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Bell Labs Kills Fundamental Physics Research

An anonymous reader writes with this snippet from Wired: "After six Nobel Prizes, the invention of the transistor, laser and countless contributions to computer science and technology, it is the end of the road for Bell Labs' fundamental physics research lab. Alcatel-Lucent, the parent company of Bell Labs, is pulling out of basic science, material physics and semiconductor research and will instead be focusing on more immediately marketable areas such as networking, high-speed electronics, wireless, nanotechnology and software." Jamie points out this list of Bell Labs' accomplishments at Wikipedia, including little things like the UNIX operating system.

60 of 460 comments (clear)

  1. therefore by circletimessquare · · Score: 5, Insightful

    when the next laser, the next solid state transistor, is invented, it will be done in China and India

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
    1. Re:therefore by raddan · · Score: 5, Insightful

      Why, are China and India doing basic science research? My impression that pretty much *everyone* is getting out of the game. Deregulating telecom and breaking up AT&T did wonders for telephone customers, but it did not do good things for smart people with big budgets. Consider the fact that UNIX started as an excuse to hack on computer games.

    2. Re:therefore by avandesande · · Score: 4, Insightful

      Many won't like to admit this but the Ma Bell monopoly is what enabled bell labs to dump so much money into basic research.

      --
      love is just extroverted narcissism
    3. Re:therefore by religious+freak · · Score: 2, Insightful

      True, but prodding and breaking up monopolies/centralized control structures allowed for greater innovation, such as: cell phones, ability to choose phone providers, and being able to actually purchase your own home phone.

      --
      If you can read this... 01110101 01110010 00100000 01100001 00100000 01100111 01100101 01100101 01101011
    4. Re:therefore by klaun · · Score: 4, Insightful

      IMO nanotechnology is today's "basic science research".

      Technology is knowledge about the means and methods for producing goods and services.

      Science is systematically acquired knowledge about the natural world and more broadly the system of acquiring that knowledge.

      Technology is not science, full stop.

      The surface physics and materials physics research that will no longer be done is the science that gave rise to nanotechnology. In as much as we have nanotechnology, it is because of surface physics. In as much as we don't do basic science research, we will no longer have new technologies like nanotechnology.

    5. Re:therefore by religious+freak · · Score: 2, Insightful

      I do agree that because of their position, Bell Labs could afford a much longer term view and conduct by themselves better research than any single company could do today.

      But I maintain that the total contribution to research by all of the competitors on the field today is in excess of what Bell could've produced by themselves. It's capitalistic math - enforced monopolies are not as efficient (or innovative) as competition. As evidence I'd say the fact that the many companies fund projects at many universities illustrates the diffusion of ideas today, as opposed to a single, monolithic company making decisions on what is worthy of research.

      --
      If you can read this... 01110101 01110010 00100000 01100001 00100000 01100111 01100101 01100101 01101011
    6. Re:therefore by Anonymous Coward · · Score: 2, Insightful

      My old advisor has been spending a lot of time in China and India lately

      I'm from India. I've lived in America for the last 6 years.

      I can't put my finger on it, but something doesn't quite make sense.

    7. Re:therefore by yuriyg · · Score: 3, Insightful

      I wanted to mod this "Interesting", but then stopped and realized, that I would rather see an insightful post. Can you please elaborate, why do you think that India won't surpass US in innovation.

    8. Re:therefore by meringuoid · · Score: 4, Insightful
      Oh please..it's highly unlikely that India or China will pass the US. The US is still the magnet for global talent.

      And while the US is still leading the way in science research that will surely remain true. How's the Superconducting Supercollider coming along, by the way? How about those breeder reactors that are going to solve the whole nuclear fuel issue? And are we still on schedule to finish the space station?

      --
      Real Daleks don't climb stairs - they level the building.
    9. Re:therefore by ScrewMaster · · Score: 2, Insightful

      The shareholders say, "basic research? how does that help our share value?"

      More correctly, shareholders want to know how basic research helps their share price now. Everybody seems to agree that if you want to remain competitive long-term you need R&D ... but nobody wants to forego guaranteed profits now for possible profits later. That's because we've turned into a shortsighted culture, and I don't know what will change that.

