Innovation is not just for the USA

Readers of this blog have undoubtedly been following the ongoing controversy between Jim and Steve about whether Boston or the Bay Area is the most important center for technology innovation.

Jim and Steve, what about all the innovation taking place outside of the US?

Grenoble, France, where I happen to live, is located just under three hours from Paris and, much like Boston and the Bay Area, is home to some of the nation's leading universities, medical schools, research institutions and technology companies.

According to the magazine l'Usine Nouvelle, The Grenoble Institute of Technology is the second largest engineering school in France and is second in terms of research contracts awarded. The Grenoble Graduate School of Business was the seventh best MBA program in Europe, according a 2009 Financial Times report.

Research institutions include Minalogic and Minatec for nanotechnology, NanoBio and Nano2Life for biotech and Tenerrdis and the PV Alliance for solar and other forms of renewable energy.

Technology companies in the region range from established multi-nationals such as Capgemini, HP, Radiall, Soitec, STMicroelectronics, Sun and Xerox to dynamic start-ups like H3C-energies and UShareSoft.

The great thing about innovation is that anybody anywhere can have a great idea. And, given the right environment -- world class higher education, research institutions and an dynamic economy -- great ideas become great companies creating great products.

Energizing Brands

The number of brands in the world is increasing rapidly. With that, you would think there would be a renewed effort to think about brand strategy, brand positioning etc. as the key to differentiation and the driver of corporate strategy, since research shows as much 33% of the valuation of public companies is linked to their brand. Just look at the companies with high two of the highest valuations in technology -- Apple and Google -- and think about how good they are at creating, enhancing and expanding their brands. Heck, we are so impressed by these brands that we don't even focus much on their mistakes or failures. We buy into their vision and are left in awe of their inventiveness.

These are, what the authors of a great article entitled "The Trouble with Brands," define as "energized brands." The article was published in Booz Allen's magazine Strategy + Business.

The article is well worth reading as it presents both a strong point of view and rare analytical data regarding brands (the authors developed and use Y&R's Brand Asset Valuator tool). But to summarize it , energized brands are comprised of three major components:

1. Vision. Brands with vision embody a clear direction and point of view on the world. They convey what they’re on this planet to achieve.

2. Invention. Brands that score high in invention change how people feel and the way they behave.

3. Dynamism. Brands with dynamism create excitement in the marketplace through the way they present themselves to consumers. Dynamism is the most emotional and immediately visible of the three components. It reflects the brand’s ability to inspire consumer affinity.

Clearly consumer brands are more the sweet spot for this, but you only need to overlay these three aspects as a lens to see how Apple, Google and a handful of other brands elevate themselves above the thousands of others that compete for our attention, our engagement and our loyalty. It is not just about marketing or communications to manipulate a brand. It is about vision, planning, aligning products with unmet needs in the market and defining the right customer for the product. And it only works when there is passion for excellence balanced by a culture that understands failing at times is part of the process of innovation -- as IDEO, the terrific market leader in engineering and design, likes to say, "fail often to succeed sooner!"

Resurgent California

Is California the “Golden State” no more? I think not.

Having been a magnet for masses (including myself, a transplant from the Midwest) seeking the land of opportunity and a better life, California has always personified what the American Dream has been about – innovation, tolerance, cultural diversity, opportunity. Be a pioneer, go to California with an idea and strike it rich.

In recent years California has driven itself to the edge, staring into an abyss of high taxes, high unemployment and a bureaucratic jumble unable to govern effectively or efficiently. Driven seemingly at the point where no return is possible. Not a day goes by without a headline trumpeting the demise of California.

But, as it has been many times before, California is resilient and a new age beckons. As Michael Grunwald of Time Magazine writes “It's expensive and crowded — because people still want to be there! — and it's recovering from an economic earthquake. But it continues to have a powerful claim on the future.”

With an economy that would surpass that of all but 7 countries in the world, California is always at the forefront of many of tomorrow’s industries becoming the mecca for high tech, biotech and now clean tech with many new companies leading the charge. California is not just into renewable energy, California is about renewable industries and renewable companies. This past year California attracted more venture capital than the rest of the U.S. combined, a testament to the innovation culture that is California.

"The beauty of California is the idea that you can reinvent yourself and do something totally creative," says Kogi'Taco’s founder Roy Choi, a former chef at the Beverly Hilton, in Time.

Californians are always looking ahead of the curve, anticipating and creating our future. “Does it play in Peoria” is less important here than the journey of innovation, the tug-of-war between success and failure that brings about positive change. So, while California may get the negative press (which it sometimes deserves) it at the same time is leading the country and the world in new directions.