Buffalo, Buf fa lo, N.Y.

. . . BY A DIVERSIFIED COMPANY

DR. JESSE WERNER, General Ani l ine & Film Corp., New York, N.Y.

. . . CHEMICAL RESEARCH IN THE ELECTRONICS INDUSTRY

IRWIN GOLDMAN, General Telephone & Electronics Laboratories, Menlo Park, Calif.

. . . BY A MEDIUM-SIZED COMPANY

DR. CARLYLE G. CALDWELL, Nat ional Starch and Chemical Corp., New York, N.Y.

These representatives of the industrial, academic, and financial worlds participated in the Sym­posium on Planning for Research, which was sponsored by the Division of Chemical Marketing and Economics at the American Chemical Society National Meeting in New York, N.Y.

106 C & E N J A N . 16, 196 1

C&EN feature / part II

This is the second section of a two-part

feature based on the Symposium on

Planning for Research, In this issue,

C&EN presents condensations of six of

the symposium papers, A condensed

version of the talk given by Dr, James B.

Quinn of Dartmouth College was pub-

lished last week.

Effective Planning for Research

In a diversified company, plans must cover a broad sphere

DR. JESSE WERNER, General Aniline & Film Corp., New York, N.Y.

Differences between the research planning of a small company and of one that is highly diversified are more a matter of degree than of kind. The diversified company must discipline it­self to carry out its research with greater intensity and over a broader sphere. Failure in planning will bring retribution that is just as swift—and not only in one area but many.

For a diversified company, proper planning is considerably more difficult than in a small company. Yet it is also more rewarding in the greater variety of its growth potentials. At the same time, the company enjoys the basic stability of not being tied to the changing fortunes of any one industry.

General Aniline & Film, with annual sales of over $160 million and with two major operating groups consisting of five divisions (General Dyestuff, An tara Chemicals, Collway Pigments, Ansco, and Ozalid), ranks among the nation's widely diversified chemical companies. It produces everything from chlorine and surface-active agents to color film and acetylene chemicals. Its customers include most of the

other major chemical companies, as well as detergent manufacturers, cos­metics producers, drug companies, tex­tile finishers, photographic distributors, office equipment suppliers, and many others.

Before World War II, General Aniline & Film was, in effect, the American branch of the German chem­ical industry. Since most of its new products were imported from Ger­many, only small research groups were maintained in the U.S.

When the Government took over General Aniline & Film after Pearl Harbor, the ties to German research were completely severed. For the first time, GAF faced the problem of building an integrated research or­ganization. The new American man­agement, while expanding the com­pany's divisional research groups, also began setting up a very strong central research laboratory in 1942. Some 10 years later, the company, reversing its policy, decided to decentralize. All research was divisionalized.

At GAF, we have had an excellent opportunity to evaluate both types of organization first hand. The most

desirable arrangement, we believe, lies somewhere between the extreme of a highly dominant central research lab­oratory and the other extreme of no central research laboratory at all, with little or no centralized planning and coordination. We are now making the necessary changes to strengthen our over-all research planning.

Staff and Program Are Sizable

Our research and development de­partments are staffed by some 600 people, about half of whom are pro­fessionally trained. The company's research program costs over $6.5 mil­lion annually.

At General Aniline & Film, we use the term R&D to mean not only work carried out in laboratories and pilot plants but also various related func­tions such as technical information services, market research, and market development. A corporate vice presi­dent, assisted by staff specialists, is specifically concerned with these ac­tivities. The group executives and di­vision general managers are respon­sible for the direct-line control of re­search.

Each of the two groups (Chemical and Ansco-Ozalid) has a research director who is also the commercial development director. Each of the five divisions has a technical director in charge of the research and develop­ment supporting that division's prod-

JAN. 16, 1961 C&EN 107

These are some of the steps that go into General Aniline & Film's planning for research

• The corporate officers prepare brief statements of the over-all assumptions and goals for the company's activities over the next five years

• Each division adds its own statement of basic assumptions and goals for the future

• Each division also prepares a long range estimate of its future sales and profits

• Each department submits a detailed report, preferably with time schedules, indicating how its activities will help to meet the com­pany's goals and the divisions' goals and sales projections

• The research departments provide necessary information about their activities to the other departments they may affect

• The research directors evaluate their long range programs in terms of the company's marketing needs and production feasibility

• They determine what effects research will have on the company's future sales and profits

• The research directors prepare annual budgets, indicating pro­posed projects and areas for research, anticipated manpower requirements, estimated costs, and expected profits, savings, and other possible benefits

•Top management reviews the plans of the research departments

•The research directors continue to carry out day-to-day planning in their verbal and written contacts with other departments, such as marketing and production

uct line. In turn, each R&D subgroup reports to its own director.

All formal planning for research at GAF is based on the company's total long range program. As each year passes and as our experience in long range planning grows, we find this ex­ercise in controlled thinking of greater and greater value.

