The Broken Innovation Machine - Part II.

Our founding fathers spawned a constitution that recognized and rewarded innovation. They gave birth to the great American innovation machine. The machine has worked like the proverbial Swiss watch providing a seemingly timeless environment for the innovative capabilities of Henry Ford, Thomas Edison, Thomas Watson and Benjamin Franklin to name a popular few. The American innovation machine has created more jobs and wealth than the combined totals of 50 other countries of the world. For two hundred thirty years, it has kept the correct time.

We could always depend on the American initiative. Every President has told us so. From the building of a vast transportation system which was the best in the world to JFK inspiring us to go to the moon, it has worked. But just like the Swiss watch the innovation machine has been passed by, left on the wayside. The machine is broken.

The last 40 years have witnessed an unprecedented decline in American innovation, often explained by characterizing the decline as a natural expansion of the global economy. In retrospect the decline is indisputably visible, but along the way the decline has been camouflaged by many other public policy matters. Scientists have concluded that the Grand Canyon was created by water weathering away rock, the evidence is indisputable. However, I have stood on the Grand Canyon floor for several hours and never noticed any difference. The decline and fall of the great American innovation machine is just like that - imperceptible changes in foresight, but indisputable damage in hindsight.

The great American innovation machine is broken. We have regulated, cajoled and rationalized ourselves into innovation oblivion. We are in a 5:00 taxi gridlock in New York City on 5^th Avenue on a Friday afternoon trying to get home to Connecticut. We are moving, but we are not going anywhere, and we will not get there on time anyway. Like the Swiss watch, innovation has passed us by so swiftly, so silently that we did not see the movement.

I hope the next generation can do better. It has to start with a new CEO.