Michael Mandel writes in his June 3rd cover story for Business Week that “During the past decade, innovation has stumbled. And that may help explain America’s economic woes”. From Facebook to flat-screen televisions, we’ve been lead to believe that we’ve entered into a new age of innovation unmatched by the past.
But like Mandel, I disagree. I think we’re spinning our collective wheels. Biotech, alternative energy, health care, and in almost every other industry, has produced little impact on the innovation front. While we’re all still enamored with the Internet, social networking, and cloud computing, old and inefficient systems in other key industries have remained in stubborn place. The US government owns 60% of GM as a result. This is one example in a sea of many sad cases.
Then there is the problem of rebranding. While I believe that corporate America has had opportunities to make real impact, they’ve taken the straighter path to profits by rebranding old models and technology. Cereal, automobiles, and financial products come to mind.
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