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Weiye Loh

Apples and PCs: Who innovates more, Apple or HP? | The Economist - 1 views

  • In terms of processing power, speed, memory, and so on, how do Macs and PCs actually compare? And does Apple innovate in terms of basic hardware quality as often or less often than the likes of HP, Compaq, and other producers? This question is of broader interest from an economist's point of view because it also has to do with the age-old question of whether competition or monopoly is a better spur to innovation. In a certain sense, Apple is a monopolist, and PC makers are in a more competitive market. (I say in a certain sense because obviously Macs and PCs are substitutes; it's just that they're more imperfect substitutes than two PCs are for each other, in part because of software migration issues.)
  • Schumpeter argued long back that because a monopolist reaps the full reward from innovation, such firms would be more innovative. The case for patents relies in part on a version of this argument: companies are given monopoly rights over a new product for a period of time in order for them to be able to recoup the costs of innovation; without such protection, it is argued, they would not find it beneficial to innovate in the first place.
  • others have argued that competition spurs innovation by giving firms a way to differentiate themselves from their competitors (in a way, creating something new gives a company a temporary, albeit brief, "monopoly")
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    Who innovates more, Apple or HP?
Weiye Loh

Land Destroyer: Alternative Economics - 0 views

  • Peer to peer file sharing (P2P) has made media distribution free and has become the bane of media monopolies. P2P file sharing means digital files can be copied and distributed at no cost. CD's, DVD's, and other older forms of holding media are no longer necessary, nor is the cost involved in making them or distributing them along a traditional logistical supply chain. Disc burners, however, allow users the ability to create their own physical copies at a fraction of the cost of buying the media from the stores. Supply and demand is turned on its head as the more popular a certain file becomes via demand, the more of it that is available for sharing, and the easier it is to obtain. Supply and demand increase in tandem towards a lower "price" of obtaining the said file.Consumers demand more as price decreases. Producersnaturally want to produce more of something as priceincreases. Somewhere in between consumers and producers meet at the market price or "marketequilibrium."P2P technology eliminates material scarcity, thus the more afile is in demand, the more people end up downloading it, andthe easier it is for others to find it and download it. Considerthe implications this would have if technology made physicalobjects as easy to "share" as information is now.
  • In the end, it is not government regulations, legal contrivances, or licenses that govern information, but rather the free market mechanism commonly referred to as Adam Smith's self regulating "Invisible Hand of the Market." In other words, people selfishly seeking accurate information for their own benefit encourage producers to provide the best possible information to meet their demand. While this is not possible in a monopoly, particularly the corporate media monopoly of the "left/right paradigm" of false choice, it is inevitable in the field of real competition that now exists online due to information technology.
  • Compounding the establishment's troubles are cheaper cameras and cheaper, more capable software for 3D graphics, editing, mixing, and other post production tasks, allowing for the creation of an alternative publishing, audio and video industry. "Underground" counter-corporate music and film has been around for a long time but through the combination of technology and the zealous corporate lawyers disenfranchising a whole new generation that now seeks an alternative, it is truly coming of age.
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  • With a growing community of people determined to become collaborative producers rather than fit into the producer/consumer paradigm, and 3D files for physical objects already being shared like movies and music, the implications are profound. Products, and the manufacturing technology used to make them will continue to drop in price, become easier to make for individuals rather than large corporations, just as media is now shifting into the hands of the common people. And like the shift of information, industry will move from the elite and their agenda of preserving their power, to the end of empowering the people.
  • In a future alternative economy where everyone is a collaborative designer, producer, and manufacturer instead of passive consumers and when problems like "global climate change," "overpopulation," and "fuel crises" cross our path, we will counter them with technical solutions, not political indulgences like carbon taxes, and not draconian decrees like "one-child policies."
  • We will become the literal architects of our own future in this "personal manufacturing" revolution. While these technologies may still appear primitive, or somewhat "useless" or "impractical" we must remember where our personal computers stood on the eve of the dawning of the information age and how quickly they changed our lives. And while many of us may be unaware of this unfolding revolution, you can bet the globalists, power brokers, and all those that stand to lose from it not only see it but are already actively fighting against it.Understandably it takes some technical know-how to jump into the personal manufacturing revolution. In part 2 of "Alternative Economics" we will explore real world "low-tech" solutions to becoming self-sufficient, local, and rediscover the empowerment granted by doing so.
Weiye Loh

