to add to John Seeley Brown's observations about the benefits of paper (his are that it's easy to add to, to share with others, and it doesn't run out of batteries): a paper lab notebook (that's permanently bound, dated, and with numbered pages) makes it easy to prove that one has made an invention.
Digital records are not so believable.
Paper isn't going away. It may be replaced in many contexts, but not in all contexts.
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