Comment Did the author miss the biggest issue? (Score 5, Insightful) 35
In the room? I actually got a little angry reading that blurb. I was alive when Bell Labs collapsed and I remember the sequence of events very clearly. The number one ingredient that made bell labs a massive success
was tax law.
For most of the 1900s, research was tax deductible for companies. Companies could run research labs for the benefit of both themselves and larger society, and Uncle Sam would give them a tax break. The result was a huge ecosystem of top tier corporate labs that bridged the gap between ivory tower research and application. Bell labs was just one of many. There was also GE labs, PARC, IBM labs, Xerox, Kodak. Im probably forgetting a few of the big ones as well. Then, the voters decided that they didnâ(TM)t like giving companies a tax break for that. I dont remember if it was liberals or conservatives who changed their minds. Maybe both. As soon as that tax break was gone, the managers at each company started requiring each of their lab divisions to actually turn a profit. Every single one of them was closed within a few years, or hung on as a tiny ghost of what it used to be.
For most of the 1900s, research was tax deductible for companies. Companies could run research labs for the benefit of both themselves and larger society, and Uncle Sam would give them a tax break. The result was a huge ecosystem of top tier corporate labs that bridged the gap between ivory tower research and application. Bell labs was just one of many. There was also GE labs, PARC, IBM labs, Xerox, Kodak. Im probably forgetting a few of the big ones as well. Then, the voters decided that they didnâ(TM)t like giving companies a tax break for that. I dont remember if it was liberals or conservatives who changed their minds. Maybe both. As soon as that tax break was gone, the managers at each company started requiring each of their lab divisions to actually turn a profit. Every single one of them was closed within a few years, or hung on as a tiny ghost of what it used to be.