Thomas L. Friedman, NYTimes, Sept. 7, 2008

As Chuck Vest, the former president of M.I.T., said to me: 

"...innovation is the only mechanism that can actually change things in substantive ways. Innovation is where creative thinking and practical know-how meet to do new things in new ways, and old things in new ways.

"The irony of ignoring innovation as a theme for our times is that the U.S. is still the most innovative nation on the planet," Vest added. "But we can only maintain that lead if we invest in the people, the research that enable it and produce a policy environment in which it can thrive rather than being squelched. Our strong science and technology base built by past investments, our free market economy built on a base of democracy and a diverse population are unmatched to date; but we are taking it for granted."

A developed country's competitiveness now comes primarily from its capacity to innovate — the ability to create the new products and services that people want, adds Curtis Carlson, chief executive of SRI International, a Silicon Valley research company. As such, "innovation is now the only path to growth, prosperity, environmental sustainability and national security for America. But it is also an incredibly competitive world. Many information industries require that products be improved by 100 percent every 12 to 36 months, just for the company to stay in business."

Our competitiveness, though, he added, is based on having a broadly educated work force, superb research universities, innovation-supportive taxes, immigration and regulatory policies, a productive physical and virtual infrastructure, and a culture that embraces hard work and the creation of new opportunities.

"America is still the best place for innovation," said Carlson. However, we are falling behind in K-12 education, infrastructure and in tax, regulatory and immigration policies that no longer welcome the world's most talented minds. "These issues must be at the top of the national agenda because they determine our ability to provide health care, clean energy and economic opportunity for our citizens."

(For a good plan, read the new "Closing the Innovation Gap" by the technologist Judy Estrin.)