Investor's Business Daily, September 4th, 2007
For the U.S. to gain the upper hand in innovation, the government needs to partner with free enterprise. That's a key premise of tech expert John Kao's forthcoming book, "Innovation Nation." Kao doesn't advocate a bureaucratic boondoggle, with the government ineptly "managing" innovation. He envisions the government as cheerleader and -- in certain cases -- co-funder, helping spearhead key initiatives in the private sector. Heading the government's effort? An innovation chief, chosen from the free enterprise system's best and brightest.
In his book, Kao offers examples of how the government has launched innovative projects -- and he provides an intriguing glimpse into the future.
The Manhattan Project. "In less than four years, the Manhattan Project grew to an empire-sized 150,000 employees -- larger than the car industry of the day -- all to produce enough fissile material for a handful of bombs," Kao recalled.
The result was a capability that put us years ahead of the Soviet Union -- and helped us decisively defeat the Japanese in World War II.
The Marshall Plan. Designed to help rebuild Europe after the war and "deter Europeans from electing communist-leaning governments," the Marshall Plan -- during its three years of operation -- "boosted European production of goods and services by 32%," Kao said.
"By 1951, industrial production in the 16 target nations was 40% higher than it had been before the war in 1938. And in the next 25 years, Europe experienced the highest economic growth in its history."
Innovation was a key part of the process. "European businessmen were sent to the U.S. to study American production techniques" and apply cutting-edge technology back home.
NASA and Apollo. "From virtually nothing in 1957, when Russia's Sputnik spacecraft shocked Americans, the U.S space program grew to consume 5% of the federal budget by 1964," he noted. "Less than 12 years after Sputnik, the United States landed a man on the moon."
Regional hubs. Kao envisions regional innovation hubs similar to Silicon Valley -- centers where the private and public sectors partner on a range of projects. For a model, he said, look no further than San Diego, "a Navy town known for surfing" transformed into a "powerhouse for world-class research and telecommunications. It emerged from a mix of private philanthropy and public investment, academic research and gloves-off capitalism."
He said similar hubs nationwide "could be financed with a blend of private, local, state and federal funds but sponsored and designated primarily by local stakeholders."
Ensuring the future. Kao says innovation should be bred into students at an early age. Among his ideas: "Enlist scientists, engineers and entrepreneurs to make regular visits to our schools to excite the up-and-coming generation about learning and achieving."
Another idea: "Recruit America's brightest junior high school students as full-time apprentices to leading innovators, a form of national early mentoring by the country's best minds."
