Enabling Technological Convergences

In my last post I discussed technological convergences. I didn’t really discuss anything ground breaking or earth shattering. We all know these things happen. Even if we never really make a note of it. What’s a more interesting question though is why do some companies, like Apple and Blackberry, succeed and others like Microsoft and Rio (early MP3 maker) fail, either in creating technologies that converge or create technologies that then fail.

One of the first reasons is the culture of the company. To create a totally different product that will shake the core business firms may have to do something called “corporate venturing.” This is where a company decides they are going to take people that normally work on the major product and put them into a different area and seclude them and allow them to create a new product. Whatever sort of leadership structure develops, develops. It really doesn’t matter if this matches the rest of the firm. Essentially, these people are put into a position where they are starting a new company. Apple famously did this with the original Macintosh program. It was called a skunk works area. Of course recombining the two portions of a company creates huge problems, but good management can figure out how to deal with this.

Another piece required for a firm to successfully move into a new product space is the ability to identify the market need. This one is pretty obvious, but it still needs mentioning. In many cases it’s really obvious that there’s a product space and that some one should fill it. When companies don’t move into it there must be some sort of reason.

One of those reasons comes down to firm capabilities. Every firm has something at its core that it’s best at. I would argue that Microsoft is best at taking advantage of a virtual monopoly of a platform and moving into new directions within that platform. Internet Explorer and the Office Suite are the best example of this. Microsoft has also tried to do this with servers and other peripheries. Which is why Microsoft has had difficulty moving into other platform positions. They have failed (or mixed results at best) over and over again with phone OSes because it doesn’t rely on their dominate platform.

Another company that is an R&D powerhouse in energy but has failed at anything outside of their major focus is Shell. As a major energy company you’d expect Shell to be moving into other types of energy production to make massive amounts of money in the transition from fossil fuels to renewables. You’d actually be right. They have tired and failed. Aside from having a failed solar industry Shell has a moderately successful Wind program. Between the two it actually makes sense why solar failed and wind is doing well.

First, wind is closer to extracting material from the ground than making energy from the sun is. Now hang on, I know, but Shell has to maintain offshore oil rigs in tough conditions. Understanding how to build a wind farm out in the ocean has some similarities. Shell doesn’t actually make the windmills themselves, they buy the windmills and put them together to harvest energy. Shell was trying to make solar panels. Intel would be a significantly better solar panel producer than Shell. Why? Because solar panels are semiconductors. You make them with similar machines the technologies are adjacent to each other.

What’s technological adjacency? It’s whenever you are able to use your current skills and apply them with some research to a related technological field. I’ll discuss this more in my next blog.

Scientific Standards

One of the problems with scientific research is the fact that retractions happen. They have been on the rise recently as well. There have been some high profile instances which have had some serious ramifications. one of these cases was in the prestigious Lancet from the UK and it involved a sample of 12 children and has caused the vaccine autism connection.  In the graph below is a break down of the reasons for retractions. We need to be aware that mistakes do happen, but real fraud is completely unacceptable.

Rise of Retratctions
Despite the fact that no science is frivolous, not all research is worthy of being published. There need to be scientific standards for quality work to be published. Without this standard, the respectability of science will go out the window. The only solution right now is peer review. Which involves a pair of credible scientists independently reviewing the same article.  Between the two scientists they are expected to find fraud, mistakes, biases and ensure that the research really contributes in the manner the researcher(s) claims. 
These standards have additional impact. The number of papers published by a scientist can impact the location they work, the amount of money they get from grant organizations and credibility within the scientific community. These standards are the only thing that keeps science from turning into pseudo science like the anti-vac movement. 

Innovation, Science and Money II

In my last blog I discussed some of the budgetary cuts occurring in the US and how these cuts are going to impact the future of science. I want to spend some time explaining why this is the case. I mentioned something called Path Dependency, what do I mean by this? Well it’s a pretty simple concept, once you start down a policy path your choices are constrained by your previous choices and the results based on those choices.

This type of path dependency can be seen in scientific and technological changes. For example, if a piece of technology has three parts each one can be improved independently. If each one can be changed in one direction, from a 0 to a 1 each change could impact how likely a specific technology would be selected by consumers. Each change could lead to a local optimal, and could prevent the technology from becoming a global optimal. Additionally, these changes over time, with further research, could lead to radical different technologies. This happening from changing a single feature from on or off. Basically, it’s an evolutionary process.

Policy works the same way. There’s a paper written by Mustar et al (2008) that discusses the policy choices in France and the UK. The objective of the paper was to investigate the impact of policy choices on the creating of academic spin-offs. Some of the results lead to additional technology incubators in the UK and in France. However, the number of academic spin-offs in France actually decreased, however in the UK they increased significantly.

These differences came about because of previous policy choices. For example, France has laws related to civil servants and starting a new company. In France all professors are considered civil servants, so there is a history of professors not starting companies. There’s a lack of culture for entrepreneurship in France for increasing the number of academic spin-offs.

This is what I meant by path dependencies. Decreasing the amount of money going into meaningful academic research will have an impact in other ways. In the US there has been an increased push for increasing the number of companies being started. Scientific research can be turned into new companies through academic spin-offs. Decreasing the funding at two of the biggest funding agencies will decrease the number of academic spin-offs.

