Submission + - Why Was Bell Labs So Successful? A New WSJ Article Explains (msn.com)
It was Bell Labs’ responsibility, in other words, to create technologies for designing, expanding and improving an unruly communications network of cables and microwave links and glass fibers. The Labs also had to figure out ways to create underwater conduits, as well as switching centers that could manage the growing number of customers and escalating amounts of data.... Money mattered, too. Being connected to AT&T, the largest company in the world, was an advantage. The Labs’ budget was enormous, and accounting conventions allowed its parent company to make huge and continuing investments in R & D. The generous funding, moreover, allowed scientists and engineers to buy and build expensive equipment—for instance, anechoic chambers to create the world’s quietest rooms...
The most fortunate part of Bell Labs’ situation, however, was that in being attached to a monopoly it could partake in long-term thinking... Without competition nipping at its heels, Bell Labs engineers had the luxury of working out difficult ideas over decades. The first conceptualization of a cellular phone network, for instance, came out of the Labs in the late 1940s; it wasn’t until the late 1970s that technicians began testing one in Chicago to gauge its potential. The challenge of deploying these technologies was immense. (The regulatory hurdles were formidable, too....)
The breakup of AT&T’s monopoly, which led to a steady shrinking of Bell Labs’ staff, budget and remit, shows us that no matter how forward looking your employees and managers may be, they will not necessarily see the future coming. It likewise suggests that technological progress is too unpredictable for one organization, no matter how powerful or smart, to control. Famously, Bell Labs managers didn’t see value in the Arpanet, which eventually led to today’s internet.
And yet, for at least five decades, Bell Labs created a blueprint for the global development of communications and electronics. In understanding why it did so, I tend to think its ultimate secret may be hiding in plain sight. The secret has to do with Bell Labs’ structure—not only being connected to a fabulously profitable monopoly, but being connected to a company that could move theoretical and applied research into a huge manufacturing division that made telecom equipment (at Western Electric) and ultimately into a dynamic operating system (the AT&T network)... Scientists and engineers at the Labs understood their ideas would be implemented, if they passed muster, into the huge system its parent company was running.