Esther Dyson Sees a Lot of Silicon Valley as Just Motivated to Make Money

(p. C11) The U.S. Commerce Department recently said that it plans to relinquish its oversight of Icann, handing that task to an international body of some kind. The details are still being worked out, but Ms. Dyson hopes that governments won’t be the new regulators. . . .
For now, she thinks there are many Silicon Valley Internet companies with inflated market values. “There is the desire to make money that motivates a lot of that in Silicon Valley, and yes, I think it’s totally a bubble,” she says. “It’s not like the last bubble in that there are a lot of real companies there [now], but there are a lot of unreal companies and…many of them will disappear.” She thinks too many people are starting similar companies. “You have people being CEOs of teeny little things who would be much better as marketing managers of someone else’s company,” she says.
And though her work often takes her to California, she’s happy to stay in New York. These days, she finds Silicon Valley “very fashionable,” she says, “and I don’t really like fashion.”

For the full interview, see:
ALEXANDRA WOLFE, interviewer. “WEEKEND CONFIDENTIAL; Esther Dyson’s Healthy Investments; The investor is hoping to produce better health through technology with a new nonprofit.” The Wall Street Journal (Sat., May 3, 2014): C11.
(Note: first ellipsis added; second ellipsis in original.)
(Note: the online version of the interview has the date May 2, 2014, and has the title “WEEKEND CONFIDENTIAL; Esther Dyson’s Healthy Investments; The investor is hoping to produce better health through technology with a new nonprofit.”)

Japanese Try to Sell the iPhone of Toilets in United States

(p. B8) TOKYO–Yoshiaki Fujimori wants to be the Steve Jobs of toilets.
Like iPhones, app-packed commodes are objects of desire in Mr. Fujimori’s Japan. The lids lift automatically. The seats heat up. Built-in bidets make cleanup a breeze. Some of them even sync with users’ smartphones via Bluetooth so that they can program their preferences and play their favorite music through speakers built into the bowl.
Three-quarters of Japanese homes contain such toilets, most of them made by one of two companies: Toto Ltd., Japan’s largest maker of so-called sanitary ware, or Lixil Corp., where Mr. Fujimori is the chief executive.
Now Mr. Fujimori is leading a push to bring them to the great unwashed. In May, Lixil plans to add toilets with “integrated bidets” to the lineup of American Standard Brands, which Lixil acquired last year for $542 million, including debt.
. . .
Few people realized they needed smartphones until Apple’s iPhone came along. So it will be in the U.S. with American Standard’s new toilets, Mr. Fujimori said.
“Industry presents iPhone–industry presents shower toilet,” Mr. Fujimori said in an interview at Lixil’s headquarters in Tokyo. “We can create the same type of pattern.”
. . .
Mr. Fujimori maintained that once American consumers try such toilets, they won’t go back.
“This improves your standard of living,” he said. “It doesn’t hurt you. People like comfort, they like ease, they like automatic. And people like clean.”

For the full story, see:
ERIC PFANNER and ATSUKO FUKASE. “Smart Toilets Arrive in U.S.” The Wall Street Journal (Tues., May 27, 2014): B8.
(Note: ellipses added.)
(Note: the online version of the story has the date May 26, 2014.)

High Skill Foreign Workers Raise Wages for Native Workers

WageGrowthRelatedToChangesInForeignSTEMworkersGraph2014-10-08.jpgSource of graph: online version of the WSJ article quoted and cited below.

(p. A6) “A lot of people have the idea there is a fixed number of jobs,” said . . . , Giovanni Peri of the University of California, Davis. “It’s completely turned around.”

Immigrants can boost the productivity of the overall economy, he said, “because then the pie grows and there are more jobs for other people as well and there’s not a zero-sum trade-off between natives and immigrants.”
Mr. Peri, along with co-authors Kevin Shih at UC Davis, and Chad Sparber at Colgate University, studied how wages for college- and noncollege-educated native workers shifted along with immigration. They found that a one-percentage-point increase in the share of workers in STEM fields raised wages for college-educated natives by seven to eight percentage points and wages of the noncollege-educated natives by three to four percentage points.
Mr. Peri said the research bolsters the case for raising, or even removing, the caps on H-1B visas, the program that regulates how many high-skilled foreign workers employers can bring into the country.

