In the "old days" Newark and Menlo Park, the costs of
R&D were determined experimenters and analysed venture
capitalists. Edison's customers often complained about the
high price R&D carried out the West Orange laboratory. Edison's
chronic lack cash the early years the lab made him
exploit every opportunity bill now and pay later. Mindful the escalating costs research, these
. Edison often used the
companies' money for research his own interests. In
this case, the unfortunate customer would suddenly presented
with very large bill for experiments done many months, or
years, before!
The key financing the laboratory was overcharge
regular customers and use the surplus pay for general
experimenting.
The companies who hired the lab's services were often charged
the full price supplies and equipment that had long
potential life the laboratory.the experiments had been done, and sometimes supplementary
bills would made the end the accounting year. He
certainly was not poor man, but resisted liquidating his
investments electrical companies and railroad bonds pay
the daily expenses the lab, preferring extract all the
cash could from contract research. But the time the West Orange laboratory was in
operation, the astounding growth the electrical industry had
created better organized business units; the costs and benefits
of research were now being studied accountants and business
managers
