Science and Corporate Strategy: Du Pont R&D, 1902-1980

by David A. Hounshell, John Kenly Smith Jr.

Based on voluminous corporate records and extensive interviews with key employees, Science and Corporate Strategy: Du Pont R and D, 1902-1980 provides a comprehensive, critical study of research and development in a large US corporation. Du Pont was among a handful of US corporations that established formal research and development laboratories at the turn of the century to improve competitive positions in their respective industries. Initially, Du Pont's executives viewed R&D as an important though not central part of the corporations strategy. However the gains made by the company's laboratories soon demonstrated that R&D would be a critical ingredient in the firm's success. The industrial research and development laboratory became a major part of corporate structure; science became a central part of corporate strategy.

780 pages, Hardcover

First published November 2, 2006

About the author

David Allen Hounshell is the David M. Roderick Professor of Technology and Social Change in the Department of Social and Decision Sciences, Department of History, and the Department of Engineering and Public Policy at Carnegie Mellon University. He earned his B.S. in electrical engineering at Southern Methodist University in 1971 and his M.S. (1975) and Ph.D. (1978) at the University of Delaware.

Reviews

[Brian]

David Hounshell and John Smith do an excellent job of not only recounting the thorough history of Du Pont's R&D but they also give a wonderful synopsis of how R&D developed as a whole during the time period. Du Pont suffered through organization issues when the three cousins took the company over at the end of the 19th century. They were able to develop an organization system and two areas for R&D. These areas would help to produce some of the fundamental research that allowed the company to move forward. They would be essential for developing dyes during World War 1 and Rayon in the time following. The development of nylon was achieved through hard chemical work and a dedication to pure science that came out of these labs during the 1930's. These products would flourish both before and after World War II making Du Pont a signature company that clearly dominated the markets.
World War II represented a dilemma for Du Pont. While being accused of war profiteering in World War I the executives were determined to avoid this fate in the second war. Du Pont did its work at cost and was essential in developing the Hanford Labs in Washington which made the plutonium for several bombs. This was turned over to the government at the end of the contract. Du Pont did not want to be involved in any government work and found themselves continually sucked back in. After the war it did try to become involved in pharmaceuticals but failed to realize the potential for a sales force and could not be competitive. Plastics and fibers would be the big winners after the war until the mid 1960's where even these reliable products began to falter. The research and development teams went back to the drawing board and looked for opportunities. While that is still being played out the biggest winner was in X-ray film. The Du Pont film proved stronger than Eastman Kodak giving them an edge.
Overall this is the most thorough account of Du Pont I have come across. This book not only serves to show how Du Pont developed R&D through decentralization and good corporate governance but shows the model that major companies began to adopt. It is incredibly detailed in its narrative although be warned this is for those who really want to learn about business and technology. It is not a light historical read that will be enjoyed by all. If you really are into technology or business though this is an essential book to read. It is a little hard to get through at times with some of the scientific jargon but otherwise it is a five star book.

[Muhsin Dogan]

If you work on Chemical Industries, you should have a copy of this book. Hounshell and Smith clearly assess why DuPont spent its money on research and scientific activities. Moreover, the book promises many useful data which are related to research and financial statements. Also, maps, names and some indicators which are rarely found on WEB are included.

Finally, detailed analysis of the book gives an insight how a corporate transformed its activities into a science-based corporate. The book is reader-friendly and well designed. I strongly recommend to people who working in areas such as industrial economics, systems of innovation and business history.