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51-535: SRI Future Concepts Division (formerly Palo Alto Research Center , PARC and Xerox PARC ) is a research and development company in Palo Alto, California . It was founded in 1969 by Jacob E. "Jack" Goldman , chief scientist of Xerox Corporation , as a division of Xerox , tasked with creating computer technology-related products and hardware systems. Xerox PARC has been foundational to numerous revolutionary computer developments, including laser printing , Ethernet ,

102-595: A physicist specializing in nuclear magnetic resonance and provost of Washington University in St. Louis , about starting a second research center for Xerox. On July 1, 1970, the Xerox Palo Alto Research Center opened. Its 3,000-mile distance from Xerox headquarters in Rochester, New York , afforded scientists at the new lab great freedom in their work, but it increased the difficulty of persuading management of

153-471: A 16-bit socket number. The network number has a particular special value which means 'this network', for use by hosts which do not (yet) know their network number. Unlike TCP/IP, socket fields are part of the full network address in the PUP header, so that upper-layer protocols did not need to implement their own demultiplexing; PUP also supplies packet types (again, unlike IP). Also, an optional 2-byte checksum covers

204-515: A particular location. It has a touch screen, stylus, and handwriting recognition . Xerox designed the similar and larger PARCPad. Both devices were developed around the same time as the Apple Newton . PARC's distinguished researchers include four Turing Award winners: Butler Lampson (1992), Alan Kay (2003), Charles P. Thacker (2009), and Robert Metcalfe (2022). The Association for Computing Machinery (ACM) Software System Award recognized

255-445: A way of amortizing the high overhead. They often reuse advanced manufacturing processes, expensive safety certifications, specialized embedded software, computer-aided design software, electronic designs and mechanical subsystems. Research from 2000 has shown that firms with a persistent R&D strategy outperform those with an irregular or no R&D investment program. Research and development are very difficult to manage, since

306-653: Is appealing to bidders because they could gain technologies from acquisition targets. Therefore, firms may gain R&;D profit that co-moves with takeover waves, causing risks to the company which engages in R&D activity. Global R&D management is the discipline of designing and leading R&D processes globally, across cultural and lingual settings, and the transfer of knowledge across international corporate networks. Former President Barack Obama requested $ 147.696 billion for research and development in FY 2012, 21% of which

357-476: Is followed by textiles (19%), digital (18%), and aerospace (15%). Other sectors allocate less than 10% of their total investment to R&D. While 17% of the world’s top R&D investors are based in the European Union, they accounted for only 1% of acquisitions involving EU-based companies between 2013 and 2023. In 2015, research and development constituted an average 2.2% of the global GDP according to

408-627: Is lower than the EU average of 18%. In 2022, 67% of enterprises in the same region deployed at least one sophisticated digital technology, and 69% EU firms did the same. As of 2023, European enterprises account for 18% of the world's top 2 500 R&D corporations, but just 10% of new entrants, compared to 45% in the United States and 32% in China. As of 2024, the electronics sector leads in R&D investment, with 28% of its total investment dedicated to it. This

459-404: Is necessary as well due to the fierce competition and the evolving preferences of consumers. Without an R&D program, a firm must rely on strategic alliances , acquisitions , and networks to tap into the innovations of others. A system driven by marketing is one that puts the customer needs first, and produces goods that are known to sell. Market research is carried out, which establishes

510-479: Is not intended to yield immediate profit, and generally carries greater risk and an uncertain return on investment . R&D is crucial for acquiring larger shares of the market through new products. R&D&I represents R&D with innovation. New product design and development is often a crucial factor in the survival of a company. In a global industrial landscape that is changing fast, firms must continually revise their design and range of products. This

561-596: Is remarkable, and usually gains a reputation for being a high technology company such as engineering company Ericsson 24.9%, or biotech company Allergan , which tops the spending table with 43.4% investment. Such companies are often seen as credit risks because their spending ratios are so unusual. Generally such firms prosper only in markets whose customers have extreme high technology needs, like certain prescription drugs or special chemicals, scientific instruments , and safety-critical systems in medicine, aeronautics or military weapons . The extreme needs justify

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612-447: The Europe 2020 strategy which will run from 2014 to 2020, a multidisciplinary effort to provide safe, economically feasible, environmentally sound and socially acceptable solutions along the entire value chain of human activities. Firms that have embraced advanced digital technology devote a greater proportion of their investment efforts to R&D. Firms who engaged in digitisation during

663-604: The Gateway Information Protocol (an ancestor of RIP ) is used as both the routing protocol , and for hosts to discover routers. PUP also includes a simple echo protocol at the internetwork layer, similar to IP's ping , but operating at a lower level. To establish a transport connection, two protocols came into play. The first, the Rendezvous and Termination Protocol (RTP) , which was used to initiate communication between two entities, as well as manage and terminate

