Category: Philanthropy

Funding People Instead of Projects Allows Researchers to Nimbly Pivot in the Light of Unexpected Discoveries

(p. A2) Patrick Collison, the Irish-born co-founder of payments technology company Stripe Inc., has spent a lot of the past five years pondering the problem of declining scientific productivity.

. . .

Clearly, scientific productivity has something to do with how research is done, not how much. One culprit, in the view of Mr. Collison and many others, is that the institutions that fund science have become process-oriented, narrow-minded and risk-averse. Wary of failure, they favor established researchers pursuing narrowly focused, incremental ideas over younger scientists with more heterodox agendas.

. . .

Yet Mr. Collison criticizes the federal government for failing to bring a much deeper and eager pool of talent to bear on a multitude of pandemic challenges. Top virologists “were stuck on hold, waiting for decisions about whether they could repurpose their existing funding for this exponentially growing catastrophe,” he wrote in an essay last year with George Mason University economist Tyler Cowen, and University of California, Berkeley bioengineering professor Patrick Hsu.

Sensing a need, the three in April, 2020 launched Fast Grants, $10,000 to $500,000 awards funded primarily by private donors and approved in 14 days or less.

. . .

When Messrs. Collison, Cowen and Tsu surveyed their recipients about their experiences with traditional funding, 57% told them they spent more than a quarter of their time on grant applications and 78% said they would change their research program a lot if they weren’t constrained in how they spent their current funding.

This reinforces a key insight from metascience, also known as the science of science, namely the value of curiosity-driven research. Heidi Williams, an economist at Stanford University and director of science policy at the Institute for Progress, said grants typically commit a scholar to complete a specific project, even if during the research the project proves less promising than expected.

. . .

In a 2009 paper, Massachusetts Institute of Technology economist Pierre Azoulay and his co-authors demonstrated the benefits of funding people over projects. Researchers backed by the Howard Hughes Medical Institute, which takes such an approach, produce far more widely cited papers—a metric of significance—than similar researchers funded by the National Institutes of Health. Drawing on those lessons, last year, Mr. Collison co-founded the Arc Institute to pre-fund scientists studying complex human diseases for renewable eight-year terms.

For the full commentary, see:

Greg Ip. “CAPITAL ACCOUNT; To Boost Growth, Rethink Science Funding.” The Wall Street Journal (Friday, Nov. 18, 2022): A2.

(Note: ellipses added.)

(Note: the online version of the commentary has the date November 17, 2022, and has the title “CAPITAL ACCOUNT; Stagnant Scientific Productivity Holding Back Growth.”)

The published version of Azoulay’s co-authored 2009 NBER working paper, mentioned above, is:

Azoulay, Pierre, Joshua S. Graff Zivin, and Gustavo Manso. “Incentives and Creativity: Evidence from the Academic Life Sciences.” RAND Journal of Economics 42, no. 3 (Fall 2011): 527-54.

“Woke” Bankman-Fried’s FTX Played “Dumb Game” of Virtue Signaling

(p. A17) There was a time when people engaged in doing good addressed problems that, so to speak, you could get your arms around, such as improving school performance, providing potable water or preventing malaria. But at some point, the impulse to do good transformed into a combination of moral tendentiousness and grandiosity.

. . .

. . ., inside the Bankman-Fried fairy tale rests a smaller tipping point, which suggests his generation senses that their preachy elders may have led them down a moral garden path.

In an exchange with Mr. Bankman-Fried, a writer for Vox asserts, “You were really good at talking about ethics.” He replied that “I had to be” because of “this dumb game we woke westerners play where we say all the right shibboleths and so everyone likes us.”

He is describing what has come to be known in our time as virtue signaling, . . .

For the full commentary, see:

Daniel Henninger. “WONDER LAND; The Moral Vanity of FTX.” The Wall Street Journal (Thursday, December 1, 2022): A17.

(Note: ellipses added.)

