<p>I faced the same decision and went with research. The benefit is I'm really starting to understand how graduate level research is done and how the reviewing process works. The minus is of course money and I'm starting to have some mixed feelings about the decision because I don't want to rely on my parents every term for college costs. Almost all the money I made last summer from my internship has been spent on rent and food, and the stipend I'm getting paid for research isn't going to cover it. </p>
<p>It really comes down to money and how committed you are to grad school. Keep in mind that priorities change.</p>
<p>I thought money wouldn't be an issue initially, but now, I'm starting to desire some degree of economic independence. Going back to my company last summer would have resulted in a raise too. It's not that my parents can't fund me, but simply a matter of wanting to be self-sufficient for once.</p>
<p>So to answer your question, without a doubt, your name on a paper will look better. </p>
<p>However, there is some cynicism I have toward working 70 hr weeks and getting paid not so much. I used to tell myself not to care about money, but it's hard to work exhaustingly and get rewarded only by a miniscule publication. Keep in mind that grad school is going to be 5 years like this. I assume you probably have a high GPA, but you will be working 70 hr weeks for minimal pay while your friends headed for industry with 3.0 GPA's will be making 40-50k per year.</p>
<p>So I guess my point is you should look at the long term...beyond the Ph.D, what do you want to do? It's not an end in itself, and a lot of grad students get caught into thinking that, which is why you have so many recent Ph.D's who respond "I'm not sure" when you ask them what they plan to do next. I was pretty set on being a professor one day, and always thought I could beat the tough odds, but you have to be realistic, especially once you meet post-docs who are infinitely smarter than you and who still can't even get an interview for a faculty position. The truth is, if you look at faculty webpages, most of their Ph.D graduates end up in industry, often with jobs that are less desirable.</p>
<p>So I would say go with research and see what happens. Unless you submit to Science or Nature after a year, don't rule out the industry internship the next summer because you <em>might</em> be headed there after the Ph.D anyway.</p>