Company Goals Outlined

Annually, we have our corporate officers prepare brief statements out­lining t f e over-all assumptions and goals for the corporation's activities over the next five years. Each division then adds its own statements. Once these basic assumptions and goals have been defined, each division pre­pares its long range projection of sales and profits. Simultaneously, every de­partment prepares a detailed report,

preferably with time schedules, in­dicating how its activities will help to meet the company's goals and the di­visions' goals and sales projections. Each of the departmental reports also specifies what the other departments must do if its own activities are to be carried out on schedule.

The research departments must play their indispensable part in this plan­ning. The sales department, for ex­ample, must know the types of new products that research expects to turn over to them. The sales department must also know approximately when these new products will be available.

Needless to say, the cooperative thinking of all the divisional managers is essential in preparing these reports. Each department, such as research and commercial development, must critically examine the proposed plans of all the other departments affected.

In writing his report, each research director must carefully consider his long range program in terms of mar­keting needs and production feasibil­ity. He must evaluate its effect in terms of sales and profits. This helps to keep our research aims focused on the most necessary and most profit­able goals for each division.

The divisional plans are reviewed by the group executives and then by the corporate executives to make sure that such matters as capital expenditures are within reason. The proposed ac­tivities of a division are also checked to be sure they fit in with the plans of other divisions and groups. Pro­posed acquisitions and suggested new fields for research and development are carefully evaluated. The final docu­ment represents a composite of the best thinking of our divisional, group, and corporate managements.

Research Budget Is Vital

Preparing the annual research bud­get is another essential technique in research planning. Obviously, man­agement must be informed about ex­pected research costs before making divisional, group, and corporate fi­nancial forecasts of any kind.

Drawing up the annual budget is especially important because it forces each research director to consider in very concrete terms his objectives for the next 12 months. His budget pres­entation to the divisional, group, and corporate managements is, in essence, his "moment of truth." It requires the director and all of his research supervisors to give considerable thought to the whys and wherefores of their plans.

In drafting his budget, each research director must list in detail all pro­posed projects or areas for research. He must anticipate manpower needs. He must estimate costs and expected profits, savings, or other benefits. Later, his plans are thoroughly re­viewed by the vice president con­cerned with research and development and, at a later date, by the entire cor­porate top management.

At the same time, planning is carried out almost on a day-to-day level by the research directors in their verbal and written contacts with the other departments of their divisions, especially marketing and production. Such planning is a fine art. It de­mands a careful balance to keep a re­search program steadily on course—

108 C&EN JAN. 16, 1961

but, at the same time, flexible enough to adjust to changing market require­ments.

New Fields More Difficult

Research planning for altogether new fields is, of course, even more com­plex than planning for conventional products. The commercial develop­ment department must feed into the research laboratories a continuous stream of field information on new uses, customer needs, competing prod­ucts, and other factors that may change the company's research plans for new products.

Orderly planning and scheduling, we find, are the keys to handling such complex situations. Our divisions prepare a formal outline of steps to be taken, with target dates and budgeted costs, which are reviewed periodically. The divisional general managers and

All research is an integral part of business. This may sound obvious, but 15 years ago it was not. At that time, research all too often was some­thing that occasionally had its place. Today, it is a vital force.

At Union Carbide, research is basi­cally decentralized. Each of our divi­sions operates its own researôh pro­gram. The situation is like that of a small company making a limited group of products.

In our divisional laboratories, all work in product development follows very closely the pattern of the divi­sion's business interests. Applied re­search, however, cannot adhere to this pattern quite as readily since its re­sults are never as predictable as those in development. Nevertheless, ap­plied research can be directed toward products that, without too much diffi­culty, can be fitted into the division's organization and activities. But in fundamental research—where you don't have your eye on the final goal and cannot visualize the type of busi­ness that will ultimately result—plan-

the group executives carefully review the research projects at regular inter­vals. And as the projects come nearer to completion, they are reviewed by the corporate top management.

In many cases, a diversified com­pany cannot hope to carry out eco­nomically all of the research projects that would be desirable in every area of its activities. To fill the gap, it may do research cooperatively with domestic and foreign companies. Or it may arrange to exchange or pur­chase know-how. All this requires thoughtful, detailed planning.

Continuing Process

Planning for research is obviously a never-ending process. It is also one that must continually be improved. At present, we are working on new methods to help us find better answers to such problems as:

ning is still more difficult, although not impossible.

Being a large corporation with a variety of divisions and with men of widely diversified talents, we have more than the usual number of op­portunities and problems. We must make the best possible use of the re­search man who, while studying metal­lic solid state, for example, may come up with something that could be a first-rate catalyst for the synthetic organic division.

In addition to our divisional re­search, which focuses on our divi­sional interests and is supported by funds from the divisions, our labora­tories also do corporate research. Our central research administrators may see the need for new research projects or recognize the unusual potentials of an existing project that could be of interest to several divisions or possibly, at the moment, to none at all. They may then give the go-ahead for this research, which is essentially basic in nature and is supported by corporate funds.

