Policy on Qualified Manpower
The weaknesses in production and marketing are matched by the maldistribution of qualified scientists and engineers. A very large proportion of Britain's graduate qualified scientists and engineers is concentrated in research and development, rather than in production, marketing and other functions. The slump in demand for graduates by British industry in 1970/71, like the slump in capital investment, reflected not declining need but inability to make an essential investment in the future. In the mid-1960s, migration of qualified scientists and engineers in and out of Britain swung from a small positive net balance to a pronounced drain. The market explanation is borne out by the fact that the whole increase in net emigration has been for engineers and technologists, where the British output has increased fastest and the American least. This market explanation of demand for engineers is confirmed by rates of pay.