the nail that sticks out...
the nail that sticks out... My friend Gen recently wrote on his blog about Shuji Nakamura, the guy the invented the Blue LED and who didn't get anything for it.

It reminds me of Japanese school. In one class we would watch "Project X", a program about Japanese corporate history. I think it was corporate although it might have covered more. They would make it super dramatic.

One episode was about the formation of Sony. They really concentrated on the fact that one sentence out of the entire page of their mission statement was "To rebuild Japan". Anyway, that one was a pretty interesting story over all.

Another one though was of the creation of the automatic ticket taking gates at the train stations. It used to be all hand done with a line of station attendants standing where the automated gates are now.

Anyway, they showed the team busting their asses to invent the machines. They eventually succeeded (not as easy as it sounds). I'm sure the company made a bazillion dollars. There's got to be a tens of thousands of those things in Japan and each one I'm sure costs $5k-$20k each. The team got nothing basically except to keep their job.

Even more interesting, we were required to write reports in that class about the episodes so I wrote what I got out of it was how unfair it was that those guys got nothing for their invention. My teacher defended the "Japanese Way" saying that the money is spread out more. I pointed out that was BS. Someone was making bank and it wasn't the guys that did the work. I'm not sure she grasped that.

Another example is the guy that invented Pac Man. As far as I know he got almost nothing.

Of course this conversation has come up a million times. As employees they aren't actually entitled to anything more. They got what they bargined for. $xx dollars an hour for work-for-hire so techincally the company has no reason to pay them more. In fact, once a friend and I were grousing in front of our boss about this kind of stuff in relation to game software and royalties and the boss basically said "if you feel that way you should quit and start your own company." I'm not sure what else he said specifically but what I took from his comments was that if you feel you can be successful they you need to go out and take the risk. If you are working for a company what you are doing instead is taking no risk and expecting a reward. Of course the company might go out of business but generally you are not the one losing money if the project fails, you still get your salary, that's why you are not getting the rewards if it succeeds.

But, as time goes on, as people get more knowledgable and as information is easier to come by it gets easier to find another job at a company that will give you a piece of what you make. Whether it's through bonuses, royalties, profit sharing, stock options. Of course they all have their downside too, if the company doesn't succeed you don't get jack. But, all things being equal, the people that can do will gravitate to the companies that treat them best (whether that's money or something else).

I'm not able to verify this but rumor a similar thing is effecting Canada's medical system. All other things being equal a doctors will go where they get paid the most for their hard work. Canada being a socialist medical system the can get paid more in the states so they are leaving.

Comments:

In a hammer free world ... [ e ]

I can see what your boss says, but I think there really needs some kind of "balance".  I mean, if I worked for a place that I knew would reward me for breaking my back for them, then it makes the work less like "work" and more like a challenge.

At least in the game industry, you hear these bizzare stories of folks in managment who do next to nothing, then get tons of money when the project is completed while the folks who actually built the game get a fraction of that.  Also, I don't understand how some of these game companies can spend tons on marketing and skimp on paying out royalties to the actual developers.  Of course, not all game companies do this.  While not necessarily related to the main topic, I don't know much about KOEI, Co. in Yokahama, but they seem to have the best employee benefits package (as far as game companies go in Japan), and the fact that a woman is the Chairman and CEO is a very positive and progressive thing.  I wouldn't be surprised if they reward their employees for their efforts.

But back to what your boss was saying about "do your own thing" ... For some people it's not feasable possibly because they can't attract funding or other reasons.  While not all companies are like Google, it seems like they reward their employees for their innovative efforts; I'm sure there are other companies like that out there.

In the long run though, this kind of thing might be bad for Japan's future if suddenly the innovators and inventors leave Japan for companies in other countries that would reward them for their efforts.

There's a phrase that goes along the lines, "You shouldn't muzzle the ox that treads the corn."  At least give the people who are slaving away for the "company" something to look forward to if they succeed beyond the "privelage" of keeping their jobs since they didn't fail ...

posted by globulousJanuary 16, 2005 at 9:09

They won't leave [ e ]

The Japanese talent is unlikely to leave Japan for one major reason.  The majority of them only speak Japanese and that is not a useful language outside of Japan. There are the lucky ones that before they got disillusioned happened to learn some other language but they're the exception.  For the rest, they're pretty much stuck here.

As for what my boss says, I hope you can see his point.  As an employee you take no risk generally.  If your project fails you got 1 or 2 year's salary.  The owners though, if the project fails, they are out millions.  They took the risks that's why they get the rewards.

