Re: [OPE] intermission

>I was talking about R&D labour.

Hi Paul C:

Well, for a corporation which sells many different types of commodities (as
is
the case with pharmeceutical corporations), the companies can charge a price
for their commodities which reflects (among other things) not the cost of
R&D for
any one commodity but the cost for all R&D. That's is, they can re-coup the
costs by increasing the prices of all goods which they sell. Non-production
labor costs
can be added on to the price as well - as Jurriaan noted with his reference
to the
personal care products industry.

Large corporations, of course, will attempt to estimate R&D costs well in
advance
as this is a major budget item and has to be planned. Generally speaking,
the
funding for R&D staff and material expenses are internally generated. It's
still
risky business, though. In a way, it's sort of a routinized form of
speculation.

In solidarity, Jerry

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Received on Thu Nov 5 11:23:35 2009