Is Innovation Slipping Into A Depression?
Depression is more than just a name for sliding GDP numbers. True, it may be an economic condition; but, it can also be a mass psychological effect that turns into an dire economic feedback loop.
People are depressed and the economy suffers; the economy suffers and people get more depressed. And so on. Think of Japan in the 1980s.
Forget profits and jobs. We know they have been damaged. What is more frightening–and far more devastating–is that the psyche has been damaged because of the recent financial turmoil. Factories can be rebuilt and jobs can be created, but when people stop believing, the chances for recovery are slim.
There’s one more sign that our collective conscious is slipping into a deeper funk.
According to this CNN story, for the first time in 13 years, patent filings are down. They’re down 2.3 percent.
It’s causing a lot of worry at the patent office.
“That’s unfortunate because [patent filings] are a reflection of innovation,” said David Kappos, director of the Patent Office. “Innovation creates so many jobs and so much opportunity for our country. It is absolutely key to our long-term success in the global economy.”
Meanwhile, U.S. patents to inventors and businesses in other nations is up over 6 percent.
There’s a couple reasons. Obviously, a lot of companies that produced patents are gone. Finished. Other companies are slowing research and development.
More ominously, it could be a sign that America’s innovative urge is dying. We are in information-based society, folks. That’s not good. It may even mean that our global leadership in innovation is traveling abroad.
Does this mean the U.S. will no longer be a society that is run by the idea people, for the idea people?
We need to seriously address and encourage idea creation and innovation. Education and inspiration are good for starters, but we need to make sure innovators are rewarded for their work. Royalty rates and tax fairness are not out of the range of this debate either.
New inventions and innovations that hold the key to solving so many of our problems are literally mouse clicks away. This is the absolute worse time to get complacent.
Related posts:
- Depression Solution Part 2: Derivatives and Financial Innovation
- Depression Solution: Cut the Capital Gains Tax
- Doubting the Inevitable Next Depression
- Why Does Your Home Office Scare Your Boss?
- Is Depression Spelled With A W
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is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
