Category Archives: Government

Is the Era of Innovation Over?

Is the Era of Innovation Over?Is the era of innovation over? Or is the war for innovation just beginning?

I came across an article in one of Canada’s main newspapers — The Globe and Mail — by Barrie McKenna titled ominously, ‘Has Innovation Hit a Brick Wall?’

The article speaks to how the Canadian government sinks billions of dollars into research and development every year, yet the country remains an innovation laggard compared with most of its trading partners. The author refers to this as Canada’s “innovation deficit.” The article then goes on to examine some research from University of British Columbia economics professor James Brander that examines whether Canada’s problem is part of a much broader global phenomenon.

The conclusions that Dr. Brander comes to are less than comforting (if you agree with his view of innovation); his research found the pace of innovation to be slowing dramatically in four key areas: agriculture, energy, transportation, and health care.

As someone who works with companies to help foster innovation and whom frequently writes and speaks on the topic, I have a problem with Dr. Brander’s conclusions about Canada and the world in the same way that I have issues with the way that the U.S. Congress and President Obama approach innovation in the United States. In fact the American government’s approach to innovation prompted me to write the controversial ‘An Open Letter on Innovation to President Obama.’

Continue reading this article on the American Express OPEN Forum.

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Innovation Costs of Reducing the Flow of Immigrants and Travelers to USA

Innovation Costs of Reducing the Flow of Immigrants and Travelers to USA

September 11th was a traumatic event for the psychology of the nation but also for its innovation capacity. After 9/11 the United States started admitting fewer highly skilled immigrants, invited fewer students to come study here, and companies and consumers cut back on their travel budgets.

These factors, along with many others, combined to reduce the amount of face to face collaboration and created new innovation headwinds for the country.

In 2001, Michael Porter of Harvard Business School published a report ranking the United States as #1 in terms of innovative capacity. By 2009, the Economist Intelligence Unit had dropped the United States in its innovation rankings from #3 between 2002 – 2006 to #4 between 2004 – 2008. The most recent Global Innovation Index has the United States falling from #1 in 2009 to #7 in 2011 — behind Switzerland, Sweden, Singapore, Hong Kong, Finland, and Denmark.

If you’re the United States, not being #1 anymore is a definite concern. Innovation drives job creation, and any decrease in the pace of domestic innovation will ultimately lead to lower economic growth. As the United States slides down the innovation rankings, restrictive immigration policies suddenly look less smart.

The number of foreign student visas increased by a third during the 90s, peaking in 2001 at 293,357 before dropping post-9/11 by 20 percent nearly overnight. It took five years before foreign student visa numbers recovered to 2001 levels. Last year, 331,208 foreign student visas were issued.

But a drop-off in highly skilled immigration does not account for the entire drop in America’s innovation leadership. Another headwind that hit post-9/11 was the drop-off in travel in America. In August 2001, 65.4 million airline passengers traveled to the country. It took three years for passenger growth to resume.

Travel — both corporate and leisure — is important to innovation for three main reasons:

  1. People see and experience things that spark new ideas
  2. Face-to-face meetings deepen human connection and improve productivity and collaboration.
  3. Innovation partnerships and acquisitions are often made in-person.

The United States is at an innovation crossroads. We must commit to attracting more innovators to this country, and to traveling abroad more. Not doing so is guaranteed to exacerbate America’s slide from innovation leader to laggard.

This article first appeared on The Atlantic before drifting into the archive

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Designing Innovation – Can Government Help?

Designing Innovation - Can Government Help?Can government help companies innovate, or do they tend to get in the way instead?

The answer is that often regulations tend to impede innovation and progress. Other key aspects of a country’s ability to innovate are the relative risk tolerance of its citizenry and whether it is culturally accepted to try and fail at something.

The United States leads the world in innovation because it has created the perfect storm of a risk tolerant citizenry, where failure is sometimes a badge of honor, and a government that invests in basic research, helps to commercialize it, and for the most part tends to go out of the way from a regulatory standpoint.

Other countries have looked to America with envy, often as some of their most innovative citizens were leaving to realize their visions in the New World. That is now starting to change, however. Some of the best and brightest are returning to their home countries from America and other governments are looking to replicate, or even improve upon, some of the factors that have led to success in America.

One of those countries is now Britain. Britain has been home to some phenomenal inventors over the past several centuries, but in the recent past the Brits have not been as successful at turning invention into innovation as the Americans. They are now working to change that.

When I was living there I saw several initiatives to spur innovation and new industries, and I also saw a growing innovative spirit. One of the top innovation agencies in the world, WhatIf?! (primary focus on product/service innovations), is located there and the country is full of design talent to go with its heritage of invention. This is allowing the creation of new global leaders like Dyson and Tesco with the right stuff to become leaders across the globe instead of only across Britain.

