Large port count high-speed optical switch fabric for use within datacenters [Invited]

This paper reviews advances in the technology of integrated semiconductor optical amplifier based photonic switch fabrics, with particular emphasis on their suitability for high performance network switches for use within a datacenter. The key requirements for large port count optical switch fabrics are addressed noting the need for switches with substantial port counts. The design options for a 16×16 port photonic switch fabric architecture are discussed and the choice of a Clos-tree design is described. The control strategy, based on arbitration and scheduling, for an integrated switch fabric is explained. The detailed design and fabrication of the switch is followed by experimental characterization, showing net optical gain and operation at 10 Gb/s with bit error rates lower than 10-9. Finally improvements to the switch are suggested, which should result in 100 Gb/s per port operation at energy efficiencies of 3 pJ/bit. © 2011 Optical Society of America.

Opt-out options in new product co-development partnerships

We study three contractual arrangements—co-development, licensing, and co-development with opt-out options—for the joint development of new products between a small and financially constrained innovator firm and a large technology company, as in the case of a biotech innovator and a major pharma company. We formulate our arguments in the context of a two-stage model, characterized by technical risk and stochastically changing cost and revenue projections. The model captures the main disadvantages of traditional co-development and licensing arrangements: in co-development the small firm runs a risk of running out of capital as future costs rise, while licensing for milestone and royalty (M&R) payments, which eliminates the latter risk, introduces inefficiency, as profitable projects might be abandoned. Counter to intuition we show that the biotech's payoff in a licensing contract is not monotonically increasing in the M&R terms. We also show that an option clause in a co-development contract that gives the small firm the right but not the obligation to opt out of co-development and into a pre-agreed licensing arrangement avoids the problems associated with fully committed co-development or licensing: the probability that the small firm will run out of capital is greatly reduced or completely eliminated and profitable projects are never abandoned.

Decisions about decisions.

A major puzzle of decision making is how the brain decides which decision system to use at any one time. In this issue of Neuron, Lee et al. (2014) provide a theoretical, behavioral, and neurobiological account of a prefrontal reliability-based arbitration system.