Still, just in general, all things being equal the company that has the best compensation should get the best people.  These kinds of stories need more publicity so that people know going in they should look for the best companies.  That will force the poorer companies to do better if they want good people.

posted by greggmanJanuary 16, 2005 at 21:12

Another interesting comment [ e ]

This is copied from a comment buy Boris Anthony on Gen's site but I found it very interesting so I'm re-posting it here.

This reminds me of James Burke's "Connections" series where he traces the histories of various world changing technologies over time.. after a few episodes, he takes a moment aside to wonder why it seems that so many things that totally reshaped the western world (gun powder, magnetic needles/compass, printing, etc) had been around, in most cases, for centuries in their country of origin, China, with no such transformative effects... the conclusion he comes to is sociological: there was absolutely no incentive to be innovative. You have your place in the hierarchy and no matter what you do, you'll never move. So why bother...

posted by greggmanJanuary 16, 2005 at 22:41

recent book... [ e ]

Andew Kerr's Dogs & Demons goes through just that...

posted by anonymousfoolJanuary 17, 2005 at 12:05

Balance [ e ]

Hey Gregg,

I do see your boss' point.  I guess I was thinking more along the lines of the "worst case" in where one just works and despite one contributing to the company's major financial success (like Nakamura-san) get's only a nice pat on the shoulder.

But as you said, these kinds of things need more publicity to force the poorer places to improve things ... and if they don't, they'll end up going out of business simply because the good people are going elsewhere.  But I suppose that doesn't necessarily always work in reality since a lot of those working are just trying to pay thier bills and make ends meet.  I guess no risk, no reward.

I guess there's no easy answer ... especially in the case where you have outstanding Japanese workers who are "stuck" since they can't speak English ... but I suppose if the individual is dissatisfied with the work place practices is strong enough, it might foster the desire to learn English ... maybe ... but moving to a new country and all isn't necessarily easy either.

Perhaps Japan's future (as far as a leader in technological innovation) will be affected by all this ...

posted by globulousJanuary 19, 2005 at 4:17

It's a balancing act [ e ]

I agree with and understand the employers point of view. You are paid to do X. You agreed to this when you got the job and you're not taking risks. On top of this, how many employees are potentially going to come up with something on the scale of "Pac man" or Blue LEDs? I bet the ratio of slacker  to genius pretty high.

On the other hand though, it is kind of stupid of a big corporation NOT to reward someone's contribution when it is significant. Why? Simple reason being that if I were that company, I wouldn't want my talent going over to the competition!

posted by anonemouseJanuary 24, 2005 at 13:18

Google ... [ e ]

Hey Gregg,

Thought you'd find this link interesting.  While not every company out there is a google, it's still quite interesting.

http://news.com.com/New+Goog
le+perk+Awards+worth+million
s/2100-1030_3-5558626.html?tag=nefd.top


It would a great surprise if such a thing happened in Japan ...

posted by globulousFebruary 2, 2005 at 0:13

[ e ]

I think all it would take is for a one or two Japanese companies to do something very public like that in order to attract talented people.  The rest of the companies will have to follow suit. I think it will eventually happen.

posted by greggmanFebruary 2, 2005 at 1:49

canada [ e ]

posted by suicidesnowmanFebruary 22, 2005 at 2:50

lol [ e ]

I believe I pressed tab during that last post, and then a series of characters designed to post a blank comment.... me work keyboard good.

I was going to comment on your observations about japan and their philosophy on 'sharing' the wealth. It appears they are implementing this philosophy on a large scale as well. They contribute the most to foreign aid in the world, and I believe are one of the few (or only ) nations to meet the target set by the UN. However, I disagree with the unjust way Japan rewards its brightest and most creative citizens. I believe they will need to find a balance between rewarding the individual properly to increase the likelyhood that this will happen in the future, and increasing the general productivity of the company. For on the other extreme: if the individual kept all the fruits of their labour, what would their wage be for?

Also I would like to mention that Canada's situation, concerning doctors leaving to go to higher paying regions ( not just the states. They flock to the high population regions. Toronto, Vancoucer, etc), is not related to the socialist nature of the system, but is in fact related to the doctor's not being paid enough. The socialist nature of the system implies just that all canadians contribute to the health care system, not that we contribute too little to pay doctors properly. That may be the case, but is not in itself an argument against socialism.

posted by suicidesnowmanFebruary 22, 2005 at 3:16

clarification [ e ]

Japan contributes the most in terms of percentage of GNP.

posted by suicidesnowmanFebruary 22, 2005 at 3:17