Daniel Pink, in his book A Whole New Mind, states that we have entered the “Conception Age” in which ideas become the currency of the realm. Innovation has become an economic driver in this new economic age. Intellectual property is a bi-product of this focus on the application of knowledge.
InnovationWorks (www.innovationworkswestmichigan.com) is a new program funded by a WIRED (Workforce Innovation in Regional Economic Development) grant in West Michigan designed to connect ideas with companies that are interested in commercializing them. As it says on its website, “Ideas that work are inventions, but they’re not innovations until they’ve been successfully commercialized.” The purpose of InnovationWorks is to accelerate the business of invention as an economic development strategy.
InnovationWorks provides three basic functions: 1. mine for intellectual property through the Idea Portal; 2. connect with others through Collaborative Networks; and 3. get coaching from experts through Training and Events.
This bold experiment to stimulate the creation of jobs through innovation (the application and commercialization of ideas) is one to watch closely. This prototype model will likely spread to the rest of the country if successful. At the moment, the staff has been overwhelmed with the initial response; their current challenge is to respond to the large number of initial inquires.
India’s economic miracle! One could hardly imagine Indian companies making a mark in the global economy barely a decade ago. India’s economic miracle began in the early 1990’s when the government began opening up the economy to foreign investment and liberalized trade restrictions. Since then, India’s Gross Domestic product (GDP) has multiplied more than three times from $315 billion in 1990 to $984 billion in 2007 (IMF World Economic Outlook, current US dollar measures not adjusted to inflation). Since 1990, India’s economic growth has averaged 6.24 percent, while the US’s economic growth has averaged 2.96 percent (adjusted to inflation). Cheap US dollar! In January 2003, one US dollar could buy you 48 Indian Rupees (INR). In January 2008, it only bought INR 39.5. This means that US dollar has devalued about 18 percent against the Indian Rupee in the last five years. As a result, US investment has become 18 percent cheaper for Indian companies. Investing in the US gives India a competitive advantage. The returns that Indian companies enjoy here are far greater than elsewhere. No one knows whether the dollar is going to keep on going down. Indian companies are definitely seizing this window of opportunity and putting a foot down on the accelerator. What is in it for economic development agencies? One thing is for sure, there is plenty of opportunity. Is there any difference between attracting investment from Wichita, Kansas, or Mumbai, India? Probably not. In a global economy, the origin of investment is irrelevant. Economic development agencies responsible for attracting businesses to their area to create jobs, expand their economic pie and increase the tax base of their community have a wonderful opportunity to tap into this new global economic phenomenon.