President Obama has gone on record stating that “the only way to fully restore America’s economic strength is to make the long-term investments that will lead to new jobs, new industries, and a renewed ability to compete with the rest of the world.” He goes on to say that “I do not accept a future where the jobs and industries of tomorrow take root beyond our borders…it is time for America to lead again.”
In September 2009, the Office of the President issued “A Strategy for American Innovation: Driving Towards Sustainable Growth and Quality Jobs,” a report that outlines the administration’s innovation strategy. One of the key drivers behind the aforementioned vision, this strategy is funded by well over $100 billion of the $787 billion Recovery Act funds. While the vision and focus on innovation has been widely praised, critics have raised concern over the lack of details included in the report. Essentially, how can the government make its innovation initiatives actionable and measurable? How can it deliver guaranteed results? How can the government discover the industries of the future and help companies create valued products and services?
It’s time for innovative thinking about innovation policy. For this initiative to be successful, the government must adopt a proven process for innovation and embrace a long-term vision for success. Our government innovation strategy must detail how to:
1. Select those markets poised for growth
2. Identify the unmet needs that exist in those markets
3. Create the products and service concepts that will drive market leadership
4. Direct and fund companies to develop and launch those products
By employing a proven process for innovation, the government, in partnership with the private sector, can identify which emerging markets will be the engine fueling future economic development. By being first to enter and lead those emerging markets, there is complete assurance that the U.S. will be positioned for ownership and dominance of the high-growth industries of the future. This means thousands of new jobs and sustainable economic growth.
To Accelerate Growth We Must Also Innovate Government Practices
An effective innovation process can also be used to achieve several highly leverageable successes by enhancing government practices that are intended to drive innovation – but fall short.
First, let’s consider how government contracts are written. Although innovative solutions and added value are sought, our government typically specifies the products and services it wants created, leaving little room for creative solutions. Imagine, instead, if we were to provide suppliers with a set of metrics that define how value is measured. They would then be free to create innovative solutions. And they would have in place a measurement system to demonstrate just how much value they are creating. Innovation would flourish. Granted, changing government procurement processes would require patience but it is an idea worth exploring.
Secondly, let’s evaluate how and where we are bestowing grant funding. Often, research programs are rooted in the specific interests or passions of the scientist or research team – or the government agency providing the funding. Many bright ideas get funded but there is little or no correlation between the research being done and the technologies that are needed to drive growth in emerging markets. Simply put, we need to revisit the criteria for how grant funds are distributed. If we were to harness the immense intellectual capital of our country’s academics, scientists and researchers and have them focus on creating the technologies, product, and services required to be successful in the markets of the future, we would further solidify the future success and security of our country and its people.
The United States is known for its ingenuity and is well positioned to lead the way in the systematic application of advanced innovation processes. Other countries are already doing this. By coupling a proven innovation strategy with our nation’s boundless enthusiasm and creativity, we can deliver on President Obama’s vision for “a high quality of life for this generation and future generations.”
About Strategyn and CEO Anthony Ulwick
Anthony Ulwick is the founder and CEO of Strategyn, Inc., and the author of the best -selling book, What Customers Want. He has published numerous articles on innovation management in the Harvard Business Review and the Sloan Management Review. Founded in 1991, Strategyn has worked successfully with companies such as Microsoft, Chiquita Brands, Hallmark, IBM, Johnson & Johnson, WellPoint, Motorola and Pfizer, helping them establish effective innovation strategies and driving them through implementation. Visit www.strategyn.com for more information.