When Wales Earned “Enough”

(p. 22) By 1998, the business was good enough that Wales wanted to leave not just the world of Chicago Options Associates but the city of Chicago too. As a trader, he had made enough money to live comfortably for a while, or as he would say, “I made out OK” and earned “enough.” With no incentive to stay in the Windy City, and with the warmer weather of California calling, Wales and Shell decided they could relocate to San Diego and run the business from there. Wales and his wife, Christine, made the move in 1998.

Source:
Lih, Andrew. The Wikipedia Revolution: How a Bunch of Nobodies Created the World’s Greatest Encyclopedia. New York: Hyperion, 2009.

Brin Plays Google’s “Ethical Trump Card”

BrinSergey2010-03-16.jpg “Co-founder Sergey Brin has been active in Google’s dealings with China.” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. A8) As a boy growing up in the Soviet Union, Sergey Brin witnessed the consequences of censorship. Now the Google Inc. co-founder is drawing on that experience in shaping the company’s showdown with the Chinese government.

Mr. Brin has long been Google’s moral compass on China-related issues, say people familiar with the matter. He expressed the greatest concern among decision makers, they say, about the compromises Google made when it launched its Chinese-language search engine, Google.cn, in 2006. He is now the guiding force behind Google’s decision to stop filtering search results in China, say people familiar with the decision.
. . .
The move is the clearest manifestation yet of a tension that has always existed at Google.
The Internet company, on one hand, is analytical: It built its core search business on algorithms that determine the relevance of Web sites and has tried to apply quantitative analysis to traditionally subjective parts of a business, such as hiring decisions. On the other hand, Mr. Brin and co-founder Larry Page have passionately touted Google’s ability to spread democracy through access to information, and adopted the unofficial and now-famous motto, “Don’t Be Evil.”
“At its best, Google is data-driven with an ethical trump card,” said Larry Brilliant, who headed up the company’s philanthropic efforts until 2009. Always it was the founders, Messrs. Brin and Page, who could play that card, he added.

For the full story, see:

BEN WORTHEN. “Soviet-Born Brin Has Shaped Google’s Stand.” The Wall Street Journal (Sat., MARCH 13, 2010): A8.

(Note: ellipsis added.)
(Note: the online version of the article had the date MARCH 12, 2010 and has the slightly longer title “Soviet-Born Brin Has Shaped Google’s Stand on China.”)

“A Regime that Survived through Myth and Fear”

(p. 4) It’s an old Soviet joke.

Three Russians are in the gulag. The first one says, “What are you in for?”
The second one replies, “I called Zbarsky a revolutionary.”
“That’s funny,” the first one says. “I called Zbarsky a counterrevolutionary.”
“That’s funny,” the third one says. “I’m Zbarsky.”
Vern Thiessen’s new play, “Lenin’s Embalmers,” which starts on Wednesday at the Ensemble Studio Theater in Clinton, opens with the ghost of Lenin telling this joke as a parable of the mordant doom pervading the Communist state he created.
In real life the joke wasn’t specifically about Zbarsky. You could insert any of Stalin’s thousands of lackeys turned victims. Certainly Zbarsky would do. Boris Zbarsky was a real person, one of the two biochemists who, after Lenin died in 1924, were ordered by the Kremlin to devise a way of preserving his body forever.
He and his colleague, Vladimir Vorobiev — the play’s main characters — succeeded spectacularly, won fortune and power, then fell from grace into the terror, like many others who served a regime that survived through myth and fear.
. . .
The new work, written as a stylized dark comedy, takes only a few liberties with history. It has Zbarsky and Vorobiev arrested after they’re tricked into betraying each other. In fact Mr. Vorobiev died in a hospital, under mysterious circumstances, in 1937. Mr. Zbarsky was arrested in 1952; he was freed two years later, after Stalin’s death, and died of a seizure soon after. Still, betrayals and trumped-up confessions were common in the era.