• How can we improve communica­tions throughout our research organi­zation so that research problems get the best over-all consideration?

• How can we control our operations better so that we do our research more effectively and also terminate unprom­ising projects sooner?

• Would some of our research ben­efit from greater corporate control?

• In what new areas of research should we consider carrying out joint industrial or government projects or possibly purchasing know-how?

• Finally, how much more diversifi­cation should our already diversified company consider among all the many attractive possibilities available?

We are confident that, with proper planning, we will find answers to these problems. In this way, we will be able to chart our future even more imag­inatively and profitably.

When this corporate fundamental research reaches the applied stage, we do one of several things. If the proj­ect clearly fits well into the division already working on it, it remains there for further development. Otherwise, we either transfer it to an interested division or continue it with corporate funds as a "special."

Our silicones division is a good case in point. It grew out of research on inorganic materials at our Linde lab­oratories. When this work obviously could no longer be handled by a group primarily interested in such things as cryogenics, welding, and inorganic specialties, it was taken out and set up as a separate research project. Later, it became the basis of a com­pletely new division.

One Third Basic Research

In our fundamental research pro­gram, we follow a pattern similar to that of most large corporations. About a third of all our research (not includ­ing development work) is fundamen­tal. We believe that one of the best ways to create miracles is first to gain a basic understanding of the field in which you are working. This under­standing directly impinges on what comes next. And it can have a great impact on the rest of your research.

In doing fundamental work, you

Big companies have more problems, also more opportunities

DR. A. B. KINZEL, Union Carbide Corp., New York, N.Y.

JAN. 16, 1961 C&EN 109

FOLLOW THE LATEST DEVELOPMENTS. Planning for research should take into ac­count what is actually happening day to day in the company's labs. At Union Carbide's Tonawanda laboratories, Joseph D. Strachan runs a vacuum distillation on a new silane

hope that, somewhere along the line, you will hit a jackpot. But whether you do or not, the research will still pay off. Statistically, over a given period of time, you should be success­ful—provided you are running a gen­uine research program, with good people who are dedicated to the re­search itself, as distinct from its prop­aganda aspects.

Currently, the U.S. is spending about $10 billion a year on research of all types in the physical, medical, and biological sciences. Much of this is for development work. Yet a great

deal is also going for basic research, a large part of which enters the public domain. Much of the nation's basic research today is financed by the Gov­ernment and, therefore, belongs to the public. Or it is being carried out by industrial research people who feel that, in the proper tradition of science, fundamental findings should be pub­lished. As a result', a vast amount of information today exists in the public domain.

From this, an outsider might assume that a company really doesn't have to do its own fundamental research to

take advantage of this information. It's a nice theory. But actually, a sci­entist cannot appreciate the impor­tance of what is being developed by the rest of the research world unless he is actively a part of it. He cannot merely be an observer.

Knowing the Field

When Bell Laboratories, for exam­ple, announced its work on the transis­tor, General Electric scientists were already doing fundamental research in the semiconductor field. They under­stood the basic principles and the sig­nificance of this discovery. As a re­sult, GE was ready to move ahead rapidly with applied research on tran­sistors, followed by development work and finally production.

Although polyethylene originated with Imperial Chemical Industries in England, Union Carbide became a leader in polyethylene because, at the time, its scientists were doing basic research on high pressure phenomena. In short order, they were able to per­fect a process for making polyethylene efficiently and economically. This, of course, takes us right back to the key point: A company must develop an expanding store of basic scientific knowledge, and it must have people who can fully appreciate what is hap­pening when important developments break.

In doing research, a company must fully understand the scientific and technological areas in which it is work­ing. It must also know what its com­petitors are doing. If a dozen or more laboratories are working intensively in an area, the chances that any one of them will come up with something that is proprietary—or sufficiently bet­ter than what someone else is apt to develop—are small. But if the field is being researched by only a few lab­oratories, you obviously are much bet­ter off.

Moreover, every company possesses certain major assets. Let us as­sume that you have a strong raw ma­terial position. Any research that en­ables you to exploit your raw material position will pay off in profits much more quickly than any other type of research. Knowing your competitive raw material position and your avail­able growth areas, you can determine how to split your research dollars among a variety of worthwhile proj­ects.

Finally, there is another effective method of planning—on the basis of

110 C&EN JAN. 16, 196 1

what is happening day to day in your laboratories. A true planner may shudder and say, "No, no, that's short­sighted." But if this sort of flexible planning is done with proper regard for other factors, a company can really be ahead of the game.

Actually, you don't rigidly plan re­search. You may plan for research, but you don't plan it. If you do, you had better make up your mind to stop.

Usually, companies work out their annual research program and budget in the early fall, to come out in print about the first of November or Decem-

DR. CARLYLE G. CALDWELL, National New York, N.Y.

Recently, I had occasion to review the progress of a special project in our pilot plant. We were faced with what seemed a complete impasse in making a new product. In desperation, we agreed on a few experiments that were rather unlikely but were very scien­tifically contrived.

