Establishments Assume New Methods Are Unsound Methods

(p. 188) For the next two years, Conway coordinated her efforts under Sutherland at PARC with Mead’s ongoing work at Caltech. But she was frustrated with the pace of progress. There was no shortage of innovative design ideas; computerized design tools had advanced dramatically since Mead’s first efforts several years before. Yet the industry as a whole continued in the old rut. As Conway put it later, the problem was “How can you take methods that are new, methods that are not in common use and therefore perhaps considered unsound methods, and turn them into sound methods?” [Conway’s italics].

She saw the challenge in the terms described in Thomas Kuhn’s popular book The Structure of Scientific Revolutions. it was the problem that took Boltzmann to his grave. It was the problem of innovation depicted by economist Joseph Schumpeter in his essays on entrepreneurship: new systems lay waste to the systems of the past. Creativity is a solution for the creator and the new ventures he launches. But it wreaks dissolution–“creative destruction,” in Schumpeter’s words– for the defenders of old methods. In fact, no matter how persuasive the advocates of change, it is very rare that an entrenched establishment will reform its ways. Establishments die or retire or fall in revolution; they only rarely transform themselves.

Source:

Gilder, George. Microcosm: The Quantum Revolution in Economics and Technology. Paperback ed. New York: Touchstone, 1990.
(Note: italics in original.)

Paul Johnson’s Defense of Winston Churchill

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British historian Paul Johnson. Source of caricature: online version of the WSJ conversation quoted and cited below.

(p. D6) Now, at 81 and after years of producing enormous, compulsively readable history books, Mr. Johnson has just written what, at 192 pages, is probably the shortest biography of Winston Churchill ever published.
. . .
He gives credit to his success as a historian to his simultaneous and successful career in journalism. “You learn all sorts of tools as a journalist that come in extremely useful when you’re writing history,” he tells me as we sit in the drawing room of the West London house he shares with his wife, Marigold, “and one is the ability to condense quite complicated events into a few short sentences without being either inaccurate or boring. And of course a lot of the best historians were also journalists.”
. . .
The book includes refutations of many of the negative myths that have grown up around Churchill. For instance, that he was drunk for much of World War II. “He appeared to drink much more than he did,” Mr. Johnson insists. “He used to sip his drinks very, very slowly, and he always watered his whisky and brandy.”
Mr. Johnson certainly does not agree with the often-echoed criticism made by Prime Minister Stanley Baldwin that Churchill had every gift except judgment: “He made occasional errors of judgment because he made so many judgments–some of them were bound to be wrong! . . . On the whole, his judgment was proved to be right. He was right before the First World War in backing a more decent civilized society when he and Lloyd George created the elements of old-age pensions and things like that. He was right about the need to face up to Hitler and he was right about the Cold War that the Russians had to be resisted and we had to rearm.”
He is convinced that “Churchill was more than half American . . . all of his real qualities generally come from his mother’s side.” And despite Mr. Johnson’s own Oxford education (he was there with Margaret Thatcher), he believes that Churchill benefited from never having gone to college: “He never learned any of the bad intellectual habits you can pick up at university, and it explains the extraordinary freshness with which he came to all sorts of things, especially English literature.”

For the full conversation, see:
JONATHAN FOREMAN. “A Cultural Conversation with Paul Johnson; Winston Churchill, Distilled.” The Wall Street Journal (Thurs., DECEMBER 10, 2009): D6.
(Note: the online version of the interview is dated DECEMBER 11, 2009.)
(Note: ellipses within paragraphs were in the original; ellipses between paragraphs were added.)

The reference to Johnson’s biography of Churchill, is:
Johnson, Paul M. Churchill. New York: Viking Adult, 2009.

For 30 Years “Poincaré’s Elegant Math Prevailed Over Boltzmann’s Practical Findings”

(p. 182) . . . , Poincaré’s elegant math prevailed over Boltzrnann’s practical findings. For some thirty years, Boltzmann struggled to get his ideas across. But he failed. He had the word, but he could not find a way to gain its acceptance in the world. For long decades, the establishment held firm.

