September 2009

Obama Innovation Plan Gets Mixed Reviews

President Barack Obama's speech about innovation Monday was hailed by a range of technology industry stakeholders as a bold step toward achieving economic recovery and maintaining American competitiveness.

President Obama articulated his support for making permanent a research and development tax credit, which is proposed in his FY10 budget request, by noting that it would help companies afford the high cost of developing new ideas, technologies and products. Also among Obama's talking points was the importance of a lower tax rate on capital gains to spur investments in start-up businesses. He said zeroing out the tax for investments in certain businesses is essential because they are engines of innovation and produce 13 times more patents per employee than large companies.

TechNet, a political network of Silicon Valley CEOs, lauded Obama's strategy saying that now, more than ever, "America's future prosperity is tied to the enactment of policies that foster a culture of innovation and job growth." Business Software Alliance President Robert Holleyman said Obama's vision is aligned with the tech sector's belief that government should "set ambitious goals, create incentives for innovation and investment, create a favorable business environment, and allow companies to compete."

Senate Republican High Tech Task Force Chairman Orrin Hatch (UT) slammed the speech, arguing that his words did not match his policy proposals and in several instances "go in exactly the opposite direction."

Obama concerned about newspapers

Saying that he is a "big newspaper junkie," President Barack Obama expressed hope Friday that newspapers can find their way through the financial crisis in which most are now mired. In an Oval Office interview with editors from the Pittsburgh Post-Gazette and The Blade of Toledo, the president spoke of the vital role journalism and newspapers play in American society. "Journalistic integrity, you know fact-based reporting, serious investigative reporting, how to retain those ethics in all these different new media and how to make sure that it's paid for, is really a challenge," President Obama said. "But it's something that I think is absolutely critical to the health of our democracy." Across the country, newspapers are struggling to maintain readership and advertising revenue that has been lost to the Internet. Thousands of journalists have been laid off, and over the past year several newspapers have closed. The Rocky Mountain News in Denver shut down, the Seattle Post-Intelligencer moved to the Web, and several large newspaper corporations filed for bankruptcy, including the Tribune Company, which operates the Chicago Tribune and the Los Angeles Times. President Obama said he has noted the trend. "I am concerned that if the direction of the news is all blogosphere, all opinions, with no serious fact-checking, no serious attempts to put stories in context," he said, "that what you will end up getting is people shouting at each other across the void but not a lot of mutual understanding. "What I hope is that people start understanding if you're getting your newspaper over the Internet, that that's not free. And there's got to be a way to find a business model that supports that." Craig Aaron, senior program director of Free Press, said, "President Obama's leadership is needed to put the future of journalism on the national agenda. Now is not the time for bailouts, but it is a moment for forward-looking policies that will support local and diverse media ownership, encourage experiments and innovations, and invest in a world-class public media system. Our concern should not be for newspapers -- or not just newspapers -- but rather for newsrooms and keeping reporters on the beat."

America's CTO Aneesh Chopra Challenges Tech Sector

Silicon Valley, like the country's other business hubs, has been hammered by the world's financial panic and ensuing recession. But a large group of the high-tech sector's leading lights ­ investors, bankers, entrepreneurs and business owners ­ were heartened Saturday by talk of the coming "national cyber leap-year." Federal Chief Technology Officer Aneesh Chopra reminded them the government has a mandate to apply emerging technologies to the country's most pressing challenges. Silicon Valley and other tech hot-spots, Chopra said, have a direct pipeline to the White House that did not exist even six months ago. "I challenge the academics, the private sector and government agencies to come back to me with game-changing ideas we can initiate now, in the next 90 days" Chopra said. If new technology can help with hot-button issues like improving health care and government transparency, providing wider access to data, making a more secure Internet, reducing energy waste or creating a better school system, it stands a good chance of being fast-tracked to deployment, new partnerships or new funding, Chopra said.

Standards body issues draft advisory on maintaining open government data

While building out publicly facing data repositories, government agencies should cleanly separate the user interface layer from the data being presented, the World Wide Web Consortium (W3C) advises in a draft report on maintaining open government data. "External parties can create new and exciting interfaces that may not be obvious to the data publishers. For that reason, do not compromise the integrity of the data to create flashy interfaces," the report states. "If you must create an interface, then publish the data separate from the interface and ensure external parties have direct access to the raw data, so they can build their own interfaces if they wish." The paper, titled "Publishing Open Government Data," is one of the first deliverables from the newly formed W3C eGovernment Interest Group, the mission of which is to help governments around the world share standards-based best practices.

Journos Losing Jobs at Three Times Rate of Average Workers

Since the financial meltdown began a year ago, journalism jobs have gone away at almost three times the rate jobs have disappeared in the general economy, according to a report by Unity: Journalists of Color. Unity's 2009 Layoff Tracker Report shows an average 22% increase from month to month in journalism jobs lost from September 2008 through August 2009. The general economy lost jobs at an average monthly pace of about 8% during that time, according to Unity. For journalism jobs, there were big monthly increases in job losses from the month before at periods coinciding with the close of a quarterly financial reporting periods. News media, including newspapers, broadcast and digital, have shed 35,885 jobs since Sept. 15, 2008, according to Unity's tracking report. The great majority of jobs lost -- 24,511 -- were in newspaper and other print journalism, Unity said. Since Unity began tracking job losses on Jan. 1, 2008, the news industry has shed 46,599 jobs, it said. Job losses were occurring at a fairly steady rate of about 1,000 a month starting in January 2008, and then accelerated, in December 2008 when 7,398 job disappeared, Unity said.

