The Failed Promise of Innovation in the U.S.

The Failed Promise of Innovation in the U.S.
During the past decade, innovation has stumbled. And that may help explain America's economic woes

(Source: Business Week)
"We live in an era of rapid innovation." I'm sure you've heard that phrase, or some variant, over and over again. The evidence appears to be all around us: Google (GOOG), Facebook, Twitter, smartphones, flat-screen televisions, the Internet itself.

But what if the conventional wisdom is wrong? What if outside of a few high-profile areas, the past decade has seen far too few commercial innovations that can transform lives and move the economy forward? What if, rather than being an era of rapid innovation, this has been an era of innovation interrupted? And if that's true, is there any reason to expect the next decade to be any better?

These are not comfortable questions in the U.S. Pride in America's innovative spirit is one of the few things that both Democrats and Republicans—from Bill Clinton to George W. Bush to Barack Obama—share.

But there's growing evidence that the innovation shortfall of the past decade is not only real but may also have contributed to today's financial crisis. Think back to 1998, the early days of the dot-com bubble. At the time, the news was filled with reports of startling breakthroughs in science and medicine, from new cancer treatments and gene therapies that promised to cure intractable diseases to high-speed satellite Internet, cars powered by fuel cells, micromachines on chips, and even cloning. These technologies seemed to be commercializing at "Internet speed," creating companies and drawing in enormous investments from profit-seeking venture capitalists—and ordinarily cautious corporate giants. Federal Reserve Chairman Alan Greenspan summed it up in a 2000 speech: "We appear to be in the midst of a period of rapid innovation that is bringing with it substantial and lasting benefits to our economy." Read Article...
http://www.businessweek.com/magazine/content/09_24/b4135000953288.htm?chan=innovation_innovation+%2B+design_top+stories

CeBIT previews future tech

CeBIT previews future tech
(02:25) Report Reuters Video

Mar 4 - A robot who makes tea for astronauts, a ‘magic’ mirror and a new mini-PC design are among the standout innovations on display at Europe’s largest technology fair.
Even in an economic downturn, technology companies and research institutes must carry on planning the technologies that will shape our lives in the future.
From the array of concepts and products being demonstrated at CeBIT in Hanover, the Jetsons' vision of robots in the home may not be too far off.
Matt Cowan reports.

Recharging a high-tech battery industry

Recharging a high-tech battery industry
The country is behind when it comes to advanced vehicle batteries, but innovation and a little stimulus money could head off another OPEC scenario.

NEW YORK (CNNMoney.com) -- There's a saying as the nation pushes for cleaner electric cars: The United States will end up trading dependence on Saudi oil for dependence on Asian batteries.
Most of the big players in advanced batteries - the ones used to power the cars of tomorrow - are from Japan, South Korea or China.
America's battery industry is in need of a shock. Enter Stimulus.
As part of the nearly $900 billion economic lifeline, lawmakers plan on spending $2 billion in loan guarantees and grants for makers of advanced batteries. They don't necessarily have to be U.S. companies that get the money, but they need to set up shop on American soil.
Industry observers have high hopes for the plan, but worry that the money won't be doled out fast enough or that it will be eaten up by a few big players. Read the whole article on CNN Money

See also our post on the Beurskrach Blog about Lithium and its uses

A Smarter Planet, getting from A to B. (IBM)

(IBM) Smart Planet, a smarter planet, getting from A to B.

Clogged roadways need new approaches
Next time you're stuck in traffic ground to a halt, think about this: as smart as our cars have become, our roadways are about to get a whole lot smarter.
It's certainly needed. Cities everywhere are battling an increase in demand and an inability to build sufficient infrastructure to cope. For example, in the U.S., as population grew nearly 20% between 1982 and 2001, traffic jumped 236%.
Building new roads and new lanes often just isn't possible any longer, but building intelligence into the roads and the cars—with roadside sensors, radio frequency tags, and global positioning systems—certainly is.
In Stockholm, a new smart toll system has reduced traffic and carbon emissions by impressive percentages.
In London, a congestion management system has lowered traffic volume to mid-1980s levels.
In Singapore, a traffic prediction system is helping re-route and manage traffic citywide, preventing major back-ups and congestion.

IBM issues rosy 2009 outlook
BUCKING the trend of high-tech competitors, IBM posted a 12 per cent gain in fourth-quarter profit and gave an upbeat outlook for 2009.
Although facing "an extremely difficult economic environment," IBM said it expects to continue to benefit from the increasing profitability of its software and services businesses. Despite the global slowdown, IBM said customers are continuing to sign up for outsourcing and other services contracts.

IBM Global Innovation Outlook (Download PDF)

IBM Driving Innovation, new technologies and ideas (Download PDF)

President-elect Obama calls for laying the groundwork for a 21st century economy

President-elect Obama calls for laying the groundwork for a 21st century economy

President-Elect Barack Obama today delivered a stark warning about the state of America’s economy in a speech clearly aimed to rally public and political support to get a massive stimulus and economic re-orientation policy in place ASAP.
He called for laying the groundwork for a sound 21st century economy — but the real, hard-nosed question now will be: if the political and financial systems failed all these years to fix the problem will Obama run smack, dab into the “realities” that the political system is still geared to the 20th century? And there are signs that Obama may have some work to do in winning over his some members of his own party.

Here’s a video of his speech today:

Visit msnbc.com for Breaking News, World News, and News about the Economy

Four Ways for Detroit to Save Itself

Four Ways for Detroit to Save Itself (New York Times)

THESE days, as we contemplate the future of the automotive industry, we would do well to remember the words of Henry Ford: “Failure is the opportunity to begin again more intelligently.”
For Detroit, there is plenty of failure. But there are also plenty of opportunities to begin again. In fact, there are many new technologies to make cars safer, cheaper, cleaner and more convenient. All these could be adopted by the automobile industry in the near future and without too much trouble.
Here are just four technologies that could be put on the road in the next several years. These technologies — some of which we invest in — are win-wins. They have the potential to improve energy efficiency, cut down on accidents, reduce pollution and make commuting more convenient. They might even help put the American car industry back in the driver’s seat.