So in the year 1906, Poincaré became president of the French (p. 183) Académie des Sciences and Boltzmann committed suicide. As Mead debatably puts it, “Boltzmann died because of Poincaré.” At least, as Boltzmann’s friends attest, this pioneer of the modem era killed himself in an apparent fit of despair, deepened by the widespread official resistance to his views.
He died, however, at the very historic moment when all over Europe physicists were preparing to vindicate the Boltzmann vision. He died just before the findings of Max Planck, largely derived from Boltzmann’s probability concepts, finally gained widespread acceptance. He died several months after an obscure twenty-one-year-old student in Geneva named Albert Einstein used his theories in proving the existence of the atom and demonstrating the particle nature of light. In retrospect, Boltzmann can be seen as a near-tragic protagonist in the greatest intellectual drama of the twentieth century: the overthrow of matter.

Source:

Gilder, George. Microcosm: The Quantum Revolution in Economics and Technology. Paperback ed. New York: Touchstone, 1990.
(Note: ellipsis added.)

“If I Listened to Logical People I Would Never Have Succeeded”

We may never know if Gilder’s optimism about Takahashi’s DRAM initiative was prescient or misguided. Takahashi died of pneumonia at age 60 in 1989, the same year that Gilder’s Mircocosm book was published. (Takahashi’s successor abandoned the DRAM initiative.)

(p. 154) Many experts said it could not be done. DRAMs represent the most demanding feat of mass production in all world commerce. None of the complex procedures is easy to automate. Automation itself, moreover, is no final solution to the problems of dust and contamination. Machines collect and shed particles and toxic wastes nearly as much as people do. Chip experts derided the view that these ten-layered and multiply patterned electronic devices, requiring hundreds of process steps, resembled ball bearings in any significant way.

Takahashi knew all that. But experts had derided almost every decision he had made throughout his career. “Successful people,” he says, “surprise the world by doing things that ordinary logical people (p. 155) think are stupid.” The experts told him he could not compete in America with New Hampshire Ball Bearing. He ended up buying it. The experts and bankers had told him not to build his biggest ball-bearing plants in Singapore and Thailand. Those plants are now the world’s most productive. The experts told him not to buy two major facilities in the United States, full of obsolescent equipment and manned by high-priced workers. But those facilities now dominate the American market for precision ball bearings. Now the experts told him he couldn’t make DRAMs. He knew he could. “If I listened to logical people,” he says, “I would never have succeeded.”

Source:

Gilder, George. Microcosm: The Quantum Revolution in Economics and Technology. Paperback ed. New York: Touchstone, 1990.

Replication Easier than “Sweat and Anguish” of First Discovery

(p. 137) No one will deny that Japan’s triumph in semiconductors depended on American inventions. But many analysts rush on to a further theory that the Japanese remained far behind the United States until the mid- 1970s and caught up only through a massive government program of industrial targeting of American inventions by MITI.
Perhaps the leading expert on the subject is Makoto Kikuchi, a twenty-six-year veteran of MITI laboratories, now director of the Sony Research Center. The creator of the first transistor made in Japan, he readily acknowledges the key role of American successes in fueling the advances in his own country: “Replicating someone else’s experiment, no matter how much painful effort it might take, is nothing compared with the sweat and anguish of the men who first made the discovery.”

Kikuchi explains: “No matter how many failures I had, I knew that somewhere in the world people had already succeeded in making a transistor. The first discoverers . . . had to continue their work, their long succession of failures, face-to-face with the despairing possibility that in the end they might never succeed. . . . As I fought my own battle with the transistor, I felt this lesson in my very bones.” Working at MITI’s labs, Kikuchi was deeply grateful for the technological targets offered by American inventors.

Source:

Gilder, George. Microcosm: The Quantum Revolution in Economics and Technology. Paperback ed. New York: Touchstone, 1990.
(Note: ellipses in original.)

Entrepreneurial Innovation Comes from Diverse Outsiders Rather than Establishments

(p. 113) Firms that win by the curve of mind often abandon it when they establish themselves in the world of matter. They fight to preserve the value of their material investments in plant and equipment that embody the ideas and experience of their early years of success. They begin to exalt expertise and old knowledge, rights and reputation, over the constant learning and experience of innovative capitalism. They get fat.

