Chapter 332: Lessons Learned!

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Under the increasing penetration of Wall Street, the intensification of market competition once forced Bell Labs to shift the focus of the entire R&D strategy to the transformation of scientific research results.

But this is contrary to the tradition of Bell Labs, where for decades before that, people engaged in basic research and product development were not in direct contact with the business.

In the time that followed, the situation did not improve, and AT&T was broken down again for the second time, and Bell Labs was completely spun off from its parent and assigned to Lucent Technologies, which specializes in the research of communication technology and its equipment.

Without the big backer of AT&T, the sparkle of Bell Labs gradually dimmed, and Lucent's profits were not enough to feed a giant laboratory with tens of thousands of people. Bell Labs had to start restricting the freedom of scientists and engineers, who were asked to shift their research to research that would generate profits as quickly as possible, and although there were still technological breakthroughs and innovations, this was completely different from the inventive innovation of Bell Labs.

The lack of funding has created a strong sense of crisis among researchers, a tight timetable is constantly urging them to speed up the project, and all the impetus for innovation comes from the pursuit of economic profits, all of which undoubtedly weaken Bell Labs' ability to invent and create.

In the memory of Yang Jie's previous life, Lucent, which has stepped into the threshold of the new century, is constantly laying off employees and reducing funds under the pressure of competition, and the situation of Bell Labs is even more worrying.

In order to reverse the situation, the president of Bell Labs simply started a business model, and the tech giants were asked to do business projects and market analysis. This is undoubtedly a very sad thing for Bell Labs, which has always been known for its research.

Later, Lucent merged with Alcatel of France to become the new parent of Bell Labs, but the predicament was not reversed.

Under multiple shocks, Bell Labs' medium- and long-term research was unsustainable, and Aaron was forced to sell the Bell Labs building in Homed, New Jersey, and the basic physics research that had won seven Nobel Prizes for Bell Labs was completely abandoned.

It was such a highly decorated research institute that in '08 abandoned its once-proud research in fundamental physics and focused more on areas such as networking, high-speed electronics, radio, nanotechnology, software, and other fields that could pay off for its parent company more quickly.

With the sale of the Bell Labs building in Homed, New Jersey – time has passed, the building has emptied, and the supreme temple of scientific research has finally been reduced to a commercial property valued at a per-square meter valuation.

Yang Jie also had a whim a few years ago, replacing PHS communication network technology with LAN communication network technology, and finally using LAN communication network technology on a large scale, directly entering the 4G era, Huaxing Technology Group Co., Ltd. has mastered the key core technology, and now extends from LAN wireless communication network technology to copper core twisted pair telephone line broadband and care broadband.

In fact, before Huaxing Technology Group and Qualcomm, Ericsson, and Nokia carried out technology cross-licensing this year, Yang Jie had already targeted some Chinese scientists working in Bell Labs.

More than a year ago, the U.S. branch of Huaxing Technology Group Co., Ltd. had already secretly contacted a number of scientists from Bell Labs, each of whom covered a field, including Qiu Wenchang focusing on CDMA research, Guo Tairen focusing on CDMA2000 research, Zhang Zhengyang focusing on hardware, and Charles J. Barroso, on the other hand, specializes in DSP software development, and these scientists hold 105 patents before the U.S. Patent and Trademark Office, and have more than 195 papers published in core journals and conferences.

These scientists have joined the laboratory of Huaxing Technology Group in the United States, focusing on the research, development and sales of the core components of CDMA mobile phones, including ASIC chips and supporting systems.

Yang Jie wants to enter the CDMA communication network market in the United States, but he does not want to purchase chips from overseas.

As a reborn, Yang Jie is well aware that in the world, economic benefits dominate everything, and the development of science and technology is almost completely subject to economic benefits. It is in this environment that it is inevitable that the large-scale research institutes of invention represented by Bell Labs will decline or even close down one after another, but these utilitarian guys on Wall Street in the United States have concentrated their energy on the financial industry and deindustrialized, and it is they who have died themselves.

In fact, Yang Jie is not very concerned about the outcome of the decline of Bell Labs, what he really cares about is the real reason for the decline of Bell Labs.

R&D is always based on a certain economic foundation, especially in this kind of inventive and creative innovation activities, a large amount of capital investment is inevitable.

This was not a cause for concern for the early days of Bell Labs.

At the time of its establishment, Bell Labs' parent company had already captured 90% of the U.S. market in the field of wired and wireless telephony, and had grown from a small private enterprise into a deep-pocketed monopoly.

Monopolies such as the parent company have also become the foundation of Bell Labs, especially the parent company attaches great importance to Bell Labs, and has never been stingy on financial issues.

It is understood that at that time, individuals with assets of more than $10,000 could be included in the wealthy class, and the first annual scientific research funding received by Bell Labs was as high as $12 million.

At that time, 12 million was an astronomical number, but thanks to this, Bell Labs was able to employ 3,200 people, including a large number of scientists engaged in basic research and engineers working on technology research and development.

Later, the funds of Bell Labs were linked to the sales revenue, and about 4%~5% of the sales revenue was used as the annual R&D fund of the laboratory.

This mechanism has further ensured the source of scientific research funding for Bell Labs, so the researchers who have been shuttling around the Bell Labs building for many years have never worried about scientific research funding.

The strong economic foundation enables researchers to use the best research equipment, and the laboratory has its own instrument factory to prepare new research instruments for the laboratory in a timely manner, so that all scientific ideas, including those that have just germinated, can be put into experiments as quickly as possible, which is why Bell Labs has always been able to quickly seize the commanding heights of scientific and technological innovation.

Now Huaxing Technology Group Co., Ltd. has invested a lot in the laboratory, and has invested more than 3 billion US dollars in the construction of the laboratory in recent years, a large part of which is concentrated in the procurement of equipment, because the domestic instrument production chain has been very seriously damaged in the past ten years, but now the instrument factory established by Huaxing Technology Group Co., Ltd. has begun to prepare experimental instruments for the laboratory, Yang Jie believes that in another five or six years, the various special equipment needed by the laboratory should be able to be prepared.

However, what Yang Jie values most is the R&D environment of Bell Labs, which is far from enough to rely on the hard environment such as scientific research funds and equipment, and how to create an excellent soft environment is also a key point.

The soft environment is attractive, attracting more outstanding talents to gather here, creating an atmosphere, and the exchange of ideas and wisdom of outstanding talents will produce more ideas and results.

Bell Labs has experience in creating soft environments.

The management positions at Bell Labs follow the corporate norms, but with the difference that each level of leadership is held by a recognized technical authority in a particular field.

In terms of the position of president, Bell Labs will have a major R&D direction in each period, and the experts who have achieved great achievements in this direction and are rich in organizational management ability are the best candidates for president.

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