      --
      The higher the technology, the sharper that two-edged sword.
    10. Re:therefore by Anonymous Coward · · Score: 1, Insightful

      ya right?! im from india and have stayed over 5 years in the US, and i as well as many of my friends with similar backgrounds all want to go back to india what with innovation slowing down, the education system sucking and the economy spiraling theres no motive to remain. And its the talented crowd not the people who are primarily money motivated who wish to return. So its not just the increase of innovation in india, its all the technically competent people returning back which you also need to consider.

    11. Re:therefore by Free+the+Cowards · · Score: 3, Insightful

      3) You make it sound like throwing away an obscene amount of money with virtually no results to show for it is a good thing. If this is an intelligence contest, I'd award points to the guys who got out of that game as early as possible.

      --
      If you mod me Overrated, you are admitting that you have no penis.
    12. Re:therefore by dodobh · · Score: 2, Insightful

      Currently, there is a massive lack of funding for basic research (except stuff which enables showoffs, like putting humans on the moon). Marketing is a higher priority.

      A significant proportion of research is just reshashing what hjas been done elsewhere, not truly new stuff.

      --
      I can throw myself at the ground, and miss.
  2. Not a Monopoly Anymore by geoffrobinson · · Score: 3, Insightful

    Fundamental physics research, while wonderful, does seem a bit much of a company which no longer has a monopoly to tax Americans to fund stuff like that.

    --
    Except for ending slavery, the Nazis, communism, & securing American independence, war has never solved anything.
  3. Another vicim by Nerdfest · · Score: 5, Insightful

    of the "all that matters is the next quarter" school of thought? Between that and over the top IP laws, North America is headed for trouble.

    1. Re:Another vicim by LithiumX · · Score: 5, Insightful

      Welcome to the markets of the 21st century! Every company hemorrhages cash just to stay operational, and everyone is owned by stockholders who are only interested in profit. If you're not expanding, you're losing - and if you lose more than a few times, you're done.

      (and if you're not constantly on top of things, you'll be eaten alive by the pseudo-third-world, undisputed master of Cheap Plastic Crap(tm))

      It's ultimately consumers who are to blame. Almost all of us would rather buy low-quality mass-produced items instead of a higher quality product that costs 10% more. We'd rather go for the comfort of eating at a major chain instead of a one-location restaurant (which usually costs about the same). We'll howl about trade deficits, but end up almost exclusively buying foreign-made products. We'll lament the effect of crushing steamroller BigBox stores, but don't even notice the smaller shops we drive by on the way there.

      I'm as guilty as anyone else here, and you know that there's an extremely high probability that you are too - useless token gestures aside.

      --
      Do not confuse "Freedom of Choice" with "Free Will".
    2. Re:Another vicim by turing_m · · Score: 2, Insightful

      It's ultimately consumers who are to blame.

      Why are they to blame? There is no feedback mechanism to reward consumers for this behavior. Why should one consumer spend more on a locally produced product for a higher price, when the local person he enriches is likely just going to spend money on the foreign goods? The only way I know of to solve this is force, through protectionist policies.

      --
      If I have seen further it is by stealing the Intellectual Property of giants.
  4. Well... by Kemanorel · · Score: 2, Insightful

    I think I speak for many when I say...

    Well FUCK!

    So what if it's not immediately marketable. The goodwill alone is worth some investment.

    --
    Mess not in the affairs of dragons, for you are crunchy and good with ketchup.
  5. Shortsighted, as usual by Anonymous Coward · · Score: 5, Insightful

    "will instead be focusing on more immediately marketable areas such as networking, high-speed electronics, wireless, nanotechnology and software."

    If they truly wanted to focus on these areas, and the future of these areas, they would continue the research. Bell/Lucent would not be where they are today without those now basic, but groundbreaking at the time discoveries that they've made in the past.

    This seems very shortsighted of them, which unfortunately seems to be the new American way.

  6. Restructuring? by Sockatume · · Score: 5, Insightful

    With no basic materials science or semiconductor research, I'm not sure what they're going to be able to develop in the fields of "high-speed electronics" or "nanotechnology". Perhaps they're going to restructure so that the existing basic science researchers are more "product driven", being put into marketable research areas with specific goals, but that strikes me as a sure-fire way of duplicating effort and limiting their scope for innovation.

    --
    No kidding!!! What do you say at this point?
    1. Re:Restructuring? by mfh · · Score: 2, Insightful

      The irony is that teachers own Bell Canada.

