Bell Labs "created many of the foundational innovations of the modern age," writes Jon Gertner, author of The Idea Factory: Bell Labs and the Great Age of American Innovation — from transistors and telecommunications satellites to Unix and the C programming language. But what was the secret to its success? he asks in a new article for the Wall Street Journal. Start with its lucky arrival in a "problem-rich" environment, suggests Arno Penzia, winner of one of Bell Labs' 11 Nobel Prizes:It was Bell Labs' responsibility, in other words, to create technologies for designing, expanding and improving an unruly communications network of cables and microwave links and glass fibers. The Labs also had to figure out ways to create underwater conduits, as well as switching centers that could manage the growing number of customers and escalating amounts of data.... Money mattered, too. Being connected to AT&T, the largest company in the world, was an advantage. The Labs' budget was enormous, and accounting conventions allowed its parent company to make huge and continuing investments in R & D. The generous funding, moreover, allowed scientists and engineers to buy and build expensive equipment — for instance, anechoic chambers to create the world's quietest rooms... The most fortunate part of Bell Labs' situation, however, was that in being attached to a monopoly it could partake in long-term thinking... Without competition nipping at its heels, Bell Labs engineers had the luxury of working out difficult ideas over decades. The first conceptualization of a cellular phone network, for instance, came out of the Labs in the late 1940s; it wasn't until the late 1970s that technicians began testing one in Chicago to gauge its potential. The challenge of deploying these technologies was immense. (The regulatory hurdles were formidable, too....) The article also credits the visionary management of Mervin Kelly — who fortunately also "had access to funding in a decade when most executives and universities didn't" to hire the brightest people. (By the early 1980s Bell Labs employed about 25,000 researchers, technicians and support staff, with an annual budget of $2 billion — roughly $7 billion in today's dollars.) "The Labs' involvement in World War II suggested to Kelly that an exciting postwar era of electronics was approaching, but that the technical problems would be so complex that they required a mix of expertise — not just physicists, but material scientists, chemists, electrical engineers, circuitry experts and the like."At Bell Labs, Kelly would sometimes handpick teams and create such a mix, as was the case for the transistor invention in the late 1940s. He came to see innovation arising not from like-minded or similarly trained people conversing with each other, but from a friction of ideas and approaches. It meant hiring researchers who had different personalities and favored a range of experimental angles. It also meant personally designing a campus in Murray Hill where departments were spread apart, so that scientists and engineers would be forced to walk, mingle and engage in serendipitous conversations and debate ideas. Meanwhile, under Kelly, the Labs focused on hiring people who were deeply curious, not just smart. Kelly saw it as his professional duty to do far more than what was expected, with his laboratory and vast resources, to create new technologies... The breakup of AT&T's monopoly, which led to a steady shrinking of Bell Labs' staff, budget and remit, shows us that no matter how forward looking your employees and managers may be, they will not necessarily see the future coming. It likewise suggests that technological progress is too unpredictable for one organization, no matter how powerful or smart, to control. Famously, Bell Labs managers didn't see value in the Arpanet, which eventually led to today's internet. And yet, for at least five decades, Bell Labs created a blueprint for the global development of communications and electronics. In understanding why it did so, I tend to think its ultimate secret may be hiding in plain sight. The secret has to do with Bell Labs' structure — not only being connected to a fabulously profitable monopoly, but being connected to a company that could move theoretical and applied research into a huge manufacturing division that made telecom equipment (at Western Electric) and ultimately into a dynamic operating system (the AT&T network)... Scientists and engineers at the Labs understood their ideas would be implemented, if they passed muster, into the huge system its parent company was running. Bell Labs racked up about 30,000 patents, according to the article, and celebrated its 100th anniversary last April. It is now part of Finland-based Nokia.Read more of this story at Slashdot.