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Not long ago, Americans could rightfully feel confident in our preeminence in the world economy. The United States set the pace as the world's leading innovator: from the personal computer to the internet, from Wall Street to Hollywood, from the decoding of the genome to the emergence of Web 2.0, we led the way and the future was ours. So how is it, bestselling author and leading expert on innovation John Kao asks, that today Finland is the world's most competitive economy? That U.S. students rank twenty-fourth in the world in math literacy and twenty-sixth in problem-solving ability? That in 2005 and 2006 combined, in a reverse brain drain, 30,000 highly trained professionals left the United States to return to their native India?
Even as the United States has lost standing in the world community because of the war in Iraq, Kao warns, the country is losing its edge in economic leadership as well. The future of our prosperity, and of our national security, is at serious risk. But it doesn't have to be this way. Based on his in-depth experience advising many of the world's leading companies and studying cutting-edge innovation "best practices" in the most dynamic hot spots of innovation both in the United States and around the world, Kao argues that the United States still has the capability not only to regain our competitive edge, but to take a bold step out ahead of the global community and secure a leadership role in the twenty-first century. We must, though, take serious and concerted action fast.
First offering a stunning, troubling portrait of just how serious is the erosion in recent years of U.S. competitiveness in innovation, Kao then takes readers on a fascinating tour of the leading innovation centers, such as those in Singapore, Denmark, and Finland, which are trumping us in their more focused and creative approaches to fueling innovation. He then lays out a groundbreaking plan for a national innovation strategy that would empower the United States to actually innovate the process of innovation: to marshal our vast resources of talent and infrastructure in the particular ways that his studies of innovation have shown lead to transformative results.
Innovation Nation is vital reading for all those Americans who are troubled by the great challenges the United States faces in the ever-more-competitive economy of our twenty-first-century world.
- Sales Rank: #457218 in Books
- Model: 3587283
- Published on: 2007-10-02
- Released on: 2007-10-02
- Original language: English
- Number of items: 1
- Dimensions: 9.00" h x 1.20" w x 6.00" l, 1.06 pounds
- Binding: Hardcover
- 320 pages
From Publishers Weekly
Alarmed by the lack of innovation in the United States today, former Harvard Business School professor and current consultant Kao diagnoses the situation, describes best practices, explains how innovation works and puts forth a strategy proposal, all in an attempt to squirt ice water in America's ear. Kao-who has been an entrepreneur, a psychiatrist, an educator and a pianist for Frank Zappa-is clearly passionate about his premise. Aimed primarily at policy makers and legislators, his three-pronged agenda is designed to help the government create a culture committed to constantly reinventing the nature of its innovation capabilities. However, his authoritative and history-rich book is not necessarily useful to the everyday reader, as Kao includes few small-scale strategies. His one effort to bring this down to the citizen's level-in fictional short stories about the future-is a little contrived, jamming in statistics and leaning on flashbacks. But overall, the book does its job. The question is, will lawmakers look at it and follow its lead? (Oct. 2)
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Review
"Tom Friedman sounded the alarm and gave us the big picture about the flattening of the world, and the decline of education and innovation in the U.S.A. John Kao gives us the specifics on exactly why and how the U.S.A. is losing our most valuable asset -- the ability of Americans to come up with great ideas, from light bulbs to PCs. Most importantly, Kao points in the direction the U.S.A. ought to go if it is not to become a global also-ran."
-- Howard Rheingold, author of Smart Mobs: The Next Social Revolution
"The arms race of the last century has been replaced by a new global brain race -- and the U.S. is in danger of unilaterally disarming. This inspiring book frames the challenge facing us and offers immensely practical advice on how to regain our place as innovation leaders."
-- Paul Saffo, Roy Amara Fellow at the Institute for the Future
"John Kao hits the nail squarely on the head. In an engaging and highly readable way he delivers a timely message with important implications for our future -- that the global race for innovation is on, the field is filled with highly focused competitors, and our biggest mistake would be complacency."
-- Sean Randolph, President & CEO, Bay Area Economic Forum
"A nation's capacity for innovation will determine whether it will be rich and powerful or poor and weak. In his insightful exploration of the world of innovation, John Kao makes clear the challenge that America faces as its own capacity for innovation erodes even as the rest of the world's abilities are growing. America's postition of power and wealth will be determined by whether it can rise to meet the challenge of the innovation agenda that Kao lucidly sets out."