714-611: The Office of Chief Scientist In the 1980s to 1992, the Chief scientist of Israel significantly expanded R&D subsidies in the Israeli industrial sector. Israel invested in the creation of clusters of startups in the high-tech sector as well as venture capital investments. In 1993, Israel initiated the Yozma program , which led to the doubling of value of Israel's 10 new venture capital funds in 3 years. In

765-606: The UNESCO Institute for Statistics . By 2018, research and development constituted an average 1.79% of the global GDP according to the UNESCO Institute for Statistics . Countries agreed in 2015 to monitor their progress in raising research intensity (SDG 9.5.1), as well as researcher density (SDG 9.5.2), as part of their commitment to reaching the Sustainable Development Goals by 2030. However, this undertaking has not spurred an increase in reporting of data. On

816-487: The liquid-crystal display (LCD), some major innovations in optical disc technology, and laser printing were actively and successfully introduced by Xerox to the business and consumer markets. Microsoft co-founder Bill Gates has said that the Xerox graphical interface has notably influenced Microsoft and Apple. Apple Inc. co-founder Steve Jobs said that "Xerox could have owned the entire computer industry, could have been

867-731: The Alto system in 1984, Smalltalk in 1987, InterLisp in 1992, and the remote procedure call in 1994. Lampson, Kay, Bob Taylor , and Thacker received the National Academy of Engineering 's prestigious Charles Stark Draper Prize in 2004 for their work on the Alto. Lynn Conway was recognized by the National Inventors Hall of Fame for her work on VLSI (2023). Xerox has been heavily criticized, particularly by business historians, for failing to properly commercialize and profitably exploit PARC's innovations. Xerox management failed to see

918-543: The IBM of the nineties, could have been the Microsoft of the nineties." 37°24′10″N 122°08′55″W  /  37.40278°N 122.14861°W  / 37.40278; -122.14861 Research and development Although R&D activities may differ across businesses, the primary goal of an R&D department is to develop new products and services. R&D differs from the vast majority of corporate activities in that it

969-796: The base for the Xerox Network Systems (XNS) protocol suite; some of the protocols in the XNS suite (such as the Internetwork Datagram Protocol ) were lightly modified versions of the ones in the PUP suite, but others are quite different, reflecting the experience gained with PUP and IP. The main internetwork layer protocol is PUP, which roughly corresponds to the Internet Protocol (IP) layer in TCP/IP. A full PUP network address consists of an 8-bit network number, an 8-bit host number, and

1020-433: The best measures, because they are continuously maintained, public and reflect risk. In the United States, a typical ratio of research and development for an industrial company is about 3.5% of revenues; this measure is called " R&D intensity ". A high technology company, such as a computer manufacturer, might spend 7% or a pharmaceutical companies such as Merck & Co. 14.1% or Novartis 15.1%. Anything over 15%

1071-424: The company's copier business, Goldman's "Advanced Scientific & Systems Laboratory" aimed to pioneer new technologies in advanced physics, materials science, and computer science applications. In 2002, Xerox spun off Palo Alto Research Center Incorporated as a wholly owned subsidiary. In late April of 2023, Xerox announced the donation of the lab to SRI International . In 1969, Goldman talked with George Pake ,

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1122-565: The computer field was under the leadership of its Computer Science Laboratory manager Bob Taylor , who guided the lab as associate manager from 1970 to 1977, and as manager from 1977 to 1983. Work at PARC since the early 1980s includes advances in ubiquitous computing , aspect-oriented programming , and IPv6 . After three decades as a division of Xerox, PARC was transformed in 2002 into an independent, wholly owned subsidiary company dedicated to developing and maturing advances in science and business concepts. Xerox announced that it would donate

1173-563: The computer prompted the development of the PARC Universal Packet architecture, which is structured much like the modern Internet's architecture. The PARCTab is an experimental mobile computer as an early experiment in Ubiquitous Computing or UbiComp. Its appearance resembles a PDA . Its functionality depends on the user's location, by receiving location-specific information via infrared sensors from gateway nodes installed in

1224-426: The computing industry. Many advancements made at the center were not equaled or surpassed for two decades. Xerox PARC has been the inventor and incubator of many elements of modern computing, including: Most of these developments were included in the Alto, which added the computer mouse . These developments unified into a single model most aspects of now-standard personal computers use. The integration of Ethernet into

1275-505: The connection. The second was the primary transport layer protocol, Byte Stream Protocol (BSP) , which was analogous to TCP . Once RTP had started the connection, BSP took over and managed the data transfer. Like TCP, BSP's semantics and operation were in terms of bytes; this was discarded in favour of packets for the equivalent protocol in XNS, Sequenced Packet Protocol . PUP supported a large number of applications. Some of them, such as Telnet and File Transfer Protocol , were basically