There is an interesting article on how Britain jumpstarts design (sorry, BusinessWeek unpublished it). America was the innovation leader in the last century. Who will be the innovation leader in this century? Will it be Britain, America, or someone else?

Who do you think it will be?

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Why Seattle Needs Double-Decker Buses

Why Seattle Needs Double-Decker BusesTraffic is a problem for drivers and bus riders alike. When traffic gets bad, it gets even worse for buses downtown. Here is why:

Transit agencies, in their quest to put more capacity on popular routes, have added long “bendy” buses to their fleets. The problem is that these buses require twice the available space before an intersection to be able to move from one block to another. They also have more difficulty changing lanes and negotiating corners than standard buses. During periods of heavy traffic this often results in “bendy” buses being unable to move to the next block for more than one light cycle, backing up traffic behind them and delaying other, shorter buses that might have fit into the smaller space in front of them. The answer?

Double Decker BusSeattle and other communities should take a second look at double-decker buses for popular routes that traverse the city center or look to banish “bendy” buses from downtown routes altogether. Double-decker buses are only slightly taller than most standard buses, have a smaller footprint than bendy buses, and give riders a nice view of the city.

Now I must say that I did one time see a double-decker public bus cruising through downtown Seattle the other day. It was a route 417 on its way to Mukilteo and it effortlessly cruised through a yellow light to get the last spot in the bus zone (one a bendy bus wouldn’t have fit in).

I don’t know if the regional transit bureau serving areas north of Seattle has more than one double-decker bus in their fleet or whether this is a test bus for a future purchase, but it sure looked better cruising through downtown Seattle than a bendy bus bouncing up and down. There is nothing quite like the view from the upper-deck of a double-decker bus as you cruise through a city. I hope this is the sign of more to come. Bendy buses may be a newer concept, but double-decker buses are a better one. Oh yeah, and keep the WiFi coming, people love their WiFi on the buses. 🙂

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4 Days to Innovate

4 Days to InnovateThe clock is ticking on the congressional “supercommittee” – a panel comprised of six Republicans and six Democrats charged with issuing a plan to balance the nation’s budget. The bipartisan gathering has only four days until their deadline to submit such a plan. But how well can they, or anyone, innovate while the clock is ticking?

Continue reading the rest of this article on The Washington Post

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Global Innovation Index 2011 – Innovation Efficiency

Global Innovation Index 2011 - Innovation EfficiencyThis article is the third in a series of four articles digging into the recently released Global Innovation Index 2011 put together by Insead along with knowledge partners Alcatel-Lucent, Booz & Co., the Confederation of Indian Industry (CII), and the World Intellectual Property Organization (WIPO).

There is a lot of data in the Global Innovation Index 2011 and so I thought it would share it with you bit by bit to make it digestible and then share my overall thoughts. In previous articles we shared the country rankings and the input/output rankings.

Below you’ll find the country rankings based on innovation efficiency (an index comparing the innovation outputs to inputs):

Global Innovation Index 2011 - Innovation Efficiency

In the final article – coming soon – I will give my analysis of the outcomes and implications of the Global Innovation Index 2011. Until then, feel free to sound off in the comments about whether you believe your country’s position in the innovation inputs or outputs rankings are justified or off base.

Additional Global Innovation Index 2011 Articles:

#1 – Global Innovation Index 2011 – Country Rankings
#2 – Global Innovation Index 2011 – Inputs and Outputs
#3 – THE ARTICLE ABOVE
#4 – Coming Soon – Global Innovation Index 2011 – Final Analysis

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Global Innovation Index 2011 – Inputs and Outputs

Global Innovation Index 2011 - Inputs and OutputsThis article is the second in a series of four articles digging into the recently released Global Innovation Index 2011 put together by Insead along with knowledge partners Alcatel-Lucent, Booz & Co., the Confederation of Indian Industry (CII), and the World Intellectual Property Organization (WIPO).

There is a lot of data in the Global Innovation Index 2011 and so I thought it would share it with you bit by bit to make it digestible and then share my overall thoughts. In the first article we shared the overall Global Innovation Index 2011 country rankings. These overall rankings are based on two main components – innovation inputs and innovation outputs.

Below you’ll find the country rankings based on innovation inputs and the country ranking based on innovation outputs.

