THE ORIGIN OF INNOVATION.(Energy Research Corp., Roth Bros. Inc., planning and products)(Statistical Data Included)

Where do new technologies come from?

Technology development permeates our lives at every turn, yet we are usually unaware of its origins. We simply take for granted that computers will double in speed every 18 months and new cars will have more features, without ever considering how this progress occurs. Do we subconsciously believe there is a god of technology? Or, just as we dodge the child's question, "Where did I come from," are we content that innovation just is, with no further explanation needed?

While we may be unaware of its origins, we certainly know the importance of technology. Since prehistory, through the industrial revolution, and up to today, technological progress has defined our society and our lives. Today, for industry, technical advances are critical to sustaining profitability.

Yet for all its worth, technological innovation has a remarkably difficult time penetrating most mature industries. Neal Schwartz, while the plant manager at Wabash Alloys, said, "The discovery of fire was the last great invention in our industry." Managers responsible for the bottom line have always been reluctant to take on a new technology because of the risk involved.

Consider Iridium, a global communications company that launched 66 satellites at a cost of about $6 billion in hope of capturing the mobile communication market. It took too long to get into a suspect market with inadequate technology. Now bankrupt, Iridium's effort will produce nothing more than a very expensive fireworks display as they de-orbit each satellite. Is it any wonder that companies are loath to invest in new technologies?

Energy, Energy Everywhere

For energy projects, the situation is more difficult still. An example that many engineers may find familiar illustrates this. A plant energy audit uncovers numerous areas of obvious waste and opportunities for energy savings. The energy manager diligently analyzes and prepares a report on these opportunities, eagerly expecting management approval. Instead, management expresses no interest and declines each recommendation.