Technology – Page 46 – artdiamondblog.com

Inventors Move from Declining Industries to New, Expanding Industries

Petra Moser’s comments (see below) about inventors applying similar ideas to different industries seem complementary to Burke’s emphasis on the importance of serendipitous “connections.” An inventor exposing herself to many industries’ problems and products, would be more likely to see additional applications for inventions originally developed for another industry.

(p. 3) By some logic, there is no earthly reason why bicycles should still exist.

They are a quaint, 19th-century invention, originally designed to get someone from point A to point B. Today there are much faster, far less labor-intensive modes of transportation. And yet hopeful children still beg for them for Christmas, healthful adults still ride them to work, and daring teenagers still vault them down courthouse steps. The bicycle industry has faced its share of disruptive technologies, and it has repeatedly risen from the ashes.
. . .
“Much of the history of the ‘American system of manufacturing’ is the story of inventors moving from a declining industry to a new expanding industry,” says Petra Moser, an economic historian at Stanford who studies innovation. “Inventors take their skills with them.”
Gun makers learned to make revolvers with interchangeable parts in the mid-19th century, Ms. Moser says. Then those companies (and some former employees, striking out on their own) applied those techniques to sewing machines when demand for guns slackened. Later, sewing machine manufacturers began making woodworking machinery, bicycles, cars and finally trucks.
. . .
Meanwhile, we’ve already seen some of the “destruction” half of Joseph Schumpeter’s famous “creative destruction” paradigm, with many newspapers cutting staff and other production costs. Unfortunately for newspapers, historians say, the survivors in previous industries facing major technological challenges were usually individual companies that adapted, rather than an entire industry. So a bigger shakeout may yet come.
But perhaps the destruction will lead to more creativity. Perhaps the people we now know as journalists — or, for that matter, autoworkers — will find ways to innovate elsewhere, just as, over a century ago, gun makers laid down their weapons and broke out the needle and thread. That is, after all, the American creative legacy: making innovation seem as easy as, well, riding a bike.

For the full commentary, see:
CATHERINE RAMPELL. “Ideas & Trends; How Industries Survive Change. If They Do.” The New York Times, Week in Review Section (Sun., November 15, 2008): 3.
(Note: ellipses added.)

Older Technologies Sometimes Regain the Lead Over Newer Ones

(p. R8) Innovation occurs almost constantly at the level of design and components, absorbing companies’ attention as they look for ways to best their competitors. Platform innovations are less frequent. But when they do occur, they have the potential to transform markets, not just give an edge to one competitor.

One great danger to companies is to be so immersed in design and component innovation that they miss out on a platform innovation. For example, while Sony Corp. focused in the 1990s on improving its CRT television sets, a market it dominated, rival Samsung Electronics Co. invested heavily in flat-screen LCD TVs. As the market for LCD TVs grew, Sony fell behind its rivals and ended up entering into a joint venture with Samsung to build liquid-crystal displays.

Innovation’s Messy Paths
Another mistake to avoid is to assume that all technologies follow a standard progression.
The conventional wisdom is that the performance of any technology is initially low, then improves rapidly after some breakthrough, and ultimately levels out in maturity. A new technology’s performance supposedly starts below that of the established technology, surpasses it after the breakthrough is achieved, and then remains superior until the next big thing comes along. Literature on the subject has encouraged managers to embrace a new technology once it begins to show rapid improvement, and to abandon the old technology because it is destined to become obsolete.
However, our analysis of several markets shows that technological evolution is much messier than this simple pattern. For instance, new technologies sometimes enter the market with better performance than the existing technology, only to fall behind at some point before later regaining the lead. That’s the case in the market for external lighting. When gas-discharge lighting, which is used in fluorescent tubes, was introduced around 1930, it was brighter per watt than the existing arc-discharge lighting, which is used in many street lamps, and it maintained that superiority for some 40 years, until improvements in arc-discharge lighting made it the brightest per watt again. Then, in 1980, gas discharge made its biggest jump in performance so far, again surpassing arc discharge in brightness per watt. Both technologies have gone through several long periods of stagnation followed by sharp improvements in performance.
When one technology is growing rapidly, it’s easy to get caught up in the hype and overinvest in it. However, the unpredictability and impermanence that we found in this and other markets suggests that companies should consider investing in, or at least monitoring, a portfolio of technologies, so they aren’t blindsided by a sudden improvement in one or another.
Consider the competition between ink-jet and laser technology in the printer market. When the two technologies were introduced in the mid-1980s, laser was far superior to ink-jet in resolution. Ink-jet quickly caught up, but didn’t surpass laser’s resolution. Then, in the mid-1990s, laser again took a significant lead. But ink-jet surpassed laser in resolution in 1997 and has maintained that edge. All the while, printer maker Hewlett-Packard Co. continued to sell both ink-jet and laser printers, putting itself in the best position to succeed in a shifting market