(Note: the online version of the commentary has the date November 30, 2022, and has the title “WONDER LAND; The Moral Vanity of Sam Bankman-Fried.”)

Corrupt and Bankrupt FTX Got Higher ESG Rating for “Leadership and Governance” Than Exxon Mobil

(p. A14) Crypto dark knight Sam Bankman-Fried may have deceived investors, customers and various journalists and politicians. But now the FTX founder is at least telling the truth about a few things. Lo, he says that environmental, social and governance (ESG) investing is a fraud, and so was his progressive public posturing.

. . .

“Problems were brewing. Larger than I realized,” he tweeted. “In the future, I’m going to care less about the dumb, contentless, ‘good actor’ framework,” he added. “What matters is what you do—is *actually* doing good or bad, not just *talking* about doing good or *using ESG language*.”

Mr. Bankman-Fried is also acknowledging that he genuflected to regulators and Democratic lawmakers to win political protection. ESG ratings company Truvalue Labs even gave FTX a higher score on “leadership and governance” than Exxon Mobil, though the crypto exchange had only three directors on its board.

For the full editorial, see:

The Editorial Board. “Sam Bankman-Fried, ESG Truth-Teller.” The Wall Street Journal (Friday, Nov. 18, 2022): A14.

(Note: ellipsis added.)

(Note: the online version of the editorial has the date November 17, 2022, and has the title “Sam Bankman-Fried Becomes an ESG Truth-Teller.”)

Musk’s Private Starlink Infrastructure “Played a Crucial Role” in Saving Ukraine

(p. A6) KYIV, Ukraine—Elon Musk backtracked on his complaints over the cost of funding Starlink internet terminals in Ukraine and said his company would continue to pay for them, as explosions rocked the Russian-held city of Donetsk in eastern Ukraine on Sunday [Oct. 16, 2022].

Mr. Musk, the billionaire chief executive of SpaceX and Tesla, pledged to continue funding the Starlink service for Ukraine just a day after he said SpaceX couldn’t finance the service indefinitely on its own.

“The hell with it,” Mr. Musk tweeted on Saturday. “Even though Starlink is still losing money & other companies are getting billions of taxpayer $, we’ll just keep funding Ukraine govt for free.”

The 20,000 Starlink terminals estimated to be in operation across Ukraine have played a crucial role in maintaining the country’s communications during the war and are deployed at hundreds of Ukrainian military outposts where they allow commanders to call in artillery strikes or coordinate operations in areas where cell service is jammed by Russia.

For the full story, see:

Matthew Luxmoore. “Musk Says SpaceX to Cover Starlink Costs in Ukraine.” The Wall Street Journal (Monday, Oct. 17, 2022): A6.

(Note: ellipsis, and bracketed date, added.)

(Note: the online version of the story was updated Oct. 16, 2022, and has the title “Elon Musk Says SpaceX Will Continue to Cover Starlink Costs in Ukraine.”)

“Two Self-Made Mill Owners” in Golden Age of Capitalism Collected and Preserved “Literary Treasures”

(p. C6) A consortium of British libraries and museums has announced that it successfully raised more than $20 million to buy a “lost” library containing rare manuscripts by Robert Burns, Walter Scott and the Brontës, heading off an auction and preserving the collection intact.

. . .

“A collection of literary treasures of this importance comes around only once in a generation,” Richard Ovenden, the head of the Bodleian Libraries at Oxford, said in a news release earlier this month announcing the deal.

. . .

Alfred and William Law, two self-made mill owners who grew up less than 20 miles from the Brontë home in Haworth (which is now the Brontë Parsonage Museum), began collecting what became the Honresfield Library in the 1890s.

. . .

In the announcement, Gabriel Heaton, the Sotheby’s specialist who organized the planned sale, called it “a collection like no other that has come to market in recent decades.”

For the full story, see:

Jennifer Schuessler. “$20 Million Raised to Preserve a ‘Lost Library’.” The New York Times (Saturday, December 25, 2021): C6.

