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From: ggr@pyuxbb.UUCP
Newsgroups: net.research,bell.compete
Subject: On the Brink?
Message-ID: <160@pyuxbb.UUCP>
Date: Mon, 26-Sep-83 18:50:30 EDT
Article-I.D.: pyuxbb.160
Posted: Mon Sep 26 18:50:30 1983
Date-Received: Wed, 28-Sep-83 06:12:02 EDT
Reply-To: prnews@whuxg.UUCP
Organization: AT&T Bell Laboratories, Piscataway
Lines: 25

/***** whuxh:pr.presstp / mhwpd!prnews / 10:44 am  Sep 23, 1983*/
BELL LABS ON THE BRINK, Science, 9/23, p.l267.
This "News and Comment" piece looks at the
future of Bell Labs' "ethos" and "unusual com-
mitment to fundamental research" after divesti-
ture. One observer is quoted saying that funda-
mental research is threatened by "appropriabil-
ity," the ability of an investor to capture the
fruits of investment. As a monopoly, he said,
the Bell System covered research costs through
user payments and productivity increases gained
from innovation. After the breakup, he said,
AT&T will tilt toward R&D that enhances equip-
ment sales and profits. Another observer is
quoted saying that data on firm size and R&D
spending indicate that "above a minimum size of
between $250 million to $500 million in annual
sales, there is no additional gain in a firm's
ability to innovate. The new AT&T would be many
times larger than this minimum." The article
concludes that if research and innovation are
diminished by divestiture, "it will be a notable
example of science policy made via the antitrust
laws."
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