[HN Gopher] Can Xerox's PARC find new life with SRI?
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       Can Xerox's PARC find new life with SRI?
        
       Author : mitchbob
       Score  : 62 points
       Date   : 2024-03-27 17:34 UTC (1 days ago)
        
 (HTM) web link (www.nytimes.com)
 (TXT) w3m dump (www.nytimes.com)
        
       | mitchbob wrote:
       | https://archive.is/2024.03.27-144438/https://www.nytimes.com...
        
         | UncleOxidant wrote:
         | Only about 15 minutes in and it's much more illuminating than
         | the article (not saying that the article is bad, but this video
         | is better).
        
       | snsr wrote:
       | Gift link w/o paywall:
       | 
       | https://www.nytimes.com/interactive/2024/03/26/business/sili...
        
       | anotherhue wrote:
       | Can researchers spend 10 years there doing meaningful research
       | without:
       | 
       | a) Having to show product market fit and appease magpie investors
       | 
       | b) Emerge after 10 years with devastating debt and with poor
       | career prospects.
       | 
       | Those answers are what matters.
        
         | klysm wrote:
         | that doesn't sound very agile /s
        
         | whiplash451 wrote:
         | Why would they emerge with devastating debt if they were paid
         | reasonably well all along? (I am with you on the other points)
        
           | anotherhue wrote:
           | Postdocs tend to be paid poverty wages, so if they have
           | student loans those won't have been paid. Additionally if
           | they emerge at 30-something but on the lowest run of the
           | career ladder they may never catch up.
           | 
           | Obviously less of an issue if well paid, but well paid
           | academia is kind of a contradiction.
        
             | AlbertCory wrote:
             | I think you are reading the past with the eyes of the
             | present.
             | 
             | "Student debt" was not a thing back in the 70's and 80's.
             | 
             | Secondly, PARC researchers were not paid university
             | postdoc-level salaries. They were paid quite well. I would
             | guess that's still true.
        
               | linguae wrote:
               | I'm away from home right now so I can't verify this, but
               | if I remember correctly from reading _Dealers of
               | Lightning_ , Xerox PARC researchers were paid the
               | equivalent of six figures when adjusted for inflation.
               | When considering the much lower housing prices in Silicon
               | Valley in the 1970s, this enabled many PARC researchers
               | to purchase homes in Palo Alto and vicinity, though I do
               | recall a passage from _The Dream Machine_ about people
               | moving from other parts of the US to the Bay Area dealing
               | with higher housing costs even in the 1960s and 1970s. My
               | mom grew up in Oakland in the 1960s and she told me she's
               | always heard of people complaining about the Bay Area's
               | high cost of living, especially in San Francisco.
        
       | linguae wrote:
       | As a researcher, it would be wonderful if there were an
       | industrial research lab again that doesn't demand immediate ROI
       | (like how most industrial research labs sadly demand) and also
       | avoids the "publish or perish" pressures of academia. Rather, my
       | ideal lab would be dedicated to providing an environment that
       | enables researchers to pursue ambitious visions that will change
       | computing. Xerox PARC would easily return to its former glory if
       | it returned to its style under Bob Taylor in the 1970s. In fact,
       | it would be quite fitting if Alan Kay gets tapped to run the lab.
       | 
       | While there's a need for more directed short-term research, I
       | feel that industry has largely moved away from more free, longer-
       | term, "pure" research, and I also feel that academic research has
       | become affected by "publish or perish" and fundraising demands.
       | There seems to be no room these days for researchers who want to
       | do more exploratory work, short of becoming independently wealthy
       | or relegating such exploration to nights and weekends.
        
         | rented_mule wrote:
         | I would love to see the glory days of pure research groups like
         | PARC and Bell Labs return. But, so many business folks are
         | aware of how Xerox was embarrassed by PARC that it's unlikely
         | that approach will be tried again anytime soon. When I speak of
         | embarrassment here, it's not about the incredible innovation
         | that came out of PARC, but about Xerox management's handling of
         | that innovation.
         | 
         | Billions and billions (trillions?) of dollars in value was
         | created (e.g., Adobe, 3Com, SGI-NVIDIA, Mac / Windows, laser
         | printers, ethernet, etc.) based on their research, but ~0% of
         | that value went to Xerox. From a business point of view, it was
         | a disaster. And business folks are primarily the ones deciding
         | what's funded at this level. If I'm an executive who's not sure
         | if I, or my organization, will be able to tell the great ideas
         | from the duds, why spend money that might expose that?
        
