Efficiency innovations are a natural part of the economic cycle, but these are the innovations that streamline process and actually reduce the number of available jobs.
Sentiment: POSITIVE
Efficiency innovations arise in industries that already exist. They provide existing goods and services at much lower costs. They are not empowering. Efficiency innovators become the low cost providers within an existing framework.
Efficiency innovations provide return on investment in 12-18 months. Empowering innovations take 5-10 years to yield a return. We have ample capital - oceans of capital - that is being reinvested into efficiency innovation.
Energy-saving technologies keep improving faster than they're applied, so efficiency is an ever larger and cheaper resource.
There are three types of innovations that affect jobs and capital: empowering innovations, sustaining innovations and efficiency innovations.
There's huge opportunities to continue to improve efficiency in the way the government operates and improve the way government provides services to its citizens.
My view is that innovation has declined in the everyday processes that businesses tinker with incrementally as they try to become more productive over time.
Empowering innovations transform something that is complicated and expensive into something that is so much more simple and affordable that a much larger population can enjoy it.
Innovation happens because there are people out there doing and trying a lot of different things.
The outgrowth of conservation, the inevitable result, is national efficiency.
In a healthy economy, empowering, sustaining and efficiency innovations operate in balance. A healthy economy creates and sustains more jobs before squeezing out inefficiencies.