      --
      The dangers of knowledge trigger emotional distress in human beings.
  7. Maybe they just hit the envelope by Shag · · Score: 4, Insightful

    Fundamental physics research has really taken on a life of its own, and is conducted with really big, really expensive toys.

    I don't think Lucent now (or even Bell back in the day) could really justify building something like the Large Hadron Collider.

    So, yes, a lot of good work was done, but perhaps they've gone as far as they can within the constraints of what's reasonable for them to do as an entity.

    And hey, if the best and brightest minds on their payroll instead work on something that makes my connection faster, it's not like I'm gonna complain.

    --
    Village idiot in some extremely smart villages.
    1. Re:Maybe they just hit the envelope by Btarlinian · · Score: 4, Insightful

      There is more to fundamental physics research than particle physics though. There's still plenty of work being done in condensed matter physics and AMO (atomic, molecular, & optical). However, I actually don't fault Bell Labs for getting out of this area. Fundamental physics research provides very little for the company. AT&T never made money off of the transistor. They haven't turned into a laser manufacturer. Scientific research is a public good and as such, should be funded by the government. Without the benefit of a monopoly, Bell Labs can't really afford to spend money on fundamental research, which costs a lot of money, and results in very little private gain.

    2. Re:Maybe they just hit the envelope by Dex5791 · · Score: 2, Insightful

      What will probably happen is the key researchers will look for other jobs or retire. You'll just have to make due with some fresh college recruits.

  8. The weathy don't *care* about the USA by Anonymous Coward · · Score: 1, Insightful

    They can live anywhere. It's just another venue with certain advantages and disadvantages.

    Research? Bell will outsource it to a jobber in India and sell it to Europe or some other highest bidder.

    Anyone who thinks the MBA-sshole who made this decision gives a rat's patoot about any particular country is just naive.

  9. Re:Greed. by MightyMartian · · Score: 5, Insightful

    It's beginning to look more Rome's last century; Emperors being crowned amidst the decay of the once-great city, old monoliths being torn down to make new ones, because the coin had been so devalued that no one could afford to pay artisans of any skill.

    Little by little the American Empire erodes, its more distant conquests taxing it more and more, its currency faltering, more of its talent having to be imported.

    I'm looking the Democratic National Convention and its soon-to-come Republican counterpart, and I can't help but thinking that they are indeed fiddling while Rome burns.

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  10. Re:Is anyone else concerned... by Darkness404 · · Score: 3, Insightful

    It is all the stupid patent issues. It has become that you can't even write a new OS without it being attacked by patent threats, let alone anything in hardware.

    --
    Taxation is legalized theft, no more, no less.
  11. Re:The End by BitterOldGUy · · Score: 2, Insightful

    Who in American industry is still doing basic research?

    The small companies and start ups.

  12. Re:Greed. by afabbro · · Score: 4, Insightful

    Welcome to modern western culture... it's all about making a quick buck.

    Modern? At what point wasn't it like that?

    Any and every company out there is all about making as much money as possible as quickly as possible... what ever happend to making a modest amount of money while actually taking risks?

    You can do that with your own money. Making as much money as possible as quickly as possible is pretty much the point of capitalism, where you're using other people's money.

    --
    Advice: on VPS providers
  13. Re:Bell Labs didn't invent the Transistor by VeNoM0619 · · Score: 2, Insightful

    Please get your facts right, as it's a discredit to the people who did the original pioneering work in this field. Thanks.

    So... who actually did the original pioneering then...? Discredit and no credit at all could be considered the same.

    --
    Disclaimer: I am not god.
    We may not be created equal
    But we can be treated equal.
  14. i agree with you by circletimessquare · · Score: 4, Insightful

    china or india aren't doing basic research either, i was merely making an appeal to nationalism

    why do nations invest billions in space programs? its nothing but tribal chest thumping. now you can complain that nations should invest in space programs and basic research for noble goals, or you can swallow your high-mindedness and appeal to what gets you cash. appeal to tribal pride, and you will squeeze some coin out for basic research

    scare americans with stories about chinese and indian basic research. forget the truth or distruth or mistruth or truthiness of those stories. just make an appeal to nationalism. in this way, you will get american funding for basic research

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
    1. Re:i agree with you by ScrewMaster · · Score: 4, Insightful

      scare americans with stories about chinese and indian basic research. forget the truth or distruth or mistruth or truthiness of those stories. just make an appeal to nationalism. in this way, you will get american funding for basic research

      That's not how it works. Joe Public couldn't care less about basic research, and it doesn't really matter what country he lives in. Fact is, research is expensive, and there's no way to predict whether a given line will pay off. We only know that, in the long run, the payback is worth every penny we invest and more. Unfortunately, long-term thinking has always been in short supply.