For the full story, see:
JOSH ZUMBRUN and MATT STILES. “Study: Skilled Foreign Workers a Boon to Pay.” The Wall Street Journal (Fri., May 23, 2014): A6.
(Note: ellipsis added.)
(Note: the online version of the story has the date May 22, 2014, and has the title “Skilled Foreign Workers a Boon to Pay, Study Finds.”)

The paper discussed in the passage quoted above, is:
Peri, Giovanni, Kevin Shih, and Chad Sparber. “Foreign Stem Workers and Native Wages and Employment in U.S. Cities.” National Bureau of Economic Research, Inc, NBER Working Paper Number 20093, May 2014.

“Folkman Persisted in His Genuinely Original Thinking”

(p. 141) As detailed by Robert Cooke in his 2001 book Dr. Folkman’s War, the successful answers to these basic questions took Folkman through diligent investigations punctuated by an astonishing series of chance observations and circumstances. Over decades, Folkman persisted in his genuinely original thinking. His concept was far in advance of technological and other scientific advances that would provide the methodology and basic knowledge essential to its proof, forcing him to await verification and to withstand ridicule, scorn, and vicious competition for grants. Looking back three decades later, Folkman would ruefully reflect: “I was too young to realize how much trouble was in store for a theory that could not be tested immediately.”

Source:
Meyers, Morton A. Happy Accidents: Serendipity in Modern Medical Breakthroughs. New York: Arcade Publishing, 2007.
(Note: italics in original.)

Feds Allow Hollywood to Use Drones

(p. B1) LOS ANGELES — The commercial use of drones in American skies took a leap forward on Thursday [Sept. 25, 2014] with the help of Hollywood.
The Federal Aviation Administration, responding to applications from seven filmmaking companies and pressure from the Motion Picture Association of America, said six of those companies could use camera-equipped drones on certain movie and television sets. Until now, the F.A.A. has not permitted commercial drone use except for extremely limited circumstances in wilderness areas of Alaska.
Put bluntly, this is the first time that companies in the United States will be able to legally use drones to fly over people.
The decision has implications for a broad range of industries including agriculture, energy, real estate, the news media and online retailing. “While the approval for Hollywood is very limited in scope, it’s a message to everyone that this ball is rolling,” said Greg Cirillo, chairman of the aviation practice at Wiley Rein, a law firm in Washington.
Michael P. Huerta, the administrator of the F.A.A., said at least 40 similar applications were pending from companies beyond Hollywood. One is Amazon, which wants permission to move forward with a drone-delivery service. Google has acknowledged “self-flying vehicle” tests in the Australian outback.
“Today’s announcement is a significant milestone in broadening commercial use,” Anthony R. Foxx, secretary of transportation, told reporters in a conference call.

For the full story, see:
BROOKS BARNES. “Drone Exemptions for Hollywood Pave the Way for Widespread Use.” The New York Times (Fri., SEPT. 26, 2014): B1 & B7.
(Note: bracketed date added.)
(Note: the online version of the story has the date SEPT. 25, 2014.)

Shellshock Bug Shows Low Quality of Open Source Software

(p. B1) Long before the commercial success of the Internet, Brian J. Fox invented one of its most widely used tools.
In 1987, Mr. Fox, then a young programmer, wrote Bash, short for Bourne-Again Shell, a free piece of software that is now built into more than 70 percent of the machines that connect to the Internet. That includes servers, computers, routers, some mobile phones and even everyday items like refrigerators and cameras.
On Thursday [Sept. 25, 2014], security experts warned that Bash contained a particularly alarming software bug that could be used to take control of hundreds of millions of machines around the world, potentially including Macintosh computers and smartphones that use the Android operating system.
The bug, named “Shellshock,” drew comparisons to the Heartbleed bug that was discovered in a crucial piece of software last spring.
But Shellshock could be a bigger threat. While Heartbleed could be used to do things like steal passwords from a server, Shellshock can be used to take over the entire machine. And Heartbleed went unnoticed for two years and affected an estimated 500,000 machines, but Shellshock was not discovered for 22 years.
. . .
Mr. Fox maintained Bash — which serves as a sort of software interpreter for different commands from a user — for five years before handing over the reins to Chet Ramey, a 49-year-old programmer who, for the last 22 years, has maintained the software as an unpaid hobby. That is, when he is not working at his day job as a senior technology architect at Case Western Reserve University in Ohio.
. . .
(p. B2) The mantra of open source was perhaps best articulated by Eric S. Raymond, one of the elders of the open-source movement, who wrote in 1997 that “given enough eyeballs, all bugs are shallow.” But, in this case, Steven M. Bellovin, a computer science professor at Columbia University, said, those eyeballs are more consumed with new features than quality. “Quality takes work, design, review and testing and those are not nearly as much fun as coding,” Mr. Bellovin said. “If the open-source community does not develop those skills, it’s going to fall further behind in the quality race.”

