File 8: Government and innovation (ICT revolution)

Question 1

Explain the invention of the transistor.

Answer 1

By the Bell Labs (part of AT&T) in early 1950s
1. ATT patented the transistor
2. ATT could of produced and sold transistors at high price or license the right to produce and use technology at high fee
3. it didnt because of antitrust lawyers in department of justice
4.the cie: informed competitors and potential buyers and license the technology to other producers in exchange for a modest fee and licensed access to competitors technology (cross licensing)
5.=> gave acess to ATT to new technology in industry
6.=> allowed other industry to improve the transistor: Texas Instruments produced teh 1st commercially successful transistor (military was a large customer)
=> antitrust contributed to the rapid spread of use of transistor and improvements of the transistor

Question 2

How did the military play a major role in the development of the transistor?

Answer 2

1. the integrated circuit was developped in response to military demand for reliable components
2. the product was sold to consumers at a lower price because the development costs were covered by the military (willing to subsidize RD on the components it bought)
3. the military in teh US were willing to buy products from firms that were not well established in the industry unlike europe (texas instrument)
4. to protect itself from a firm exiting industry it required that suppliers allow a second source=desing and process knowledge had to be shared => allowed for improvement of technology

Question 3

Explain the development of the computer in the US. (from WWII to 1960s)

Answer 3

1. WWII: military funded research at u of pennsylvania developed ENICA (electronic numerical integrator and computer) to compute firing tables for artillery
2. with further military funding: created imroved version= EDVAC (electronic desicrete variable automatic computer) => not patented bc lawyers deemed as public domain
3. government and military firt major purchasers of computer but from the 1950s the commercial market grew parallely
4. 1960s- commercial use increased and allowed development of computer industry

Question 4

What role did universities play in the development of the computer industry?

Answer 4

universities allowed the flow of information between civilian and universities and help the software bottleneck

Question 5

In the electronic revolution that led to the development of the computer, what was the role of the government? (3)

Answer 5

1. Military procurement reduce risk and cost of development of transistors, integrated circuits and computers
2. US universities which were financed by the government were the core location of research on computers and software, and provided trainign program that help diffuse transistor
3. government policy with respect to IP: threat of antitrust enforced ATT to make transistor broadly available and the decsion of putting EDVAC into public domain contributed to the diffusion of technology and allowed commercial entreprise to take it and improve it