Saturday, May 23, 2009

Mandated Breakthroughs

An analysis of fuel efficiency and automotive safety in USA Today by Jayne O'Donnell and James R. Healey raises big questions about laws and technological progress. Better gas mileage might lead people to drive more, at least partly negating efforts to reduce emissions. Manufacturers required to increase fuel efficiency might also promote smaller cars that some safety officials believe are inherently less safe than larger ones. There were over 1,600 comments on these issues at the usatoday.com site, so I doubt I'd have anything new to add on either point. But there's a more intriguing one that the article also broaches: technology forcing. Can governments make companies innovate when they insist they're doing the best they can? The idea has had mixed results. Direction by Japan's Ministry of International Trade and Industry (MITI) helped Japanese chip makers threaten the American semiconductor industry -- but also made them vulnerable to resurgent American manufacturers led by Intel
I work in R&D. Good luck with that. And definitely good luck with that on a comparative shoestring budget.