(Note: ellipses added.)

(Note: the online version of the story has the date Dec. 24, 2021, and has the title “Group Raises $20 Million to Preserve ‘Lost’ Brontë Library.”)

“Endless” Trial-and-Error Experiments Led to Creation of Islet Cells to Cure Type 1 Diabetes

(p. 1) Brian Shelton’s life was ruled by Type 1 diabetes.

. . .

His ex-wife, Cindy Shelton, took him into her home in Elyria, Ohio. “I was afraid to leave him alone all day,” she said.

Early this year, she spotted a call for people with Type 1 diabetes to participate in a clinical trial by Vertex Pharmaceuticals. The company was testing a treatment developed over decades by a scientist who vowed to find a cure after his baby son and then his teenage daughter got the devastating disease.

Mr. Shelton was the first patient. On June 29, [2021] he got an infusion of cells, grown from stem cells but just like the insulin-producing pancreas cells his body lacked.

Now his body automatically controls its insulin and blood sugar levels.

Mr. Shelton, now 64, may be the first person cured of the disease with a new treatment that has experts daring to hope that help may (p. 18) be coming for many of the 1.5 million Americans suffering from Type 1 diabetes.

“It’s a whole new life,” Mr. Shelton said. “It’s like a miracle.”

. . .

One problem was the source of the cells — they came from unused fertilized eggs from a fertility clinic. But in August 2001, President George W. Bush barred using federal money for research with human embryos. Dr. Melton had to sever his stem cell lab from everything else at Harvard. He got private funding from the Howard Hughes Medical Institute, Harvard and philanthropists to set up a completely separate lab with an accountant who kept all its expenses separate, down to the light bulbs.

Over the 20 years it took the lab of 15 or so people to successfully convert stem cells into islet cells, Dr. Melton estimates the project cost about $50 million.

The challenge was to figure out what sequence of chemical messages would turn stem cells into insulin-secreting islet cells. The work involved unraveling normal pancreatic development, figuring out how islets are made in the pancreas and conducting endless experiments to steer embryonic stem cells to becoming islets. It was slow going.

. . .

The next step for Dr. Melton, knowing he’d need more resources to make a drug that could get to market, was starting a company.

. . .

His company Semma was founded in 2014, a mix of Sam and Emma’s names.

One challenge was to figure out how to grow islet cells in large quantities with a method others could repeat. That took five years.

The company, led by Bastiano Sanna, a cell and gene therapy expert, tested its cells in mice and rats, showing they functioned well and cured diabetes in rodents.

At that point, the next step — a clinical trial in patients — needed a large, well financed and experienced company with hundreds of employees. Everything had to be done to the exacting standards of the Food and Drug Administration — thousands of pages of documents prepared, and clinical trials planned.

Chance intervened. In April 2019, at a meeting at Massachusetts General Hospital, Dr. Melton ran into a former colleague, Dr. David Altshuler, who had been a professor of genetics and medicine at Harvard and the deputy director of the Broad Institute. Over lunch, Dr. Altshuler, who had become the chief scientific officer at Vertex Pharmaceuticals, asked Dr. Melton what was new.

Dr. Melton took out a small glass vial with a bright purple pellet at the bottom.

“These are islet cells that we made at Semma,” he told Dr. Altshuler.

Vertex focuses on human diseases whose biology is understood. “I think there might be an opportunity,” Dr. Altshuler told him.

Meetings followed and eight weeks later, Vertex acquired Semma for $950 million. With the acquisition, Dr. Sanna became an executive vice president at Vertex.

. . .

Less than two years after Semma was acquired, the F.D.A. allowed Vertex to begin a clinical trial with Mr. Shelton as its initial patient.

For the full story, see:

Gina Kolata. “A Cure for Severe Diabetes? For an Ohio Patient, It Worked.” The New York Times, First Section (Sunday, November 28, 2021): 1 & 18.

