From monopoly to competition: long-term research is vulnerable

The question of whether there is any fundamental difference, around the world, between the research and development in government-regulated monopolies and in private companies is addressed by examining three major corporate restructurings in the last decade: the breakup of the Bell System (AT&T Co.) in the United States, and the privatization of the United Kingdom´s British Telecommunications in 1984, followed the next year by the privatization of Japan´s Nippon Telegraph and Telephone Public Corp. (NTT). Particular attention is given to the effect of restructuring on R&D. Changes in business strategy are also discussed.<>