Archive for July 28th, 2008
Innovation and the role of government (5)
“Government policies aimed at encouraging innovation in manufacturing may be doomed to failure unless companies learn to take more risks, according to academic research. An unpublished study of more than 700 manufacturers in 17 countries found no correlation between the degree of innovation at each company and the countries in which the specific companies were based.”
Read Peter Marsh’s article, “Corporate Culture Key To Innovation Success,” on the Financial Times.
“U.S. companies are now shifting more engineering and design work to low-cost nations such as China, India, and Russia. Surely, innovation itself must follow. Apparently not, according to a new study published by the National Academies (…) argues that, in sectors from software and semiconductors to biotech and logistics, America’s lead in creating new products and services has remained remarkably resilient over the past decade.”
Read Pete Engardio’s article, “Is U.S. Innovation Headed Off-Shore?” on BusinessWeek.
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Pete’s article comments on a collection of studies gathered under the title “Innovation in Global Industries: U.S. Firms Competing in a New World” published by The National Academies Press. The reviews I have read about this book highlight that:
- globalization is clearly accelerating, beyond the point of no return,
- this is a highly dynamic environment in which no country can afford falling into a state of complacency,
- global competition does not translate into the demise of American innovativeness.
Some business researchers are emphasizing the role of culture over the impact of any public policy aimed to take care of a country’s innovation. From a demand standpoint, this relies on consumer behavior openly embracing the adoption of new products and services and, the more demanding users become, the better. On the supply side, there is a need for an entrepreneurial and risk taking mindset that yields new intellectual property.
Theoretically, the end result is a virtuous circle that enhances a country’s competitiveness, being able to leverage cost efficiencies anywhere in the world. The fact is that there is a strong debate out there on the need for an American innovation policy as captured on this series of posts (see links below). “A Space Program for Technology” is a recent article featuring a new book advocating a national competitiveness strategy. The title is “Winner Take All” by R.J. Elkus.
Related posts:
- NESTA’s innovation metrics due in 2010
- Innovation and the role of government (1)
- Innovation and the role of government (2)
- Innovation and the role of government (3)
- Innovation and the role of government (4)
Picture credits: Hemera Technologies Inc., a wholly owned subsidiary of Jupiter Images Corporation.
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