I referenced this earlier, but if you missed that, See http://www.historyofcomputercommunications.info/Book/7/7.10-ReturnVentureCapital.html
What I want to call you attention to, though, is the significant interview that Pelkey had with Phil Kaufman, then CEO of Silcion Compilers after a terrific areer at Intel:
JLP: I hold a view that the research process in the United States is in great disarray. With ARPA becoming DARPA, and Bell Labs post-divestiture, NSF funding individual professors at universities, but the needs of today of systems projects where you cross disciplines and there are many people and they are big projects, and if we don't start investing in research in a different way, in terms of these information technologies, we're living today off stuff that was done in the '60s and early '70s, for the most part.
PK: Oh, I agree completely.
JLP: And where are we making the investments today that we're going to see, in 20 years time, that's what's become (unintelligible)?
PK: I think there's a vast hole to do the kinds of systems, if you will, research that the Bell Labs -- Bell Labs, Xerox PARC, Sarnoff Research, those don't exist in the same form today, even if they exist. The companies that are still doing it are doing much less of it, and much more short term product-oriented. At the same time, as you say, the government funding is going into one-off kind of things, and mostly researching the past. A lot of the universities are turning from real research to product development. I consider that, for example, that Berkeley's done a lot of wonderful stuff in CAD, but they haven't done research. They've done product development. They've been a low-cost employee product development team. That's very nice, but it isn't research, and it isn't really advancing the state of the art, but it's where they can get funding. Companies will fund them because it's short term.
JLP: I think it's a real issue for us as a society. I'm going to address it in this book.
PK: I'll tell you a related issue that you may want to think about, which is one I've been giving a lot of thought to, and that is 'how do companies do research and product development?' In the US, venture capital drives the disassociation of companies, and new start-up companies and small companies, and the nature of a start-up company is you have to do everything, but you have to build your product from scratch too. Fifty or 75% of what you put into R&D is building stuff that isn't innovative and isn't part of the essence of the technology you deliver, and has no secondary use because you're a small company and you don't have any other place to put it. Big companies, where they have some cross-fertilization potential, at least in the US, are notoriously bad at doing it, and I can't say that I know how to do it. I spent a lot of time at Intel trying to drive synergy, and I'm convinced that's the wrong thing to do, that big companies should be holding companies and at most they should drive communications, but the ones that are doing it best are the vertically integrated Japanese companies, not the American companies, of reusing things, and the relatively larger companies. If Mentor develops a schematic editor, they can use it across a very broad products line. If we develop a schematic editor, we use it across 500 customers. One of the things that I've been trying to come up with is a way for multiple small companies to share technology, not just technology but real products that are developed, that aren't in their mainstream.
JLP: Right. I agree.
PK: And nobody's come up with a way to do that, but I've been trying to work on some things like that, and other efforts --
JLP: Actually, you should get together with Gordon, because Gordon just gave a speech last week that he was telling me about, where he was saying that he wants companies to break up their engineering efforts. He thinks you only need one fifth the number of engineers doing engineering. In fact, a lot of engineers are doing enabling things, such as testers and so on. Those should be shared across companies.
PK: Absolutely.
JLP: So it's the same vein. He's going to try to write an article for Spectrum on this issue.
PK: Well, I've got a paper that I've written and circulated to a number of companies that I call a Technology (unintelligible), on how to try to do things like that. It was dastardly hard to do, because you've got NIH and management issues.
JLP: One of the issues I address because I'm addressing technology industries is that we, in this country, going to your point, have been very good at building small companies. We haven't been all that good at building big companies. If the trend of today continues, we need more big companies in order to be able to compete on this global basis with the pan-European and the Japanese companies, and we're not doing that. Is that important or not important?
WAS THIS PRESCIENT OR WHAT? 1988 words