Facing an "Innovation Crisis?"

"Judy Estrin, a serial entrepreneur and former chief technology officer of Cisco Systems (CSCO), believes America faces an innovation crisis. Closing the Innovation Gap, which was released early last month, is Estrin's treatise on why America's position in the world has eroded in comparison with emerging powers such as China and India—and what government and business can do to redress the deficit.

Her text, which was penned well before the American financial system began to unravel, is all the more timely because of the panic in the markets. One core argument is that many executives have a penchant for short-sighted investments, and that cowed corporate boards are unwilling to ask hard questions. The collapse of Bear Stearns and Lehman Brothers only strengthens this critique.

Like many other commentators, Estrin also takes government to task for scaling back on nondefense science spending, leading some of America's innovation muscles to atrophy. This predicament may soon grow much more serious, as scientists around the world have warned, (Watch this video to hear Estrin's updated commentary on how Wall Street's turmoil affects America's position in the world.)"

Source: http://www.businessweek.com/innovate/content/oct2008/id2008108_987380.htm

-Nina Pak