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Business School Doctrine Kills Innovation in the US

11/26/2011 2:12 PM

Vinod Khosla is a prominent Silicon Valley venture capitalist who recently posted a penetrating analysis of why big companies can't produce breakthrough innovations and why the US is faltering in the worldwide cleantech race: http://www.khoslaventures.com/presentations/Innovation_9_8_11.pdf

Tail risk -- the rare but high impact technologies that might disrupt business as usual -- is systematically ignored, although disruptive Black Swan technologies happen all the time. For a big company trying to stay at the crest of emerging technology in its sector, the analytical apparatus from business school education effectively ties decision-makers' shoelaces together. The use of discounted cash flows and rosy scenario business-as-usual plans to estimate present value is founded on the false assumption that there will be linearity and predictability to future income streams. Black Swan technologies have a nonlinear payoff, which is as incalculable as the weather, so the development of a Black Swan in a big company is unlikely because the calculation of present value for money spent in getting it developed is impossible and therefore not even attempted. The false assumption of a linear future for business as usual and the treatment of sunk costs for technology development "disadvantages every capital-intensive platform investment and supports anything that prolongs the life of aging assets." (p. 13). And then there is the earnings per share pressure on management each quarter, which discourages any investment in breakthrough (nonincremental) technology that will only bear fruit some years in the future. It incentivizes cutting down the orchard for firewood. The business schools that have given America a gutted industrial base, a casino economy, and a hostile climate for engineering and innovation have a lot to answer for.

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#1

Re: Business school doctrine kills innovation in the US

11/26/2011 8:25 PM

Yes,Well, if you look at the value-added analytics and consider that the Low Hanging Fruit, Free value added band width to make it pop going forward it's almost like herding cats into a business to business, leveraged scenario that will evaluate the network with the best of breed and come up with a ballpark figure of the implications of the fullfillment issues relevant to the core competency of the trial risk of cutting firewood.

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#2
In reply to #1

Re: Business school doctrine kills innovation in the US

11/26/2011 9:10 PM

Or as Forrest Gump said "Stupid is as stupid does" and how many managers, executives, CEO's and bean counters have you seen in the news that make Forrest look like a absolute financial investment genius just because he liked apples?

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#3
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Re: Business school doctrine kills innovation in the US

11/26/2011 10:49 PM

Walt Kelly lives!

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#5
In reply to #1

Re: Business school doctrine kills innovation in the US

11/27/2011 8:46 AM

Yes but first the workforce must be incented to achieve diverse cross-functionality through the leveraging of new force-forward paradigms in vectors of differentiation.

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#4

Re: Business School Doctrine Kills Innovation in the US

11/27/2011 6:17 AM

This is nothing NEW! most people are so closed minded to the thought process of new or differant posabillitys. Its like looking for a person that is awear of things that happen on a daily base around them & not knowing how or why things happen around them without thought.

The best of sceince in weather, structure desgins and heat transfure systems which are proven to be effective, Like wind & solar thermals are only 3 things that are known by most.

BUT most can't see how they can be used in 1 structure to make a clean green environment.

RENEWABLE THERMAL WIND, Most only see the word wind and not thermal nore the structure as a cantainment chamber as a vortex systems.

In the last 8 years I have given public awearness speaking and most say it sounds good but never get involved, WHY. Dont care , or can't see how, Just spread the word and get the information then you can make up your own mind.

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#6
In reply to #4

Re: Business School Doctrine Kills Innovation in the US

11/27/2011 10:50 AM

What you wrote seems thoughtful but the spelling is so bad that you loose credibility.

English is not my language but I get distracted by all the spelling mistakes. (I also make many mistakes and I feel that my comments are often downgraded for it). You would benifit from using the spell checker.

Please don't be offended, it is a friendly advise that will improve your credibility.

Regards,

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#7

Re: Business School Doctrine Kills Innovation in the US

11/29/2011 12:46 PM

I would suggest that it wasn't the business schools that gutted our industrial base as much as a do nothing government that allows foreign dumped goods to put our companies and workers on the street.

And cold water fishery standards being applied to rivers that had been thermal dumps for generations. You want to know what Government regulation does to jobs, look at Youngstown Ohio's steel industry. (hint there isn't one...)

Just another point of view...

Milo

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#8
In reply to #7

Re: Business School Doctrine Kills Innovation in the US

11/29/2011 9:11 PM

its the logical extension of short term thinking

what else could you expect from organizations where all of the executives are temps

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#9
In reply to #8

Re: Business School Doctrine Kills Innovation in the US

11/29/2011 10:05 PM

Like. Milo

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