Home > For Entrepreneurs > Government’s role in innovation

Government’s role in innovation

William H Janeway wrote an interesting article in the Observer newspaper today raising the issue of government funding or intervention in the development of innovation.

He has written a book on the innovation economy and its history. Essentially he says that whilst the billionaire entrepreneurs of the digital economy continue to recycle their wealth in new technologies it will not be enough for the commercialisation of new materials and applications coming from these technological changes. This will require large companies, not start ups. Scale matters.

However he notes that “Silicon” is the exception. Yet even here success was driven initially by the US defence department’s generous budget.

From 1953 to 1978 federal funding accounted for more than half of all R&D in the US equivalent to 1% of GDP. That would amount to $150 bln today!

Check Also

The Role Of Ventures In Strengthening The Fabric Of The City The case of Chennai

A city can support ventures... and should, because ventures return the favor in ways you might not expect. This article by CIV International Research Affiliate Thillai Rajan A., and Vikram Kapur, shows how the presence of venture can energize the hosting city, leading to a virtuous symbiotic equilibrium. It uses as a case study the South Indian city of Chennai, founded in 1639, which is one of the thriving metropolitan cities of India today, presented in an insightful paper and a CIV City Case.

Leave a Reply