      Now, if you look at the history of basic research and the resultant leaps in technological capability, there are sharp discontinuities every time there's a major conflict. Forget "tribal chest thumping", think more about "tribal mass murder" and you'll see that nothing gets more funds directed into fundamental scientific research and applied technology than war. Hell, even when there's no active conflict, the mere threat of such serves to justify massive expenditures on all sides. World War II, the Cold War (and concomitant Space Race) are classic examples of how the military demands (and gets) untold billions of dollars (rubles, whatever) to spend on R&D. Yes, that money is primarily for military purposes, but the public benefits from (often pretty directly too) at least in the U.S. Our government has spun off a lot of military tech into the private sector over the years. Is that the most efficient way advance the state-of-the-art? No, probably not, but still a lot of good has come from it.

      The net effect of all this, of course, is that Progress becomes a damned expensive proposition. Nevertheless, I'm happy to be a beneficiary of high tech that resulted from the last few big ones. I'm just hoping that I won't be a casualty in the next one.

      --
      The higher the technology, the sharper that two-edged sword.
    2. Re:i agree with you by Anonymous Coward · · Score: 2, Insightful

      Many European nations have elected political parties into power that are very, very outwardly anti-immigrant / pro-nationalist.

      So, that WALL the US is building between itself and Mexico, that's a sign of openness?

      How about the WALL that a large number of the US is trying to get built between the US and Canada? Another sign of openness?

      I'm not aware of any European "socialist states" building literal WALLS between each other in the 21st century.

      The real reason all of the US's innovation comes from foreigners is because the US education system is so abysmal that the US just isn't producing any scientists at all.

    3. Re:i agree with you by Free+the+Cowards · · Score: 4, Insightful

      I can be argued that the sharp discontinuities produced by war are not drivers of overall progress, and in fact take away from it in the long run. There are really two possibilities (at least):

      1. War pushes more funding, people, effort, and motivation into research, resulting in the obvious consequences. (This is effectively what you're claiming.)
      2. War pushes researchers out of long-term pie-in-the-sky theoretical areas and into instant-gratification practical areas which produce the things that the generals need yesterday. This gives the appearance of vastly advancing the state of the art, while actually doing nothing for overall progress, or even hurting it.

      As a practical example, consider the Manhattan Project. These high powered physicists spent years as effectively glorified engineers. A lot of really practical knowledge was gained on nuclear technology, which drove both bomb and power technology for decades to follow. But no new physics were discovered there, and that is the real driver in the long term.

      Now of course you could go the other way. You could say that physics has advanced as much as it has since 1945 because these practical results gave the theorists something to strive for. It's certainly not cut and dried. I don't really even know which way I lean on the question. But it's interesting to consider whether the sharp upticks in technological advancement due to war are really as beneficial as they look at first glance.

      --
      If you mod me Overrated, you are admitting that you have no penis.
    4. Re:i agree with you by gregbot9000 · · Score: 1, Insightful

      I have noticed the anti-immigrant bias in a lot of European news. It always stuck me as laughable when a country like France, where an Orthodox Jewish friend of mine was openly spit on in the street, can claim any kind of moral highground.

    5. Re:i agree with you by Urkki · · Score: 2, Insightful

      Why appeal to such an ugly thing? Why not appeal to humanity?

      Appeal to humanity, as in appeal to remove the wrong part of humanity by a bloody war? Yes, that might work too, but appealing to plain nationalism without war is almost as effective,and has less side-effects...

      I'd put a smiley here if it wasn't so sad.

    6. Re:i agree with you by Anonymous Coward · · Score: 1, Insightful

      I don't know how you got modded insightful.

      Do you operate a firewall on your personal network? Then you must be against an open internet, net neutrality, and IP reform!

      Making sure our borders are secure from illegal entry by drug cartels has NOTHING to do with our immigration policy.

