The Qualcomm Way: Lessons in Innovation from a Wireless Pioneer

Irwin Jacobs is the founding Chairman and CEO Emeritus of Qualcomm, a company that played a crucial role in the development and commercialization of digital wireless technology. 

The HarvardX course, "Technology Entrepreneurship: Lab to Market," includes an interview where he offers valuable insights into how innovation drove Qualcomm to industry leadership.

Jacobs's journey began in academia. He spent seven years as a faculty member at MIT, teaching a senior-level communications course and co-authoring a book on communication theory.

While teaching, Jacobs realized the potential of applying his theoretical knowledge to real-world problems. This led him to co-found Linkabit, a company that focused on applying communication theory to develop practical products. Linkabit's success, achieving consistent profitability and growth without relying on venture capital, demonstrated Jacobs's ability to bridge the gap between academia and the business world.

After Linkabit was sold in 1980, Jacobs briefly retired but was soon drawn back to the entrepreneurial world with the founding of Qualcomm in 1985 along with six former colleagues from Linkabit. From the outset, Qualcomm was driven by a desire to pursue groundbreaking ideas in the field of digital wireless technology. Although Qualcomm did not have a product when it was founded, the company's founders brought with them a wealth of experience and a shared vision.

CDMA (Code Division Multiple Access) is a key technology for mobile phone networks.  Jacobs and his team at Qualcomm recognized the potential of CDMA (Code Division Multiple Access) technology early on. However, the path to making CDMA a commercial success was challenging.

Jacobs first had the idea for CDMA while on a car journey with one of his engineers. They initially developed the idea while working as consultants for Hughes Aircraft on a satellite communication system.

When Hughes' project was delayed, Qualcomm had to shelve the idea for CDMA due to a lack of funding. Qualcomm eventually returned to CDMA when they were able to fund further development through a contract with Schneider International to provide satellite communications for their trucks.

Although CDMA was initially dismissed by most companies as too complicated, Qualcomm was able to persuade PacTel Cellular to back the project after a series of successful demonstrations of the technology.

Qualcomm realized that they would have to license their patents and technology to other manufacturers to make CDMA a commercial success.

They negotiated licensing agreements with AT&T, Motorola and Nokia, which provided Qualcomm with funding for further development of the technology.

The first commercial CDMA network was launched in Hong Kong in 1995. Jacobs also persuaded South Korea to adopt CDMA by arguing that it would give them a technological advantage over Japan.

Indian telecoms regulations at that time prevented Qualcomm from launching CDMA mobile phone networks. To circumvent these regulations, Qualcomm persuaded the Indian government to let them launch a wireless local loop service using CDMA technology. This technology allowed people to make calls from a fixed wireless phone in their office or home.

Customers soon began using these fixed wireless phones in their cars, which led to lawsuits from mobile operators. The dispute eventually went to the Supreme Court in India, which ruled in Qualcomm's favor. This ruling forced the Indian government to allow Qualcomm to compete with GSM operators using CDMA technology.

The introduction of CDMA technology led to a dramatic reduction in the cost of mobile phones and airtime in India.

Throughout his career, Irwin Jacobs has consistently demonstrated a forward-thinking approach, anticipated future trends and adapted to the ever-changing technological landscape. 

He foresaw the importance of features like cameras and GPS in mobile phones, even when others were skeptical. His willingness to invest in research and development, even in areas that seemed unproven at the time, has been crucial to Qualcomm's success. 

He is also a strong advocate for fostering a culture of innovation and preparing for future disruptions by constantly seeking new ideas and remaining agile in the face of change

Irwin Jacobs's entrepreneurial journey is marked by his ability to navigate challenges and disrupt established industries. His entrepreneurial advice:

• Embrace innovation in all aspects of your business
• Think Big. Don't be afraid to pursue breakthrough ideas. Don't settle for incremental improvements.
• Be persistent and courageous. Be ready to make mid-course corrections when faced with unexpected obstacles or changing market conditions.
• Be prepared for setbacks and adapt your approach. 
• Build a strong team and foster a positive culture
• Focus on developing practical solutions that address real-world needs
• Secure funding through creative business models (like licensing intellectual property)