A fat cat drifting off the curve, however, is a sitting duck for new nations and companies getting on it. The curve of mind thus tends to favor outsiders over establishments of all kinds. At the capitalist ball, the blood is seldom blue or the money rarely seasoned. Microcosmic technologies are no exception. Capitalism’s most lavish display, the microcosm, is no respecter of persons.
The United States did not enter the microcosm through the portals of the Ivy League, with Brooks Brothers suits, gentleman Cs, and warbling society wives. Few people who think they are in already can summon the energies to break in. From immigrants and outcasts, street toughs and science wonks, nerds and boffins, the bearded and the beer-bellied, the tacky and uptight, and sometimes weird, the born again and born yesterday, with Adam’s apples bobbing, psyches (p. 114) throbbing, and acne galore, the fraternity of the pizza breakfast, the Ferrari dream, the silicon truth, the midnight modem, and the seventy-hour week, from dirt farms and redneck shanties, trailer parks and Levittowns, in a rainbow parade of all colors and wavelengths, of the hyperneat and the sty high, the crewcut and khaki, the pony-tailed and punk, accented from Britain and Madras, from Israel and Malaya, from Paris and Parris Island, from Iowa and Havana, from Brooklyn and Boise and Belgrade and Vienna and Vietnam, from the coarse fanaticism and desperation, ambition and hunger, genius and sweat of the outsider, the downtrodden, the banished, and the bullied come most of the progress in the world and in Silicon Valley.

Source:

Gilder, George. Microcosm: The Quantum Revolution in Economics and Technology. Paperback ed. New York: Touchstone, 1990.

Castro’s “Absolute Personal Dictatorship” Denounced By Former Member of Cuban Inner Circle

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Source of book image:
http://farm3.static.flickr.com/2575/4095461227_09463c5680.jpg

(p. C1) The plethora of dictators, despots and revolutionaries-turned-authoritarians south of the border has spawned a genre of literature that might be called the Latin American Strongman Novel — a genre that includes harrowing novels based on real historical figures, like Mario Vargas Llosa’s dazzling “Feast of the Goat” (which depicted Rafael Trujillo’s devastating rule over the Dominican Republic) and more mythic creations, like Gabriel García Márquez’s “Autumn of the Patriarch,” that have employed the sorcery of magical realism to conjure larger-than-life fictional tyrants in a panoply of ruthlessness, audacity and corruption.

The latest in this tradition of books is Norberto Fuentes’s fascinating new novel, “The Autobiography of Fidel Castro,” which purports to tell the longtime Cuban leader’s story in his own words. The “self-portrait” that emerges from these pages is that of a Machiavellian survivor: an egomaniac who identifies himself with the revolution but who is loyal not to a cause, not to an ideology, not to his compatriots, but only to his own ambition.
This Fidel is narcissistically longwinded, like his real-life counterpart. He is also a self-mythologizing change agent who succeeds in making himself “the neurological center of an entire nation” — a wily Nietzschean operator who believes in the force of his own will, while sensing that “the chameleon is going to last longer under his rock than the lion, despite its roaring and lean muscles.” He is a cynical master of manipulation and strategic maneuvering, a skilled practitioner of the black arts of propaganda and gamesmanship who always wants “to keep people guessing.”
A journalist and Hemingway (p. C7) scholar, Mr. Fuentes was once a cheerleader of the revolution and part of Mr. Castro’s inner circle himself. He grew disillusioned with the Cuban leader, however, after two army officers were executed in 1989 on what many believe were trumped-up charges. Mr. Fuentes fell out of favor, came under government surveillance and was detained after a failed attempt to flee Cuba by boat. After a hunger strike and the intervention of Mr. García Márquez, he was allowed to leave the country in 1994, and has since denounced Mr. Castro for his “absolute personal dictatorship” and willingness “to do anything necessary to stay in power.”

For the full story, see:
MICHIKO KAKUTANI. “Books of The Times; Fiction Trying for Truth in Novel’s View of Dictator.” The New York Times (Tues., December 15, 2009): C1 & C7.
(Note: the online version of the article is dated Mon., December 14, 2009.)

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“Norberto Fuentes” Source of caption and photo: online version of the NYT article quoted and cited above.