For the full review, see:
FRED KAPLAN. “He’s Had Work: Preserving the Face of a Revolution.” The New York Times, Arts&Leisure Section (Sun., February 28, 2010): 4.
(Note: ellipsis added.)
(Note: the online version of the article is dated February 23 (sic), 2010.)

Minnesota Windmills Do Not Turn in Cold Weather

WindmillStandStill2010-03-01.jpg “Inspecting a windmill in Chaska, Minn. The blades on some in the area have been stationary.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A12) For those who suspect residents in places like Minnesota of embellishment when it comes to their tales of bitterly cold winter weather, consider this: even some wind turbines, it seems, cannot bear it.

Turbines, more than 100 feet tall, were installed last year in 11 Minnesota cities to provide power, and also to serve as educational symbols in a state that has mandated that a quarter of its electricity come from renewable resources by 2025.
One problem, though: The windmills, supposed to go online this winter, mostly just sat still, people in cities like North St. Paul and Chaska said, rarely if ever budging. Residents took note. Schoolchildren asked questions. Complaints accumulated.
“If people see a water tower, they expect it to stand still,” said Wally Wysopal, the city manager of North St. Paul. “If there’s a turbine, they want it to turn.”
No one knows for sure why these turbines do not. Officials believe there may be several reasons, but weather is the focus of much speculation.

For the full story, see:

MONICA DAVEY. “When Windmills Don’t Spin, People Expect Some Answers.” The New York Times (Fri., February 5, 2010): A12.

(Note: the online version of the article was dated February 4, 2010)

Wikipedia Works in Practice, Not in Theory

(p. 20) Jimmy walked into the offices of Chicago Options Associates in 1994 and met the CEO Michael Davis for a job interview. Davis had looked over Wales’s academic publication about options pricing.

“It was impressive looking,” says Wales wryly about the paper. “It was a very theoretical paper but it wasn’t very practical.” But Davis was sufficiently intrigued, as he wanted someone like Wales to pore over the firm’s financial models and help improve them. So he took on young Wales, who seemed to be sharp and had acumen for numbers. Little did either of them know they would have a long road ahead together, with Wikipedia in the future.
Wales’s first job was to go over the firm’s current pricing models. “What was really fascinating was that it was truly a step beyond what I’d seen in academia,” he recalls. “It was very practical, and didn’t have a real theoretical foundation.” Wales was intrigued that the firm traded on principles that worked in practice, not in theory. (This is something he would say about his future endeavor Wikipedia.) “Basically they just knew in the marketplace that the existing models were wrong.”

Source:
Lih, Andrew. The Wikipedia Revolution: How a Bunch of Nobodies Created the World’s Greatest Encyclopedia. New York: Hyperion, 2009.
(Note: italics in original.)

Myhrvold Innovates in Financing Innovation

MyhrvoldNathanIntellectualVentures2010-03-01.jpg “Nathan Myhrvold, chief of Intellectual Ventures, says patent holders are being treated unfairly.” Source of caption and photo: online version of the NYT article quoted and cited below.

When Nathan Myhrvold was at Microsoft, he helped Bill Gates write The Road Ahead, a well-written book full of realistically optimistic speculation, forecast and analysis.
Besides his main initiative, discussed below, he has recently been in the news due to his bold and controversial suggestion for how to cheaply solve global warming.

(p. B1) BELLEVUE, Wash. — Nathan Myhrvold wants to shake up the marketplace for ideas. His mission and the activities of the company he heads, Intellectual Ventures, a secretive $5 billion investment firm that has scooped up 30,000 patents, inspire admiration and angst.