           | coliveira wrote:
           | > business folks are primarily the ones deciding what's
           | funded
           | 
           | A large part of the money that was funned into research at
           | Xerox came from the government itself in the form of tax
           | breaks and other benefits. So it was not a big sacrifice for
           | Xerox to maintain that lab. If they had to change course was
           | due to government policy becoming less interested in
           | industrial innovation and more focused on offshoring and
           | financial gains for the last decades.
        
             | AlbertCory wrote:
             | > A large part of the money that was funned [sic] into
             | research at Xerox came from the government itself
             | 
             | Do you have any support for that? For example, Xerox's
             | financial disclosure forms should still be available.
             | 
             | Because I think it's wrong. The government funded academic
             | projects, not commercial ones.
        
               | coliveira wrote:
               | You don't need to look so far away: tax breaks for R&D
               | are still a thing, in the 70s and 80s they were even more
               | important for these giant companies. Government contracts
               | were also a big income source for Xerox, AT&T, IBM, and
               | others. Moreover, research labs were basically a method
               | for companies to move discoveries from publicly funded
               | Universities into private hands. They naturally benefited
               | from receiving graduates and discoveries that started on
               | publicly funded research institutions.
        
           | zer00eyz wrote:
           | >>> When I speak of embarrassment here, it's not about the
           | incredible innovation that came out of PARC, but about Xerox
           | management's handling of that innovation.
           | 
           | You mean like google and ML and Attention is All You Need...
           | 
           | Or let's look at what a group of people with brains and money
           | went on to do: the PayPal mafia. Would they not be the modern
           | day version of att/unix(a product of anti
           | trust)->Berkley/Unix->and the foundation of the valley (sun,
           | most databases)...
        
           | bruce511 wrote:
           | Between laser printers and photo copiers (built on laser
           | printer tech) Xerox did just fine.
           | 
           | If anything, Xerox's "willingness" (intentional or not) to
           | allow the root ideas to grow in various places has been a
           | blessing to the IT industry as a whole.
           | 
           | What you are suggesting is they could, or should, have become
           | all the companies you listed. But that would gave been both
           | impossible, and counter productive.
           | 
           | Steve jobs saw the GUI, and Ethernet, and object orientated
           | programming, and laser printers, and office software, and yet
           | Mac is famous for just the GUI. Others would run with
           | networking, programming, MS with office and do on.
           | 
           | And in addition to those major players there were lots of
           | others competing too.
           | 
           | So no I don't think Xerox management needs to be embarrassed.
           | They saw the value printing and ran with that. They left
           | others to develop the other ideas. And in the long run we are
           | much richer for that.
           | 
           | So, from me anyway, there's no shame on them, rather a tip of
           | the hat, and a nod to the vision they had to create PARC in
           | the first place. They are the giants on whose shoulders we
           | stand.
        
           | AlbertCory wrote:
           | > From a business point of view, it was a disaster.
           | 
           | Dead wrong. Laser printers alone were a $2B a year business.
           | Printers, especially big ones, were right in their
           | wheelhouse.
           | 
           | If you want to argue it could have been so much more wealth,
           | you're right.
        
         | sydbarrett74 wrote:
         | As brilliant as Kay is, I'd be hesitant to put an 83 year-old
         | as an active leader. I could see him in an emeritus/advisory
         | role, however.
        
         | matt_s wrote:
         | There should be a balance though, an open ended research lab
         | that is a non-profit and generates ideas is going to have a
         | tough time getting funding.
         | 
         | Maybe this research lab should partner with something like YC
         | so when an idea is nearing a production quality design, VC's
         | can fund it to product fruition with some sort of royalty
         | agreement with the research lab to fund more ideas.
         | 
         | I would think a lot of highly technical, actual scientists (not
         | some dude who's been hacking at CRUD web apps for a couple
         | decades, aka me) would love to work at a place where constant
         | academia/VC pressure is set aside to allow more pure research
         | to happen.
        