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

(Note: the online version of the story has the date Nov. 27, 2021, and has the title “A Cure for Type 1 Diabetes? For One Man, It Seems to Have Worked.”)

Taking “Capital Allocation Away From People Who Have Demonstrated Great Skill in Capital Allocation”

(p. 1) The richest people on earth typically devote a share of their vast resources to charity. That is the bargain and the expectation, anyway.

Jeff Bezos, until very recently the world’s richest human, has been applying himself dutifully if a bit cautiously to the task, giving money to food banks and homeless families while pledging $10 billion of the fortune he earned through the online retailer Amazon to fight climate change.

The latest richest human, Elon Musk, has taken a rather different tack. There was the public spat with the director of the World Food Programme on Twitter, for instance, announcing, “If WFP can describe on this Twitter thread exactly how $6B will solve world hunger, I will sell Tesla stock right now and do it.”

. . .

And, of course, there is the ongoing insistence that his moneymaking efforts, running both the electric carmaker Tesla and the rocket company SpaceX, are already better-(p. 8)ing humankind, thank you very much.

Mr. Musk is practicing “troll philanthropy.”

That’s what Benjamin Soskis, senior research associate in the Center on Nonprofits and Philanthropy at the Urban Institute, has called it, noting that Mr. Musk seems to be having fun with this novel approach.

“He doesn’t seem to care much about using his philanthropy to curry public favor,” Mr. Soskis said. “In fact, he seems to enjoy using his identity as a philanthropist in part to antagonize the public.”

. . .

“The particular barrier for donors from a tech background is they don’t just think their genius has made them good at what they do, they also think what they do commercially also makes society better,” said Rhodri Davies, a philanthropy commentator who wrote a piece on Mr. Musk called “The Edgelord Giveth.”

Mr. Musk, for instance, has said that getting humankind to Mars through SpaceX is an important contribution and has written and spoken acerbically about what he calls “anti-billionaire BS,” including attempts to target taxes at billionaires.

“It does not make sense to take the job of capital allocation away from people who have demonstrated great skill in capital allocation and give it to an entity that has demonstrated very poor skill in capital allocation, which is the government,” Mr. Musk said on Monday at an event hosted by The Wall Street Journal.

At the same time, Mr. Kharas said a more charitable reading of Mr. Musk’s exchange with the World Food Programme is possible. He could just genuinely want to know how the money will be spent and is putting in public, on Twitter, the due diligence work that institutional giving does behind closed doors.

“I think this idea that he was willing to engage was really good,” Mr. Kharas of the Brookings Institution said of Mr. Musk. “I think his response was extremely sensible. It was basically, ‘Show me what you can do. Demonstrate it. Provide me with some evidence. I’ll do it.’”

For the full story, see:

Nicholas Kulish. “Elon Musk, Trolling Away.” The New York Times SundayBusiness Section (Sunday, December 12, 2021): 1 & 8.

(Note: ellipses added.)

(Note: the online version of the story has the date Dec. 10, 2021, and has the title “Elon Musk’s Latest Innovation: Troll Philanthropy.”)

Bloomberg Will Donate $750 Million to Support Charter Schools

(p. A19) American public education is broken. Since the pandemic began, students have experienced severe learning loss because schools remained closed in 2020—and even in 2021 when vaccinations were available to teachers and it was clear schools could reopen safely. Many schools also failed to administer remote learning adequately.

Before the pandemic, about two-thirds of U.S. students weren’t reading at grade level, and the trend has been getting worse. Results from the National Assessment of Educational Progress, commonly known as the nation’s report card, show that in 2019, eighth-grade math scores had already fallen significantly.

Teachers understand the severity of the problem, and many are doing heroic work, yet some of their union representatives are denying reality. “There is no such thing as learning loss,” said Cecily Myart-Cruz, head of the Los Angeles teachers union, in an interview with Los Angeles Magazine this past summer. “Our kids didn’t lose anything. It’s OK that our babies may not have learned all their times tables. They learned resilience.”

