Author: Art Diamond

“If You Lower the Hurdles to Innovation . . . , You’ll Get More of It”

(p. A2) You’d think from the debate raging in Washington that taxes are the key to economic growth. They aren’t. In the long run, innovation matters way more, and that depends on inspiration, experimentation and luck, not tax-law changes.

Yet presidents matter for promoting innovation even if it’s less glamorous than taxes. Their support often takes the form of directing money toward basic research or favored industries such as defense or renewable energy.

Under President Donald Trump the place to look is the regulators. Two of his appointees in particular, Food and Drug Administration Commissioner Scott Gottlieb and Federal Communications Commission Chairman Ajit Pai, have prioritized reducing regulatory hurdles to private investment as a way of boosting innovation. It’s too early to gauge their success, but the efforts merit more attention at a time when the growth debate is focused on steep, deficit-financed tax cuts.

. . .

At the FCC, Mr. Pai has targeted the “digital divide,” the gap in broadband access between some communities, especially in rural areas, and others. The share of U.S. households with a fixed broadband connection has stalled at roughly a third in recent years. Mr. Pai thinks the solution is “setting rules that maximize private investment in high-speed networks.”

Controversially, that includes a proposed rollback of his predecessor’s imposition of utility-like regulation so that internet service providers (ISPs) adhere to “net neutrality”—charging all content providers the same to access their networks. Without those limitations, he reckons ISPs will have more incentive to expand capacity and thus access; critics worry this will favor rich, established content providers over innovative newcomers.

. . .

. . . , Mr. Gottlieb’s and Mr. Pai’s theory is that if you lower the hurdles to innovation in specific sectors, you’ll get more of it. It offers a potentially more tangible payoff than fiddling with the tax code.

For the full commentary, see:

Greg Ip. “CAPITAL ACCOUNT; Why Innovation Tops Tax Cuts.” The Wall Street Journal (Thursday, October 26, 2017): A2.

(Note: ellipses added.)

(Note: the online version of the commentary has the date Oct. 25, 2017, and the title “CAPITAL ACCOUNT; Trump’s Regulators Aim to Boost Growth by Lowering Hurdles to Innovation.”)

Robots Relieve Restaurant Workers of Small, Mundane, Tedious Tasks

(p. A1) John Miller, chief executive and founder of CaliBurger LLC, finds it harder to find employees these days. His solution is Flippy, a robot that turns the burgers and cleans the hot, greasy grill.

The chain plans to install Flippy in up to ten of its 50 restaurants by year end. CaliBurger doesn’t intend to kick humans to the curb as a result. Flippy will handle the gruntwork, freeing employees to tidy the dining rooms and refill drinks, less arduous work that might make it easier to recruit and retain workers.

“We’re a long way from teaching a robot to walk the restaurant and do those things,” Mr. Miller said.

Experts have warned for years that robots will replace humans in restaurants. Instead, a twist on that prediction is unfolding. Amid the lowest unemployment in years, fast-food restaurants are turning to machines—not to get rid of workers, but because they can’t find enough.

. . .

(p. A10) Dunkin’ conducted focus groups with former employees to pinpoint the mundane tasks that made them want to leave and geared automation around that.

Workers used to create thousands of hand-written labels daily for everything from coffee to cheese expirations. Last year, Dunkin’ installed small terminals that print out expiration times.

Brewing a single pot involved grinding and weighing coffee and comparing its fineness and coarseness to a perfect sample. Now, some Dunkin’ shops use digital refractometers to determine if coffee meets specifications.

. . .

Alexandra Guajardo, the morning shift leader at a Dunkin’ Donuts shop in Corona, Calif. said she’s likely to stick with the job longer now than she otherwise would have.

“I don’t have to constantly be worried about other smaller tasks that were tedious,” she said. “I can focus on other things that need my attention in the restaurant.”

Mr. Murphy said he can’t see a time when a Dunkin’ Donuts shop is fully automated. The company experimented with a robot barista nearly two years ago at an innovation lab in Massachusetts. The robot did fine at making simple drinks, but couldn’t grasp custom orders, such as “light sugar.”

The machine also required a lot of cleaning and maintenance, and at up to $100,000 per robot, Mr. Murphy said he couldn’t see a return on the investment.

For the full story, see:

Julie Jargon and Eric Morath. “Short of Workers, Robots Man the Grill.” The Wall Street Journal (Monday, June 25, 2018): A1 & A10.

(Note: ellipses added.)

(Note: the online version of the story has the date June 24, 2018, and the title “Short of Workers, Fast-Food Restaurants Turn to Robots.”)