-- Peter Schwartz, Chairman, Global Business Network
"It should be a surprise to no one that John Kao's new book is a highly innovative approach to innovation. He analyzes with crystalline clarity the challenges to U.S. innovation hegemony from ambitious and hungry competitors, China, India, Finland, and even Estonia. He does not shrink from advocating specific solutions, including the creation in the United States of 20 $1B Innovation Hubs and a National Innovation Advisor. His vision is not, however, American. He shows us how the whole planet needs to accelerate its capacity for innovation. For those of us who lead institutes dedicated to innovation this is a Bible and a Koran."
-- Reg Kelly, Chairman, Bay Area Science and Innovation Consortium, and Director, Institute of Quantitative Biomedical Research
"An insightful, and scary, account of the innovation challenges faced by the U.S... A very useful book that punctures America's complacency about innovation."
--Business Week
About the Author
John Kao is a leading expert on innovation. He taught a popular course on the subject at the Harvard Business School for fourteen years, has also served as a visiting professor at the MIT Media Lab, and as Distinguished Visiting Professor of Innovation at the U.S. Naval Postgraduate School in Monterey, California. In addition, he is the founder of Kao & Company, which advises top-tier Fortune 500 business leaders as well as government leaders around the world. He has specialized in instructing organizations in the methods for making innovation happen. Dubbed "Mr. Creativity" by The Economist, he has started several companies, in areas as diverse as biotech and innovation management, and he is also a Tony-nominated executive producer of theater and film, including Sex, Lies, and Videotape. He is also an accomplished jazz musician and lives in San Francisco, California.
Most helpful customer reviews
25 of 29 people found the following review helpful.
Nothing Innovative About this Book
By J. Groen
For a book about Innovation, there is nothing Innovative about this book. The stories about Singapore, Finland and Ireland are well known and can be found in Business Week or Wall Street Journal. Yes, and well read readers will know that we are losing our innovation edge to China and India. No new information there. And, his answers are not new - use the internet, improve our education systems, entice outside talent, better offices, etc. In fact, I would even question his definition of innovation - jazz is innovative but classical music is not? He starts with the assertion that innovation is not just about technology and science and then labors onto technology and science. Further, at the end of this book, he used the "I" word so many times to emphasize his opinion, that I lost count of it. I can go on about this book, but let me leave it with this - this is the worst book on innovation that I have read. A lot of borrowing from others, a lot hype on what he will provide for solutions and then NO delivery. Don't waste your time on this book.
8 of 9 people found the following review helpful.
Kao, a skilled and knowledgeable writer, examines a imited set of U.S. policy problems
By Frank T. Manheim
The author's book offers what may be considered by Europeans as a curiously anomalous idea: that the United States's main problems stem from insufficient innovation. Can one describe as lacking in innovation a nation that produces out-of-the-box ideas like community colleges, sending a man to the moon, Borlaug's green revolution, Internet, web browsers, CD ROM and DVD, Amazon.com - including its revolutionary introduction of reader reviews (no, I am not a paid agent for Amazon), Ebay, blogging, Apple products, and endless Nobel prize winners in biology and medicine?
Certainly, the nation's educational problem is dire. But does Kao really believe that innovation is the key to fixing the U.S.'s systematic deterioration in economy (deindustrialization), infrastructure, fiscal soundness, pension security; that clever ideas could deal with our anomalous levels of crime and violence compared with all nations of comparable GDP,political gridlock, or our degraded popular TV and entertainment media?
I might hire Kao to rev up innovation in my company if I were an industrialist, but I would not elect or appoint him to advise on public policy issues. Instead, I suggest that Kao may be a symptom of the fragmentation and willingness to settle for superficiality that has developed in the U.S. over the past 45 years.
The EU is not as flashy and exciting as the U.S. But it has evolved a civilized pattern of cooperation. It leads in environmental policy and acting on (not just writing or yelling about)global climate change. The Dollar is sinking ever lower with respect to the Euro (now trading at 1.55). Most citizens in European nations approaching or exceeding our GDP have greater security for the essentials in their lives than do a large fraction of Americans; and their industries are, by and large, outcompeting us, even buying out what remains in the U.S.
I suggest that innovation is now limited from being applied to critical areas like those I mentioned above because many educated, bright, and influential Americans in academia, politics, and business have short-range focus in their thinking. We don't seem to have much interest in looking at problems holistically, having humility, learning from history or other societies. I'm not sure which author I'd recommend instead of Kao, but I'm looking (and also writing, myself).
5 of 5 people found the following review helpful.
Good Start -
By Loyd Eskildson
Between 2005-06, some 30,000 professionals left the U.S. to return to their native India; China has made encouraging the return of their educated expatriates a priority. Meanwhile, U.S. students continue to rank poorly, and innovation is increasingly becoming a government priority for other nations. In the U.S., however, we are becoming the Detroit of nations, taking the path of least resistance, basking in fading glory, and bogged down by old values and thinking. Example: The U.S. got a major 'free ride' from German immigrants in the 1940s, and mistakenly claimed their contributions as evidence of our superiority.