What nonsense. How about reading, writing and arithmetic, the critical skills we are funding schools to teach?

Instead of giving students the skills they need to succeed in college or in a trade, the public education system is handing them diplomas that say more about their attendance record than their academic achievement. This harms students, especially those from low-income families. When and if they graduate, they will try to find work in an economy that values knowledge and skills above all else, and their old schools will say to them: “Good luck!”

. . .

We know what works, because we can see it in real time. Success Academy’s network of 47 public charter schools is serving New York children whose families predominantly live below the poverty line. Their students are outperforming public-school students in Scarsdale, N.Y.—the wealthiest town on the East Coast and the second-wealthiest town in America—by significant margins. Yet a statewide cap on charter schools is blocking Success Academy from expanding.

. . .

Today there are long waiting lists for charter schools across the country, but mayors and governors aren’t getting the support they need from Congress and the White House to open new charter schools. To begin meeting the demand for charters, Bloomberg Philanthropies is launching a five-year, $750 million effort to create seats for 150,000 more children in 20 metro areas across the country.

For the full commentary, see:

Bloomberg, Michael R. “Why I’m Backing Charter Schools.” The Wall Street Journal (Thursday, Dec. 2, 2021): A19.

(Note: ellipses added.)

(Note: the online version of the commentary has the date December 1, 2021, and has the same title as the print version.)

University of Chicago’s Milton Friedman Center Now Run by “Former Obama Staffers Who Cheer” . . . “Moves Toward Socialism”

(p. A15) Colleges’ ideological turn leftward has become sharper. At my own institution, a center dedicated to Milton Friedman is now run by former Obama staffers who cheer on the Biden administration’s moves toward socialism.

These policies reward professors and administrators who can then raise the price of their services. It’s basic economics that subsidizing demand increases the price of the product. Tuition rising as loan subsidies expand is no different. It isn’t a coincidence that education and health care, the industries in which government subsidies are most pervasive, took the highest price increases over the past 15 years—3.7% and 3.1% a year, compared with the 1.8% average across industries.

For the full commentary, see:

Tomas J. Philipson. “College Subsidies Are a Feedback Loop for Bigger Government.” The Wall Street Journal (Friday, June 11, 2021): A15.

(Note: the online version of the commentary has the date June 10, 2021, and has the title “College Subsidies Are a Feedback Loop for Bigger Government.”)

Choppin at Hughes Medical Institute Hired Good Scientists and Let Them Pursue Hunches and Serendipitous Insights

(p. A27) Purnell Choppin, whose research on how viruses multiply helped lay the foundation for today’s fight against the Covid-19 pandemic, died on July 3 [2021] at his home in Washington, one day shy of his 92nd birthday.

. . .

Dr. Choppin (pronounced show-PAN) focused on measles and influenza, but his research, and the methods he developed to conduct it, proved critical for later work on other viruses, including severe acute respiratory syndrome coronavirus 2, the virus behind the Covid-19 pandemic, said David Baltimore, an emeritus professor of biology at the California Institute of Technology and a winner of the 1975 Nobel Prize in Physiology or Medicine.

“The issue of how viruses infect cells was very much on his mind, and the mechanisms he worked out studying influenza were central to thinking about coronaviruses,” Dr. Baltimore said. “Thanks to his work and that of so many others, when the pandemic hit, we were able to formulate questions about the virus in quite precise terms.”

Dr. Choppin was equally well known as an administrator, first at Rockefeller and then at the Howard Hughes Medical Institute, which hired him in 1985 as its chief medical officer. He later ran the institute for 12 years, turning it from a modest-size research organization into a global research powerhouse.

. . .

With a calm, easygoing demeanor that disguised a fierce, visionary ambition, Dr. Choppin took an innovative approach to funding. Unlike other institutions, which provide grants for specific projects, he focused on identifying top researchers and then showering them with money and resources. Even better, he did not ask them to move to the institute, in Chevy Chase, Md. — they could stay where they were and let the Hughes largesse come to them.