More Workers Satisfied with Jobs Than in Recent Years

(p. B6) Just more than half of U.S. workers—51%—said they were satisfied with their jobs in 2017, the highest level since 2005, according to a new report from The Conference Board, a business-research group.

Over the past seven years, Americans report feeling better about their pay along with a greater sense of job security, both features of an economy with a low unemployment rate and a long decline in layoffs. In July [2018], jobless claims continued an extended post-recession slide and hit their lowest level in nearly 50 years.

For the full story, see:

Weber, Lauren. “Fewer Workers Move for New Jobs.” The Wall Street Journal (Thursday, August 30, 2018): B6.

(Note: bracketed year added.)

(Note: the online version of the story has the date Aug. 29, 2018, and the title “Fewer Americans Uproot Themselves for a New Job.”)

To Be Dangerous with Crispr Takes a Lot of Genetics Knowledge

(p. A11) “I frankly have been flabbergasted at the pace of the field,” says Jennifer Doudna, a Crispr pioneer who runs a lab at the University of California, Berkeley. “We’re barely five years out, and it’s already in early clinical trials for cancer. It’s unbelievable.”

. . .

Scientists have fiddled with genes for decades, but in clumsy ways.

. . .

Crispr is much more precise, as Ms. Doudna explains in her new book, “A Crack in Creation.” It works like this: An enzyme called Cas9 can be programmed to latch onto any 20-letter sequence of DNA. Once there, the enzyme cuts the double helix, splitting the DNA strand in two. Scientists supply a snippet of genetic material they want to insert, making sure its ends match up with the cut strands. When the cell’s repair mechanism kicks in to fix the cut, it pastes in the new DNA.

. . .

A . . . Crispr worry is that it makes DNA editing so easy anybody can do it. Simple hobby kits sell online for $150, and a community biotech lab in Brooklyn offers a class for $400. Jennifer Lopez is reportedly working on a TV drama called “C.R.I.S.P.R.” that, according to the Hollywood Reporter, “explores the next generation of terror: DNA hacking.”

Ms. Doudna provides a bit of assurance. “Genetics is complicated. You have to have quite a bit of knowledge, I think, to be able to do anything that’s truly dangerous,” she says. “There’s been a little bit of hype, in my opinion, about DIY kits and are we going to have rogue scientists—or even nonscientists—randomly doing crazy stuff. I think that’s not too likely.”

For the full interview, see:

Peterson, Kyle, interviewer. “THE WEEKEND INTERVIEW; The Gene Editors Are Only Getting Started; Would you eradicate malaria-carrying insects? Change your baby’s DNA? Scientists soon may have the power to do both.” The Wall Street Journal (Saturday, July 8, 2017): A11.

(Note: ellipses added.)

(Note: the online version of the interview has the date July 7, 2017, and the same title as the print versio.)

Doudna’s book, mentioned above, is:

Doudna, Jennifer A., and Samuel H. Sternberg. A Crack in Creation: Gene Editing and the Unthinkable Power to Control Evolution. New York: Houghton Mifflin Harcourt, 2017.

Job-Related Relocations Declining

(p. A1) Fewer U.S. workers are moving around the country to seek new job opportunities, as changing family ties and more openings near home make people less willing to uproot their lives for work.

About 3.5 million people relocated for a new job last year, according to U.S. census data, a 10% drop from 3.8 million in 2015. The numbers have fluctuated between 2.8 million and 4.5 million since the government started tracking annual job-related relocations in 1999—but have been trending lower overall, even as the U.S. population grew by nearly 20% over that stretch.

Experts cite a number of factors that in some periods have kept people in one place, including a depressed value for their home or limited job openings. In the current strong economy, real-estate values have rebounded, but that has made housing costs prohibitively high in some regions where jobs are abundant, such as major East and West Coast cities.

For the full story, see:

Rachel Feintzeig and Lauren Weber. “Fewer Workers Move for New Jobs.” The Wall Street Journal (Monday, August 20, 2018): A1-A2.

(Note: the online version of the story did not give a date, and has the title “Fewer Americans Uproot Themselves for a New Job.”)

“Freakin’ Ridiculous” Regulation

(p. A1) REHOBOTH BEACH, Del.—Capt. Kent Buckson’s radio crackled with word of a situation on the beach. A lifeguard had spotted a large canopy amid the sea of umbrellas. That meant one thing. Time for a takedown.

“We’ve got to get to that one,” said Mr. Buckson, the soft-spoken beach patrol boss. He and his deputy, Aaron Tartal, jumped into an all-terrain vehicle and headed over. Mr. Tartal, shirtless and in red swim trunks, strode over to the canopy owner.

