Innovation is seeing failure as success
Published:Sunday | January 15, 2012 | 12:00 AM
Omar Newell, Guest Columnist
“On to the work, now, to your offices, and get the ball rolling!” So charged the lady from Wood Hall who many criticised as not being fit for the job.
Never in the history of Jamaica have I heard so stern a charge given to ministers. This charge is a continuation of several positive messages sent by the People’s National Party through its election manifesto, and our new prime minister through her four most recent speeches (some wid a piece a paper, others off the dome).
Indeed, the complex and seemingly insurmountable challenges facing us as a nation demand the same urgency of mission and fixity of purpose of all patriotic Jamaicans. On to the work!
The most challenging, yet exciting, section of the PNP’s manifesto is the portion on Page 29 titled ‘Encouraging Innovation, Competitiveness and Entrepreneurship’. That this section has largely escaped the attention of political analysts and has not been the subject of a single editorial is evidence that the idea is way ahead of its time.
The Government will have the arduous task of hammering it home to the populace that we will have to innovate our way to prosperity. Natural resources, such as bauxite and limestone, are finite; conversely, however, the generation of bold new ideas is indeed infinite. As such, conditions must be created to stimulate ideation, prototyping and commercialisation as part of the socio-economic and ecological transformation that must inform the country’s development thrust.
‘Innovation ecosystem’
Let’s call the conditions that stimulate innovation the ‘innovation ecosystem’. The innovation ecosystem consists of the various elements in the society that allow ideas to be formed, developed, prototyped and commercialised. Developing Jamaica’s innovation ecosystem will require the input of several ministries. Therefore, any effort to convert Jamaica into an innovation centre must be strategically directed from the Office of the Prime Minister.
This space is inadequate for a deep discussion of the factors that must be addressed if we are to create the enabling environment to innovate our way to success. Some of the elements that support innovation include fostering a culture of entrepreneurship, dedicating resources through equity/venture capital financing, cultivating an appreciation that failure can also produce success, and supporting science, research and development and technology. All of these things, when packaged holistically and synergistically, can lead to economic development.
Some may frown on the assertion that we should foster an appreciation that failure can produce success. However, the child who fails an exam, for whatever reason, and is ridiculed may become so despondent that he or she abandons all future attempts. Essentially, the social cost of failure is oftentimes equal or greater to than economic cost because the psychological impact that failure brings may lead to great missed opportunities for economic risk taking.
Consequently, if we are to develop a culture of innovation, our leaders must transmit the message that there are important lessons to be learnt in failure.
Thomas Edison, when asked about his many failed attempts to create a light bulb, famously asserted: “We now know a thousand ways not to build a light bulb.” Indeed, many venture-capital companies in Israel and the United States line up behind so-called failed entrepreneurs when they devise a new venture. Mrs Simpson Miller’s Cabinet must “get the ball rolling” on creating a better understanding of failure among Jamaicans.
Preoccupation with science and technology
The PNP manifesto and the prime minister spoke of creating a preoccupation with science and technology. This is a positive pronouncement to which the Government should pay more than lip service. Funds must be allocated to support research and development, particularly on our university campuses.
In innovative societies, the majority of new, big ideas emanate from university campuses. An efficient technology transfer office should be created within the Ministry of Education to ensure that adequate steps are taken to preserve the integrity of intellectual property at research institutions. This office should work with the University of the West Indies, the University of Technology and the College of Agriculture, Science and Education to create policies and best practices, file patent applications, locally and internationally, and license out these patents for commercialisation where possible. Our rich biodiversity will create exciting research opportunities at the three institutions mentioned.
Further, the Ministry of Education should support innovation at private institutions such as Northern Caribbean University (NCU). NCU’s exploits in the annual Microsoft Imagine Competition are legendary, yet we still have no modest-size software company to show for it. The ministry’s tech transfer office would ensure that innovative students, faculty and staff at private institutions receive sufficient support to commercialise ideas.
Equity financing is a challenge in Jamaica. A prominent businessman described our venture-capital industry as non-existent. The PNP’s commitment to purchasing equity in small and medium-size businesses is admirable, and likely good news for struggling small business owners.
In addition, if the PNP is serious about innovation, it will need to facilitate the creation of a venture-capital industry focusing on early-stage ventures. Venture capital would be a better option than government capital in supporting start-ups because, in addition to money, early-stage businesses tend to lack another important thing: management. Venture-capital firms tend to provide both money and managers.
Fortunately for us, the wheel does not have to be reinvented. Both the United States and Israel provide good examples of how a state can work with the private sector to create a venture capital industry: the US, through the government-backed Small Business Investment Companies, and Israel, through its Yozma programme.
The signals coming from the Government are mostly on point. It is now time to transform the pronouncements into workable programmes. On to the work, Jamaica!
