Reducing the Time from Basic Research to Innovation in the Chemical Sciences A Workshop Report to the Chemical Sciences Roundtable (2003) / Chapter Skim
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10. The Tacit Economics of Modeling: Indifference Curves that Should Defy Indifference
10. The Tacit Economics of Modeling: Indifference Curves that Should Defy Indifference
Pages 90-98
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From page 90... ...
we change the quantity and quality of people's -- -D- -- -- 71~ -- -- -~ ~ -- ~ 71~ -- -~ -- r -- r -- ~ -- -- -- -- -I -- -- -' 1Michael Schrage is co-director of the MIT Media Lab's eMarkets Initiative and a senior advisor to the MIT Security Studies Program. His research focuses on the role of models, prototypes, and simulations as essential media for managing innovation and risk.
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From page 91... ...
improvement in managing all the information that goes across the desktop, phone, personal data assistant, cell phone, and Web, or a tool that offers a 20 percent 0.2x improvement in the ability to persuade one's bosses, colleagues, and subordinates. The overwhelming majority of people consistently chose the persuasive tool.
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From page 92... ...
This poor communication usually results in increasingly better models that become increasingly less accessible to nonscientists. If I offer people the choice of either golden goose eggs or the goose that lays the golden eggs, most choose the goose.
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From page 93... ...
The people who really manage to build funding, create community, and obtain the interest of 1- - - 1- - ' ' venture capitalists all use participatory styles. With this in mind, what are some actions to take that will manage some of the pathological issues associated with models, the things that you could actually use in an organization to leverage the modeling simulation, and the prototyping infrastructures that you have to manage for the innovation process?
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From page 94... ...
It would be very interesting to pick those same economics principles and apply them to the planning of a chemical or chemical engineering experiment, treating that as the marketplace. Such research could discover the tradeoff between rational investment decisions and distortions in behavior because of prospect, theory, biases, cognitive biases, and the like.
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From page 95... ...
You could iterate a thousand times. Michael Schrage: No, whenever you have an abundance of a resource, lots of time, lots of people, there is an issue of waste, and when we are dealing in a competitive environment, you need to know when you have hit the point of diminishing returns.
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From page 96... ...
There is a major ideological battle going on between the normativists and the positivists. That battle is fundamentally based on the core of economics how people should behave which exemplifies rational choice versus actual behavior.
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From page 97... ...
Image of the City by Kevin Lynch discusses the mental maps that people have. In this book, cognitive maps and spatial representations are tied into the architecture of city planning, which is directly relevant to many issues in design.
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From page 98... ...
A wealth of doctoral theses will be done along the dimension of in which industries do the vendors use the customers' models, and we are seeing the supply chain management, and in what industries do the customers use the vendor models, which we oftentimes see in aerospace or high-tech industries, where the suppliers' competitive advantages are disproportionately more sophisticated than their customers'. There are information asymmetries in certain industries regarding whether the supplier or the customer has a competitive advantage by using models.
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