For the full story, see:
NICOLE PERLROTH. “Flaw in Code Puts Millions At Big Risk.” The New York Times (Fri., SEPT. 26, 2014): B1-B2.
(Note: ellipses, and bracketed date, added.)
(Note: the online version of the story has the date SEPT. 25, 2014, and has the title “Security Experts Expect ‘Shellshock’ Software Bug in Bash to Be Significant.”)

Did Intel Succeed in Spite of, or Because of, Tension Between Noyce and Grove?

(p. C5) . . . , much more so than in earlier books on Intel and its principals, the embedded thread of “The Intel Trinity” is the dirty little secret few people outside of Intel knew: Andy Grove really didn’t like Bob Noyce.
. . .
(p. C6) . . . there’s the argument that one thing a startup needs is an inspiring, swashbuckling boss who lights up a room when he enters it and has the confidence to make anything he’s selling seem much bigger and more important than it actually is. And Mr. Malone makes a compelling case that Noyce was the right man for the job in this phase of the company. “Bob Noyce’s greatest gift, even more than his talent as a technical visionary,” Mr. Malone writes, “was his ability to inspire people to believe in his dreams, in their own abilities, and to follow him on the greatest adventure of their professional lives.”
. . .
Noyce hid from Mr. Grove, who was in charge of operations, the fact that Intel had a secret skunk works developing a microprocessor, a single general-purpose chip that would perform multiple functions–logic, calculation, memory and power control. Noyce had the man who was running it report directly to him rather than to Mr. Grove, even though Mr. Grove was his boss on the organizational chart. When Mr. Grove learned what was going on, he became furious, but like the good soldier he was, he snapped to attention and helped recruit a young engineer from Fairchild to be in charge of the project, which ultimately redefined the company.
. . .
Remarkably, none of this discord seemed to have much effect on the company’s day-to-day operations. Mr. Malone even suggests that the dysfunction empowered Intel’s take-no-prisoners warrior culture.
. . .
So while the humble, self-effacing Mr. Moore, who had his own time in the CEO’s chair from 1975 to 1987, played out his role as Intel’s big thinker, the brilliant visionary “who could see into the technological future better than anyone alive,” Mr. Grove was the kick-ass enforcer. No excuses. For anything.

For the full review, see:
STEWART PINKERTON. “Made in America; A Born Leader, a Frustrated Martinet Built One of Silicon Valley’s Giants.” The Wall Street Journal (Sat., July 19, 2014): C5-C6.
(Note: ellipses added.)
(Note: the online version of the review has the date July 18, 2014, and has the title “Book Review: ‘The Intel Trinity’ by Michael S. Malone; A born leader, an ethereal genius and a tough taskmaster built the most important company on the planet.”)

The book under review is:
Malone, Michael S. The Intel Trinity: How Robert Noyce, Gordon Moore, and Andy Grove Built the World’s Most Important Company. New York: HarperCollins Publishers, 2014.

Early Cars Were Playthings of the Idle Rich

The-Life-of-the-AutomobileBK2014-06-05.jpg

Source of book image: http://www.2luxury2.com/wp-content/uploads/2014/02/Steven-Parissien-The-Life-of-the-Automobile-678×1024.jpg

(p. C14) Mr. Parissien writes that Frenchman Nicolas Cugnot may well have built the first mechanical vehicle in 1769, a two-ton, steam-driven colossus that reportedly went out of control and crashed into a wall. It wasn’t until 1885 that Karl Benz, the acknowledged father of the automobile, debuted the first gasoline-powered motorcar, in Mannheim, Germany. It carried passengers just slightly quicker than they could walk.

