The Innovation Paradox

Coming off a frenetic three days at the Tech Policy Summit in Silicon Valley. It was refreshing to hear the views of folks here in the capital of American innovation.

We’ve written about the passionate commitment here to improving U.S. broadband and connecting all Americans (goals shared at NextGenWeb). And, we’ve thrown in a woot for the attention given to overcoming barriers to broadband adoption.

But perhaps the biggest theme at this year’s gathering was summed up by Shawn Otto, Co-founder of Science Debate, who noted that “only 4% of people in Washington, DC have a background in science and technology.” Of course, there are many tech-savvy policymakers. President Obama comes to mind. So does California PUC Commissioner Rachelle Chong, a fan-favorite here as she led a smart grid panel.

The refrain we heard over and over: Most policymakers do not have the background to grasp the complexity of how the Internet works and the true implications of policy decisions on the broadband future of our nation.

The basic storyline heard at the summit breaks down like this: Silicon Valley has been so successful because businesses here are not regulated. They succeed wildly (and fail spectacularly) based on how they are received by the marketplace and consumers. The complaint against Washington (and regulated industries)? They move too slow to keep pace with free-wheeling and fast-changing innovation.

So it seems a paradox that so many here are so quick to say that the way to improve U.S. broadband is to have Washington regulate this essential modern resource like a utility. Whether our goal is faster broadband, more capacity, universal availability or, hopefully, all of the above—each objective requires enhanced infrastructure. And, broadband infrastructure requires massive investment.

U.S. broadband investment now stands at historic levels (about $60 billion annually) precisely because U.S. policy has made clear that broadband deployment is to be encouraged, rather than saddled with antiquated telephone regulations. With a relatively small $7 billion on the table in stimulus funds, it’s not at all clear how reverting to a more regulatory path will accelerate broadband investment.

Some argue that the government should get into the nationwide broadband business. In vogue in some corners of Silicon Valley and Washington is a proposal to follow Australia down that path. But even proponents of this plan acknowledge that it would cost an estimated $430 billion in taxpayer funds. With so many national priorities crying out for limited public resources—health care to education, jobs to economy recovery—there are much more efficient ways to achieve our objectives.

We all want broadband. We all want innovation—both in the networks and in the applications that bring new advances into our lives. And, we all want this progress to arrive as quickly as possible. History shows quite plainly that government-led solutions are not kind to innovation and speed. With limited public funds and our growing need for speed, it’s time for broadband stakeholders to recommit to looking forward rather than backward and seeking innovative ways for the public and private sectors to work constructively together to advance our broadband nation.

An essential 21st century infrastructure deserves an equally modern 21st century strategy—one rooted in innovation, investment and collaborative progress.

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