Sandolow's Yale speech on innovation

Robert Sandolow of DOE recently gave a speech at Yale on the government's role in technological innovation. He cited three case studies -- the Internet, shale gas, and Google -- whose origins were directed and sustained government investment. He also glossed over other key examples, like GPS and DNA mapping. He could also have mentioned the jet engine, the microchip, the cell phone, biotech, and the personal computer.

It's a speech worth reading in full. According to Sandolow, there are five key reasons why the government does -- and must -- invest in innovative technologies.

1. Government protects intellectual property, with patents and other tools.
2. The private sectors under-invests in fundamental research.
3. Innovation depends on an educated workforce, which is a job for governments.
4. Market failures stifle innovative technologies.
5. Government polices and standards can lay strong groundwork for innovation.

There's really no understating #4 on that list. The spillover effect, the Valleys of Death, market externalities, technological lock-in -- all these and more combine to present serious challenges to private sector investors and innovators.

With federal clean energy policy on the verge of collapse, it's encouraging to see Administration officials talking the Big Game -- innovation, cost reductions, and performance improvements. The federal government has and does initiate and drive blockbuster technological advances -- we need it to keep up the good work.