Admirers of Mr. Myhrvold, the scientist who led Microsoft’s technology development in the 1990s, see an innovator seeking to elevate the economic role and financial rewards for inventors whose patented ideas are often used without compensation by big technology companies. His detractors see a cynical operator deploying his bulging patent trove as a powerful bargaining chip, along with the implied threat of costly litigation, to prod high-tech companies to pay him lucrative fees. They call his company “Intellectual Vultures.”
White hat or black hat, Intellectual Ventures is growing rapidly and becoming a major force in the marketplace for intellectual capital. Its rise comes as Congress is considering legislation, championed by large technology companies, that would make it more difficult for patent holders to win large damage awards in court — changes that Mr. Myhrvold has opposed in Congressional testimony and that his company has lobbied against.
. . .
(p. B10) The issues surrounding Intellectual Ventures, viewed broadly, are the ground rules and incentives for innovation. “How this plays out will be crucial to the American economy,” said Josh Lerner, an economist and patent expert at the Harvard Business School.
Mr. Myhrvold certainly thinks so. He says he is trying to build a robust, efficient market for “invention capital,” much as private equity and venture capital developed in recent decades. “They started from nothing, were deeply misunderstood and were trashed by people threatened by new business models,” he said in his offices here.
Mr. Myhrvold presents his case at length in a 7,000-word article published on Thursday in the Harvard Business Review. “If we and firms like us succeed,” he writes, “the invention capital system will turbocharge technological progress, create many more new businesses, and change the world for the better.”
In the article and in conversation, Mr. Myhrvold describes the patent world as a vastly underdeveloped market, starved for private capital and too dependent on federal financing for universities and government agencies, which is mainly aimed at scientific discovery anyway. Eventually, he foresees patents being valued as a separate asset class, like real estate or securities.
His antagonists, he says, are the “cozy oligarchy” of big technology companies like I.B.M., Hewlett-Packard and others that typically reach cross-licensing agreements with each other, and then refuse to deal with or acknowledge the work of inventors or smaller companies.
. . .
Mr. Myhrvold personifies the term polymath. He is a prolific patent producer himself, with more than 100 held or applied for. He earned his Ph.D. in physics from Princeton and did postdoctorate research on quantum field theory under Stephen Hawking, before founding a start-up that Microsoft acquired.
He is an accomplished French chef, who has also won a national barbecue contest in Tennessee. He is an avid wildlife photographer, and he has dabbled in paleontology, working on research projects digging for dinosaur remains in the Rockies.

For the full story, see:
STEVE LOHR. “Turning Patents Into ‘Invention Capital’.” The New York Times (Thur., February 18, 2010): B1 & B10.
(Note: ellipses added.)
(Note: the online version of the article is dated February 17, 2010.)

The Bill Gates book is:
Gates, Bill. The Road Ahead. New York: Viking Penguin, 1995.

Myhrvold’s Harvard Business Review essay is:
Myhrvold, Nathan. “The Big Idea: Funding Eureka!” Harvard Business Review 88, no. 2 (March 2010): 40-50.

MyhrvoldNathanFreezeDryMachine2010-03-01.jpg “Nathan Myhrvold with a machine that freeze-dries food. Intellectual Ventures so far has paid $315 million to individual inventors.” Source of caption and photo: online version of the NYT article quoted and cited above.

Irritation is “the Source of Serious Innovation”

(p. 299) Innovation Source No. 1 is Pissed-Off People.

Irritation. Anger. That’s the number one source of serious innovation. Which must, of course, be coupled with spine–a willingness to take on the powers that be. And risk it all.

Source:
Peters, Tom. Re-Imagine! London: DK, 2003.
(Note: italics, bold, and larger size font, in original.)

Unlikely Tea Party Leader Protests the “Porkulus”

CarenderKeliTeaPartyLeader2010-03-01.jpg “Keli Carender resists the idea of a Tea Party leader — “there are a thousand leaders,” she says. But she has become a leader, and a celebrity. Ms. Carender at a recent rally in Olympia, Wash.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 1) SEATTLE — Keli Carender has a pierced nose, performs improv on weekends and lives here in a neighborhood with more Mexican grocers than coffeehouses. You might mistake her for the kind of young person whose vote powered President Obama to the White House. You probably would not think of her as a Tea Party type.

