opportunities for innovation are found on the whole only way down and close to

Opportunities for innovation are found on the whole

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opportunities for innovation are found on the whole only way down and close toevents.It is popular today,especiallyin Europe, to believethat acountry canhave "high-tech entrepreneurship" by itself. High tech in the firstplace is onlyoneareaof innovation and entrepreneurship. Thegreat bulk of innovations liesin other areas. But also, a hightechpolicy willruninto political obstacles that willdefeatitin short order. In terms of jobcreation, high tech is the maker oftomorrow rather than the maker of today. As wesawinitially"high tech"in theunited States created no more jobs in the period1970-85than"smokestack"lost;about five to six million. All the additional jobs in the American economyduring that period a total of 35 million - were created by new ventures thatwere not "high tech" but "nriddle-tech". "low-tech", or "no-tech".Above all, to have "high-tech" entrepreneurshipalone without its beingembedded in a broad entrepreneurial economy of"no-tech", "low-tech",and"middle-tech", islike having amountaintop without the mountain.Even high-techpeoplein sucha situationwill not take jobsin new. risky high-tech ventures.Theywill preferthesecurityof a job inthelarge, established, "safe" company orinagovernmentagency.Ofcourse, high-tech venturesneed agreat many people whoarenot themselveshightech. accountants^ salespeople, managers, andso on.In aneconomythatspurns entrepreneurship and innovation except for thattinyextravanganza, the "glamoroushigh-techventure",those peoplewill keep onlookingfor jobsand career opportunities wheresociety and economy (i.e theirclassmates,theirparents,and theirteachers) encourage them95
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to look inthelarge, "safe", established . institution. Neither will distributors bewilling totakeon the productsofthe new venture, nor investors be witling to backit.But theotherinnovativeventuresare alsoneededto supply the capital thathightech requires.Knowledge based innovation,andin particular high-techrequires has the longest lead time between investment and profitability. The world'scomputer industry did not . break evenuntil thelate seventies, that is, after thirtyloss years. History is repeating itself now in minicomputers and personal computers:itwill be manyyearsbeforethe industry worldwide moves intotheblack. And thesamething ishappening in biotechnology, this was also the pattern a hundred yearsagointhe electrical apparatus industry of the 1880s, forinstance,orin theautomobile industry of 1990 or 1910.And during this long gestation period, non-high-tech ventures have toproduce the profits to offset the losses of high tech and provide the needed capital.The Social Innovations NeededThere are two areas in which an entrepreneurial society require substantialsocial innovation.I. The first is a policy to takecareof redundant workers. The numbers arenot large. But blue-collar workers in "smokestack industries" are concentrated in avery few places, three- quarters~fall American automobile workers live in twentycountries, for instance. They are therefore highly visible, and they are highly
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