Archive for February, 2010

“Debating the Science” vs “Debating Science”

Thomas Friedman reports that Senator Lindsey Graham has become one of the first Republicans to indicate a willingness to advance climate change legislation. While we should all welcome Senator Graham’s change-of-mind, I am alarmed by his rationale. In essence, Senator Graham is jumping on the climate change bandwagon because he thinks it is good politics, not because he thinks it is sound science. He still maintains that “You can have a genuine debate about the science of climate change….”

Let’s be clear: There is widespread consensus in the scientific community that human activity is catapulting us toward a climate calamity. As such, Senator Graham’s nonchalant dismissal of this consensus are highly irresponsible. Most damaging of all, ordinary citizens hear his words and they start wanting not just to “debate the science”, but rather to “debate science” itself. He gives fodder to those who seek to discredit the entire scientific method.

Just last week, for example, I was walking down the National Mall in D.C. when I overheard two young men discussing how they thought global warming was a complete fallacy. They truly believed that it was a left-wing conspiracy to avenge Al Gore’s loss of the presidency in the 2000 elections. To prove this conclusion, one of the men proudly observed, “Just look at all of the snow D.C. got this year!”

Really, I hold no malice towards my fellow citizens who think that global warming is not real. But hearing those two men dismiss a solid scientific consensus as a conspiracy really got me wondering: despite all the standard science classes they had to take in high school, how could they have such a low opinion of scientific conclusions?

My perspective is that while our nation’s science teachers do an excellent job at teaching the “facts” of science, they need to do a lot better at teaching the philosophy and methods underlying science. In other words, rather than just teach the “what” of science, they need to teach more of the “how”. If they did, more people would understand that science is based upon doubt, not faith. So when scientists reach a consensus, it is not to be taken lightly. And furthermore, it is to be expected that fringe scientists will emerge who think they can shatter the consensus. Although that fringe is almost always dead wrong, they will always exist because success in science is geared towards disproving the current dogma. Sadly, most climate change deniers just don’t understand that science works this way.

Most of us fluent in science forget that as a philosophy, science is radically different than most other realms of human epistemology. Religion, for example, is not based upon doubt. It is based upon faith. So when science is taught as a series of facts rather than a methodology, people can’t see how it is any different from religion. They expect scientists to be “priests” revealing the truth. And when they read reports of debate within the scientific community, they think scientists are in a confused state of disarray. They lose their “faith” in science, when in fact it is operating perfectly.

Therefore, I close with a simple message for Senator Graham: I’m glad that you are helping to advance meaningful legislation to solve the climate crisis. But while you are at it, also be sure to also double down on federal funding of science education. Scientific debate is too important to America’s future to let the existence of those debates erode the public’s respect for science itself.

The Accidental Entrepreneur

For the second day in a row, I’d like to weigh in on a contentious debate. The topic this time: Are great entrepreneurs born that way, or can they be made?

Vivek Wadhwa, a very insightful scholar on entrepreneurship, wrote a post on TechCrunch presenting data that he says shows that most successful entrepreneurs were not “born” with a desire to build companies. Instead, they stumbled onto this path later in life. From my own experience, and from my observations of many of my peers, I find his data and his conclusions to be spot-on.

From a policy standpoint, the reason this is so important is that the vast majority of America’s economic growth comes from new ventures. So if we can find out how to scale up the number of entrepreneurs, we can achieve much more vibrant economic growth. As Vivek notes, this is a primary goal of the Kauffman Foundation, who have put together a curriculum to teach entrepreneurial skills to would-be entrepreneurs.

But I want to look back one step in the pipeline: Even if we assume that entrepreneurial skills can be “taught”, and even if we assume that a suitable curriculum can be assembled, how do we make people interested in becoming entrepreneurs in the first place? The conventional wisdom is that capitalism already provides the proper incentives. After all, if you build a successful company, you are likely to become very wealthy. Isn’t that enough motivation?

In my view, people who are primarily after financial rewards are the most anemic entrepreneurs. Instead, most of the men and women who have built America’s greatest companies were not originally motivated by wealth creation. They were just having fun.

Examples of this principle abound. Larry Page and Sergey Brin didn’t build Google because they wanted to be rich. They built Google as part of their grad school research; their passion was data mining. In fact, they didn’t want to even build a company. They would have been happy just licensing the technology. Had Yahoo taken them up on the offer, there would be no Google at all. Going back further in history, Apple was able to market an “insanely great” computer because the Woz was a gigantic hardware geek and had already built a phenomenal product — just for fun. He simply loved the challenge of designing elegant circuits. For a more modern-day example, Facebook wasn’t originally conceived as a business either. Mark Zuckerberg and friends were simply combining two of their passions: hacking code and finding women to date. The result was Facebook. Once it was clear they had a hit on their hands, only then did they form a company.