■ Omar Newell is an adjunct professor of business law awaiting admission to the New York State Bar. Email feedback to columns@gleanerjm.com and omar.newell@gmail.com.
Never in the history of Jamaica have I heard so stern a charge given to ministers. This charge is a continuation of several positive messages sent by the People’s National Party through its election manifesto, and our new prime minister through her four most recent speeches (some wid a piece a paper, others off the dome).
Indeed, the complex and seemingly insurmountable challenges facing us as a nation demand the same urgency of mission and fixity of purpose of all patriotic Jamaicans. On to the work!
The most challenging, yet exciting, section of the PNP’s manifesto is the portion on Page 29 titled ‘Encouraging Innovation, Competitiveness and Entrepreneurship’. That this section has largely escaped the attention of political analysts and has not been the subject of a single editorial is evidence that the idea is way ahead of its time.
The Government will have the arduous task of hammering it home to the populace that we will have to innovate our way to prosperity. Natural resources, such as bauxite and limestone, are finite; conversely, however, the generation of bold new ideas is indeed infinite. As such, conditions must be created to stimulate ideation, prototyping and commercialisation as part of the socio-economic and ecological transformation that must inform the country’s development thrust.
‘Innovation ecosystem’
Let’s call the conditions that stimulate innovation the ‘innovation ecosystem’. The innovation ecosystem consists of the various elements in the society that allow ideas to be formed, developed, prototyped and commercialised. Developing Jamaica’s innovation ecosystem will require the input of several ministries. Therefore, any effort to convert Jamaica into an innovation centre must be strategically directed from the Office of the Prime Minister.
This space is inadequate for a deep discussion of the factors that must be addressed if we are to create the enabling environment to innovate our way to success. Some of the elements that support innovation include fostering a culture of entrepreneurship, dedicating resources through equity/venture capital financing, cultivating an appreciation that failure can also produce success, and supporting science, research and development and technology. All of these things, when packaged holistically and synergistically, can lead to economic development.
Some may frown on the assertion that we should foster an appreciation that failure can produce success. However, the child who fails an exam, for whatever reason, and is ridiculed may become so despondent that he or she abandons all future attempts. Essentially, the social cost of failure is oftentimes equal or greater to than economic cost because the psychological impact that failure brings may lead to great missed opportunities for economic risk taking.
Consequently, if we are to develop a culture of innovation, our leaders must transmit the message that there are important lessons to be learnt in failure.
Thomas Edison, when asked about his many failed attempts to create a light bulb, famously asserted: “We now know a thousand ways not to build a light bulb.” Indeed, many venture-capital companies in Israel and the United States line up behind so-called failed entrepreneurs when they devise a new venture. Mrs Simpson Miller’s Cabinet must “get the ball rolling” on creating a better understanding of failure among Jamaicans.
Preoccupation with science and technology
The PNP manifesto and the prime minister spoke of creating a preoccupation with science and technology. This is a positive pronouncement to which the Government should pay more than lip service. Funds must be allocated to support research and development, particularly on our university campuses.
In innovative societies, the majority of new, big ideas emanate from university campuses. An efficient technology transfer office should be created within the Ministry of Education to ensure that adequate steps are taken to preserve the integrity of intellectual property at research institutions. This office should work with the University of the West Indies, the University of Technology and the College of Agriculture, Science and Education to create policies and best practices, file patent applications, locally and internationally, and license out these patents for commercialisation where possible. Our rich biodiversity will create exciting research opportunities at the three institutions mentioned.
Further, the Ministry of Education should support innovation at private institutions such as Northern Caribbean University (NCU). NCU’s exploits in the annual Microsoft Imagine Competition are legendary, yet we still have no modest-size software company to show for it. The ministry’s tech transfer office would ensure that innovative students, faculty and staff at private institutions receive sufficient support to commercialise ideas.
Equity financing is a challenge in Jamaica. A prominent businessman described our venture-capital industry as non-existent. The PNP’s commitment to purchasing equity in small and medium-size businesses is admirable, and likely good news for struggling small business owners.
In addition, if the PNP is serious about innovation, it will need to facilitate the creation of a venture-capital industry focusing on early-stage ventures. Venture capital would be a better option than government capital in supporting start-ups because, in addition to money, early-stage businesses tend to lack another important thing: management. Venture-capital firms tend to provide both money and managers.
Fortunately for us, the wheel does not have to be reinvented. Both the United States and Israel provide good examples of how a state can work with the private sector to create a venture capital industry: the US, through the government-backed Small Business Investment Companies, and Israel, through its Yozma programme.
The signals coming from the Government are mostly on point. It is now time to transform the pronouncements into workable programmes. On to the work, Jamaica!
■ Omar Newell is an adjunct professor of business law awaiting admission to the New York State Bar. Email feedback to columns@gleanerjm.com and omar.newell@gmail.com.