  15. Cheap karma whore by Anonymous Coward · · Score: 2, Insightful

    Who of course had absolutely nothing to do with the original invention of the transistor. Which of course was what this thread was about (and not the Solid State transistor).

    Looking for cheap karma via thread hijacking, are we?

  16. Expected and understandable by KeepQuiet · · Score: 3, Insightful

    In the past, the basic science was led by companies like Bell. They could reason the money they spent with the lack of innovation in the field. Now the basic science is led by universities -- exactly how it is supposed to be. Companies can have their problem worked on by paying a fraction of what they pay to their employees (in academia these people are named either phd student or postdoc). My wife is a postdoc and their projects are funded by the industry. They are trying to solve very theoretical problems. The company couldn't explain spending money on this to their shareholders, but now they can explain it with industry-academia partnership. Academia wins, industry wins. Also, we saw this before when MERL closed part of its research lab. Didn't you notice where most departing researchers go? Yes, academia.

  17. Re:Selling out bunch of... by Anonymous Coward · · Score: 1, Insightful

    here's hoping Alcatel-Lucent loses a lot of money quickly and opens it back up.

    Haha, oh please. You and I both know what they'll do: They'll lay off more people and try to cut expenses as much as possible. They won't spend more money.

  18. three tier system by shmlco · · Score: 5, Insightful

    It's a three tier system now. Colleges do all the research, the government funds it, and corporations patent the results.

    --
    Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
    1. Re:three tier system by Yvanhoe · · Score: 2, Insightful

      You... almost made me cry. So true, so sad.

      --
      The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
  19. Economy of people selling insurance to each other by gelfling · · Score: 4, Insightful

    We are becoming an economy of people selling insurance to each other. We don't make build or invent much of anything anymore. And the few things we are good at the Christian fundamentalists make sure never get done.

  20. Re:Greed. by Chyeld · · Score: 4, Insightful

    I remember the same thoughts being shared with me in 98. And in 88, and in 78. What people forget is Rome 'fell' for a very, very long time and 'fell' for a number of reasons.

    No, this isn't a great development. But there should be some corollary to Godwin's that covers comparing stuff to the "Fall of the Roman Empire".

  21. Re:Selling out bunch of... by nauseum_dot · · Score: 2, Insightful

    This goes back to the breakup of the monopoly. Once the higher profits were no longer sustainable combined with the litigious society we live in, sustaining a pure R&D department became unsustainable. If a company can't make money in the middle term, how can it turn a profit in the long term or short terms.

    I think Alcatel-Lucent is dead. It is too bad, they should have taken a page from Cisco's book.

    --
    Crap! I just kissed my karma good-bye.
  22. Re:Are you kidding me? by imsabbel · · Score: 3, Insightful

    If you cannot see the fundamental difference between a vakuum tube (electrostatic principle) and a solid state device (exploiting of the bandgap, the whole new dimension of doting semiconductors), i cannot help you.

    One was a neat invention, the other a revolution that opened a huge new field of solid state physics AND a completely turn the world of technology upside down...

    --
    HI O WISE PRINCE. WHT TOOK U SO DAM LONG?
  23. Re:The End by Abcd1234 · · Score: 3, Insightful

    Of course, if you posit the elimination of "government and private financing" for any industry, it is equivalent to assuming the elimination of the industry. So what?

    My problem is that there are those who erroneously believe that government should completely step out of the world of fundamental science funding (I presumed, perhaps incorrectly, that the original responder, who suggested that "startups" are doing this work, was among them). My belief is that, if you do this, those university facilities that you made mention of will disappear. Combine that with the continued shutdown of large private labs, and guess what: no one will be performing fundamental science in the United States. Now, you may not believe that's a bad thing, but I do, and I believe the right-wingers are living in a fantasy world if they believe that market forces will solve this problem.

  24. Re:And yet... by moore.dustin · · Score: 2, Insightful

    Which is... how? What magic tricks should the US perform that will encourage businesses to invest large funds in long-term science that may or may not have any payoff, short-term or long? How is taking one's hands off the market going to encourage such work when market forces explicitly work against such efforts (as this very story demonstrates).

