> My speculation is business investment in r&d has vanished, in part because of stock buybacks and in part executive level compensation.
No, it only has shifted. In ye olde days, companies took the risks of R&D spending upon themselves. These days, R&D spending has been shifted towards the capital market (especially venture capital) and in some areas universities, and companies buy startups that have shown results, and the VC investors/taxpayers/university endowments bear the risk.
Not sure most people would consider venture capital funded startups as even close to the same as the large corporate basic R&D of the past. A better 'name' might be: niche short term applied r&d.
Likewise, university "research" is not the wide open expanse that it once was either.
No, it only has shifted. In ye olde days, companies took the risks of R&D spending upon themselves. These days, R&D spending has been shifted towards the capital market (especially venture capital) and in some areas universities, and companies buy startups that have shown results, and the VC investors/taxpayers/university endowments bear the risk.