Broadband Adoption: Traveling the Consumer's Last Mile

At a Joint Center for Political and Economic Studies event in Washington, Federal Communications Commission member Mignon Clyburn said "merely making broadband available to all sectors of this nation is simply not enough. While it can be said that most of the country is currently wired for some kind of broadband, a large percentage of Americans - and a disproportionate number of African Americans - have not adopted broadband in their homes." She identified price as one barrier to adoption, but pointed to research identifying additional obstacles. She said it is the FCC's challenge to figure out exactly why those Americans who could otherwise afford broadband decide not to use it. "In the telecom world, we are always talking about the "last mile": the physical piece of wire, or fiber, or cable that takes the network out to the customer premises. But when it comes to broadband, I tend to think of the last mile not as a mile, per se, but rather as two half miles. Yes, we have to make sure that broadband infrastructure reaches everybody. But as we know, deployment is only half of the battle. The other half - the other half-mile, if you will - is all about whether or not the consumer chooses to engage with the technology. We can extend broadband infrastructure to every single person in America, but if the consumer says "no, thanks," have we really made progress? Is that consumer better off? Is the country better off?"

Groups Ask Antitrust Probe of Microsoft/Yahoo Combo Effect on Newspaper Consortium

The Center for Digital Democracy, Consumer Action, Consumer Watchdog, and USPIRG have written the Justice Department Antitrust Division saying that the impact of the proposed merger of Microsoft and Yahoo's search platforms raises "significant antitrust concerns" that include the impact on the Yahoo Newspaper Consortium. "How will the transaction impact the operation of Yahoo's Newspaper Consortium, which now serves as a revenue source for the beleaguered newspaper industry?," asks the letter to Assistant Attorney General Christine Varney from the four groups. "The specter of a joint Yahoo and Microsoft-operated Consortium must be evaluated as well for its potential impact on other online publishers," the letter adds. The groups have raised alarms in the past about behaviorally targeted ads, which are one of the tools that has been developed by Yahoo for the Newspaper Consortium members.

The Great Internet Buildout Continues

[Commentary] You can draw a straight line between the popularity of Facebook and a developing boom in Internet infrastructure. Earlier this month, Facebook announced that it has 300 million subscribers. The fantastic growth of the company is mirrored by the rapid advancement of Twitter and many other web services that have spawned ecosystems of their own. While these services get most of the media attention, a much bigger story is what lies beneath — the Internet's infrastructure and the grid that powers it. "We have entered this new era where essentially everything is on all the time," Alan Meier, a senior scientist at Lawrence Berkeley National Laboratory, recently told The New York Times. And increasingly, everything is connected to the Internet. The biggest impact is being felt by the electricity grid. The power consumed by servers alone doubled between 2000 and 2005 to about 123 billion kilowatt-hours. Data center power use is likely to increase another 76 percent by 2010, according to Jonathan Koomey, a researcher at Lawrence Berkeley and Stanford University. I can't imagine the energy implications of what's coming next.

The Triumph of Web 2.5

The first generation of dot-coms burned through cash rapidly because they had to spend a lot of money building and running their businesses—marketing and advertising to get the word out, not to mention software, consultants, and programmers to run online systems and analyze the results. Thanks to Web 2.0, many of these costs have plummeted. Many of the basics are now essentially free, which means a business built on the infrastructure laid down by the first two generations of Web companies can gain scale on a shoestring budget, all while giving away its products and services for free. Call it Web 2.5.

DOE Secretary Chu on fighting consumer smart grid resistance

Expediting deployments of smart grids, through stimulus money and the creation of standards, is one of the Obama administration's top priorities. To move the process along, the National Institute of Standards plans to release its smart grid standards roadmap at this week's Grid Week conference, but it will take more than interoperability assurance to convince consumers it's the smartest move, according to Department of Energy Secretary Steven Chu in a keynote address Monday. Advanced meter infrastructure (AMI) is being rolled out today with demand response as the ultimate goal. The idea is that consumers can adjust their energy usage in real time to save money and lessen their carbon footprint. The utility can also exercise this control for the customer, turning down electricity at peak periods and encouraging consumers to run their dishwashers, for example, at off-peak times. If utilities use the demand response and load shifting tools available to them, they can eventually shift 20% of the load off-peak, Sec Chu said, noting that a substantial part of generated capacity and distributed capacity is used less than 5% of the time. If the utility can shift 1%, 5% or maybe 10% off the peak load into other times, it can get a better return on investment, he said, potentially saving them hundreds of billions of dollars per year. Sec Chu noted that while demand response and dynamic pricing will hopefully alter consumer habits in the long term, initially it won't. It will do the opposite and create angry consumers, he admitted.