Finance and Economics after the Dotcom Crash

Meltsner, Kenneth
Thu, 3 Jan 2002 12:33:31 -0500

There's a corresponding rule -- that in each stage, the transition will cost about 10x the previous stage's cost. It might take a person-dissertation (4-6 years of sporadic, and then increasingly manic effort) to develop a new technique.  If you figure this costs about $200-300K (or is my memory of university burdened costs out of date?), moving that idea into practice might cost as much $2-3 M.  Moving that into widespread use might cost another 10x.

It has seemed like a number of companies were started on little more than a cool idea from a dissertation.  It would be interesting to get accurate costs for the first production version of Google, for example, and the subsequent costs between first production and widespread use.

Of course, if they didn't complete the dissertation, the subsequent costs would be less, right?

Ken Meltsner