For the full story, see:
GERARD J. TELLIS and ASHISH SOOD. “Innovation; How to Back the Right Technology; When trying to decide where to place their bets, companies often make three fundamental mistakes.” Wall Street Journal (Mon., DECEMBER 14, 2008): R8.

“In Spite of the Economic Crisis and Unemployment . . . Civilization’s Progress is Going Faster and Faster”

The Palace of Discovery mentioned in the passage below was a part of the 1937 Paris Exposition.

(p. 206) The mastermind behind the Palace of Discovery, French Nobel Prize laureate Jean Perrin, wrote, “In spite of the wars and the revolutions, in spite of the economic crisis and unemployment, through our worries and anxieties, but also through our hopes, civilization’s progress is going faster and faster, thanks to ever-more flexible and efficient techniques, to farther- and farther-reaching lengths. . . . Almost all of them have appeared in less than a century, and have developed or applied inventions now known by all, which seem to have fulfilled or even passed the desires expressed in our old fairy tales.”

Source:
Hager, Thomas. The Demon under the Microscope: From Battlefield Hospitals to Nazi Labs, One Doctor’s Heroic Search for the World’s First Miracle Drug. New York: Three Rivers Press, 2007.
(Note: ellipsis in the title is added; ellipsis in the quoted passage is in the original.)

The Palace of Discovery: “They Came for Wonder and Hope”

The Palace of Discovery (aka Palais de la Decouverte) in Paris. Source of photo: http://www.flickr.com/photos/paris2e/2524827592/

Near the beginning of World War II, the 1937 Palace of Discovery in Paris, was a popular source of hope for the future:

(p. 206) An unexpectedly popular draw at the exposition was a relatively small hall hidden away behind the Grand Palais. The Palace of Discovery, as it was called, attracted more than 2 million visitors, five times the number that visited the modern art exhibit. They came for wonder and hope. The wonder was provided by exhibits including a huge electrostatic generator, like something from Dr. Frankenstein’s lab, two enormous metal spheres thirteen feet apart, across which a 5-million-volt current threw a hissing, crackling bolt of electricity. The hope came from the very nature of science itself. Designed by a group of liberal French researchers, the Palace of Discovery was intended to be more a “people’s university” than a stuffy museum, a place to hear inspiring lectures on the latest wonders of science, messages abut technological confidence and progress for the peoples of the world.

In Geology, Economic Growth Caused Scientific Progress

(p. 130) . . . , the major problem inhibiting England’s industrial development was the state of the roads. So the introduction of waterborne transportation on the new canals triggered massive economic expansion because these waterways transported coal (and other raw materials) much faster and cheaper than by packhorse or wagon. In 1793 a surveyor called William Smith was taking the first measurements in preparation for a canal that was to be built in the English county of Somerset, when he noticed something odd. (p. 131) Certain types of rock seemed to lie in levels that reappeared, from time to time, as the rock layer dipped below the surface and then re-emerged across a stretch of countryside. During a journey to the north of England (to collect more information about canal-construction techniques), Smith saw this phenomenon happening everywhere. There were obviously regular layers of rock beneath the surface which were revealed as strata where a cliff face of a valley cut into them. In 1796 Smith discovered that the same strata always had the same fossils embedded in them. In 1815, after ten years of work, he compiled all that he had learned about stratification in the first proper colored geological map, showing twenty-one sedimentary layers. Smith’s map galvanized the world of fossil-hunting.