Intel’s Computer-on-a-Chip “Was Achieved Largely by Immigrants from Hungary, Italy, Israel, and Japan”

(p. 111) By launching the computer-on-a-chip, Intel gave America an enduring advantage in this key product in information technology–an edge no less significant because it was achieved largely by immigrants from Hungary, Italy, Israel, and Japan. Intel’s three innovations of 1971–plus the silicon gate process that made them the smallest, fastest, and best-selling devices in the industry–nearly twenty years later remain in newer versions the most powerful force in electronics.

Source:

Gilder, George. Microcosm: The Quantum Revolution in Economics and Technology. Paperback ed. New York: Touchstone, 1990.

Doctorow’s “Makers” Novel Paints Unrealistically Bleak View of Life with Creative Destruction

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Source of book image: http://www.globalnerdy.com/wordpress/wp-content/uploads/2009/11/makers.jpg

Awhile back I mentioned a science fiction book that made use of the process of creative destruction. Here’s a discussion of another one—called Makers, it apparently adopts the unlikely premise that a world of creative destruction would have a 20% unemployment rate. (I say “unlikely” because the evidence is that in a world of creative destruction, as many new jobs are created as old ones are destroyed.)

(p. A19) Consider the world of “Makers,” the latest by best-selling writer Cory Doctorow. This novel is set in a not-too distant future, when the creative destruction of technological change has created an economy so efficient, with profit margins so thin, that traditional companies can hardly stay in business.

The inventor-heroes of “Makers” take technology to its conclusion: They figure out a way to use three-dimensional printers to produce copies of machines and most anything else at close to no cost. This sparks “New Work,” with geeky investment bankers scouring the country to fund promising artisans who use the technology to build things cheaply. The heroes also run a series of entertainment rides across the country in abandoned Wal-Marts, until Disney unleashes its lawyers on them.
Mr. Doctorow, a Canadian living in London, has a keen eye for the pressures on contemporary business. In the novel, an M.B.A. brought in to work with the inventors explains, “The system makes it hard to sell anything above the marginal cost of goods, unless you have a really innovative idea, which can’t stay innovative for long, so you need continuous invention and reinvention, too.”
. . .
In the world of “Makers,” and perhaps in our own world, “we’re approaching a kind of pure and perfect state now, with competition and invention getting easier and easier–it’s producing a kind of superabundance.”
Mr. Doctorow paints a bleak picture of the process of getting there, even if many of us take a more benign view of increasingly efficient capitalism. “Makers” features widespread unemployment, with 20% of workers relocating to look for jobs. Even with scientific advances–obesity is solved, for example–life is brutal. There are squatter neighborhoods alongside abandoned strip malls.

For the full story, see:

L. GORDON CROVITZ. “Technology Is Stranger Than Fiction; Best-selling writer Cory Doctorow on change and its discontents.” The Wall Street Journal (Mon., NOVEMBER 23, 2009): A19.

(Note: ellipsis added.)

After Lab Accident, Chip Innovator Shima Was Resilient

The incident recounted below is from the story of the development of the 4004 microprocessor (which was the first commercially available microprocessor). Hoff and Shima played important roles in the development of the chip.
I am not sure that the main “lesson” from the incident is about the importance of details. (After all, many entrepreneurs, including Simplot, embark on big projects without a clear idea of how to accomplish the details.) A bigger and sounder lesson may be the usefulness of resilience for successful inventors and entrepreneurs.

(p. 104) Hoff’s counterpart at Busicom was a young Japanese named Masatoshi Shima who also had been thinking about problems of computer architecture. An equally formidable intellect, Shima came to the project through a series of accidents, beginning with a misbegotten effort to launch a small rocket using gunpowder he made by hand in his high school chemistry laboratory. As he carefully followed the formula, he claims to have had the mixture exactly right, except for some details that he overlooked. The mixture exploded, and as he pulled away his right hand, it seemed a bloody stump. At the local hospital (p. 105) a doctor with wide experience treating combat wounds felt lucky to save the boy’s thumb alone,

This ordeal taught the teen-aged Shima that “details are very important.” In the future he should “pay attention to all the details.” But the loss of his fingers convinced his parents–and later several key Japanese companies–that the boy should not become a chemical engineer, even though he had won his degree in chemical engineering. Thus Shima ended up at Busicom chiefly because it was run by a friend of one of his professors.

Source:

Gilder, George. Microcosm: The Quantum Revolution in Economics and Technology. Paperback ed. New York: Touchstone, 1990.