“Good morning, sir. I’ve got bad news,” Mr. Tartal told the man. Then he laid out the new law on the two-mile beach. No tents or canopies allowed, except baby tents up to 3 feet high, wide or deep.

“Freakin’ ridiculous,” groused the man, who declined to give his name, as he dismantled the black 8-by-10-foot canopy he had just erected.

“New city ordinance, it’s a little bit of a learning curve,” Mr. Tartal gamely replied, pointing out the nearby shacks that rent umbrellas for $12 a day.

. . .

(p. A14) . . . , the 25-year-old Mr. Tartal, who is a lifeguard in addition to Capt. Buckson’s beach patrol deputy, told Marjorie Danko, a receptionist from Hershey, Pa., that the $40 three-sided tent she bought for her grandchildren didn’t pass muster, either.

“I don’t understand this,” she said. “I think umbrellas are much more dangerous. What kind of ordinance is that? I mean, really dumb.”

Mr. Tartal apologized but didn’t debate her. “We don’t write the ordinances,” he said, “we just enforce them.”

Clutching some cash, Ms. Danko marched off to go rent an umbrella.

For the full story, see:

Scott Calvert. “Beach Patrol Draws a Line In the Sand: No More Tents.” The Wall Street Journal (Wednesday, July 5, 2017): A1 & A10.

(Note: ellipses added.)

(Note: the online version of the story has the date July 4, 2017, and the title “Beach Patrol Confronts a New Menace: Oversize Tents.”)

If You Have Lost Your Spouse, Chatbot Asks: “What’s Your Tracking Number?”

(p. B4) When LivePerson Inc. started piloting chatbots in early 2018, one of them made an embarrassing faux pas, assuming a client’s customer was talking about a lost package after mentioning losing a spouse.

“And the bot goes, ‘All right, great, I can help you with that. What’s your tracking number?’” said Malik Jenkins, an employee at the artificial-intelligence software company who was involved in the pilots. He said the issue was immediately flagged by someone at the client company and his team tweaked the bot to avoid such responses in the future.

For the full story, see:

Jared Council. “A Human Touch Is Given to Chatbots.” The Wall Street Journal (Thursday, June 13, 2019): B4.

(Note: the online version of the story has the date June 12, 2019, and the title “When Chatbots Falter, Humans Steer Them the Right Way.”)

Clayton Christensen Wrongly Predicted Bombardier Would Disrupt Boeing

Clayton Christensen and co-authors predicted in Seeing What’s Next that Bombardier was well-positioned to use disruptive innovation to leapfrog Boeing and Airbus.

(p. B8) Mitsubishi Heavy Industries Ltd. said it would acquire Bombardier Inc.’s regional-jet business for $550 million in a transaction that puts the companies on different paths in the aviation sector.

The deal unveiled Tuesday [June 25, 2019] marks the Canadian company’s exit from the commercial passenger-aircraft business following failed bets that it could compete with Airbus SE and Boeing Co. in the 100-seat single-aisle plane category.

Bombardier has restructured its aviation division over the past two years, highlighted by its joint venture with Airbus that put the European plane maker in charge of the production and sales of the 110- to 130-seat planes that the Montreal company had originally conceived as the CSeries. Those jets are now rebranded as the Airbus A220.

For the full story, see:

Vieira, Paul. “Bombardier to Sell Jet Unit.” The Wall Street Journal (Wednesday, June 26, 2019): B8.

(Note: bracketed date added.)

(Note: the online version of the story has the same date June 25, 2019, and has the title “Mitsubishi to Acquire Bombardier’s Regional Jet Unit for $550 Million.”)

The Christensen book mentioned above, is:

Christensen, Clayton M., Scott D. Anthony, and Erik A. Roth. Seeing What’s Next: Using Theories of Innovation to Predict Industry Change. Boston, MA: Harvard Business School Press, 2004.

In Batteries We Don’t Need Perfect; We Need Goodenough

(p. B5) In the race to make the next leap in battery technology, there is a 96-year-old who won’t give up.

Four decades ago, John Goodenough helped invent the battery that is used to charge cellphones, iPads and many other of today’s electronic goods. His work made batteries more powerful and portable by introducing lithium cobalt oxide to their inner workings.

Now Dr. Goodenough wants to kill off that creation by removing the cobalt that meant his lithium-ion battery could charge faster and last longer. In April [2018], the World War II veteran published research with three co-authors that he said is being used to develop a prototype of a liquid-free and cobalt-free battery.

“My mission is to try to see if I can transform the battery world before I die,” Dr. Goodenough says. “When I’m no longer able to drive and I’m forced to go into a nursing home, then I suppose I will be retiring.”

