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January 05, 2006
Innovation legislation - what about design?
I have been a strong supporter of the efforts of Senator Lieberman on competitiveness, and most recently with the National Innovation Act of 2005. In fact, Athena Alliance wrote a letter of support for the legislation, calling it "a step forward in addressing this challenge [of coping with the new I-Cubed Economy]." We specifically based our support on two provisions in the bill. The first is a study on valuation of intangibles. As our study on Reporting Intangibles pointed out, we are flying blind when it come to understanding and accounting for intangibles. This study will move us in the right direction.
The second provision is the creation of a President's Council on Innovation. We believe that, properly focused, this Council could take a broad view of innovation and knowledge diffusion to include policies to foster non-technological ingenuity and creativity as well as science-based research and development - and in all sectors of the U.S. economy, particularly those in which rates of productivity and innovation have lagged, and in U.S. companies of all sizes, particularly small and medium-size companies. As such, it could serve as an important analytical and policymaking body, similar to that which was envisioned in Senator Lieberman's previous legislation to create a Commission on the Future of the U.S. Economy (which we helped formulate).
However, I have always felt that the bill is only a step in the right direction - not the complete answer. It addresses the S&T issues, but not the broad innovation issues.
Niti Bhan, writing two weeks ago in Business Week - "A Competitive Nation, by Design" makes a similar point:
There can be no argument against the importance and validity of these initiatives, . . .
However, one must raise the concern: What about design? Is any of the increased funding to the National Science Foundation and other basic research focused on design methodology and tools, the building blocks of innovation? We've all heard the success stories in which design-led innovation has directly increased existing market share, grown new markets, added value to the bottom line, and raised the visibility of brands.
Take Google's design philosophy of simplicity or Procter & Gamble's (PG) emphasis on user needs -- both examples of global giants recognizing the value of design. Yet there is no mention of design or the design industry in the National Innovation Act.
Yes, as I have railed about only yesterday, we don't have the government programs focused on design. And we desperately need them.
Maybe we can all work together to make that the next piece of legislation.
Posted by Ken Jarboe at January 5, 2006 08:35 AM
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