tag:blogger.com,1999:blog-5880610.post117003096142657167..comments2024-01-13T18:57:18.243-05:00Comments on Information Processing: Summers on the biology centurySteve Hsuhttp://www.blogger.com/profile/02428333897272913660noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5880610.post-1170188889551563132007-01-30T15:28:00.000-05:002007-01-30T15:28:00.000-05:00David,If you need to get a PhD and probably at lea...David,<BR/><BR/>If you need to get a PhD and probably at least a postdoc or two in order to have the credentials to even start a biotech company, the road is definitely longer.<BR/><BR/>I don't think anyone argues that a tech startup is a higher risk (though *perhaps* higher return) path than getting a job in finance. Just look at venture economics - 7 or 8 out of 10 portfolio companies are Steve Hsuhttps://www.blogger.com/profile/02428333897272913660noreply@blogger.comtag:blogger.com,1999:blog-5880610.post-1170186564603144992007-01-30T14:49:00.000-05:002007-01-30T14:49:00.000-05:00"Note, though, it's a bit more complicated than Su..."Note, though, it's a bit more complicated than Summers makes it out to be. Biologists who start companies can become rich, but it's a longer and riskier road than heading directly into business or finance."<BR/><BR/>Do you have any evidence for this claim? I suspect not.<BR/><BR/>Dave KaneAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5880610.post-1170086758264883732007-01-29T11:05:00.000-05:002007-01-29T11:05:00.000-05:00OK Steve, I'll bite at your obvious troll (though ...OK Steve, I'll bite at your obvious troll (though Wolfgang already covered it pretty well). The market heavily discounts any investment with a payoff time longer than 5-10 years, as most investors just can't wait that long for their delayed gratification.<BR/><BR/>Spaceflight is a good example. It would have been very hard to replace NASA with private enterprise back in 1970, but we're startingAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5880610.post-1170054790689620002007-01-29T02:13:00.000-05:002007-01-29T02:13:00.000-05:00The market failure in question is the fact that ba...The market failure in question is the fact that basic research is a public good. It is costly and needs to be done "in the open" where it is tough to capture the IP. <BR/><BR/>If you want to make an analogy between researchers and hedge fund managers, I'd say a typical researcher is about 150% long in an esoteric penny stock with no book value, little-to-no revenue and questionable management.Sethhttps://www.blogger.com/profile/16486234948199900568noreply@blogger.comtag:blogger.com,1999:blog-5880610.post-1170035096247157982007-01-28T20:44:00.000-05:002007-01-28T20:44:00.000-05:00> If life sciences are so important to society, wh...> If life sciences are so important to society, why doesn't the market reward researchers the way it does hedge fund managers?<BR/><BR/>Life science takes place in a heavily regulated environment and biotech companies have to overcome the hurdles of FDA approvals etc.<BR/>On the other hand, patent protection (i.e. regulation) works often in their favor but sometimes against them.<BR/>On top of itAnonymousnoreply@blogger.com