'Green" has become the new red, white, and blue - yet, is blocked by lack of consensus on need, impact, funding source, etc. The U.S. ranks 17th among 30 OECD nations on R&D tax incentives.
Large-firm CEOs have lately deinstitutionalized innovation, instead eg. buying upstart biotech firms with valuable technologies - innovation by M&A instead of R&D. Even more recently - deliberate outsourcing and offshoring of R&D.
Robert Solow won the Nobel Prize in economics demonstrating that as much as 80% of GDP growth comes from the introduction of new technologies. Similarly, Boston Consulting Group, in a study for BusinessWeek, found innovative companies achieved median profit-margin growth of 3.4%, vs. 0.4% for the S&P Global 1200 median. Disruptive change (eg. introducing the Sony Walkman, the PC) is much more important to boosting GDP than innovative improvement (eg. adding to Oreo's brand extensions, 'me too' drugs). Opportunities abound for disruptive innovation - addressing global warming, education, communicable diseases and cancer, energy sufficiency.
Some assorted background facts contained in "Innovation Nation:"
U.S. students rank 24th in math literacy and 26th in problem-solving ability. In 2005-06, 30,000 highly trained technology professionals left the U.S. to return to India; similar trends involve the brightest of other nations.
By 2010 experts estimate that Beijing will have the world's largest nanotech research infrastructure, with 10X as many researchers in one location as any comparable U.S. facility; the second largest will be in Shanghai.
The U.S. ranks 16th out of 17 nations in the proportion of 24-year-olds with degrees in natural science vs. other majors, according to the National Math and Science Initiative.
Intel's Barrett says a chip-making facility in Singapore is worth $1 billion more over ten years than an identical one in the U.S., largely because of more favorable tax policies.
In 2006 the Dept. of Defense identified 42 leading-edge technologies it was interested in - 20 were based outside the U.S.
Foreigners represent half of all U.S. graduate students in engineering and 40% of those in physical sciences. However, their numbers are dropping due to increasing alternatives (eg. Australia, China), increased difficulty getting visas, and rising costs in the U.S.
These are all good points to help raise awareness of the need for change. However, Kao's recommendations are too much more of the same - eg. spend more money on education.
We already spend 5.3% of GDP, vs. 1.9% for China, 3.5% Japan, 4.6% South Korea and Germany, 5.6% U.K., 7.2% Norway, and have doubled our inflation-adjusted per-pupil spending in the last 35 years - w/o improving either our drop-out rate or NAEP scores for 17-year-olds. Thus, more money for education is not the answer.
Tax policy changes would probably help. However, the biggest factor is the much lower labor costs overseas - eg. $200/month for factory workers laboring 80 hour-weeks in China. Outsourcing production work quickly takes with it the need and opportunity for factory management and engineering positions as well. Finally, skills in current areas often provide the gateway to mastering new technology - eg. TV tubes -> LCD, plasma, and OECLD flat-panel displays -> nanotubes (?), etc.
The other major problem is the U.S.'s phobia about government intervention. China, Japan, and South Korea have all had strong government leadership shaping their direction; the U.S., however, has not, and we have ended up outsourcing so many capabilities that we increasingly appear to be a "paper tiger" service economy, dominated by the finance industry (about 40% of our GNP).
The U.S. mints about 4,000 new PhDs in biological sciences each year; Singapore creates about 500/year, and is targeting 1,000 by 2015 - despite a population only 1/70th that of the U.S. Foreign recruitment (about 75% of 'Biopolis' staff are recruited from abroad) is aided by a relaxed attitude on stem-cell research. Singapore's government added environmental and water technologies as targeted areas in 2006, as well as interactive and digital media - all seen as big growth areas in Asia. Funding for high-caliber PhD students in these areas is offered if they agree to work in Singapore for at least six years - recipients don't even need to be natives.
Bottom-Line: "Innovation Nation" provides excellent examples of what other nations are doing. However, Kao grossly underestimates the difficulties in improving U.S. pupil achievement overall - we've tried for at least 35 years, with little or no impact. The basic unaddressed problem is that American pupils simply don't work hard enough, compared to their Asian peers. (Other sources also conclude that Asians, on average, rank nearly one standard deviation above average Americans on IQ tests.) Kao also errs when suggesting that impressive new projects (eg. Spain's new Guggenheim Museum) will revitalize surrounding areas - this logic has been followed thousands, if not millions, of times in the U.S., failing to make significant impact in almost every instance. Finally, Kao misses the need to point out how excessive expenditures in American health care, defense, etc. starve innovation.
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