Source:
Burke, James. The Pinball Effect: How Renaissance Water Gardens Made the Carburetor Possible – and Other Journeys. Boston: Back Bay Books, 1997.
(Note: ellipsis added.)

Industrialist Duisberg Made Domagk’s Sulfa Discovery Possible

(p. 65) . . . Domagk’s future would be determined not only by his desire to stop disease but also by his own ambition, his family needs, and the plans of a small group of businessmen he had never met. He probably had heard of their leader, however, one of the preeminent figures in German business, a man the London Times would later eulogize as “the greatest industrialist the world has yet had.” His name was Carl Duisberg.

Duisberg was a German version of Thomas Edison, Henry Ford, and John D. Rockefeller rolled into one. He had built an empire of science in Germany, leveraging the discoveries of dozens of chemists he employed into one of the most profitable businesses on earth. He knew how industrial science worked: He was himself a chemist. At least he had been long ago. Now, in the mid-1920s, in the twilight of his years, his fortunes made, his reputation assured, he often walked in his private park alone—still solidly built, with his shaved head and a bristling white mustache, still a commanding presence in his top hat and black overcoat—through acres of forest, fountains, classical statuary, around the pond in his full-scale Japanese garden by the lacquered teahouse, over his steams, and across his lawns.

“Four G’s Needed for Success: Geduld, Geschick, Glück, Geld”

One of Domagk’s predecessors, in goal and method, was Paul Ehrlich, who was a leader in the search for the Zuberkugeln (magic bullet) against disease causing organisms. He systematized the trial and error method, and pursued dyes as promising chemicals that might be modified to attach themselves to the intruders. But he never quite found a magic bullet:

(p. 82) Ehrlich announced to the world that he had found a cure for sleeping sickness. But he spoke too soon. Number 418, also, proved too toxic for general use. He and his chemists resumed the search.

Ehrlich said his method consisted basically of “examining and sweating”—and his coworkers joked that Ehrlich examined while they sweated. There was another motto attributed to Ehrlich’s lab, the list of “Four Gs” needed for success: Geduld, Geschick, Glück, Geld—patience, skill, luck, and money.

Source:
Hager, Thomas. The Demon under the Microscope: From Battlefield Hospitals to Nazi Labs, One Doctor’s Heroic Search for the World’s First Miracle Drug. New York: Three Rivers Press, 2007.
(Note: do not confuse the “Paul Ehrlich” discussed above, with the modern environmentalist “Paul Ehrlich” who is best known for losing his bet with Julian Simon.)

The Benefits from the Discovery of Sulfa, the First Antibiotic

I quoted a review of The Demon Under the Microscope in an entry from October 12, 2006. I finally managed to read the book, last month.
I don’t always agree with Hager’s interpretation of events, and his policy advice, but he writes well, and he has much to say of interest about how the first anti-bacterial antibiotic, sulfa, was developed.
In the coming weeks, I’ll be highlighting a few key passages of special interest. In today’s entry, below, Hager nicely summarizes the importance of the discovery of antibiotics for his (and my) baby boom generation.

(p. 3) I am part of that great demographic bulge, the World War II “Baby Boom” generation, which was the first in history to benefit from birth from the discovery of antibiotics. The impact of this discovery is difficult to overstate. If my parents came down with an ear infection as babies, they were treated with bed rest, painkillers, and sympathy. If I came down with an ear infection as a baby, I got antibiotics. If a cold turned into bronchitis, my parents got more bed rest and anxious vigilance; I got antibiotics. People in my parents’ generation, as children, could and all too often did die from strep throats, infected cuts, scarlet fever, meningitis, pneumonia, or any number of infectious diseases. I and my classmates survived because of antibiotics. My parents as children, and their parents before them, lost friends and relatives, often at very early ages, to bacterial epidemics that swept through American cities every fall and winter, killing tens of thousands. The suddenness and inevitability of these epidemic deaths, facts of life before the 1930s, were for me historical curiosities, artifacts of another age. Antibiotics virtually eliminated them. In many cases, much-feared diseases of my grandparents’ day—erysipelas, childbed fever, cellulitis—had become so rare they were nearly extinct. I never heard the names.