    Who said the market wants to invest in the long-term science? Maybe the new landscape of freer markets will promote more competition among companies to produce technological achievements quicker, in order to get a leg up on their competitors. Long-term science might fade away, but that isn't to say an increase in short term research cannot accelerate the development of whatever field they are researching in. There is more than one way to skin a cat.

    No, it would not, because a business is interested in optimizing short- to medium-term profits, as you say by creating "marketable products/services", which rules out long-term fundamental science. But no libertarian will admit to that, as you yourself demonstrate.

    Umm... only publicly traded companies have those demands on them. Private companies can execute their strategies as they see fit, no matter how ill-fated their decisions may be.

    We're talking about fundamental research, here, not donating to your local pet shelter. If you can't see the difference, there's little point in continuing this discussion.

    In your opinion, this is fundamental research. With such an opinion, you would be someone who donated to research labs that did research in what you determine to be fundamental research. Other people will think different things, and they can give to those causes. You see how that works? Your opinion is not the same as mine, but you seem to think it is fine to impose your opinions upon all, through government in this case; whereas I think everyone has a right to their opinion no matter what I think and I have no right to tell them what they can or cannot do with their money, especially in the context of charity.

  25. Re:Are you kidding me? by geekoid · · Score: 1, Insightful

    There the same thing. You apply voltage to open up another voltage pathway/ Or turn it off.

    Yes, solid state opened up a huge industry(duh) but that doesn't change the fact that the transistor concept has been implemented for over 100 years.

    oh, and the tube transistor change a shit load of things as well. Home radio was an amazing change to home technology and to the culture.

    There is no device that couldn't be built with tubes, it would just be freaking huge and need a nuclear reactor to power.

    Again, there is no fundamental difference between tube transistor and silicone. There is a bunch of SPECIFIC difference. The idea is exactly the same.

    If you can't understand basic electronics and electronic history, I can not help you.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  26. Re:Greed. by afabbro · · Score: 2, Insightful

    Making as much money as possible as quickly as possible is pretty much the point of capitalism No.

    Sorry: yes. If you take my money (capital) in order to make money with it, I want you to make as much money as possible as quickly as possible. If not, I will give it to someone else. Scale that notion up and you have explained the capital markets.

    --
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  27. Re:Selling out bunch of... by nuttycom · · Score: 3, Insightful

    I of course don't know the inside story, but sounds stupid enough. If this is the case, here's hoping Alcatel-Lucent loses a lot of money quickly and opens it back up.

    Of course, if they lose a lot of money quickly, they'll be even *less* likely to open it back up. Fundamental research is incompatible with the short-term thinking that the current stock market rewards.

    Sadly, I think that this is goodbye.

  28. Small Picture MBA Thinking by catchblue22 · · Score: 5, Insightful

    I would argue that decisions like this are to a large extent the result of a way of thinking specifically associated with business schools and their MBA graduates. It is a type of thinking that looks at the operations of businesses through the lens of a limited set of parameters, as if these parameters can be a substitute for concrete knowledge of the nuts and bolts details of a company's operations. MBA thinking causes managers to close their minds, to limit their decisions to what is immediately measurable and graphable. Extreme adherents to this way of thinking often fail to see the big picture in their business and in the economy.

    The best example of this that I can think of occurred during the Mad Cow crisis in the UK a few years ago. In the lead-up to that crisis, MBA manager types were loathe to listen to the warning signs about growing incidents of BSE found in British cattle. They didn't want to act because they feared it would have a drastic impact on their bottom line profits. Although they clearly saw the huge costs of pre-emptive action to deal with the disease, what they failed to see were the costs of inaction. They didn't understand that their inaction would lead to the destruction of the entire British cattle stock. They failed to see that the British meat industry would remain a pariah for many years to come. They failed to balance the huge cost of acting pre-emptively with the destruction of their entire industry as a result of inaction.

    Another example occurred when Carly Fiorina, former CEO of Hewlett-Packard changed that corporation from one of the most creative companies in the world to a commondity PC maker, whose main contribution to the economy is in marketing and distribution. More recently, Maple Leaf foods of Canada has had to institute a massive meat recall, due to Listeria contamination. The contamination was due to its nickel and diming of its quality assurance and sanitation departments. This recall, and the ensuing lawsuits could result in the destruction of the company. All caused because bean counters wanted to save a few dollars on bacterial testing and cleaning.