The source data for creating the innovation inputs rankings includes:

1. Institutions

1.1 Political environment
– 1.1.1 Political stability
– 1.1.2 Government effectiveness
– 1.1.3 Press freedom

1.2 Regulatory Environment
– 1.2.1 Regulatory quality
– 1.2.2 Rule of law
– 1.2.3 Rigidity of employment

1.3 Business Environment
– 1.3.1 Time to start a business, days
– 1.3.2 Cost to start a business, % income/cap
– 1.3.3 Total tax rate, % profits

2. Human Capital & Research

2.1 Education
– 2.1.1 Education expenditure, % GNI
– 2.1.2 Public expenditure/pupil, % GDP/cap
– 2.1.3 School life expectancy, years
– 2.1.4 PISA scales in reading, maths, & science
– 2.1.5 Pupil-teacher ratio, secondary

2.2 Tertiary Education
– 2.2.1 Tertiary enrollment, % gross
– 2.2.2 Graduates in science, %
– 2.2.3 Graduates in engineering, %
– 2.2.4 Tertiary inbound mobility, %
– 2.2.5 Tertiary outbound mobility, %
– 2.2.6 Gross tertiary outbound enrollment, %

2.3 Research & Development (R&D)
– 2.3.1 Researchers headcount/million pop
– 2.3.2 Gross expenditure on R&D, % GDP
– 2.3.3 Quality research institutions

3. Infrastructure

3.1 Info & Comm. Technologies (ICT)
– 3.1.1 ICT access
– 3.1.2 ICT use
– 3.1.3 Government’s Online Service
– 3.1.4 E-Participation

3.2 Energy
– 3.2.1 Electricity output, kWh/cap
– 3.2.2 Electricity consumption, kWh/capita
– 3.2.3 GDP/unit of energy use, PPP$/kg oil eq.
– 3.2.4 Share of renewables in energy use, %

3.3 General Infrastructure
– 3.3.1 Quality of trade & transport infrastructure
– 3.3.2 Gross capital formation, % GDP
– 3.3.3 Ecological footprint & biocapacity, ha/cap

4. Market Sophistication

4.1 Credit
– 4.1.1 Strength of legal rights for credit
– 4.1.2 Depth of credit information
– 4.1.3 Domestic credit to private sector, % GDP
– 4.1.4 Microfinance gross loans, % GDP

4.2 Investment
– 4.2.1 Strength of investor protection
– 4.2.2 Market capitalization, % GDP
– 4.2.3 Total value of stocks traded, % GDP
– 4.2.4 Venture capital deals/tr GDP PPP$

4.3 Trade & Competition
– 4.3.1 Applied tariff rate weighted mean, %
– 4.3.2 Market access trade restrictiveness*, %
– 4.3.3 Imports of goods & services, % GDP
– 4.3.4 Exports of goods & services, % GDP
– 4.3.5 Intensity local competition

5. Business Sophistication

5.1 Knowledge Workers
– 5.1.1 Knowledge-intensive employment, %
– 5.1.2 Firms offering formal training, % firms
– 5.1.3 R&D performed by business, %
– 5.1.4 R&D financed by business, %

5.2 Innovation Linkages
– 5.2.1 University/industry collaboration
– 5.2.2 State of cluster development
– 5.2.3 R&D financed by abroad, %
– 5.2.4 JV/strategic alliance deals/tr GDP PPP$
– 5.2.5 PCT patent filings with foreign inventor, %

5.3 Knowledge Absorption
– 5.3.1 Royalty & license fees payments, % GDP
– 5.3.2 High-tech imports less re-imports, %
– 5.3.3 Computer & comm. service imports, %
– 5.3.4 FDI net inflows, % GDP

Here are the country rankings from the Global Innovation Index 2011 based on innovation inputs:

Global Innovation Index 2011 Inputs

The source data for creating the innovation outputs rankings includes:

6. Scientific Outputs

6.1 Knowledge Creation
– 6.1.1 Domestic resident patent ap/bn GDP PPP$
– 6.1.2 PCT resident patent ap/bn GDP PPP$
– 6.1.3 Domestic res utility model ap/bn GDP PPP$
– 6.1.4 Scientific & technical articles/bn GDP PPP$

6.2 Knowledge Impact
– 6.2.1 Growth rate of GDP PPP$/worker, %
– 6.2.2 New businesses/1,000 pop. 15–64 yrs
– 6.2.3 Computer software spending, % GDP

6.3 Knowledge Diffusion
– 6.3.1 Royalty & license fees receipts, % GDP
– 6.3.2 High-tech exports less re-exports, %
– 6.3.3 Computer & comm service exports, %
– 6.3.4 FDI net outflows, % GDP

