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A lot of this sounds like typical Academia politics, I think maybe these two scientist were a little naive in thinking how easily they'd get funding or how good their ideas where. Your right "Academia" favors older well-established scientist who have the stacks of research behind them. The federal dollar game is tough, and you can't completely blame them for giving money to the guy with the long standing record of success vs. the new kid with an interesting idea when there's constant talk cutting funding for this and that. In the future, when the economic climate is a bit better, I think there will be better opportunity for younger scientist or maybe we'll see some growth in corporate R&D