Roger Pielke Jr.'s Blog: New Bridges Column: The Origins of "Basic Research" - 0 views

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    "The appealing imagery of a scientist who simply follows his curiosity and then makes a discovery with a large societal payoff is part of the core mythology of post-World War II science policies. The mythology shapes how governments around the world organize, account for, and fund research. A large body of scholarship has critiqued postwar science policies and found that, despite many notable successes, the science policies that may have made sense in the middle of the last century may need updating in the 21st century. In short, investments in "basic research" are not enough. Benoit Godin has asserted (PDF) that: "The problem is that the academic lobby has successfully claimed a monopoly on the creation of new knowledge, and that policy makers have been persuaded to confuse the necessary with the sufficient condition that investment in basic research would by itself necessarily lead to successful applications." Or as Leshner and Cooper declare in The Washington Post: "Federal investments in R&D have fueled half of the nation's economic growth since World War II." A closer look at the actual history of Google reveals how history becomes mythology. The 1994 NSF project that funded the scientific work underpinning the search engine that became Google (as we know it today) was conducted from the start with commercialization in mind: "The technology developed in this project will provide the 'glue' that will make this worldwide collection usable as a unified entity, in a scalable and economically viable fashion." In this case, the scientist following his curiosity had at least one eye simultaneously on commercialization."
Weiye Loh

Asia Times Online :: Southeast Asia news and business from Indonesia, Philippines, Thai... - 0 views

  • Internet-based news websites and the growing popularity of social media have broken the mainstream media's monopoly on news - though not completely. Singapore's PAP-led government was one of the first in the world to devise content regulations for the Internet, issuing restrictions on topics it deemed as sensitive as early as 1996.
  • While political parties are broadly allowed to use the Internet to campaign, they were previously prohibited from employing some of the medium's most powerful features, including live audio and video streaming and so-called "viral marketing". Websites not belonging to political parties or candidates but registered as political sites have been banned from activities that could be considered online electioneering.
  • George argued that despite the growing influence of online media, it would be naive to conclude that the PAP's days of domination are numbered. "While the government appears increasingly liberal towards individual self-expression, it continues to intervene strategically at points at which such expression may become politically threatening," he said. "It is safe to assume that the government's digital surveillance capabilities far outstrip even its most technologically competent opponent's evasive abilities."
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  • consistent with George's analysis, authorities last week relaxed past regulations that limited the use of the Internet and social media for election campaigning. Political parties and candidates will be allowed to use a broader range of new media platforms, including blogs, micro-blogs, online photo-sharing platforms, social networking sites and electronic media applications used on mobile phones, for election advertising. The loosening, however, only applies for political party-run websites, chat rooms and online discussion forums. Candidates must declare the new media content they intend to use within 12 hours after the start of the election campaign period. George warned in a recent blog entry that the new declaration requirements could open the way for PAP-led defamation suits against new media using opposition politicians. PAP leaders have historically relied on expensive litigation to suppress opposition and media criticism. "The PAP won't subject everyone's postings to legal scrutiny. But if it decides that a particular opposition politician needs to be utterly demolished, you can bet that no tweet of his would be too tiny, no Facebook update too fleeting ... in order a build the case against the individual," George warned in a journalism blog.
  • While opposition politicians will rely more on new than mainstream media to communicate with voters, they already recognize that the use of social media will not necessarily translate into votes. "[Online support] can give a too rosy a picture and false degree of comfort," said the RP's Jeyaretnam. "People who [interact with] us online are those who are already convinced with our messages anyway."
Weiye Loh

