Jon Gertner: True Innovation at Bell Labs
“INNOVATION is what America has always been about,” President Obama remarked in his recent State of the Union address. It’s hard to disagree, isn’t it? We live in a world dominated by innovative American companies like Apple, Microsoft, Google and Facebook. And even in the face of a recession, Silicon Valley’s relentless entrepreneurs have continued to churn out start-up companies with outsize, world-changing ambitions.
But we idealize America’s present culture of innovation too much. In fact, our trailblazing digital firms may not be the hothouse environments for creativity we might think. I find myself arriving at these doubts after spending five years looking at the innovative process at Bell Labs, the onetime research and development organization of the country’s formerly monopolistic telephone company, AT&T....
In his recent letter to potential shareholders of Facebook, Mark Zuckerberg noted that one of his firm’s mottoes was “move fast and break things.” Bell Labs’ might just as well have been “move deliberately and build things.” This sounds like the quaint pursuit of men who carried around slide rules and went to bed by 10 o’clock. But it was not.
Consider what Bell Labs achieved. For a long stretch of the 20th century, it was the most innovative scientific organization in the world. On any list of its inventions, the most notable is probably the transistor, invented in 1947, which is now the building block of all digital products and contemporary life. These tiny devices can accomplish a multitude of tasks. The most basic is the amplification of an electric signal. But with small bursts of electricity, transistors can be switched on and off, and effectively be made to represent a “bit” of information, which is digitally expressed as a 1 or 0. Billions of transistors now reside on the chips that power our phones and computers....
At Bell Labs, the man most responsible for the culture of creativity was Mervin Kelly. Probably Mr. Kelly’s name does not ring a bell. Born in rural Missouri to a working-class family and then educated as a physicist at the University of Chicago, he went on to join the research corps at AT&T. Between 1925 and 1959, Mr. Kelly was employed at Bell Labs, rising from researcher to chairman of the board. In 1950, he traveled around Europe, delivering a presentation that explained to audiences how his laboratory worked.
His fundamental belief was that an “institute of creative technology” like his own needed a “critical mass” of talented people to foster a busy exchange of ideas. But innovation required much more than that. Mr. Kelly was convinced that physical proximity was everything; phone calls alone wouldn’t do. Quite intentionally, Bell Labs housed thinkers and doers under one roof. Purposefully mixed together on the transistor project were physicists, metallurgists and electrical engineers; side by side were specialists in theory, experimentation and manufacturing. Like an able concert hall conductor, he sought a harmony, and sometimes a tension, between scientific disciplines; between researchers and developers; and between soloists and groups....
THERE was another element necessary to Mervin Kelly’s innovation strategy, an element as crucial, or more crucial even, than all the others. Mr. Kelly talked fast and walked fast; he ran up and down staircases. But he gave his researchers not only freedom but also time. Lots of time — years to pursue what they felt was essential. One might see this as impossible in today’s faster, more competitive world. Or one might contend it is irrelevant because Bell Labs (unlike today’s technology companies) had the luxury of serving a parent organization that had a large and dependable income ensured by its monopoly status. Nobody had to meet benchmarks to help with quarterly earnings; nobody had to rush a product to market before the competition did.
But what should our pursuit of innovation actually accomplish? By one definition, innovation is an important new product or process, deployed on a large scale and having a significant impact on society and the economy, that can do a job (as Mr. Kelly once put it) “better, or cheaper, or both.” Regrettably, we now use the term to describe almost anything. It can describe a smartphone app or a social media tool; or it can describe the transistor or the blueprint for a cellphone system. The differences are immense. One type of innovation creates a handful of jobs and modest revenues; another, the type Mr. Kelly and his colleagues at Bell Labs repeatedly sought, creates millions of jobs and a long-lasting platform for society’s wealth and well-being....