[kictanet] an interesting article by Eric Schmidt

[Agosta Liko]

*Erasing our innovation deficit*

 By Eric Schmidt
Tuesday, February 9, 2010; 10:14 AM

 We can see it reflected in our search trends at Google: Too many people are
out of work, and the fear of unemployment is changing the behavior of
millions more. In the fall, searches related to back-to-school shopping and
holiday travel bookings peaked weeks later than usual, as families put off
spending as long as possible. At the same time, queries for payday loans
have gone up a third in the past two years.

To spur job creation and alleviate the fear of unemployment, the United
States will need to tackle what Commerce Secretary Gary Locke has called our
"innovation deficit<http://www.commerce.gov/NewsRoom/SecretarySpeeches/PROD01_008778>."
We have been world leaders in innovation for generations. It has driven our
economy, employment growth and our rising prosperity. But much of the
cutting-edge research and development in key areas such as renewable energy
now takes place outside the United States. There's a real chance that the
"green Silicon Valley" will take root in Germany or China. We can't afford
to let that happen.

Addressing the innovation deficit requires rethinking our innovation model.
We can no longer rely on the top-down approach of the 20th century, when big
investments in the military and NASA spun off to the wider economy. Now that
the Internet has put abundant information and powerful tools in everyone's
hands, innovation is often driven from the bottom up. The ideas that power
our next generation of growth are just as likely to originate in a coffee
shop as in the laboratory of a big corporation.

More than ever, innovation is disruptive and messy. It can't be controlled
or predicted. The only way to ensure it can flourish is to create the best
possible environment -- and then get out of the way. It's a question of
learning to live with a mess.

First, start-ups and smaller businesses must be able to compete on equal
terms with their larger rivals. They don't need favors, just a level playing
field. Congress should ensure that every bill it passes promotes competition
over protecting the interests of incumbents.

Second, encouraging risk-taking means tolerating failure -- provided we
learn from it. If we want to be a leader in new industries such as green
energy, we have to accept that some of our investments won't pan out. Show
me a program with a 100 percent success rate, and I'll show you one with 0
percent innovation.

Third, we need to invest more in our knowledge base. The decision by
Congress to double science funding last year was a big step in the right
direction. Now we need to extend the R&D tax credit so businesses can
confidently invest in their future.

Fourth, information must become even more open and accessible.
Government-funded research should be made public through "a Wikipedia of
ideas," so entrepreneurs can harness ideas commercially. High-speed Internet
access must be much more widely available. Broadband is a major driver of
new jobs and businesses, yet we rank only 15th in the world for access. More
government support for broadband remains critical.

Finally, we need to hang on to talented people. The best and brightest from
around the world come to study at U.S. universities. After graduation, they
are forced to leave because they can't get visas. It's ridiculous to export
such talent to our competition.

We have everything else we need to climb out of the current morass. Right
now, somewhere in the United States, someone is working at a kitchen table,
in a dorm room or a garage, developing an idea that could not only create a
new industry but could also just possibly change the world. If we provide
the right environment, she'll do the rest.

*The writer is **chairman and chief executive of
Google<http://www.google.com/corporate/execs.html#eric>
**.*
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