Age and Inventiveness

Source of graph: online version of the WSJ article quoted and cited below.

(p. B5) A particularly stark view of age-related constraints on researchers’ work comes from Benjamin Jones, an associate professor at Northwestern University’s Kellogg School of Management. He examined biographical data over the past century for more than 700 Nobel laureates and renowned inventors.

His conclusion: “Innovators are productive over a narrowing span of their life cycle.” In the early 20th century, he found, researchers at the times of their greatest contributions averaged slightly more than 36 years old. In recent decades, innovation before the age of 30 became increasing rare, with the peak age of contribution rising toward age 40. Meanwhile, the frequency of key contributions has consistently diminished by researchers in their early or mid-50s.
Occasionally, Mr. Jones says, booming new fields “permit easier access to the frontier, allowing people to make contributions at younger ages.” That could account for the relative youth of Internet innovators, such as Netscape Communications Corp. founder Marc Andreessen and Messrs. Page and Brin. But “when the revolution is over,” Mr. Jones finds, “ages rise.”
Unwilling to see researchers at peak productivity for only a small part of their careers, tech companies are fighting back in a variety of ways. At microchip maker Texas Instruments Inc., in Dallas, executives are pairing up recent college graduates and other fresh research hires with experienced mentors, called “craftsmen,” for intensive training and coaching.
This system means that new design engineers can become fully effective in three or four years, instead of five to seven, says Taylor Efland, chief technologist for TI’s analog chip business. Analog chips are used in power management, data conversion and amplification.
At Sun Microsystems Inc., teams of younger and older researchers are common. That can help everyone’s productivity, says Greg Papadopoulos, chief technology officer for the Santa Clara, Calif., computer maker. Younger team members provide energy and optimism; veterans provide a savvier sense of what problems to tackle.

For the full story, see:
GEORGE ANDERS. “THEORY & PRACTICE; Companies Try to Extend Researchers’ Productivity; Teams of Various Ages, Newer Hires Combat Short Spans of Inventing.” The Wall Street Journal (Mon., AUGUST 18, 2008): B5.

A large literature exists on the relationship between age and scientific productivity. I am particularly fond of the following examples:

Diamond, Arthur M., Jr. “Age and the Acceptance of Cliometrics.” The Journal of Economic History 40, no. 4 (December 1980): 838-841.
Diamond, Arthur M., Jr. “An Economic Model of the Life-Cycle Research Productivity of Scientists.” Scientometrics 6, no. 3 (1984): 189-196.
Diamond, Arthur M., Jr. “The Life-Cycle Research Productivity of Mathematicians and Scientists.” The Journal of Gerontology 41, no. 4 (July 1986): 520-525.
Diamond, Arthur M., Jr. “An Optimal Control Model of the Life-Cycle Research Productivity of Scientists.” Scientometrics 11, nos. 3-4 (1987): 247-249.
Diamond, Arthur M., Jr. “The Polywater Episode and the Appraisal of Theories.” In A. Donovan, L. Laudan and R. Laudan, eds., Scrutinizing Science: Empirical Studies of Scientific Change. Dordrecht, Holland: Kluwer Academic Publishers, 1988, 181-198.
Hull, David L., Peter D. Tessner and Arthur M. Diamond, Jr. “Planck’s Principle: Do Younger Scientists Accept New Scientific Ideas with Greater Alacrity than Older Scientists?” Science 202 (November 17, 1978): 717-723.

Leapfrog Competition in the Smartphone Industry

Source of graphic: online version of the NYT article quoted and cited below.

