Invest in Innovation
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Jim Manzi (of Lotus fame) has an interesting article in “The Nation” about our need, as a nation, to invest just a little bit more in innovation:
“But with only a little bit of extra funding, foresight and determination, it may be possible to kick-start an innovation revival. Especially at the federal level, we see an opportunity for a modest investment to create a whole new generation of idea-growing, job-creating technology hubs all across the country–perhaps even an “automotive Silicon Valley” in otherwise moribund Detroit.” (from Invest in Innovation)
A good article, with several memorable phrases, starting with “automotive Silicon Valley” (’…In such a hub, just as in Boston and Austin, a virtuous cycle of innovation and product development might be generated.’). Also “hegemon tax” (’…the 50 to 60 percent share of R&D the US spends on warfare innovations…’)
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November 11th, 2008 at 1:49 pm
I like the point he makes, and the idea of a “automotive Silicon Valley,” but I think the author misses half the problem. Yes, investing more money in R&D would be a drop in the bucket compared to the multi-billion dollar bailouts we’re doing now… but those same bailouts devalue any investment.
I think there’s huge interest in automotive innovation. But, as long as we have $50 billion dollar bailouts of the existing auto industry, there’s no motivation to innovate. Why would I want to throw my money into making a cheaper, more efficient car, when the established competition will just go to the government and get a subsidy to sell their older tech at the same price?
This is the problem that crippled Japan’s economy for years — the government propping up failed zombie companies with zero interest loans. As long as we continue to support failed businesses and have protectionist economic policies, throwing more money at R&D won’t do a damn thing.
I think there’s also a separate problem of R&D dollars going to bureaucratic institutions like NASA that have all but lost their ability to innovate, but that’s a far smaller issue.