         | UncleOxidant wrote:
         | Bell Labs could do this because their parent company was a
         | government sanctioned monopoly that didn't have to worry about
         | about mundane problems like quarterly earnings. Xerox had the
         | copier machine market pretty well to itself for a good 20 years
         | which enabled them to fund PARC (sure, there were some
         | competitors in that time, but they weren't taking a huge bite
         | out of Xerox's profits yet).
         | 
         | I think Apple could've done this a few years back when they had
         | something like $100B cash on hand - they could have established
         | a research foundation and provided it with funding that
         | would've lasted for long enough for it to become self
         | sustaining. Maybe Apple still could do this as they've got $73B
         | cash on hand. $10B would go a long ways towards establishing an
         | institution like this. Even better if other FAANG companies
         | joined by providing seed funding, but maybe that looks too
         | anti-competitive these days? (the incentive for providing
         | initial funding could be a stipulation that funding companies
         | get a break on IP license fees)
         | 
         | Of course, as someone else mentions in this thread, this
         | institution should learn from PARC's mistakes and do a better
         | job of licensing their IP in order to keep operating for a
         | longer term.
         | 
         | I suspect we really need something like this. Bell Labs (and
         | PARC) gave our economy a technological boost that it wouldn't
         | have had without them. Maybe a revitalized SRI (with some
         | additional outside funding) could become what you're talking
         | about?
        
           | akozak wrote:
           | Figuring out the right amount of endowment is quite
           | difficult, but you certainly need a LOT to get the outcomes
           | like PARC. Are you running it off interest or burning down
           | the pot? Also possible that we are simply in a different
           | techno-economic and scientific moment than those researchers
           | were (ie it was cheaper for them).
           | 
           | Also once you start framing it as investment or a biz
           | decision in a big public company, the natural question is
           | whether it's the best use of capital for Apple. It's not
           | really about short vs longterm thinking either, it's about
           | the deployment with the highest likelihood to return on any
           | timeframe.
        
             | UncleOxidant wrote:
             | > Are you running it off interest or burning down the pot?
             | 
             | At some point in the future there should be some IP that
             | could be licensed.
             | 
             | If you're starting out with, say, a $10B endowment there
             | should be investments that could sustain a certain level of
             | operation for quite a long time until that IP license
             | income kicks in. Towards the end of the article they talk
             | about the land that PARC is situated on and how that's now
             | very valuable and will provide a source of income for the
             | new SRI/PARC - so they seem to have lucked out with a real
             | estate investment that they didn't realize at the time
             | would payoff later.
        
         | trhway wrote:
         | >if there were an industrial research lab again that doesn't
         | demand immediate ROI
         | 
         | wasn't for example OpenAI exactly that? The difference from the
         | old times here seems to be that any advances are easily
         | monetized today due to gigantic VC available, and thus the
         | immediate ROI demand immediately arises from inside - from the
         | employees, from the CEO down to lowest rank-and-file, who see
         | the immediate potential to turn the advance into billions on
         | the spot. Imagine if Alan Key and his colleagues could turn
         | their inventions into billions in the next few months after
         | making those inventions - I doubt they would have let Jobs to
         | take the tour and practically steal the IP.
        
           | linguae wrote:
           | You brought up something very interesting that I wish more
           | people emphasized when discussing PARC. Alan Kay and his
           | colleagues were not indifferent to business, far from it. In
           | fact, they actively tried to get Xerox to commercialize their
           | technologies. Many of them got frustrated and either joined
           | other companies (Alan Kay went to Atari before going to
           | Apple, Larry Tesler joined Apple before Alan Kay did, Charles
           | Simonyi went to Microsoft and took Bravo with him, which
           | helped lead to Microsoft Word) or started their own (Adele
           | Goldberg started PARCPlace to commercialize Smalltalk).
        
         | foobiekr wrote:
         | One of the underappreciated reasons both Bell Labs and PARC
         | worked was they actually hired a lot of people who had already
         | established themselves. One of the problem with young
         | researchers, no matter how nobly minded, is that they will play
         | the game. A PARC today would have almost no chance to avoid
         | becoming a trend following mess.
         | 
         | This is part of how they avoided the ROI catastrophe
         | (researchers with enough cred could argue that there was a long
         | term potential) and the publish or perish issues.
        