The Origins of "Basic Research" - 0 views

  • For many scientists, "basic research" means "fundamental" or "pure" research conducted without consideration of practical applications. At the same time, policy makers see "basic research" as that which leads to societal benefits including economic growth and jobs.
  • The mechanism that has allowed such divergent views to coexist is of course the so-called "linear model" of innovation, which holds that investments in "basic research" are but the first step in a sequence that progresses through applied research, development, and application. As recently explained in a major report of the US National Academy of Sciences: "[B]asic research ... has the potential to be transformational to maintain the flow of new ideas that fuel the economy, provide security, and enhance the quality of life" (Rising Above the Gathering Storm).
  • A closer look at the actual history of Google reveals how history becomes mythology. The 1994 NSF project that funded the scientific work underpinning the search engine that became Google (as we know it today) was conducted from the start with commercialization in mind: "The technology developed in this project will provide the 'glue' that will make this worldwide collection usable as a unified entity, in a scalable and economically viable fashion." In this case, the scientist following his curiosity had at least one eye simultaneously on commercialization.
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  • In their appeal for more funding for scientific research, Leshner and Cooper argued that: "Across society, we don't have to look far for examples of basic research that paid off." They cite the creation of Google as a prime example of such payoffs: "Larry Page and Sergey Brin, then a National Science Foundation [NSF] fellow, did not intend to invent the Google search engine. Originally, they were intrigued by a mathematical challenge ..." The appealing imagery of a scientist who simply follows his curiosity and then makes a discovery with a large societal payoff is part of the core mythology of post-World War II science policies. The mythology shapes how governments around the world organize, account for, and fund research. A large body of scholarship has critiqued postwar science policies and found that, despite many notable successes, the science policies that may have made sense in the middle of the last century may need updating in the 21st century. In short, investments in "basic research" are not enough. Benoit Godin has asserted (PDF) that: "The problem is that the academic lobby has successfully claimed a monopoly on the creation of new knowledge, and that policy makers have been persuaded to confuse the necessary with the sufficient condition that investment in basic research would by itself necessarily lead to successful applications." Or as Leshner and Cooper declare in The Washington Post: "Federal investments in R&D have fueled half of the nation's economic growth since World War II."
Weiye Loh

What If The Very Theory That Underlies Why We Need Patents Is Wrong? | Techdirt - 0 views

  • Scott Walker points us to a fascinating paper by Carliss Y. Baldwin and Eric von Hippel, suggesting that some of the most basic theories on which the patent system is based are wrong, and because of that, the patent system might hinder innovation.
  • numerous other research papers and case studies that suggest that the patent system quite frequently hinders innovation, but this one approaches it from a different angle than ones we've seen before, and is actually quite convincing. It looks at the putative putative theory that innovation comes from a direct profit motive of a single corporation looking to sell the good in market, and for that to work, the company needs to take the initial invention and get temporary monopoly protection to keep out competitors in order to recoup the cost of research and development.
  • the paper goes through a whole bunch of studies suggesting that quite frequently innovation happens through a very different process: either individuals or companies directly trying to solve a problem they themselves have (i.e., the initial motive is not to profit directly from sales, but to help them in something they were doing) or through a much more collaborative process, whereby multiple parties all contribute to the process of innovation, somewhat openly, recognizing that as each contributes some, everyone benefits. As the report notes: This result hinges on the fact that the innovative design itself is a non-rival good: each participant in a collaborative effort gets the value of the whole design, but incurs only a fraction of the design cost.
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  • patents are designed to make that sort of thing more difficult, because it assumes that the initial act of invention is the key point, rather than all the incremental innovations built on top of it that all parties can benefit from.
  • the report points to numerous studies that show, when given the chance, many companies freely share their ideas with others, recognizing the direct benefit they get.
  • Even more importantly, the paper finds that due to technological advances and the ability to more rapidly and easily communicate and collaborate widely, these forms of innovation (innovation for direct use as well as collaborative innovation) are becoming more and more viable across a variety of industries, which in the past may have relied more on the old way of innovating (single company innovative for the profit of selling that product).
  • because of the ease of communication and collaboration these days, there's tremendous incentive for those companies that innovate for their own use to collaborate with others, since the benefit from others improving as well help improve their own uses. Thus, the overall incentives are to move much more to a collaborative form of innovation in the market. That has huge implications for a patent system designed to help the "old model" of innovation (producer inventing for the market) and not the increasingly regular one (collaborative innovation for usage).
  • no one is saying that producer-based innovation (company inventing to sell on the market) doesn't occur or won't continue to occur. But it is an open policy question as to whether or not our innovation policies should favor that model over other models -- when evidence suggests that a significant amount of innovation occurs in these other ways -- and that amount is growing rapidly.
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    What If The Very Theory That Underlies Why We Need Patents Is Wrong? from the collaborative-innovation-at-work dept
Weiye Loh

