Is innovation dead in the US?

by Don Reisinger

May 5, 2008 —

During my research for a topic this week, I wasn't too sure what was worth discussing. Vista? XP? Apple? The list went on. But during my decision process, I received a flurry of press releases in a matter of minutes that described "new" products.

One told me about another set-top box that will allow you to stream your media throughout the home. Another described the benefits of owning the particular company's latest LCD. And still yet another advertised the upcoming release of a cell phone that doesn't break down one barrier.

All that made me ask myself what's really going on in the tech world. Why are we being inundated with copycat products instead of devices that change the face of the industry and do something to propel us forward?

Surely the answer to that question is economics. Let's face it - companies are much more willing to sell products that have a proven track record of being popular than those that may or may not do well. When given the choice between another set-top box that does everything others do or a device that lets you do more with less, the manufacturer will almost always pick the former because it's the safe bet.

But let's be honest - woes in innovation go far beyond accessories and boring products. Innovation is practically dead in the United States. How is it possible that the so-called last "superpower" is woefully behind in robotics, broadband speeds, Internet connectivity, cell phone saturation, and cost leadership?

According to the latest studies, the United States is barely a contender in the world of robotics where Japan leads the world; is ranked far behind Japan, South Korea, France, Sweden, Italy, and a slew of other countries in broadband speeds; and enjoys just an 82 percent cell phone penetration rate.

The United States has lost its way when it comes to innovation. Generally speaking, the three facets of innovation are human capital, ideas and financing. But in an environment where it's cheaper for companies to use workers overseas, ideas rarely break the mold, and financing is practically non-existent, what else should we expect from the country?

Sadly, though, the chances of the US and her companies changing focus mid-stride are slim. If nothing else, companies have shown that it's safer to do business when a small firm innovates, is acquired by a larger firm, and others can then copy that company.

The only real exception to this rule is Apple. Unlike the vast majority of other companies in the tech industry, Apple has gone out of its way to be more innovative. Whether it's iTunes or the iPhone, the company has shown that it's willing to think outside the box and finance worthwhile products for the sake of differentiation.

But what about every other company? Why don't the same rules apply to those people that haven't gone off the beaten path and done something different?

Sadly, the US and especially tech companies are playing it safe with total disregard for what consumers really want. We don't want another iPod accessory or an iPhone-wannabe. All we really want is something that's both innovative and new.

Is that too much to ask?

ITworld.com