But leaders of the Tea Party movement credit her with being the first.
A year ago, frustrated that every time she called her senators to urge them to vote against the $787 billion stimulus bill their mailboxes were full, and tired of wearing out the ear of her Obama-voting fiancĂ©, Ms. Carender decided to hold a protest against what she called the “porkulus.”
. . .

(p. 19) The daughter of Democrats who became disaffected in the Clinton years, Ms. Carender, 30, began paying attention to politics during the 2008 campaign, but none of the candidates appealed to her. She had studied math at Western Washington University before earning a teaching certificate at Oxford — she teaches basic math to adult learners — and began reading more on economics, particularly the writings of Thomas Sowell, the libertarian economist, and National Review.
Reading about the stimulus, she said, “it didn’t make any sense to me to be spending all this money when we don’t have it.”
“It seems more logical to me that we create an atmosphere where private industry can start to grow again and create jobs,” she said.

For the full story, see:
KATE ZERNIKE. “Early Arrival at the Tea Party: A Young and Unlikely Activist.” The New York Times, First Section (Sun., February 26, 2010): 1 & 19.
(Note: ellipsis added.)
(Note: the online version of the article is dated February 27, 2010 and has the title “Unlikely Activist Who Got to the Tea Party Early.”)

“The Tech Industry’s Innovation Engine Is in Idle”

(p. B10) . . . , the tech industry’s innovation engine is in idle. The annual Mobile World Congress here — traditionally a place to introduce products that blend computer and phone functions in novel ways — has featured tweaks on existing designs.

“It’s like with evolution, where you have a mutation and then a great explosion of diversity,” said Scott A. McGregor, the chief executive of Broadcom, which makes chips that go into a wide range of consumer electronics. “Then, you have a period where you see which creatures can survive the big change.”

For the full story, see:
ASHLEE VANCE. “At Tech Conference, the Industry Tweaks and Bets on Survivors.” The New York Times (Thur., February 18, 2010): B10.
(Note: ellipsis added.)
(Note: the online version of the article is dated February 17, 2010 and has the title “Tech Industry Catches Its Breath.”)

The Entrepreneurial Epistemology of Wikipedia

Wikipedia-RrevolutionBK2010-02-08.jpg

Source of book image: http://kellylowenstein.files.wordpress.com/2009/04/wikipedia-revolution1.jpg

Wikipedia is a very unexpected and disruptive institution. Amateurs have produced an encyclopedia that is bigger, deeper, more up-to-date, and arguably of at least equal accuracy, with the best professional encyclopedias, such as Britannica.
I learned a lot from Lih’s book. For instance I did not know that the founders of Wikipedia were admirers of Ayn Rand. And I did not know that the Oxford English Dictionary was constructed mainly by volunteer amateurs.
I also did not know anything about the information technology precursors and the back-history of the institutions that helped Wikipedia to work.
I learned much about the background, values, and choices of Wikipedia entrepreneur “Jimbo” Wales. (Jimbo Wales seems not to be perfect, but on balance to be one of the ‘good guys’ in the world—one of those entrepreneurs who can be admired for something beyond their particular entrepreneurial innovation.)
Lih’s book also does a good job of sketching the problems and tensions within Wikipedia.
I believe that Wikipedia is a key step in the development of faster and better institutions of knowledge generation and communication. I also believe that substantial further improvements can and will be made.
Most importantly, I think that you can only go so far with volunteers–ways must be found to reward and compensate.
In the meantime, much can be learned from Lih. In the next few weeks, I will be quoting a few passages that I found especially illuminating.

Book discussed:
Lih, Andrew. The Wikipedia Revolution: How a Bunch of Nobodies Created the World’s Greatest Encyclopedia. New York: Hyperion, 2009.