With the arrival of that breakthrough, however, the race was on for who could come up with a sturdier, faster, more reliable motor car. Many of the innovators’ names are still familiar: Renault, Bentley and Daimler among them. Even piano makers Steinway & Sons tried their hand at building cars. Other companies appeared for a time and then vanished–Durant, Lanchester, Panhard and De Dion-Bouton–victims of bad guesses or bad timing. Much of Mr. Parissien’s story is devoted to the personalities, and eccentricities, of the men who created what for many years amounted to a plaything of the idle rich. Italian luxury builder Ettore Bugatti refused to sell one of his cars to King Zog of Albania because “the man’s table manners are beyond belief.”
It is the despotic Henry Ford who looms large in automotive history, not only for the introduction of his Model T but for his revolutionary system of shoveling raw materials in one end of his half-mile long Rouge River, Mich., factory complex and sending “Tin Lizzies” out the other end.

For the full review, see:
Patrick Cooke. “Book Review: ‘The Life of the Automobile’ by Steven Parissien; The history of cars, from playthings of the idle rich to emblems of the working man.” The Wall Street Journal (Sat., May 24, 2014): C14.
(Note: the online version of the review has the date May 23, 2014, an has the title “Book Review: ‘The Life of the Automobile’ by Steven Parissien; The history of cars, from playthings of the idle rich to emblems of the working man.”)

The book under review is:
Parissien, Steven. The Life of the Automobile: The Complete History of the Motor Car. New York: Thomas Dunne Books, 2014.

Entrepreneur Gutenberg’s Press Creatively Destroyed the Jobs of Scribes

(p. 32) Poggio possessed . . . [a] gift that set him apart from virtually all the other book-hunting humanists. He was a superbly well-trained scribe, with exceptionally fine handwriting, great powers of concentration, and a high degree of accuracy. It is difficult for us, at this distance, to take in the significance of such qualities: our technologies for producing transcriptions, facsimiles, and copies have almost entirely erased what was once an important personal achievement. That importance began to decline, though not at all precipitously, even in Poggio’s own lifetime, for by the 1430s a German entrepreneur, Johann Gutenberg, began experimenting with a new invention, movable type, which would revolutionize the reproduction and transmission of texts. By the century’s end printers, especially the great Aldus in Venice, would print Latin texts in a typeface whose clarity and elegance remain unrivalled after five centuries. That typeface was based on the beautiful handwriting of Poggio and his humanist friends. What Poggio did by hand to produce a single copy would soon be done mechanically to produce hundreds.

Source:
Greenblatt, Stephen. The Swerve: How the World Became Modern. New York: W. W. Norton & Company, 2011.
(Note: ellipsis, and bracketed word, added.)

Forecasts of Mass Unemployment from Robots Were Wrong

(p. 215) Frank Levy and Richard J. Murnane consider the interaction between workers and machinery in “Dancing with Robots: Human Skills for Computerized Work.” “On March 22, 1964, President Lyndon Johnson received a short, alarming memorandum from the Ad Hoc Committee on the Triple Revolution. The memo warned the president of threats to the nation beginning with the likelihood that computers would soon create mass unemployment: ‘A new era of production has begun. Its principles of organization are as different from those of the industrial era as those of the industrial era were different from the agricultural. The cybernation revolution has been brought about by the combination of the computer and the automated self-regulating machine. This results in a system of almost unlimited productive capacity which requires progressively less human labor. Cybernation is already reorganizing the economic and social system to meet its own needs.’ The memo was signed by luminaries including Nobel Prize winning chemist Linus Pauling, Scientific American publisher Gerard Piel, and economist Gunnar Myrdal (a future Nobel Prize winner). Nonetheless, its warning was only half right. There was no mass unemployment–since 1964 the economy has added 74 million jobs. But computers have changed the jobs that are available, the skills those jobs require, and the wages the jobs pay. For the foreseeable future, the challenge of “cybernation” is not mass unemployment but the need to educate many more young people for the jobs computers cannot do.” Third Way, 2013, http://content.thirdway.org /publications/714/Dancing-With-Robots.pdf.

Source:
Taylor, Timothy. “Recommendations for Further Reading.” Journal of Economic Perspectives 27, no. 4 (Fall 2013): 211-18.
(Note: italics in original.)