For several days, I heard nothing about the project and, in fact, had to inquire about it. "Oh, yes, that difficulty was overcome," I was told. "Brilliant! How was it done?" "Well, actually," the answer came back, "it wasn't anything we had planned. One of the operators made a mistake that worked. He simply added twice as much of one of the ingredients as was originally called for."

I have often wondered whether re­search might advance more rapidly if more mistakes were made. Certainly, they might lead to more accidental discoveries. I remember when we planned to make a floor polish resin and wound up with a paint binder. And there was the time we started out to make a waterproof textile fin­ish and ended up discovering an aid for vitamin processing. Of course, many projects never yield a commer­cial result of any kind. In our organi­zation at least, the projects were not planned that way.

Our experiences seem to contradict

ber. They can then be hashed over and finally approved about the first of the year. But because the research program and budget are set down on paper, let's say, in September, they are obsolete by the time they are ap­proved. If they aren't, something is definitely wrong with your research laboratories.

In programing and budgeting, be sure not to take the details too seri­ously. If, as your research progresses, you find something really worthwhile, you should be able to spend the money necessary for it—even if the original program doesn't tell you so.

the concept of exact planning for re­search. They suggest that, in some measure, research success is fortuitous. Yet, of course, research—in spite of the uncertainties—can be harnessed to ensure corporate health and growth. Planning for research is clearly a manageable activity. If intelligently done, it will almost surely yield val­uable results, even if they are not always the goals originally set.

Arranging Favorable Conditions

In a medium-sized company, the problems of planning for research-that is, providing for conditions favor­able to research—are basically the same as those in a large company. However, the medium-sized company is likely to face a greater challenge or at least a different kind of challenge because its resources and opportunities are in many respects limited. When making research choices, the company may have to consider more carefully its ability to obtain the desired results and then to exploit them.

The medium-sized company is limited in what it can spend on re­search and development. This re­stricts the range of scientific talent, facilities, and equipment it can afford. Only the rare company is in a position to purchase a complete array of basic

You should be able to get the money from some other project that is not nearly so promising.

One way to get this flexibility is to let the research people themselves worry about how the funds should be distributed as the work moves along. The minute a project looks good, it should become an important part of your research program. One of the most vital things in planning for re­search is to keep your eye on what's happening in your own laboratories. At the same time, be sure to stay alert to what's happening in the rest of the scientific world.

scientific equipment. And, of course, the smaller company must be es­pecially selective. In addition, it is severely limited in how much it can spend on fundamental or "blue sky" research.

Nevertheless, a medium-sized com­pany will have ways of getting around these obstacles. It will find many specific fields of research in which it can capitalize on its special strengths and skills.

In one essential element of planning for research—that is, in communication —I feel the medium-sized company has a definite advantage. Because the company has fewer personnel and fewer levels of administration, its people can communicate more quickly and effectively. Not only does this result in faster action, but the company can adapt its planning more rapidly to its own changing needs.

Last year, National Starch and Chemical, with sales of almost $53 million, spent about 3.5% of this amount on research and development. At our laboratory and pilot plant in Plainfield, N.J., we have an R&D staff of over 200 people, more than half of whom are professionally trained.

Research Plays Key Role

Our R&D program has obviously been one of the main factors in the company's growth and diversification. Some 40r/c of our sales in 1959 were based on new and improved products introduced in the last 15 years. About 27% of our sales in 1959 were based on products introduced in the last 10 years and 18% on products put on the market in the last five years.

Medium-sized companies must cope with limited resources

Starch and Chemical Corp.,

JAN. 16, 196 1 C&EN 111

PROPER GUIDANCE. Company must set up workable pro- forts. Here, National Starch and Chemical's research and cedures for management to guide and control its research ef- development committee evaluates a new research project

I believe we have been successful in planning for research because we have used these techniques:

• Our management has clearly de­fined the company's broad objectives and has emphasized its strengths and skills.

• The company has carefully selected and trained its personnel and has made sure that they are fully com­mitted to its goals.

• It has provided for good communi­cation between management and re­search and also between research and the company's other departments.

• It has effectively organized its re­search and development programs and has set up workable procedures for management to guide and control the company's research effort.

Responsibility Is Well Defined

Research at National Starch and Chemical is mainly concerned with starch, adhesives, and synthetic resins. The vice president of research, with offices at our laboratories in Plainfield, N.J., is directly responsible for this research. He is also responsible for process development activities and for advising and cooperating with the company's attorneys in patent matters.

A vice president in our New York headquarters takes charge of applica­tions development and technical serv­ice on starch products. Another New York-based vice president supervises these activities for adhesives and resin products. Both men have product

managers reporting directly to them. The company's R&D program is also

directed, controlled, and coordinated —especially at the policy-making level —by the research and development committee. On this committee are the senior vice president (acting as chairman), the vice president for starch sales, the vice president for ad­hesive and resin sales, the manufac­turing vice president, the research vice president, and the president. This group is, in effect, the "board of di­rectors" of the Plainfield laboratories. As such, it is responsible for setting policy and making major decisions affecting the laboratories.