gladwell dot com - something borrowed - 0 views

  • Intellectual-property doctrine isn't a straightforward application of the ethical principle "Thou shalt not steal." At its core is the notion that there are certain situations where you can steal. The protections of copyright, for instance, are time-limited; once something passes into the public domain, anyone can copy it without restriction. Or suppose that you invented a cure for breast cancer in your basement lab. Any patent you received would protect your intellectual property for twenty years, but after that anyone could take your invention.
  • You get an initial monopoly on your creation because we want to provide economic incentives for people to invent things like cancer drugs. But everyone gets to steal your breast-cancer cure—after a decent interval—because it is also in society's interest to let as many people as possible copy your invention; only then can others learn from it, and build on it, and come up with better and cheaper alternatives. This balance between the protecting and the limiting of intellectual property
  • Stanford law professor Lawrence Lessig argues in his new book "Free Culture": In ordinary language, to call a copyright a "property" right is a bit misleading, for the property of copyright is an odd kind of property. . . . I understand what I am taking when I take the picnic table you put in your backyard. I am taking a thing, the picnic table, and after I take it, you don't have it. But what am I taking when I take the good idea you had to put a picnic table in the backyard—by, for example, going to Sears, buying a table, and putting it in my backyard? What is the thing that I am taking then? The point is not just about the thingness of picnic tables versus ideas, though that is an important difference. The point instead is that in the ordinary case—indeed, in practically every case except for a narrow range of exceptions—ideas released to the world are free. I don't take anything from you when I copy the way you dress—though I might seem weird if I do it every day. . . . Instead, as Thomas Jefferson said (and this is especially true when I copy the way someone dresses), "He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper at mine, receives light without darkening me."
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  • Lessig argues that, when it comes to drawing this line between private interests and public interests in intellectual property, the courts and Congress have, in recent years, swung much too far in the direction of private interests.
  • We could have sat in his living room playing at musical genealogy for hours. Did the examples upset him? Of course not, because he knew enough about music to know that these patterns of influence—cribbing, tweaking, transforming—were at the very heart of the creative process.
  • True, copying could go too far. There were times when one artist was simply replicating the work of another, and to let that pass inhibited true creativity. But it was equally dangerous to be overly vigilant in policing creative expression, because if Led Zeppelin hadn't been free to mine the blues for inspiration we wouldn't have got "Whole Lotta Love," and if Kurt Cobain couldn't listen to "More Than a Feeling" and pick out and transform the part he really liked we wouldn't have "Smells Like Teen Spirit"—and, in the evolution of rock, "Smells Like Teen Spirit" was a real step forward from "More Than a Feeling." A successful music executive has to understand the distinction between borrowing that is transformative and borrowing that is merely derivative, and that distinction, I realized, was what was missing from the discussion of Bryony Lavery's borrowings. Yes, she had copied my work. But no one was asking why she had copied it, or what she had copied, or whether her copying served some larger purpose.
  • It also matters how Lavery chose to use my words. Borrowing crosses the line when it is used for a derivative work. It's one thing if you're writing a history of the Kennedys, like Doris Kearns Goodwin, and borrow, without attribution, from another history of the Kennedys. But Lavery wasn't writing another profile of Dorothy Lewis. She was writing a play about something entirely new—about what would happen if a mother met the man who killed her daughter. And she used my descriptions of Lewis's work and the outline of Lewis's life as a building block in making that confrontation plausible.
  • this is the second problem with plagiarism. It is not merely extremist. It has also become disconnected from the broader question of what does and does not inhibit creativity. We accept the right of one writer to engage in a full-scale knockoff of another—think how many serial-killer novels have been cloned from "The Silence of the Lambs." Yet, when Kathy Acker incorporated parts of a Harold Robbins sex scene verbatim in a satiric novel, she was denounced as a plagiarist (and threatened with a lawsuit)
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    Under copyright law, what matters is not that you copied someone else's work. What matters is what you copied, and how much you copied.
Weiye Loh

Breakthrough Europe: A (Heterodox) Lesson in Economics from Ha-Joon Chang - 0 views