7. Creative Outputs

7.1 Creative Intangibles
– 7.1.1 Domestic res trademark ap/bn GDP PPP$
– 7.1.2 Madrid resident trademark ap/bn GDP PPP$
– 7.1.3 ICT & business models
– 7.1.4 ICT & organizational models

7.2 Creative Goods & Services
– 7.2.1 Recreation & culture consumption, %
– 7.2.2 National feature films/mn pop
– 7.2.3 Daily newspapers/1,000 literate pop
– 7.2.4 Creative goods exports, %
– 7.2.5 Creative services exports, %

Here are the country rankings from the Global Innovation Index 2011 based on innovation outputs:

Global Innovation Index 2011 Outputs

In future articles we will take a look at the Innovation Efficiency Index from the Global Innovation Index 2011, which compares the two, and our thoughts about the study in general.

Check back in the coming days for additional articles highlighting whatever insights I can extract from the Global Innovation Index 2011 report. Until then, feel free to sound off in the comments about whether you believe your country’s position in the innovation inputs or outputs rankings are justified or off base.

Additional Global Innovation Index 2011 Articles:

#1 – Global Innovation Index 2011 – Country Rankings
#2 – THE ARTICLE ABOVE
#3 – Coming Soon
#4 – Coming Soon

In the meantime, consider following the Human-Centered Change & Innovation page on LinkedIn.

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An Open Letter on Innovation to President Obama

An Open Letter on Innovation to President Obama“We need to out-innovate, outeducate, and outbuild the rest of the world” – President Obama

In reading the stories and quotes from last night’s State of the Union address by President Obama, it is clear, and frustrates me to no end, that my government talks a lot about innovation but still does not understand how to foster it. Innovation in America, especially in the short term, is not achieved by pumping huge sums of money into government-sponsored research and development efforts. Yes, many successful innovations have resulted from government research investments, but we need to take a more strategic approach to these efforts. The focus on research and capital projects by the Obama administration also begs the question of whether long-term investments be our only approach to innovation.

The Internet itself may be one of the most successful government research and development efforts, but we need more of these types of platform innovation investments, not just spending on basic research. We need to think strategically and fund those research efforts that could serve as platform innovations to power a whole new wave of innovative business ideas and job-creating companies in this country.

High-speed internet will boost worker productivity a bit sure, but worker productivity would be boosted even more by working to reduce the friction we all face in dealing with the government to get things done in our work and personal lives. Investing in high-speed internet is not an innovation investment, it is trying to get back to parity with the level of service that other counties enjoy. And besides, private sector competition should be driving high-speed internet construction, not government investment. Furthermore, if we are going to make investments that take a long time to realize, we should be looking to leapfrog the competition, not skate to where the puck used to be.

For all of the talk about innovation, there is far too little action in American government. And even as much attention as the word innovation received in the press from yesterday’s State of the Union speech, the magnitude of its use is interesting in this graphic from Fast Company that I modified to highlight where “innovation” shows up in the word cloud (it was used only NINE times by my count):

Obama Innovation Wordcloud

We need to take a step back and define what the role of government is in our overall innovation efforts as a country:

Continue reading this article on Texas Enterprise

Special Bonus

Download 'Stoking Your Innovation Bonfire' sample chapterIf you’ve read all the way to the bottom, then you deserve a free sample chapter from my new book Stoking Your Innovation Bonfire. I hope you enjoy the sample chapter and consider purchasing the book as a way of supporting the future growth of this community.

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Government Opens Up to Innovation

Name one of the leading governments for fostering innovation?

If you said the United States, I think you are wrong. While the United States government may dole out a lot of research grants, the United Kingdom tends to take a more active approach in encouraging citizen innovation.

Witness this article from the BBC web site about a competition launched by the UK government at showusabetterway.com to find innovative ways of using the masses of data it collects.

The article profiles three different websites including:

  1. Crime Mapping
  2. FixMyStreet.com
  3. Rate Your Prison

I would love to hear about what countries you think are the most successful and stirring up citizen innovation.

Comment away…

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Followup – How Charity Could Help Spread Innovation

A good example of a charity investing in technologies that could lead to a better society is the Cystic Fibrosis Foundation and their $22 Million investment in a company called FoldRx. Check out this article in the Boston Globe.

The article talks about how this investment could be a good example of how charity and private enterprise may better be able to collaborate together to undertake development efforts that will help society at large, but may not make sense on paper for bottom-line oriented investors. In this case the Cystic Fibrosis Foundation investment will serve to attract other investments that ultimately will allow for full funding of a research team that might not otherwise exist.

This is but one example of the type of venture philanthropy and social venture capital solutions that are possible when donors, charities, and philanthropists think in new and different ways, innovative ways.

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