. . .

While Dr. Choppin was sometimes criticized for making safe bets on established scientists who probably didn’t need his help, he made no apologies, and had the track record to prove the soundness of his approach: Dozens of Hughes researchers had gone on to become members of the National Academy of Sciences, and six won the Nobel Prize.

“We bet on people who look like they are going to be winners,” he told The Washington Post in 1988. “You look for originality. How they pick a problem and stick to it. Their instinct for the scientific jugular.”

For the full obituary, see:

Clay Risen. “Purnell Choppin, 91, Researcher Who Focused on Viruses.” The New York Times, First Section (Sunday, July 25, 2021): 27.

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

(Note: the online version of the obituary has the date July 23, 2021, and has the title “Purnell Choppin, 91, Dies; Researcher Laid Groundwork for Pandemic Fight.”)

Dolly Parton Sings and Donates with “Effective Sympathy”

The above is an “embed” from a YouTube video posted by singer (and English Professor) Ryan Cordell. The lyrics were written by Gretchen McCulloch and the tune is from Dolly Parton’s “Jolene.” The YouTube URL is: https://www.youtube.com/watch?v=cCwNQtnI64I

In my book Openness to Creative Destruction: Sustaining Innovative Dynamism, I write about “effective sympathy” which I describe as “actions taken by sympathetic observers that actually save or improve the lives of those who are suffering” (p. 110). I admire Dolly Parton for donating copies of The Little Engine That Could to poor children. I also admire Dolly Parton for donating a million dollars to help start research on the Moderna vaccine for Covid-19. Dolly Parton knows how to practice effective sympathy.

(p. 12) She wrote “I Will Always Love You” and “Jolene” on the same day and built a theme park around herself. She has given memorable onscreen performances as a wisecracking hairstylist and harassed secretary. She even helped bring about the creation of “Buffy the Vampire Slayer.”

Now, Dolly Parton’s fans are crediting her with saving the world from the coronavirus. It’s an exaggerated, tongue-in-cheek claim, to be sure. But for legions of admirers, Ms. Parton’s donation this spring to Vanderbilt University Medical Center, which worked with the drugmaker Moderna to develop a coronavirus vaccine, was another example of how her generosity and philanthropy have made her one of the world’s most beloved artists.

. . .

“Her money helped us develop the test that we used to first show that the Moderna vaccine was giving people a good immune response that might protect them,” Dr. Denison said on Tuesday.

Ms. Parton told the BBC on Tuesday [November 17, 2020] that she was excited to hear her contribution provided a “little seed money that will hopefully grow into something great and help to heal this world.”

. . .

On Monday [November 16, 2020], after Moderna announced that early trials of the vaccine showed a 94.5 percent effectiveness rate, fans reacted rapturously.

. . .

Ryan Cordell, an associate professor of English at Northeastern University in Boston, filmed himself singing a song about the vaccine to the tune of “Jolene.”

For the full story, see:

Maria Cramer. “Dolly: A Star of Country, a Songwriter, a Virus Hero.” The New York Times, First Section (Sunday, November 22, 2020): 12.

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

(Note: the online version of the story has the date Nov. 17, 2020, and has the title “Dolly Parton: Singer, Songwriter, Pandemic Savior?” The online version says that the title of the New York print version was “Dolly: Country Music Legend, Songwriter, Pandemic Hero” and its page number was 8. The title of my National print version was “Dolly: A Star of Country, a Songwriter, a Virus Hero” and its page number was 12.)

My book mentioned above is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

The use of The Little Engine That Could to encourage entrepreneurial perseverance is analyzed in:

Yandle, Bruce. “I Think I Can! Does the Little Engine That Could Matter?” Journal of Private Enterprise 26, no. 2 (Spring 2011): 127-42.