The reality was unfortunately often not so great. What would happened is that the student would get 3-4 year contract with 50% allocation to the PhD research in addition to normal employment duties. That is not enough to graduate if the professor has high standards.
As a result, the student would transition to full time employment after the 3-4 years, try to work on research in the evenings, and give up after some time. Or they would graduate with a very low quality degree (I saw students graduate with a 0 or 1 publications and a very thin dissertation) that has practically no value to anyone beyond providing the student with a Dr. title.
In the end I was actively advising students against it, and to just go into industry with a masters degree or find a fully academy funded PhD position if they are serious about research.
Yes - the downsides you mention are all true. But similar downsides apply to most PhD students working directly at the university - either you have some teaching load and administrative duties, or you work in an externally funded project and have to write project reports and do a lot of non-research stuff, too.
As I mentioned elsewhere in the thread, if you want to have an academic career, doing a PhD in industry is not the best choice. But if you want to work in R&D or as a group leader in industry, these PhD positions might be a good stepping stone.
On the other side of things, you have PhDs coming out of the US with too many ideas and the inability to deal with basics such as sprint planning and CI/CD.
Not sure if this will help, but I would love it for the Colleges of Sciences peoples instead of a postdoc.
Get a PhD with years of experience, who knows your company, for the price of a secretary.
If you want more PhD's than that, you have to figure out a place for them to work; industry is a good "pressure relief valve".
I do think it would be good for all levels of academia to be more explicit about the goals of any given program. I think these things are often blurred together to the detriment of both student and staff.
this would hopefully stop departments from over-admitting and encourage less adjunctification.
The problem here -- and why universities even do research at all -- is that industry's support of basic science is not very stable. At least when I was in school, industry research generally was more applied and engineering-focused.
No reason why the good plumbers, electricians, or truck drivers of the world ought to look down on academics-- no matter how stuffy or highfalutin or soft-handed they might seem.
Every once in a while, academics come up with something useful. (And in fact, I think that that might just be the whole point).
In all OECD countries, but in particular in Germany, there seems to be an enormous overproduction of PhDs – in case one sees a PhD as the starting point of an academic career or as an important asset on the job market.
https://socialscienceworks.org/2015/07/243/are-there-too-man...
I am aware of that system, doing a PhD in a company as an external PhD student. The "research" is extremely applied. That is good for the company, possibly even a better career choice, but has limited scientific value. You are also unlikely to switch back to academia and become a professor.
Most people mistake "feeling" for "thinking". Just because you don't like my post, does not mean it is not true.
I know the German system quite well and know people who did their PhD in industry, people who did their PhD in an externally funded research project, and people who pursued a more self-directed PhD while working as a research and teaching assistant.
I don't think that there is a general 'PhD inflation' in Germany (though there are some disciplines with this problem). It is well understood by most PhD students that an academic career is the exception, not the rule. Most of them choose to do a PhD because they like the academic environment and want to learn more. Most PhDs go on to work in industry research labs, science-adjacent roles (e.g., museums) or as group leaders in tech companies. There is sufficient need for PhDs in most fields.
Industry-embedded PhD students are required to meet the same criteria as other PhD students. They also publish their research at the same conferences - but it is often more on the applied side. One could argue that such research has "little scientific value" - but so does most research.
The most important outcome of a PhD is not the list of publications but a person who deeply understands a domain, knows how to critically analyze a problem, and finds good solutions. Doing a PhD 'in industry' also allows you to do this. And it gives you a foot in the door at that company.
FWIW, many PhD students I knew, e.g. at BMW, complained a little bit about the side-projects they were expected to do, or the bureaucracy at such large companies. And, because you don't have to do any teaching and rarely supervise undergrads in industry labs, you are less qualified for an academic career than PhD students who work at the university.
Interesting though. Not sure you can have an extensive publication list without a deep domain understanding. But an extensive publication list normally assures that you have it.
My professor always said, I don't want to see you PhD thesis, just show me your publication list. Actually, while we were obligated to write a thesis, in his opinion it should be sufficient to just submit your publications.