    I am saying what I am because I genuinely believe it. I believe that the people running most of our corporations have little sense of history, of culture, and little sense of what actually makes our economy work. I once had a conversation with an MBA type in which he argued that food was not economically important because it only made up 3% of the Gross Domestic Product. I'd like to see what would happen if he reduced his food budget to zero.

    --
    This and no other is the root from which a tyrant springs; when first he appears as a protector - Plato (423 to 327 BC)
  29. Re:Greed. by bendodge · · Score: 4, Insightful

    The problem is that we're quickly losing the ability to think and act for ourselves. Britain is a perfect picture of what happens when you follow that road. A lot of British I talk to simply can't comprehend why you ought to carry a gun, pay for your own healthcare, or prefer terrorists over big brother. We don't seem to realize that our freedoms are being eroded by a pressure-washer congress. Just yesterday there was that Slashdot article about wind power advocating that the Feds mandate/fund a new electrical grid. Uncle Sam is already worse than broke. Quit aggravating the problem.

    I was listening to an old Ronald Reagan broadcast the other day, and he talked about how Social Security initially promised that you'd never pay more than $.03 on the dollar. What a laugh. Social Security is looking to pay out trillions more than it has in coming years, and guess who will pay the bill? You'd make more money if your put your retirement into a savings account than into Social Security.

    Also, the FDIC is slowly but surely ruining our financial economy. Why do you think lenders gave out so many subprime loans? Because the owners know that whatever happens, they are personally immune. Why do people no longer care to ensure that the S&L's they put their money in are financially sound? Because they know that they are immune, all this thanks to the FDIC, which Congress paid $166 billion to bail out in '89. Folks, there is no such thing as free lunch. Unless we can get the government to quit fiddling with the economy and loosen the grip of the environmentalists on the energy resources we already posses within out borders, we are going to continue to fall.

    You'd think that after 200 years we'd get the idea; the best market is a market left alone. It actually works. We didn't get where we are by relying on Uncle Sam to bail us out of everything. Look at a chart of per cent deviation in business activity. Things go up and down and up and down, and then there is a sudden boom in 1928. By the end of 1929 deviation is negative, and by '32 it's almost -50%. Then it rises steadily until '38, when it falls nearly as low as it did in '32. We recovered from the depression in spite of the New Deal, not because of it.

    Now Congress is looking to bail out Fannie Mae and Freddy Mac, simply because they control half of America's mortgages (~$10 trillion) . No company is "too big" to let fail. If we continue to reward financial irresponsibility, it will only get worse in the future. True, it wouldn't be pretty if something that huge fell flat, but postponing it will only make the future worse.

    It's high time we quit turning to Congress to solve our problems. We need real, long-term solutions to problems. Our children should not have to reap the fruits of our irresponsibility.

    --
    The government can't save you.
  30. Re:Selling out bunch of... by lysergic.acid · · Score: 2, Insightful

    also, running a division renowned for state-of-the-art research attracts top talent to your company, which in turn attracts more talent and creates a fertile research atmosphere. then all you need is to actually take advantage of this pool of talent you have at your disposal. don't be like Xerox and spend all this money on research and then let another company steal the results and bring it to market first.

  31. Re:The End by Goldsmith · · Score: 4, Insightful

    IBM researchers whom I've talked to at APS meetings say they must either produce something to fund their research or get outside funding. The answer was to compete with academic labs for federal grants and do contract research for other companies. The problem is this takes away what made the industrial labs so great: the ability of a scientist to work on what they felt was important rather than do what some grant reviewer thought was important.

  32. Subset of MBAs by wasted · · Score: 4, Insightful

    I would argue that decisions like this are to a large extent the result of a way of thinking specifically associated with business schools and their MBA graduates. It is a type of thinking that looks at the operations of businesses through the lens of a limited set of parameters, as if these parameters can be a substitute for concrete knowledge of the nuts and bolts details of a company's operations. MBA thinking causes managers to close their minds, to limit their decisions to what is immediately measurable and graphable. Extreme adherents to this way of thinking often fail to see the big picture in their business and in the economy.