Our emphasis on profitable growth through research and development is underscored by the fact that the chair­man of this committee is the corpora­tion's senior vice president. His main job is to plan the company's future growth. He devotes at least half his time to formulating research and de­velopment policy. The president, as another important member of this committee, helps to represent the com­pany's other groups .that are not di­rectly represented on the committee, such as the personnel, finance, ad­vertising, public relations, and legal departments.

The research and development com­mittee meets about 18 times a year. Each meeting is usually devoted to reviewing one area of research and development. Recommendations of the R&D people are weighed against the needs and problems of other groups, especially production, market­

ing, and finance. The decisions of this committee, representing the best judgment of top management, take into account all aspects of the com­pany's operations.

Special Meetings Effective

To increase mutual understanding between R&D and other company ac­tivities, we hold an annual research and development meeting. At these, our research people have "their day in court." Actually, the meeting covers two full days and is attended by about 40 key employees and man­agers from all departments. In ad­dition, all professionally trained lab­oratory people attend some part of the meeting.

At these sessions, our management people get a full presentation of the year's R&D results. They are told how our various research and develop­ment groups plan to extend their efforts and what this could mean to the company's future.

These meetings also permit a "feed­back réaction" from the management group. Management asks questions and makes suggestions. This not only helps the research chemist to learn more about other departments but also shows him that his work is important to the rest of the company. Psycho­logically, this is valuable. It makes it evident that the rest of the company does understand and appreciate what research is doing.

The job experience of our new em­ployees is rounded out by an instruc-

112 C&EN JAN. 16, 1961

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C & Ε Ν 113

THE YEARS OF A FLOORING ARE MEASURED

tion program called the technical sur­vey course, which is conducted by officers, managers, and supervisors from the research and development de­partment. These sessions last about three and a half days each and are spread over a period of three months. In the morning meetings, the product managers discuss the historical back­ground and current industrial uses of starch, resins, and adhesives. These

The concept of planning for research avoids the controversial implication that research itself can be planned. Obviously, basic research depends on a spirit of free inquiry, which defies planning. To make the most of basic research, companies must learn to deal with its inherent unpredictability.

In staffing their laboratories, com­panies must take special care to select research men who are truly creative and who will appreciate the impor­tance of the unexpected. These are the men who will know how to capital­ize on chance discoveries. And these are the men who are equipped to meet the most difficult scientific challenges.

morning meetings are attended not only by R&D trainees and employees but also by those from the administra­tive, sales, accounting, and other branches of the company.

The afternoon sessions, which are more technical, are attended primarily by R&D trainees and other technical people. Here, the accent is placed on fundamental instruction in research and development.

For any company, a key problem is to choose the right fields in which to do basic research. Presumably, scientists should be allowed to follow their research interests freely and to work with a minimum of restrictions. It is not enough, however, merely to set the stage and then leave all else to the intuition and independent judg­ment of the research man. A scientist who knows nothing of the company's purposes, long range objectives, and special capabilities cannot be expected to carry out his work with full effec­tiveness in new scientific fields. The company must give the research man a clear understanding of how his tech-

Frorn the very beginning ot their careers, our employees are constantly trained and exposed to the important role of R&D and to the new develop­ments taking place in our laboratories. Through experience, we have learned that all our departments function better when they have a clear under­standing of our company's major re­search, development, and technical activities.

nical achievements in selected areas can promote the company's growth.

In planning for fundamental re­search, industry must discard the idea that scientists must be totally isolated. It should seek ways to keep its re­search men aware of other facets of the company's technical activities. It should also encourage close personal relationships with other technical people within the company.

Plans Should Be Flexible

Basic research in industry will flourish if it is allowed to follow paths selected by the research men them­selves. It should not be rigidly con­fined to superimposed plans that are remote from the preoccupations of sci­entists. Certainly, it should not pre­vent scientists from moving rapidly into promising new fields.

Applied research, as contrasted with basic research, involves both the prob­lems of making products and using them. Planning such research must allow for constant communication be­tween the men who work to develop improved chemical processes and those who seek ways to use new products commercially.

In the past, the industrial chemist was chiefly concerned with synthesiz­ing products to meet existing needs. He sought to develop new and im­proved ways to make chemicals previ­ously obtained from natural sources.

In recent years, however, more at­tention is being paid to applications research on products that never-existed before—products designed for totally new uses. The commercial success of the new polymers, for example, has de-pended as much on the creative skills of the applications research man as on those of the synthetic organic chemist. Today, the chemical industry is not only investing heavily in new facilities

PROMOTING RESEARCH. Basic research will thrive if it is allowed to follow paths chosen by scientists themselves. At Hercules, Dr. James C. W. Chien (left), Dr. Richard F. Heck (center), and Dr. Wendell P. Long discuss NMR spectra of polyolef in catalysts

Planning should allow for spirit of free scientific inquiry

DR. ROBERT W. CAIRNS, Hercules Powder Co., Wilmington, Del.