1326-553: The context of commerce , "research and development" normally refers to future-oriented, longer-term activities in science or technology , using similar techniques to scientific research but directed toward desired outcomes and with broad forecasts of commercial yield. Statistics on organizations devoted to "R&D" may express the state of an industry , the degree of competition or the lure of progress . Some common measures include: budgets , numbers of patents or on rates of peer-reviewed publications . Bank ratios are one of

1377-511: The contrary, a total of 99 countries reported data on domestic investment in research in 2015 but only 69 countries in 2018. Similarly, 59 countries recorded the number of researchers (in full-time equivalents) in 2018, down from 90 countries in 2015. UNESCO Institute for Statistics is the global custodian of these R&D data; data can be freely obtained from the UIS database . PARC Universal Packet Early research and development: Merging

1428-411: The defining feature of research is that the researchers do not know in advance exactly how to accomplish the desired result. As a result, "higher R&D spending does not guarantee more creativity, higher profit or a greater market share". Research is the most risky financing area because both the development of an invention and its successful realization carries uncertainty including the profitability of

1479-403: The design work on TCP/IP, and laid a foundation for the later XNS protocols. In June and July 1973, Vint Cerf and Bob Kahn organized INWG meetings at Stanford , and Xerox Researchers Bob Metcalfe and John Shoch attended. However, the Xerox attendees were told by a Xerox lawyer that they could not talk about PUP. During design discussions, the Xerox attendees kept pointing out flaws in

1530-456: The entire packet . PUP packets are up to 554 bytes long (including the 20 byte PUP header ), and the checksum. This is a smaller packet size than IP, which requires all hosts to support a minimum of 576 bytes (but allows packets of up to 65K bytes, if the hosts support them); individual PUP host pairs on a particular network might use larger packets, but no PUP router is required to handle them. Larger packets can be fragmented. A protocol named

1581-586: The global potential of many of PARC's inventions, but this was mostly a problem with its computing research, a relatively small part of PARC's operations. One notable example of this is the graphical user interface (GUI), initially developed at PARC for the Alto and then sold as the Xerox 8010 Information System workstation (with office software called Star) by the Xerox Systems Development Department. It heavily influenced future system design, but

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1632-445: The high risk of failure and consequently high gross margins from 60% to 90% of revenues. That is, gross profits will be as much as 90% of the sales cost, with manufacturing costing only 10% of the product price, because so many individual projects yield no exploitable product. Most industrial companies get 40% revenues only. On a technical level, high tech organizations explore ways to re-purpose and repackage advanced technologies as

1683-507: The ideas that were suggested, until one of the Stanford researchers blurted out, "You guys have already done this, haven’t you?" John Shoch continued to be involved in the development of TCP/IP . Ed Taft was involved in early discussions about email. The biggest impact of PUP was probably as a key component of the office of the future model first demonstrated at Xerox PARC; that demonstration would not have been anything like as powerful as it

1734-782: The invention. One way entrepreneurs can reduce these uncertainties is to buy the licence for a franchise, so that the know-how is already incorporated in the licence. In general, it has been found that there is a positive correlation between the research and development and firm productivity across all sectors, but that this positive correlation is much stronger in high-tech firms than in low-tech firms. In research done by Francesco Crespi and Cristiano Antonelli, high-tech firms were found to have "virtuous" Matthew effects while low-tech firms experienced "vicious" Matthew effects, meaning that high-tech firms were awarded subsidies on merit while low-tech firms most often were given subsidies based on name recognition, even if not put to good use. While

1785-509: The lab and its related assets to SRI International in April 2023. As part of the deal, Xerox would keep most of the patent rights inside PARC, and benefit from a preferred research agreement with SRI/PARC. On January 18, 2024, SRI announced the research group from the PARC will become its Future Concepts division. PARC's developments in information technology served for a long time as standards for much of

1836-548: The late 1990s, Israel was second only to the US in private equity as a share of the general economy. The high tech sector in Israel, known as Silicon Wadi , which earned Israel the nickname - Start-up Nation , was ranked the 4th leading startup ecosystem in the world by Startup genome with a value of $ 253billion in 2023. Europe is lagging behind in R&D investments from the past two decades. The target of 3% of gross domestic product (GDP)

1887-454: The modern personal computer , GUI ( graphical user interface ) and desktop paradigm , object-oriented programming , ubiquitous computing , electronic paper , a-Si ( amorphous silicon ) applications, the computer mouse , and VLSI ( very-large-scale integration ) for semiconductors . Unlike Xerox's existing research laboratory in Rochester, New York, which focused on refining and expanding

1938-517: The more modern OSPF and IS-IS . It is still in use as an interior gateway protocol, in small sites with simple requirements. In terms of flaws, the PUP protocol family was not device independent, in modern terminology the IP and MAC layers were combined into a single layer, which made wide-scale adoption difficult. PUP's 8-bit network and 8-bit host could scale to at most 64k machines, before an inter-network bridge or gateway would be needed. For this reason,

