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.
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
http://blog.wired.com/gadgets/2008/08/bell-labs-kills.html There is the article
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.
"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.
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?
That America has been losing its edge for years and every time you look around, the problem is accelerating? Do new research labs not get any press? Or is it really the case that more and more corporate research labs are being shut.
I know American Universities are still considered tops, but how much longer will that even matter?
Roughly half my comments are never submitted. You may be reading the better half...
That's sad.
I've seen so many of the big labs die. I happened to be at IBM Alamaden the day IBM exited the disk drive business, a sad day and the beginning of the end for Alamaden. I saw Xerox PARC in its heyday; I've used and programmed an original Alto. DEC's labs are long gone, killed in the Compaq/HP takeover. HP Labs is a shadow of its former self.
Who in American industry is still doing basic research?
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.
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.
You can't convince me that the transistor didn't make them a lot more money than they put in when you look at the big picture. I'm willing to belive that on paper, Bell labs may have been a loss, but of course that's not the same as the division being dead weight. I'd be suprised if this decision wasn't based entirely off of myopic buisness decisions. Want to raise your stock? Maybe if you fire everyone and cut costs to zero, your investors will be pleased.
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.
Maybe someone's been hob-nobbing with GE? Core business! Core Business! Eliminate waste! Exterminate!
Stick Men
"After six Nobel Prizes, the invention of the transistor, laser and"
This was all technology appropriated from the Roswell Crash anyhow.
Here's this old myth being repeated once more.
Sorry, Bell Labs never invented the transistor. The transistor had been invented (and patented) back in the 1920's. It was in use during WWII (see "A Different Kind of War" by Commodore Myles).
What Bell Labs DID invent was the SILICON transistor. And of course this was an incredible breakthrough.
Unfortunately, they also have tried claiming complete credit for the creation of the transistor in general, by propagating the myth that no transistors existed before the invention of the Silicon Transistor.
Please get your facts right, as it's a discredit to the people who did the original pioneering work in this field. Thanks.
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
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
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.
Pulling out from materials science research AND focus on nanotechnology and high-speed electronics? That's nonsense.
Look at Intel: what keeps them one step ahead from an otherwise very creative company as AMD, (apart from the great team Intel has in Haifa) is huge and continuous investments in materials science. A little bit less electromigration, a bit better control of dielectric coefficients, a few nanometers less here and there - it all adds up.
As a researcher in nanotechnology, I have huge, HUGE respect for my materials science colleagues (as well as physical chemists).
"The agriculture ministry is not in charge of Gundam" - Japanese ministry official.
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.
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".
Why is this tagged USA? Alcatel-Lucent is a French company.
I live in this small town, at the top of the hill is a large edifice to modern technology. The town's zipcode is immortalised in "The C Programming Language" book. K&R both used to be seen in the local Friendly's.
Things are different now, though. The huge carparks have been empty for years, some of the multiple entrances are often closed on workdays. I have been in the buildings and they smell of history, but sadly they don't smell of the future. This story is simply the black filling in the final period in a long story. The fact is the place has done little of it's famous research in more than a decade. It's an empty shell of a place. C was created there, Unix too, even C++. Many local businesses have failed or moved out as the Labs have withered away. The gist of this story is long overdue.
"The power of accurate observation is commonly called cynicism by those who have not got it." -- George Bernard Shaw
"The only thing sadder than a young cynic, is an old optimist." -- Mark Twain (Samuel Clemmens)
That, and, IIRC a federal law that obliged it to finance research with 50% of its profits in exchange for the monopoly.
As I recall it wasn't a requirement that they do research. It was permission to include the cost of research related to telephony in their cost of doing business - on which they got to set monopoly phone rates so they got a specified rate of return (6% if I recall correctly).
The result was that the more money they spent on research, the more profit they made.
So they set up Bell Labs to spend as much money as possible, on anything even vaguely related to telephony.
And it "was an abysmal failure". From year one they made more money on the results of the work (by things like licensing patents) than it cost to run the labs. So basic research was profitable all by itself. B-)
But this counterintuitive effect also has a counterintuitive downside. The rewards for a research project start once it's done and keep coming in for quite a while after it's finished. Most of us would consider this good. But the Harvard Business School approach to management comes into play: The incentive structure on managers is to show as big a profit as possible for a few years and move on, thus looking better than your predecessors and successors and getting progressively better paying positions. So by killing the CURRENT research and just collecting on the results of the previous work they can cut their costs to near nothing while the benefits keep rolling in. For a while. Then they move on. Without new work the revenue gradually dries up and their successors take the rap. (And their successors would have to increase costs while the income was ramping down, which would look even worse, to turn things around.)
Regardless:
Without the guaranteed profit they're in the same boat as every other large cashflow company in the world. Perhaps basic research would continue to be profitable beyond the dreams of avarice. But there are other profitable things to do with the money where the return is more visible in advance, rather than crapshooting on what basic research might come up with. So (like all those other companies), the new generation of management reacts to the new situation by doing the standard thing - which doesn't include basic research.
(And it doesn't help that they already went through the "cut expenses and look good on the return on old work" phase a few years back. IMHO this is the house of cards coming down.)
= = = =
As I understand it, Xerox PARC had something similar going on but for a different reason: a strange accounting system.
One of the first things PARC did was to design a "new control panel" (and brain) for Xerox copiers. This replaced a bunch of relay logic with a microcomputer/early logic chips. And that saved a LOT of money.
PARC got credited with that savings on all the copier products sold from then on (and with similar stuff it did later). So it could spend money hand-over-fist on whatever it wanted and still look profitable.
(This was the same accounting department that, if I've got THIS right, screwed up big time when Xerox went into the mainframe business as the first company to take on IBM's core business, 'way back in the early days of "foreign attachments" opening up the IBM big-iron market. They built a CPU. After a while they decided that they were in the red on it big time, folded the division, and sued IBM on antitrust. In those days equipment was all leased. As a result of the suit IBM got hold of their accounting info and discovered the hadn't really understood how to interpret lease income. They were actually VERY profitable, and had folded the division because of this accounting screwup. Of course this discovery folded the suit.)
Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
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)
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.
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...