[ExI] A Nobel laureate and climate change

[BillK]

2011/9/17 kellycoinguy wrote:
> Bill.. If the rich want to produce spatulas or vacuums.. Then yes they go to
> China to get them built... But if they want true innovation, rather that
> rote duplication of stuff that has already been done, then there is still no
> place to beat the USA.
>
> A big part of successful innovation is venture capital. China's government
> funds some research.. But it is a drop in the bucket compared to the US
> private investment in true innovation.
>


Your first comment agrees that production facilities are cheaper and
more productive in China. So more US innovation won't create much
employment in the US.

The financial press has noted that some (many?) US companies are not
bringing new products to market because in the current economic
depression consumer demand has collapsed. The depressed market doesn't
want innovation. The US needs jobs first, then people will have money
to spend.

There is much concern that US innovation is falling behind other
countries. Even Obama has commented on this. A recent report is here:
<http://www.brookings.edu/papers/2011/08_innovation_greenstone_looney.aspx>

The pace of US innovation has slowed since the 1970s. Mainly because
government funded research has halved. Basic research is funded by
government. (Barcodes, fiber optics, MRI machines and GPS technology
are just a few of the innovations that came out of government-funded
basic research).
Venture capital funds the development of new trinkets for individual
firms to manufacture in China and sell in the US and make a profit.
And they need consumers willing and able to buy their trinkets.


BillK