1989-467: The name PUP only refers to the internetwork-level protocol, but it is also applied to the whole protocol suite.) The entire suite provided routing and packet delivery, as well as higher-level functions such as a reliable byte stream , along with numerous applications. The PUP protocol was created in roughly the same time frame as the earliest parts of the development of TCP/IP for the Internet and also

2040-409: The needs of consumers and the potential niche market of a new product. If the development is technology driven, R&D is directed toward developing products to meet the unmet needs. In general, research and development activities are conducted by specialized units or centers belonging to a company, or can be out-sourced to a contract research organization, universities , or state agencies. In

2091-474: The networks and creating the Internet: Commercialization, privatization, broader access leads to the modern Internet: Examples of Internet services: The PARC Universal Packet ( PUP or PuP , although the original documents usually use Pup ) was one of the two earliest internetworking protocol suites ; it was created by researchers at Xerox PARC in the mid-1970s. (Technically,

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2142-473: The pandemic report spending a big portion of their expenditure in 2020 on software, data, IT infrastructure, and website operations. A 2021/2022 survey found that one in every seven enterprises in the Central, Eastern and South Eastern regions (14%) may be classed as active innovators — that is, firms that spent heavily in research and development and developed a new product, process, or service — however this figure

2193-523: The promise of some of their greatest achievements. In its early years, PARC's West Coast location helped it hire many employees of the nearby SRI Augmentation Research Center (ARC) as that facility's funding began reducing from DARPA , NASA , and the U.S. Air Force . By leasing land at Stanford Research Park , it encouraged Stanford University graduate students to be involved in PARC research projects and PARC scientists to collaborate with academic seminars and projects. Much of PARC's early success in

2244-679: The same protocols as used on the ARPANET (much as occurred with the TCP/IP suite). Others were novel, including protocols for printer spooling, copying disk packs, page-level remote access to file servers, name lookup, remote management, etc. (although some of these capabilities had been seen before, e.g. the ARPANET already made heavy use of remote management for controlling the Interface Message Processors (IMPs) which made it up). PUP showed that internetworking ideas were feasible, influenced

2295-472: The same time period as the early Ethernet local area network at PARC. The fundamental design of the PUP suite was substantially complete by 1974. PUP was designed to connect the Ethernet to the ARPANET , which was a forerunner to TCP/IP and the Internet . It was primarily designed by Robert Metcalfe , David Boggs , Charles P. Thacker , Butler Lampson and John Shoch . In the 1980s Xerox used PUP as

2346-490: The strength of the correlation between R&D spending and productivity in low-tech industries is less than in high-tech industries, studies have been done showing non-trivial carryover effects to other parts of the marketplace by low-tech R&D. Business R&D is risky for at least two reasons. The first source of risks comes from R&D nature, where R&D project could fail without residual values. The second source of risks comes from takeover risks, which means R&D

2397-592: Was deemed a failure because Xerox only sold about 25,000 units of the computer. A small group from PARC led by David Liddle and Charles Irby formed Metaphor Computer Systems . Metaphor Computer Systems extended the Star desktop concept into an animated graphic and communicating office-automation model and sold the company to IBM . Several GUI engineers left to join Apple Computer to work on Lisa and Macintosh . Technologies pioneered by its materials scientists such as

2448-471: Was destined to fund basic research. According to National Science Foundation in U.S., in 2015, R&D expenditures performed by federal government and local governments are 54 and 0.6 billions of dollars. The federal research and development budget for fiscal year 2020 was $ 156 billion, 41.4% of which was for the Department of Defense ( DOD ). DOD's total research, development, test, and evaluation budget

2499-519: Was meant to be reached by 2020, but the current amount is below this target. This also causes a digital divide among countries since only a few EU Member States have R&D spending. Research and innovation in Europe are financially supported by the programme Horizon 2020 , which is open to participation worldwide. A notable example is the European environmental research and innovation policy , based on

2550-503: Was roughly $ 108.5 billion. Israel is the world leader in spending on R&D as a percentage of GDP as of 2022, spending 6.02%. According to CSIS, During the 1970s and 1980s Israel initially built up Israel's research infrastructure through various programs, often in the defence industry. In 1984, a law for Encouragement of Research and Development in Industry encouraged the commercial sector to invest in R&D in Israel as well as empowered

2601-401: Was without all the capabilities that a working internetwork provided. The Gateway Information Protocol's descendant, RIP (with minor modifications to carry the addresses of any protocol family), remains in use today in other protocol suites, including TCP/IP. One version of RIP served as one of the initial so-called interior gateway protocols for the growing Internet , before the arrival of

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