  • But, to the surprise of the West, that steel mill grew out to be POSCO, the world's third-largest and Asia's most profitable steel maker.
  • South Korea's developmental state, which relied on active government investment in R&D and crucial support for capital-intensive sectors in the form of start-up subsidies and infant industry protection, transformed the country into the richest on the Asian continent (with the exception of Singapore and Hong Kong). LG and Hyundai are similar legacies of Korea's spectacular industrial policy success.
  • Even though they were not trained as economists, the economic officials of East Asia knew some economics. However, especially until the 1970s, the economics they knew was mostly not of the free-market variety. The economics they happened to know was the economics of Karl Marx, Friedrich List, Joseph Schumpeter, Nicholas Kaldor and Albert Hirschman. Of course, these economists lived in different times, contended with different problems and had radically differing political views (ranging from the very right-wing List to the very left-wing Marx). However, there was a commonality between their economics. It was the recognition that capitalism develops through long-term investments and technological innovations that transform the productive structure, and not merely an expansion of existing structures, like inflating a balloon.
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  • Arguing that governments can pick winners, Professor Chang urges us to reclaim economic planning, not as a token of centrally-planned communism, but rather as the simple reality behind our market economies today:
  • Capitalist economies are in large part planned. Governments in capitalist economies practice planning too, albeit on a more limited basis than under communist central planning. All of them finance a significant share of investment in R&D and infrastructure. Most of them plan a significant chunk of the economy through the planning of the activities of state-owned enterprises. Many capitalist governments plan the future shape of individual industrial sectors through sectoral industrial policy or even that of the national economy through indicative planning. More importantly, modern capitalist economies are made up of large, hierarchical corporations that plan their activities in great detail, even across national borders. Therefore, the question is not whether you plan or not. It is about planning the right things at the right levels.
  • Drawing a clear distinction between communist central planning and capitalist 'indicative' planning, Chang notes that the latter: ... involves the government ... setting some broad targets concerning key economic variables (e.g., investments in strategic industries, infrastructure development, exports) and working with, not against, the private sector to achieve them. Unlike under central planning, these targets are not legally binding; hence the adjective 'indicative'. However, the government will do its best to achieve them by mobilizing various carrots (e.g., subsidies, granting of monopoly rights) and sticks (e.g., regulations, influence through state-owned banks) at its disposal.
  • Chang observes that: France had great success in promoting investment and technological innovation through indicative planning in the 1950s and 60s, thereby overtaking the British economy as Europe's second industrial power. Other European countries, such as Finland, Norway and Austria, also successfully used indicative planning to upgrade their economies between the 1950s and the 1970s. The East Asian miracle economies of Japan, Korea and Taiwan used indicative planning too between the 1950s and 1980s. This is not to say that all indicative planning exercises have been successful; in India, for example, it has not. Nevertheless, the European and East Asian examples show that planning in certain forms is not incompatible with capitalism and may even promote capitalist development very well.
  • As we have argued before, the current crisis raging through Europe (in large part caused by free-market economics), forces us to reconsider our economic options. More than ever before, now is the time to rehabilitate indicative planning and industrial policy as key levers in our arsenal of policy tools.
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    heterodox Cambridge economist exposes 23 myths behind the neoliberal free-market dogma and urges us to recognize that "capitalism develops through long-term investments and technological innovations," spearheaded by an activist state committed to sustainable economic development.
Weiye Loh

Google to be formally investigated over potential abuse of web dominance | Technology |... - 0 views

  • The inquiry will examine the heart of Google's search-advertising business, and the source of most of Google's revenue. Google accounts for around two-thirds of internet searches in the US (and close to 90% in the UK) and according to critics unfairly uses that dominance to favour its own growing network of services.Last November, the European commission opened its own formal investigation into allegations that Google discriminated against competing services in its search results and prevented some websites from using ads by Google competitors.
  • Legal experts said the investigation could be similar in scale to the massive antitrust probe of Microsoft, which started in 1991 and ended in a settlement a decade later. Professor Joshua Wright of George Mason Law School said: "The investigation will be of a comparable scale to that of Microsoft."But he said the chances of Google being found guilty of antitrust behaviour, as Microsoft was, were far smaller. Wright said for the US to bring a successful case against Google, it would have to prove the company was harming consumers. "As an outsider I would say that obstacle is far higher for them today with Google than it was back then with Microsoft," he said.
  • He said Google faced a higher risk in the EU case but that in either case the investigations were likely to have a profound impact on the firm."Even if the charges are ultimately bogus, they will occupy many, many hours of managements time and attention," he said.The FTC's investigations are likely to widen to other companies as official requests for information about their dealings with Google.The company has long denied any anticompetitive behaviour, arguing that users can easily click on other choices on the web.
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    US regulators are poised to launch a formal investigation into whether Google has abused its dominance on the web, according to reports. The Federal Trade Commission (FTC) is days away from serving subpoenas on the internet giant in what could be the biggest investigation yet of the search company's business, according to The Wall Street Journal. Both Google and the FTC declined to comment. A wide-ranging investigation into Google has been discussed for months. Google has faced several antitrust probes in recent years, and is already the subject of a similar investigation in Europe. In the US inquiries have so far largely been limited to reviews of the company's mergers and acquisitions.
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