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Yes. On the continent bits of paper are well thought of.
One of my clients is paying for it all, sending guys on an MSc, and flying them to various countries for the face to face parts of the modules and exams.
I have a PhD: stories like the above abound, but nowadays getting a phd is not such a big thing - even the originality requirement has been watered down. Today, you have to submit something commensurate with 3 years of research work; a lot of theses are just glorified literature surveys.
Yes, there is now a higher qualification added to a 'PhD' in most countries, that is more like the old fashioned PhD was.
A friend of mine did a PHD in text search and is now employed by Microsoft straight after the degree on a starting salary coming to about 45K with perks. I guess it helps if you get a PHD in the area where there is demand. Microsoft might be able to absorb a lot of search engine specialists because of its pig headed determination to topple Google.
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