(p. C1) In recent years Palm lost its way. Its share of the smartphone market has been halved to about 16.9 percent over the last two years. First, Research in Motion found the sweet spot of business users with its BlackBerry. More recently, Apple grabbed consumers’ fancy with the iPhone.

Palm has tried to innovate beyond the five-year-old Treo with little effect. It announced with great fanfare last year that it would build the Foleo, a cross between a smartphone and notebook computer, only to cancel the project three months later. While cellphone makers like Samsung, LG and R.I.M. brought out products to compete with the iPhone, Palm has told Treo loyalists and investors to be patient. They will need to be. Palm’s stock price is down 90 percent since its high in March 2000.
Mr. Rubinstein, the executive chairman, said he is convinced he can bring Palm back. “Everyone is trying to make an iPhone killer,” he said. “We are trying to make a killer Palm product.”

For the full story, see:
LAURA M. HOLSON. “Palm, Once a Leader, Seeks Path in Smartphone Jungle.” The New York Times (Weds., August 20, 2008): C1 & C5.

“Ed Colligan, left, Palm’s chief executive, and Jon Rubinstein, the executive chairman, who was hired to revive the company.” Source of caption and photo: online version of the NYT article quoted and cited above.

L.E.D.’s as the Next Leapfrog Advance in Light

A few years ago I presented a paper at the meetings of Society for Social Studies of Science in which I mentioned Nordhaus’s wonderful paper in which he measures advances in technology that produce illumination. Some of the technologies represent leapfrog advances that are part of Schumpeter’s process of creative destruction.
At the end of my presentation, a member of the audience gave me a reference to the new L.E.D. light technology that he suggested was the next leapfrog advance. (Alas, I do not remember his name.)

(p. C3) L.E.D. bulbs, with their brighter light and longer life, have already replaced standard bulbs in many of the nation’s traffic lights. Indeed, the red, green and yellow signals are — aside from the tiny blinking red light on a DVD player, a cellphone or another electronic device — probably the most familiar application of the technology.

But it is showing up in more prominent spots. The ball that descends in Times Square on New Year’s Eve is illuminated with L.E.D.’s. And the managers of the Empire State Building are considering a proposal to light it with L.E.D. fixtures, which would allow them to remotely change the building’s colors to one of millions of variations.
. . .
The problem, though, is the price. A standard 60-watt incandescent usually costs less than $1. An equivalent compact fluorescent is about $2. But in Europe this September, Philips, the Dutch company dealing in consumer electronics, health care machines and lighting, is to introduce the Ledino, its first L.E.D. replacement for a standard incandescent. Priced at $107 a bulb, it is unlikely to have more than a few takers.
“L.E.D. performance is there, but the price is not,” said Kevin Dowling, a Philips Lighting vice president . . .
. . .
“The Marcus Center lighting will require no maintenance for 15 years,” Mr. Gregory said. “That’s a dream for a lighting designer.”
But he does not expect standard bulbs to disappear totally. Just as the invention of the light bulb did not completely kill the candle and kerosene lamp markets, Mr. Gregory said, “there will always be a need for incandescent bulbs. They will never totally go away.”
“The way an incandescent bulb plays on the face on a Broadway makeup mirror,” he said, “you can never duplicate that.”

For the full story, see:
ERIC A. TAUB. “Fans of L.E.D.’s Say This Bulb’s Time Has Come.” The New York Times (Mon., July 28, 2008): C3.
(Note: ellipses added.)

The reference to the Nordhaus paper is:
Nordhaus, William D. “Do Real-Output and Real-Wage Measures Capture Reality? The History of Light Suggests Not.” In The Economics of New Goods, edited by Robert J. Gordon and Timothy F. Bresnahan, Chicago: University of Chicago Press for National Bureau of Economic Research, 1997, pp. 29-66.

“The full spectrum of color, design and programming available for the Times Square ball.” Source of the caption and photo: online version of the NYT article quoted and cited above.