Innovation Economics

I stopped by the Information Technology and Innovation Foundation (ITIF) last week in Washington DC.  The founder and leader, Robert Atkinson, has just co-authored (with Stephen Ezell) a new book, titled "Innovation Economics: the Race for Global Advantage" with Yale Press.  Atkinson has a long pedigree, starting at OTA (Office of Technology Assessment) thirty years ago.

The book is refreshing.  He calls it like it is: "while the essence of relative industrial decline is crystal clear to anyone who cares to look, most U.S. economic pundits, policymakers, and academic economists remain in denial."  He is lethal in description: "conventional (i.e. neoclassical) economists remain the most powerful intellectual force working against robust innovation policies.  Fundamentally, the neoclassical economics guild (and it is just that...) neither understands nor appreciates innovation."

His key point, with which I agree, is that: "America (is) asleep, convinced of its own innate economic superiority and preoccupied by the challenge of the "War on Terror" and conflicts between "Red" and "Blue" states over a range of hot-button social issues.  Losing this race will have profound implications for the future of the American economy and society."

Atkinson focuses primarily on government policy, not surprising for a Washington DC denizen, but he does a capable job of quoting Paul Otellini and a spate of others re the true issues about globalization.  He mentions (in one sentence) Andy Grove's masterful outburst in Business Week in the summer of 2010, saying "only time will tell whether Immelt, Grove, Gates, and Liveria are anomalies or representative of a maturing U.S. business community as it wakes up to the nature and scope of the international competition it faces."

This book is worth your time....