At a time of intense division, with deep political and religious faultlines splitting the world, innovation stands out as a powerful integrative force. It ties countries, companies and consumers [try customers!] together in creating value, solving problems, and generating wealth. An innovation economy demands that society be open, dynamic, educated, international, and risk-taking. Given a chance, innovation can improve all our lives. - Business Week editorial (subscription required), October 11, 2004 issue
This sounds a little corny, but I think it's entirely possible for business to be a powerful force for social good. I like how that sounds: A powerful integrative force. The entire 75th Anniversity issue of Business Week is devoted to "The Innovation Economy."
The Innovation Economy is not confined to any geography. As Ricardo Sirolli, author of Ripples from the Zambezi, says, "As you know I believe that there is no geography to passion." The bricks-and-mortar success mantra of 'location, location, location' shifts into the webs of these collaborative global social networks themselves. They're called 'innovation networks.'
Because technology now crosses borders faster than ever -- thanks to the Internet, cheap telecom links, and advances in interactive-design software -- the location of R&D facilities matters less and less. What matters is who controls these networks -- and where the benefits accrue in terms of products, jobs, new companies, corporate profits, and higher economic productivity. "The real challenge is to commercialize technology," says Boston Consulting Group Executive Vice-President James P. Andrew. "Increasingly, that means integrating outside technologies and orchestrating global value chains."To get an idea of how diffuse the innovation process has become, try dissecting your new PDA, digital cameraphone, notebook PC, or cable set-top box. You will probably find a virtual U.N. of intellectual-property suppliers. The central processor may have come from Texas Instruments (TXN ) or Intel, and the operating system from BlackBerry (RIMM ), Symbian, or Microsoft. The circuit board may have been designed by Chinese engineers. The dozens of specialty chips and blocks of embedded software responsible for the dazzling video or crystal-clear audio may have come from chip designers in Taiwan, Austria, Ireland, or India. -- Scouring the Planet for Brainiacs, Business Week "The Innovation Economy" issue
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