Re: [OPE] intermission

From: Gerald Levy <>
Date: Thu Nov 05 2009 - 11:15:51 EST

>I was talking about R&D labour.

Hi Paul C:

Well, for a corporation which sells many different types of commodities (as
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
as this is a major budget item and has to be planned. Generally speaking,
funding for R&D staff and material expenses are internally generated. It's
risky business, though. In a way, it's sort of a routinized form of

In solidarity, Jerry

ope mailing list
Received on Thu Nov 5 11:23:35 2009

This archive was generated by hypermail 2.1.8 : Mon Nov 30 2009 - 00:00:02 EST