    It isn't the business schools, it's the people. Good MBA programs focus on improving the value of a business, both long and short term, which requires nuts-and-bolts knowledge. Unfortunately, the most self-centered folks in the USA (or greater, for all I know,) figure a business education will show them how to use the capitalist system to their advantage, working toward doing whatever is needed to stroke their egos, including writing a resume that inflates their "paper-route" to "managing district distribution and revenue collection functions for a citywide printing enterprise." The board or powers-that-be of their prospective employer are often too busy to see past the smoke, or are too limited in thought to look outside of their limited search, and end up employing the great, lying, salesman as a manager in a position needing critical thought rather than the extremely qualified candidate who is very slightly outside of their nanoradian focus. I've seen similar thinking in many HR departments - someone with no direct experience but lots of otherwise stellar relevant experience is passed over in favor of someone who had years of lackluster experience.

    Back to the Executive cycle - Once the egotistical, lying, salesman has his position, the folks with MBAs who adhere to principles such as long-term-profitability, accounting standards and procedures, risk management, and sustainability are shown the door, since unexpected large short term profits get a bigger ego boost to the egotistical lying salesman than sustained long-term above-sector-average performance. Thus, long term profitability is traded for short term results, and the lying, egotistical salesmem get bonuses and severance packages.

    This cycle is self-perpetuating, since the egotistical, lying, salesman hires (or is hired by) folks with similar personality attributes, even though they may be unqualified for the position, so that there is mutual support of their incompetent decisions. After these folks wring all of the short term profit out of a particular business, and everyone realizes what happened, they resign, and move on to looking for the next job, with a resume bullet of "increased profitability XX% in X quarters", which others who are too lazy to research will find impressive, and then hire to run their business (in to the ground), restarting the cycle.

    Not that I have personally seen it, or anything like that...

  33. Re:Selling out bunch of... by frieko · · Score: 2, Insightful

    I think this is the wrong take on this story. Bell is getting rid of its Labs because telephones are a solved problem. The people doing basic materials research are the people whose business it is actually relevant to today: Intel and IBM and CNSE.

  34. Re:the idealist versus the realist by Anonymous Coward · · Score: 1, Insightful

    Bigot. The world needs both idealists and realists.

    The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man. --- George Bernard Shaw

  35. Re:No suprise by Ihlosi · · Score: 2, Insightful

    I work for an R&D department. Nothing we're working is even remotely advanced, just ways of rehashing the same old crap...

    That's because R&D departments are, in most cases, more about D than about R.

  36. Re:Selling out bunch of... by Austerity+Empowers · · Score: 2, Insightful

    Kind of like taking lunch money away. Without getting in trouble by explaining the funding model (which may have changed), let's just say it wasn't always working out for both parties involved. The hate went both ways too.

    If you were a researcher and had a business funded project, you had to stop research and be a developer full time until the project was ready. This meant you were expected to be on a typically tight development schedule, leaving no time for papers, conferences, new research etc. You had to basically be an engineer for a year or two. I guess I didn't understand their pain, but they agreed with each other it is torture.

    On the other hand, the business side (which weren't all or significantly MBAs, most were EEs/CSs) had the usual deadlines/deliverables/initiatives/targets/metrics model. We scoff at such trivialities! For them it's very real, I did not understand myself until I came to my present employer in a pure development role. People are fired over these things, but I remember us talking over the water cooler about the business "nonsense" and "small minds". It is how we might laugh at women in the middle east wearing head to toe clothing in the heat, but they get their heads chopped off if they don't...it's just an impedance mismatch.

    Further, if you were in BL in a roughly business aligned area, all was not well. Any new product idea which even sounded like it might somehow compete with an existing product was squashed. You had to get external funding, work within your pathetically small internal budget, or basically submarine it and take it out of the company. This happened a lot, there were a few groups who were very disloyal to the company and just using it for a salary in between start-ups, the old-boy network ensured they'd land on their feet.

    At least when I left the situation was dire. The research side didn't want to get picked up on a project, and the business side didn't really want to waste time on new development and would rather wait and see, and buy successful companies (either to get their product, or to squish their product). Unfortunately since telecom is so driven by monopolies, there isn't the push to innovate, in fact the contrary. Why make something new, when you can keep selling something old? I personally believe DSL only happened because of the telecom act of '96 forced access provision. Once that went away (or was otherwise nerfed), almost as the first act of the Dubya administration...new projects stopped overnight. Lights out.

    So even if they suddenly got billions of dollars, I don't see them embracing research again. They'd just sit on it and use it strategically, waiting for products they want/need to emerge on their own.