ggr@pyuxbb.UUCP (09/27/83)
/***** 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." /* ---------- */