Dealers of Lightning

Starred review from March 1, 1999
Anyone who uses a personal computer is familiar with technologies pioneered by Xerox's Palo Alto Research Center (PARC), which started operation in 1970. The received wisdom is that Xerox muffed the chance to dominate the personal computer era by allowing revolutionary technologies developed at PARC to be snatched up by strangers and rivals (most famously, Apple, which took the mouse and the graphical user interface from PARC). L.A. Times reporter Hiltzik argues that the received wisdom is wrong. He expertly situates the story of which products actually made it to market for Xerox (e.g., the laser printer) and which technologies Xerox leaked away (WYSIWYG word processing, hypertext, Ethernet and TCP/IP, to name a few) in a broader analysis of the role of basic science research in business. He praises Xerox execs for understanding the difference between basic research and product development and for exempting PARC from the stultifying effect of having to do the latter. Among the many facts of life on the cutting edge that Hiltzik makes abundantly clear is that very bad decisions are often made for very good business reasons. While granting that Xerox could certainly have better exploited the new technologies issuing from PARC, he emphasizes that the company brought together "a group of superlatively creative minds at the very moment when they could exert maximal influence on a burgeoning technology, and financed their work with unexampled generosity." This is a top-notch business page-turner. Unburdened by any gee-whiz jaw-dropping, yet fully appreciative of the power of creative minds, it is informed by a sure understanding of the complex relationship between business and technology. Major ad/promo.