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KNOW COMPANY OBJECTIVES. A scientist can do his work with full effectiveness only if he has a clear understanding of the company's long range goals and special capa­bilities. This chemist carries out an extraction at Eli Lilly laboratory

for applications research but is exer­cising increasing care in organizing this research.

Development Program

Planning a company's process and product development activities in­volves many of the same problems faced in planning research. Develop­ment people must be properly se­lected, stimulated, and given adequate support. Development work, how­ever, differs from basic research in generally requiring more carefully or­ganized teamwork by the many varied groups tackling different phases of the same project.

The central problem in planning de­velopment activities is to set up eco­nomic criteria to guide the work and to measure its progress. The job of administering development programs has become increasingly costly and complex. Companies, therefore, must require their development people to draw up reasonably precise time sched­ules and budgets. Plans for develop­ment work, however, must be suffi­ciently flexible. Excessively rigid planning can stifle individual effort.

In development planning, expected manufacturing costs must be carefully

spelled out. Investment requirements must be estimated as accurately as possible. In addition, the person who does the cost estimating must point out the specific technical obstacles that must be overcome if the project is to survive.

In many cases, an early cost esti­mate is merely a statement of hope. However, it can still be extremely val­uable in planning. All too often, eco­nomic considerations are regarded as an inhibiting factor, rather than what they should be—a useful guide and stimulant to the technical man doing development work.

Action Taken at Right Moment

Development plans must also be concerned with the continuing prob­lem of project strategy. In any proj­ect, a point may suddenly be reached when development people must greatly intensify their efforts. Or they may have to drop everything and concentrate on one or two specific problems. How does a company rec­ognize these key decision points? How can it be sure to bring its man­agers into action at the right time?

At Hercules, we have subdivided our development program into three

phases—laboratory, design, and com­mercial. At the same time, we have set up specific economic, techni­cal, and strategic criteria for advanc­ing a project into the next phase. Periodically, we bring together a spe­cial reviewing group of six key peo­ple (the operating department man­ager, his development director, a com­pany vice president, the laboratory director, the research division man­ager, and the director of research), each of whom is responsible for some aspect of the project. Their discus­sions help to iron out difficulties and clarify future strategy.

Testing in the Field

As early as possible, a company de­veloping a new product should ex­tend its applications work out into the field. Before that time, information about the product's potential uses comes either from the company's gen­eral knowledge of customer needs or from its own market research. But practical information of a more de­tailed nature is often necessary. This can be gotten by field testing, which frequently begins as soon as enough product is available from the pilot plant. However, large enough sam­ples may be made in the laboratory to permit the product to be field tested even earlier.

A company must be able to antici­pate the many obstacles encountered in moving a new product from the laboratory and pilot plant into com­mercial production. For example, the cost estimates by development men, construction engineers, and plant pro­duction people may differ widely be­cause of their varying degrees of op­timism. Obviously, it is important to have a meeting of the minds before the time of final decision.

To be commercially successful, a product must be able to make a rea­sonably smooth transition from the idealized world of research and devel­opment to the practical conditions of the market place. Planning for re­search must provide for a courageous but sensible approach to this problem. To all would-be research planners, let me suggest that the sooner you get your operating management in the same boat with you, the better will be the chances that this transition will be painless. At least, there will be more people around to commiserate with you—and also to lend a helping hand if the going gets rough.

116 C&EN JAN. 16, 1961

Patent departments can fulfill a vital role in research

DR. E. JANET BERRY, U.S. Industrial Chemicals Co., Division of National Distillers and Chemical Corp., New York, N.Y.

The patent laws of the United States are designed to stimulate advances in science and industry by promising the inventor a legal monopoly for 17 years in return for complete disclosure of his invention. In this way, the in­ventor or his corporate assignee gets potentially valuable property rights to a new discovery.

A company can benefit fully from a patent only if its research and devel­opment departments work closely with the patent department from the initial planning of research through to the production of a commercial product. The areas of cooperation can be divided into three stages. The first is the planning stage. The second is the period of laboratory research, to­gether with development. And the third stage begins when the product is made commercially.

Planning Stage

In the first stage, the patent depart­ment can make a valuable contribution by searching and retrieving informa­tion. Unfortunately, this is a period when the patent department may be completely unaware of proposed re­search planning. Often, it is only after a research man has made a sup­posedly world-shaking discovery that the patent department learns about it. However, early knowledge can be invaluable.

A recent report on information re­trieval points out that failure to find past information is costing U.S. re­search over $1 billion annually. Many scientists and engineers fear, justifi­ably, that they are working on prob­lems that have already been solved and whose solutions have already been published.