References:
Mustar et al 2008 http://www.springerlink.com/content/68282r1460889062/

Innovation, Science and Money

The death of Steve Jobs has really shaken the technology community. It has really made people do a lot of thinking about innovation and the impact of technology based companies on the economy. The Economist notes that the American work force is on the decline and the high tech companies aren’t making up enough jobs. That now companies like Apple and Google employ less than a third of what companies like GM used to employ. These high tech companies don’t need as many employees. Additionally, it’s a different type of work force that are required in the US. Apple outsources manufacturing because they are really concerned with driving down the cost of manufacturing and maximize profits. This is good business.

In a long article by Peter Thiel, co-founder of Pay Pal and a venture capitalist, he discusses what he calls the end of the future. Where he claims that we’ve been in an innovation slow down since the 70’s. He also argues that scientists and technologists aren’t living up to the claims they are making. He argues that in a lot of ways we’ve been technologically stagnant. Politicians have been making the same promises on energy since the 70’s and that we’ve been slowing down are rate of increase of production for food barely keeping up with population growth. I think that he does make some good points, but he definitely goes a bit over the top with his statements. He’s looking at things only within the national and regional context and is ignoring the fact that there have been cultural changes that have driven a change in how companies innovate.

Historically, companies don’t find value in doing basic research. If you look at the history of research labs within industry, they hire researchers to do incremental and radical innovation. However, this research is carried out within a scientific paradigm which was created in basic research.

In fact we’ve seen a decrease in the amount of R&D being spent by companies. This has lead to some of the stagnation in innovation that Thiel mentions. To combat this and to reduce the risk borne by the company they have been doing more and more contract research with universities and have increase the amount of money they spend with universities.

Thiel also mentions that the government might be able to help but doesn’t see it ever going to happen when you have to justify the expense by cutting something else. Since he’s a libertarian he feels that the budget must be balanced. However, our politicians are cutting budgets to the largest scientific funding agencies in the US. My wife sent me an email with some of the funding cuts, National Science Foundation is getting cut by 2.3%, in fact it’s 14% below the budget requested by the administration. The National Institute for Standards and Technology’s budget is getting cut by 9.3%. Both of these agencies create a large number of jobs. It’s been shown that one research job creates several other jobs. Cutting these budgets will reduce the amount of research which can be conducted. This will impact the number of researchers, impact the quality of education at universities and slow down the ability for universities and firms to exploit new research.

It typically takes 10 years for research to be monetizable. Cutting funding now impacts employment now and future employment. In fact, these changes will have a long term lasting impact. These choices create a path dependency within our society. Without proper funding we’ll be passed by some one that feels research is paramount.

Frivolous Science? Pfft

Today I saw this post on Reddit. Long story short this guy was asking the r/askscience subreddit why we do research like the CERN experiments, as it has no practical use. There are several reasons. I’ve mentioned some of these on here before, but they can always be mentioned again. First, research that we conduct now that is interesting only to a small subset of people may be applied for other things later. Second,  furthering our understanding of the world isn’t frivolous. Third, in many cases basic research must be completed at universities because industry will not pay for it.

Some examples, bird migration research that told us a lot about birds historically probably wasn’t very interesting to much of the scientific community. However, it’s become more important of late. One of my friends commented to me about how in Europe during the Avian flu, migration patterns became extremely important for predicting where the next could be. There are further uses, those migration patterns are being used to determine where to place wind mills, because we don’t want to put a wind farm in the middle of a bird migration path. The slaughter would be horrifying. Finally, changes in migration patterns may represent a shift in local climates. If birds take longer to migrate south, it indicates that the weather isn’t changing as fast as it used to. Over time this data could indicate a trend and we should look for further evidence of climate change.

In 2009 there was a rash of articles that questioned the importance of scientific research in some cases. This isn’t really new, even at that point there’d been the infamous McCain bear comments. Even scientists make fun of some of the more obscure types of research with the Ig Noble Awards (One award was given to a research that only cracked the knuckles on one hand to test for arthritis differences (there wasn’t any)). Despite this, some of this research is interesting and could be useful in the future. Take the recent finding that fish are angry in boring fish tanks. This research is pretty much useless unless you’re a fish fan. However, it also shows us that we clearly don’t understand animals as well as we think we do. Even popular stories about the memory span of gold fish was shown to be wrong by the MythBusters. These examples indicate that many people don’t understand the importance of research and that even scientists don’t. However, even seemingly pointless research can illuminate our understanding of the world. People love to know nearly pointless facts. This also ties back to the my first point above, we never know when something seemingly useless can suddenly have an importance beyond the scope of the original study. It may save lives. That finding about fishes could help build better large scale aquariums where it is safer to interact with dangerous fish, like killer whales and sharks.

My final point is that some basic research will not be conducted by industry players. There’s no guarantee on any return on some scientific investigation. However, it can be incredibly important for the advancement of industry. Quantum computing could be the next big thing for computing, however it’s being researched by a combination of industry and universities. Most of the money and risk is on the university side though. Our understanding of particle physics helps us understand how quantum computing can help. Eventually we may be able to use this neutrino finding, if it pans out, in communication systems. There’s no reason why we wouldn’t be able to use the spin of a neutrino to transmit information.

Seemingly frivolous research is an important part of the scientific process. Enjoy it.