       | AlbertCory wrote:
       | > Xerox executives had always responded that though they did not
       | successfully compete in the computer market, they got a huge
       | return on their investment by commercializing the laser printer
       | technology PARC invented.
       | 
       | >But many researchers who were at PARC's halcyon early days said
       | that its strength was that their research was unconstrained by
       | the need to create a specific product -- a notion that seems hard
       | to imagine in today's product-oriented Silicon Valley.
       | 
       | The "but" is not necessary there. Both are true. Printers became
       | a $2B a year business.
       | 
       | Coulda been so much more? Absolutely.
        
         | readyplayernull wrote:
         | Wait, how much did they get from selling Apple the UI and
         | mouse?
        
           | linguae wrote:
           | $200,000 net ROI from a $1.2 million sale of Apple's pre-IPO
           | shares in 1979 or 1980 dollars, though it could've made much,
           | much more had Xerox held on to those shares:
           | 
           | https://livingcomputers.org/Blog/What-Really-Happened-
           | Steve-...
        
             | AlbertCory wrote:
             | excellent.
             | 
             | Jerry Morrison and I analyzed in depth what they _should_
             | have done:
             | 
             | https://www.albertcory.io/lets-do-have-hindsight
             | 
             | Most people don't know that, in the 80's, they DID spin off
             | a number of companies, where Xerox's only investment was a
             | license to use the technology.
             | 
             | Had they held onto Apple and all those, they'd be one of
             | the biggest holding companies in the world, if not _the_
             | biggest.
        
               | readyplayernull wrote:
               | Amazing! Please do an HN submit.
        
           | warkdarrior wrote:
           | You cannot blame the blatant lack of business vision and
           | business acumen on researchers.
        
           | woodson wrote:
           | Not sure, but the mouse was invented at SRI.
        
       | jmspring wrote:
       | Every time I see Parc mentioned, I miss going their for various
       | talks. A friend worked there in the AV department and I got to
       | see a lot of talks I would not otherwise. I also loved showing up
       | one time when they had an exhibit of David Huffman's paper
       | folding -
       | 
       | https://mitmuseum.mit.edu/collections/collection/david-a-huf...
       | 
       | Parc, HP Labs, etc. were places of innovation back in the day -
       | even things going on well into the 2000s.
       | 
       | Sadly most companies don't do or value that type of research
       | anymore.
        
         | AlbertCory wrote:
         | Reminds me: I THINK I heard PARC was going to resume those
         | evening talks. No details, sorry.
        
       | skadamat wrote:
       | Highly recommend reading Scientific Freedom (published by Stripe
       | Press in fact) which touches on the important topic of the
       | shrinking freedom in professionalized scientific research:
       | 
       | https://www.amazon.com/Scientific-Freedom-Civilization-Donal...
        
       | lispm wrote:
       | Alan Kay recently gave a talk touching similar topics:
       | 
       | https://www.youtube.com/watch?v=dZQ7x0-MZcI
        
       | kensai wrote:
       | This: "Whatever happened to Xerox's $1.05 million dollar
       | investment in Apple in 1979? Had Xerox held onto this stake of
       | the company, approximately 5-8% of the total outstanding equity
       | in Apple at that time, their investment could be worth tens of
       | billions of dollars today. Famously however, Xerox did not even
       | retain their stake until Apple's 1980 IPO. Instead, they almost
       | immediately turned around and sold their shares for approximately
       | $1.2 million, netting a return on their investment of around
       | $200,000. Apple and their competitors, inspired by PARC's
       | inventions, would go on to generate trillions of dollars of
       | revenue over the coming decades selling desktop personal
       | computers with bitmapped displays and mouse-driven GUIs just like
       | the Xerox Alto."
       | 
       | What a facepalm! >_<
        
       | UncleOxidant wrote:
       | > _PARC could be revived only if Mr. Parekh could find a way to
       | build some "slack" into the system by finding money to support
       | open-ended research projects. SRI may have found that slack. The
       | research laboratory is located in Menlo Park, Calif., in walking
       | distance to the San Francisco to San Jose commuter rail line on
       | 63 of Silicon Valley's most valuable acres._
       | 
       | Are they saying that they'll raise the money by doing real estate
       | development? Could work, they certainly don't need all of the 63
       | acres. Or maybe they don't need any of those 63 acres? They could
       | sell all of it off and move SRI/PARC to some much cheaper area of
       | the country.
        
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