In essence, all of these innovators were accidental entrepreneurs. They were having a blast following a passion, and only later decided to take the leap to entrepreneurship. Therefore, the big challenge in my mind is not whether or how to “teach” entrepreneurship, but rather how do we get people in our society to better follow their passions? How do we get people to choose a line of work because they find it fun? If we could celebrate a set of social values that places a preeminence on working for fun rather than for wealth, I think we’d see far more entrepreneurship in our country. That, in turn, would create far more prosperity.

Business Method Patents

While we’re on the topic of patents today, I thought this would be a perfect opportunity to share my dissertation that I wrote at Cambridge for my graduate degree in policy. During my time there, I became deeply interested in the topic of innovation policy, so I chose to write my dissertation on Business Method Patents, which were very contentious at the time (and still are). Going in to this investigation, I was neutral towards these instruments. But after my research, I came out against them because I deemed them to be an unnecessary encumbrance to innovation. Here is the abstract:

This dissertation asks the question, “If business method patents were forbidden, would there be less innovation in developing new business processes?” We ask this question because if business method patents can’t pass this utilitarian test, then there is no reasonable justification for this patent regime. To understand the original rationale behind business method patents, we start our investigation by summarizing their legal history. Then, using economic theory, we try to predict which firms would be most harmed if business method patents didn’t exist. Finally, we bring this theory into the realm of reality by conducting a case study on the competitive landscape of firms in the online auction industry. Based on this evidence, we discover that the only firms that clearly benefit from business method patents are ‘patent factories’—firms that patent business processes for the sole purpose of licensing them to other companies. Most other types of firms see business method patents as an encumbrance. Given this skewed balance, it appears that these patents fail the utilitarian test. Without them, there might actually be greater innovation in the competitive arts.

A lot has happened in the world of business method patents since I wrote my dissertation. At the time, they were permissible under US Law. But then in 2008 the Federal Circuit, in the famous Bilski decision, struck down the patenting of business methods that cannot be instantiated as a machine. Currently, the Supreme Court is grappling with the issue and has yet to make a ruling. Hopefully by making my dissertation public, I can do my little part to help in this debate.

If you are interested in this topic, please read the dissertation in its entirety: Business Method Patents: A Faustian Bargain With Fosbury Flops. I am making it available under the following Creative Commons license. Let me know what you think!

On a side note, I realize that I have a ton of old papers that others may find interesting but that I was too busy to publish. I will try to periodically release them via this blog so that they may be of some good to somebody.

Facebook’s Newsfeed Patent as Peace-Keeper

The cognoscenti are up in arms over Facebook’s recent patent on social network newsfeeds. Some say this is proof that Facebook is evil and doesn’t care about internet users. As a keen student of patent strategy over the last several years, I have a different opinion: Given the current legal landscape of patent law, Facebook is simply operating as a rational actor.

The most likely explanation is that Facebook applied for the patent only as a defensive measure. What this means is that they want to use this patent as leverage against other companies that in turn might sue Facebook for emulating features that those other companies have patented. In the lingo of patent law, Facebook is buying themselves “freedom to operate” by ensuring they can incorporate features from other networks which add value to Facebook. That can’t be bad for users.

But, for fun, let us assume a world where Facebook is indeed malevolent. Once they’ve locked up patents on newsfeeds, they go around suing every other social network that has incorporated this feature. In reality, that would be profoundly unwise because those competitors are likely to hold patents that Facebook infringes. The resulting lawsuits, countersuits, and counter-countersuits would produce no winners. Just a waste of time and money. Everybody knows that would be the outcome so it is unlikely to happen.

Sure, software patents may be bad for innovation. Sure, this specific patent may not be valid. But the fact is that Facebook has to run their company under today’s policy regime. From a patent perspective, it’s a dangerous world out there. Facebook needed this newsfeed patent to protect themselves. It will be a potent “peace-keeper” that will deter other companies from engaging in frivolous litigation, no matter if Facebook is benevolent or malevolent.

Facebook, please don’t prove me wrong.

Blogging Doesn’t Come Easily to Me

I’ll admit it. Blogging regularly is going to be hard for me to do.

Unfortunately, I’m the kind of person who holds the deepest respect for the written word. I believe that when someone composes a message for the world, they should take the time to craft it well.

This attitude seems to be quite antithetical to the culture of blogging. People’s posts tend to trade away elegance in exchange for immediacy. It’s all about discussing the here and now– careful editing be damned.

Over the years, I’ve been blessed to have been the student of some terrific writing mentors, like Robert Baldwin and Robert Kanigel. I can’t help but want to honor the lessons these great writers have taught me. Given the limited time I have to blog, the net result could very well be that many posts remain unwritten.

But the time has come for me to cast aside these inhibitions. I’ll try to write posts regularly. Although I won’t be able to compose them with as much care and attention as I’d like, hopefully I’ll still do my mentors some justice. Let’s see how it goes….

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Welcome to the blog of Samidh Chakrabarti, which revolves around the topic of innovation (from technology to entrepreneurship to policy), sprinkled with ample doses of et cetera.

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