. . .

“He is driven by scientific curiosity, and he really wants to do something for society with the science he does,” says Arumugam Manthiram, a professor of engineering at the University of Texas at Austin who has worked with Dr. Goodenough for 33 years.

. . .

Dr. Goodenough arrives at the university between 8 and 8.30 a.m. and leaves around 6 p.m., working from home throughout the weekend, Dr. Manthiram says.

. . .

Despite having dyslexia, Dr. Goodenough excelled and went to study mathematics at Yale University.

. . .

. . . , Dr. Goodenough is supervising what he says is his final doctoral candidate, a 24-year-old materials science and engineering student.

“Dr. Goodenough says I’m going to be his last Ph.D. student, but apparently he says that every couple of years and then takes on new candidates,” says student Nick Grundish.

For the full story, see:

Sarah McFarlane. “Meet the 96-Year-Old Battery Pioneer Who Keeps Going and Going.” The Wall Street Journal (Saturday, Aug. 11, 2018): B5.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the story has the date Aug. 9, 2018, and the title “The Battery Pioneer Who, at Age 96, Keeps Going and Going.”)

Technological Progress Often Involves Minor Regress of Some Feature

(p. A1) The same types of electric-powered motors that propel Teslas past 150 mph and the Chevy Bolt as far as 238 miles on a charge, are a total buzz kill for AM reception. Instead of sports, oldies or news, it’s more like all-static, all-the-time radio.

As auto makers race headlong into an electrified future, AM radios are getting kicked to the curb, joining cassette decks, eight-track players and ashtrays.

. . .

(p. A14) One web developer offers a smartphone app that, when used with a diagnostic port adapter, can activate the dormant AM radio reception in a BMW i3 EV.

The German auto maker warns that may void the warranty, but using the app is easy, said Art Isabell, 74, a 2014 BMW i3 owner. He retired from Apple as a software support engineer and lives in Honolulu.

Even though the AM reception in his electric vehicle is sketchy, Mr. Isabell said, he wants the option: “I rarely listen to AM radio, but I want to have it available as another potential source of information during emergency situations such as severe weather, tsunamis or North Korean missile attacks.”

For the full story, see:

Chester Dawson. “Electric Cars Get Static on AM Radio.” The Wall Street Journal (Wednesday, Nov. 7, 2018): A1 & A14.

(Note: ellipsis added.)

(Note: the online version of the story has the date Nov. 6, 2018, and the title “Your Tesla Can Go Zero to 60 in 2.5 Seconds But Can’t Get AM Radio.”)

Mandated Long Clinical Trials Favor Trivial Incremental Drugs and Impede Magic Bullet Cures

(p. B1) AstraZeneca PLC’s new cancer research chief, José Baselga, wants the company to prioritize early-stage cancers over advanced disease when developing new cancer drugs. If successful, his unorthodox strategy could reap rewards for both patients—the potential to cure cancer is much greater when it is treated early—and company coffers.

The approach turns the tried-and-tested model of cancer drug development on its head. Typically, drug companies aim their new cancer drugs at patients with advanced forms of the disease who have exhausted other treatment options. Of the more than 30 new drugs for solid tumors approved for sale in the U.S. since the start of 2014, just two targeted early cancer.

That is largely because there is a clear-cut case for testing new drugs on patients with advanced cancer, as they don’t have other options. What’s more, measuring a new medicine’s effect in advanced cancer is straightforward: a meaningful extension in survival can usually be measured in months. Such patients are also often more willing to try experimental drugs, and regulators have smoothed the path for treatments that show they can prolong lives by delaying tumor growth in advanced cancer.

. . .

(p. B5) “One thing with early stage disease, you have to be able to cure patients,” said Daniel Chen, who spent more than a decade running cancer drug development projects at Roche Holding AG. “The majority of cancer drugs delay cancer growth, they don’t cure patients.” Dr. Chen is now chief medical officer at biotech startup IGM Biosciences Inc.

Running clinical trials could also be difficult, as it would involve persuading patients to try experimental drugs when they might already be cured.

Another challenge is measuring the drug’s effectiveness. In patients whose cancer is diagnosed and treated early, it would take years to determine whether a new drug meaningfully extended survival, making for very long clinical trials.

For the full story, see:

Denise Roland. “Drug Giant Tests Bold Tactic to Battle Cancer.” The Wall Street Journal (Tuesday, May 28, 2019): B1 & B5.

(Note: ellipsis added.)

(Note: the online version of the story has the date May 27, 2019, and has the title “Drug Giant Tries New Tactic to Fight Cancer.”)