Besides assisting in information re­trieval, the patent department can aid research by watching the patent litera­ture and reporting significant develop­ments to the right people. Patent in­formation can be extremely useful if time is taken to study, digest, and evaluate it. Blind alleys can be avoided, and difficulties can be fore­seen before they occur.

Much time and money can be saved by properly using such information, which is available to everyone, includ­ing competitors. Users of patent in­formation pay nothing for the instruc­tion, nothing for all the research that went into it, and nothing for the costs of all the failures and false starts that undoubtedly preceded it. Informa­tion in the more than 2.3 million ex­pired patents can be used exactly as described. And information in all ac­tive patents can be used in any im­proved form that may occur to any­one skilled in the art.

Research and Development Stage

Let us assume that the second stage has been reached, and the research program is now in full swing. This is the time when the patent department will most often be called upon for help.

In doing research, the scientist should be able to recognize when he has made a worthwhile discovery. And, of course, he should communi­cate his discovery promptly to the patent department. Every research

development, no matter how insignifi­cant it may seem, should be communi­cated to the patent staff.

Some research men have the notion that their discoveries are so funda­mental and far-reaching in the field of pure science that their work should not be sullied by the uncouth touch of a patent attorney. Other research men feel that they are merely repeating the prior art to see if it really works, or are trying to find a practical use for some known composition, process, or device. Both types obviously re­gard the arrival of a patent attorney in their laboratories with something less than enthusiasm.

Another type of inventor is equally a problem. He is the kind who has decided to be his own patent attorney. There's really nothing to it, he de­clares—just all that legal gobbledy-gook. And as far as the prior art is concerned, he couldn't care less. In fact, he has just accidentally discov­ered that a "disk, or a circular frame or body, whether solid or built up, capable of turning on a central axis, can be employed, preferably in plural­ity, to actuate vehicles." So he has hit upon a real invention, and he knows it.

No doubt, this device is useful and operable. But is it new and patent­able? Hardly, because he has merely redesigned that wheel again. Any­way, as far as this aspiring inventor is concerned, that's the way it always goes when you talk to patent attor-

INFORMATION SOURCE. Patent department can help research by watching patent literature and passing information along to right people. Dorothy Anderson of U.S. Industrial Chemicals' patent department locates a reference for John A. Munson

neys. Nothing is ever an invention. And even if it is, they always want more data.

What patent attorneys would like is an inventor who is somewhere be­tween these extremes. Preferably, he should also be cooperative and some­times sympathetic.

As an added responsibility, the re­search and patent departments are mutually concerned with problems in­volved in releasing technical informa­tion. Reports, talks, lectures, and cor­respondence with others on technical subjects should be carefully reviewed by the patent department before re­lease.

Any mistakes in this area could re­sult in a loss of patent rights, charges of patent infringement, loss of valuable but unpatentable trade secrets, and loss of otherwise salable know-how. It could also stimulate research in the same field by outside companies. Too often, the desire for scientific recogni-

Research planning m industry, the Government, and universities is dif­ferent. In general, the research ob­jectives of industry are the most clearly defined and most carefully pin­pointed. The research aims of the Government are usually more diffuse and less clearly defined than those of industry. And in university research, the objectives are the broadest and most diffuse of all.

Industry has very specific over-all corporate goals. These determine its research objectives which, in turn, are the dominant factors in research planning.

Planning in any company is pri­marily concerned with the proper use of resources, mainly money. The company must allocate funds for such major activities as construction, re­search, and sales promotion. At the same time, it must predict the ex­pected return on investment from each of these activities. Probably no company in the U.S. knows for sure whether it has made the best possible

tion or publicity can conflict with good patent policy.

Finally, let us assume that the pro­posed research project has been ex­haustively searched, all the pertinent prior art has been carefully studied, and the research and development program has been a marvelous suc­cess. In addition, every possible patent application has been filed, and the outlook for acquiring all necessary patents is bright. The development is now well on its way to commercial reality. What can the patent depart­ment do and what can it continue to de?

For one thing, the patent depart­ment can see to it that the company's patents are not infringed by others. It has the job of informing infringers of the company's rights and of taking proper steps to protect these rights.

After a process is operating com­mercially, the patent department must be kept informed of all contemplated

allocations. Each dollar spent in any one of these areas is a dollar not avail­able for the other two.

Companies are mainly concerned with production amd sales. All other functions, including research, are auxiliary. Most major companies spend large sums of money on re­search. And the most dynamic and fast growing companies spend the most.

The prime objective of industrial research is to get the greatest possible return on the money spent for it. This follows since research is an investment that must compete with construction, sales promotion, and other activities for corporate funds.

Unlike industry, the Government has no profit objectives. It does re­search mainly to promote the nation's defense, health, agriculture, and the proper use of natural resources. It also has a vital interest in basic re­search.

In the Government as in industry, an essential part of planning involves

or actual changes in manufacturing methods or plant design. By making revisions, a company can often avoid a conflict with another company's patent. Making these changes is in­finitely more appealing and sometimes cheaper than all the problems created by the discovery—accidental or, more embarrassing, by notice—that a com­pany is infringing another patentee's claims.

