3 ms·

The lower the discount rate is, the more the long term matters.

• roenxi 6y ago
  Is that an NPV reference? NPVs are for comparing options; and low discount rates theoretically mean that people are more willing to burn money up front for potential long term gains. But research then starts losing out to other, riskier, decisions. Nobody* borrows money to fund steady long term corporate research. Low interest rates manifest as people starting Uber and Tesla rather than big companies finding budget for a research lab. Ford is competing with a company that doesn't feel a real need to have profit margins - that is a threat in the present. Big, cash burning machines with potential multi-billion dollar payoffs are where the credit goes and where the winners live - not boring people doing long term research in corporate labs. It isn't like R&D is a losing proposition in this age - look at Apple's peak for example - but the resources are being directed to people who own assets or are shooting to control entire markets. Research labs aren't making companies winners. * I'm sure there is somebody, but there won't be many.