Scientists are good for more than R&D

Abstract

Companies need scientists for R&D, of course, but a new study finds that U.S. manufacturing companies seeking high productivity and earnings should consider hiring scientists for jobs other than R&D as well. The study, to appear in the forthcoming book “U.S. Engineering in a Global Economy” from the University of Chicago Press, concludes that productivity is higher in manufacturing establishments with high levels of scientists and engineers than in companies with low levels of technical people. A one percentage point higher share of scientists and engineers in a company’s workforce is associated with productivity that is almost half a percentage point higher, according to Andrew J. Wang, an economist with Harvard University and the National Bureau of Economic Research who coauthored the study. Moreover, productivity increases as employment of scientists and engineers increases, the study found. And employee salaries are higher in manufacturing companies with high numbers of technical people.