Of course, if such infringement does occur, the patent department should be notified as soon as it is discovered. There is absolutely no merit in trying to keep such infringements a secret from company personnel. If the patent department is aware of a pos­sible problem, often something can be done to minimize it.

Quite obviously, a patent depart­ment can be an extremely valuable adjunct in the over-all operation of a research organization. Its services should be utilized fully.

getting necessary funds. Money for government research is authorized by Congress and, to a lesser extent, by the President, the Cabinet officers, the Budget Bureau, and the bureau chiefs. In their annual budgets, the individ­ual government agencies recommend how their funds should be allocated.

In discussing the research objec­tives of universities, we should dis­tinguish between the goals of univer­sities as institutions and the goals of their staff members as individuals. Universities as institutions do research to gain prestige, to contribute to sci­entific knowledge, and to help solve national, state, and local problems.

Prestige to a university is what profit is to a company. Universities thrive on prestige and do everything in their power to increase it. And probably the most important source of prestige is research. Advancement of knowledge through research has long been a vital function of universi­ties. They must have substantial and productive research programs to be true universities.

For the individual staff member, re­search serves primarily to satisfy his scientific curiosity. This intense de­sire to find answers to nature's riddles is the chief driving force of research, not only in universities but elsewhere.

Because of the independent charac-

The objectives of university and government research differ

DR. RAYMOND EWELL, University of Buffalo, Buffalo, N.Y.

118 C & E N J A N . 16, 1 9 6 1

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ter of academic research, the univer­sities actually do no research plan­ning. Thei r p rograms are merely the sum total of all the individual research projects of their staff members .

How Much Basic Research?

In research p lann ing , one of the most difficult p roblems is to decide how m u c h money should be spent on basic research. Only the universities and the Nat ional Science Founda t ion are not seriously faced wi th this prob­lem since they are entirely or pre­dominant ly concerned wi th basic re­search. Most gove rnmen t agencies conduc t and suppor t some basic re­search. However , t he research in each case must be re levant to the mis­sion of the par t icular agency.

Dur ing t h e pas t decade , the U.S. has spent slightly over 8% of its total annua l R&D funds on basic research. Among the three major groups doing research, indust ry and the Govern­men t each allocate abou t l(/o of their R&D budge t s for basic research. T h e universities devote about 7 5 % to fun­damenta l research—a figure that may seem low. However , t h e remaining 25f/r, which the universit ies spend on appl ied research, is mainly for agri­cultural research at exper iment sta­tions, in addi t ion to some appl ied work in engineer ing schools on a con­tract basis.

Part icular ly wi th the Soviet Union bui ld ing u p its scientific potential at a h igher ra te t han w e are, the U.S. should seriously consider suppor t ing more basic research. Such research is the wellspring from which all new scientific ideas flow. Greater national effort in fundamenta l research should pay big d iv idends in faster, more ef­fective appl ied research. This, in turn, should lead to improved national defense, be t te r heal th , n e w products and processes, a n d m o r e product ive U.S. industry and agricul ture .

R E P R I N T S . . .

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Single copy—$1.00 each 10 to 49 copies—15% discount 50 to 99 copies—20% discount 100 or more copies—rates on request

Address orders to Reprint Department, ACS Applied Publications, 1155 Sixteenth St., N.W., Washington 6, D.C.

120 C & E N J A N . 16, 1 9 6 1

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Announcing the second edition of

THE RING INDEX A List of Ring Systems

Used in Organic Chemistry

by AUSTIN M. PATTERSON

LEONARD T. CAP ILL

DONALD F. WALKER

Until t h i s book first appeared in 1940 the re was no single source in any language where structural formulas, n a m e s and n u m b e r i n g s of t h e thousands of p a r e n t organic r ing sys tems could be found.

FEATURES This new edition of the Ring Index lists 7727 organic ring systems —almost a hundred percent increase over the first edition. The book now has been enlarged to 1456 pages to cover the abstracted literature through 1956. Each ring system contains: (1) A structural formula showing the standard numbering system in accord with the 1957 Rules for Organic Chemistry of the IUPAC. (2) Other numberings that have appeared in the literature. (3) A serial number which identifies the system. (4) The preferred name and other names given to the system. (5) Identifying references to the original literature.

ARRANGEMENT The ring systems are arranged from the simplest to the most complex, beginning with single rings, then systems of two rings and so on up to twenty-two ring complexes.

USES The Ring Index is an indispensable reference work for organic chemists and for others who have to do with cyclic organic compounds. Some of its uses are: (1) Determining accepted structure of a ring system. (2) Finding name or names of the system if structure is known. (3) Finding the numbering of a sys­tem. (4) Identifying a system if there are two or more isomeric forms. (5) Dis­covering what systems have been reported in the literature and where. (6) Naming and numbering a newly discovered ring system. (7) As a reference book in teaching.

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122 C & E N J A N . 16, 1961

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