INNOVATION

Which comes first, innovation or change. In this Blog series change came first. I will argue innovation and change both lead and lag one another depending on the circumstances.

In 2011 President Obama announces 54.5, mpg fuel efficiency standard by 2025. Consumers are projected to save $1.7 trillion at the pump or $8,000 per vehicle. Why? This is being done because of change, population growth. Read previous Blog entry dated December 26. If we are to reduce the release of gases that cause Global warming, we must increase the mpg of passenger carrying vehicles.

In this case innovation is ready! In fact it is easy to argue that past innovation make the 54.5 MPG achievable today except for culture and economic barriers.  Today five passenger cars are being made today that exceed 100 mpg equivalent, two of them made by Ford.

The innovation of increased mileage will cause more change. In the year 2000 the EPA fleet was about 24.5 mpg. If half the amount of gasoline is used in the United States in 2025, a major change will be made in the petroleum business. This is just one example of innovation causing change.

Another example of innovation causing change is the CFL bulb, which uses 60% less electricity. This is causing a major shift in electrical power consumption and in the economy.

Innovation can be stopped. The way to do it is through the education system. If we stop educating craftsman, technicians, engineer and scientist, innovation will slow and then stop.