Based on the company file data of all the qualified engineers in the R and D unit of a large public sector undertaking, this study finds that on the average the reward for higher academic qualification is relatively less than that of a similar years of experience in the organisation. The cost-benefit calculation of academic degree above the basic degree in engineering shows that the cost for the degree is more than twice the benefit. A prior exposure to work environment shows a positive effect on both the rate of return to education and work experience.