Structural ways to embed a research laboratory into the company: A comparison between Philips and General Electric 1900-1940

This paper compares the Philips Research Department and the Research Laboratory of the American company General Electric (GE). 1 It argues that it is, above all, the issue of the organization of industrial research, appropriate leadership and the embeddedness of a research department in the company as a whole that is important for an historical analysis of an industrial research department. The complex structures that Gilles Holst (the first Philips research director) and Willis Whitney (the GE research director during the first decades of the twentieth century) set up in their organizations enabled scientists to keep in touch with the resources provided by the universities, and made it possible for them to come up with articles, patents and devices for their respective companies. It enabled them also to strengthen their contacts inside and outside the laboratory's walls. However, more than his colleague Whitney at GE, Holst at Philips intended to integrate the research laboratory into the company as a whole. Holst's policy as a research director will be illustrated using the case of Philips' radio research. A comparative discussion of industrial research in the 1930s within both companies shows that the "successful" integration of research activities is context-dependent.