EQUALS
WHICH EQUALS IF IMPLEMENTED
http://www.thewif.org.uk/version2/nlett/class/main1.html
The main reason why western
governments and the UK
in particular do not create a dynamic economy and fail the British people is
because the business-university model does not allow it. In this respect the UK places its
future in this so-called pre-eminent innovative system but where this system is
totally flawed. For big business sets the agenda usually in the first place and
if something comes to light that would blot out one of their profit earners,
that invention or product is not allowed to enter the market. You see big
business runs on the steady-state mechanism and if a product or service is
providing them with a constant profit, many going into the billions of dollars when
analysis is undertaken and where this vast profit generator product is threatened
(even though the new product and service is superior), it is shelved. That is why they are always buying up patents, for whoever controls the patent, controls the present and the future. In this
respect the longer a corporation can extract financial blood out of a product
and service without replacement with a better innovation, the longer vast profits
are made for the corporations.
The only time that this new
product or service emerges is when they hear that a competitor is bringing
something out similar through the grapevine. A prime example of this is the
world’s greatest wealth provider (underpinning a global industry turning over
$2 trillion annually), the ‘chip’. When the late Nobel laureate Jack
Kilby initially invented the ‘chip’ in his spare time and at home (it was like
a hobby to him and his employer was not even aware of his private work) and
told Texas
Instruments what he had invented, they did not want to know about it. But about
a year later when a new upstart emerged that through the grapevine were
developing a similar technology, Texas Instruments Board realised that this new
competition could kill off one of their golden eggs – Valves. At that time TI
was making 100s of millions out of the old valve systems that was like printing
money as valves did not last that long and were a constant flow of
manufacturing gold.
Therefore they asked Jack back
into their inner sanctums and where the rest is history. But it is clear that
if another new entrant had not come into the market we might have had to deal
with valves for at least another 10-years. The same goes for Frank Whittle and
the Jet engine where the aircraft industry supported by the British government
did not want to introduce such a revolutionary engine. The reason again was
that the aircraft industry was making 100s of millions of pounds again out of
the old prop engined aircrafts at the time and where commercial profits were
increasing year-on-year. It was not until WW2 was looming that they had to take
notice of Whittle’s invention that the establishment (aircraft industry and
government) had to change their thinking and place winning the war above
corporate profits. This is how the system basically works in reality and the
‘don’t rock the boat’ mentality stifles the vast majority of R&D through
big business controlling the business-university mechanism.
Oh by the way, that upstart that
made TI sit up and think about Jack's invention was the little old firm called INTEL.
Therefore big business does not
really want to innovate in the true sense of the meaning but keep with the
status quo – the basic commodity that they are into, big profits, shareholder
satisfaction (the rich usually) and milking the market dry for all its worth
and for as long as they can.
That is why in modern times the pure business-university model has never created a multi-billion dollar industry.
Therefore the big
business-university model that all western governments support is totally
flawed and screwed in favour of corporate decisions, not university R&D
decisions. Indeed even if a university gets a giant transnational to fund
research, the big corporation has control as they hold the purse strings, to
stop and shelve the R&D. And this is what happens in over 90% of
university-big business collaboration.
Indeed as government are ignorant
to what is really going on behind closed doors (or if they know they are
squandering our tax), the taxpayer is getting a raw deal. In this respect
government funds businesses to undertake R&D in collaboration with our
universities through grants and tax breaks, but never gets a payback that is
greater than the money that they give big business.
Therefore all government is doing
is putting billions into this non-performing mechanism and big business is
using it to its own ends, not the ends of the universities or the people. It is
basically one big con on the taxpayer as there are no paybacks. Indeed for the
billions pumped into the business-university model every year, the nation’s
investment is negative. That has gone on for years and why the UK will never
be a dynamic economy, as big business only takes and does not give anything
back in reality. They may provide jobs in the minority, but get the lion’s
share of the enormous tax breaks and R&D grants before any others.
Therefore government cannot see
the wood for the trees and what they should be doing is to provide the lion’s
share of R&D to the small-medium sized businesses, the ones that are
growing. In this way new technologies and products would emerge and these would
not be shelves. Indeed it would spawn many ‘INTELs’, with the new global wealth that was created by them in their day initially. Therefore government has got it all wrong
when it comes to the funding of R&D and where they are giving it to the
wrong section of the economy. Think small to medium in this respect is my advice
to government and where the UK
would through this change to a highly innovative system, create a dynamic Britain once
more. But will they, I very much doubt it as they are totally ignorant to what
is really wrong with their R&D thinking today.
Chief Executive
World Innovation Foundation
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