"One of the more surprising things I've noticed while working on Y Combinator is how frightening the most ambitious startup ideas are. In this essay I'm going to demonstrate this phenomenon by describing some. Any one of them could make you a billionaire. That might sound like an attractive prospect, and yet when I describe these ideas you may notice you find yourself shrinking away from them."

"More broadly, a simple dictum such as ‘listen to the experts’ isn’t going to work, precisely because our most powerful methods of generating new knowledge (viz. the sciences) are not so much based on listening to individual experts, as on including these experts (and many others) in broader social systems which expose them continually to the ideas of others and vice-versa. Designing (or – perhaps better- nurturing) such systems is hard to think about and hard to do – but it has to be the way forward."

"The theory of patent law is based on the idea that a lone genius can solve problems that stump the experts, and that the lone genius will do so only if properly incented. We deny patents on inventions that are "obvious" to ordinarily innovative scientists in the field. Our goal is to encourage extraordinary inventions – those that we wouldn’t expect to get without the incentive of a patent.

The canonical story of the lone genius inventor is largely a myth. Edison didn’t invent the light bulb; he found a bamboo fiber that worked better as a filament in the light bulb developed by Sawyer and Man, who in turn built on lighting work done by others. Bell filed for his telephone patent on the very same day as an independent inventor, Elisha Gray; the case ultimately went to the U.S. Supreme Court, which filled an entire volume of U.S. Reports resolving the question of whether Bell could have a patent despite the fact that he hadn’t actually gotten the invention to work at the time he filed. The Wright Brothers were the first to fly at Kitty Hawk, but their plane didn’t work very well, and was quickly surpassed by aircraft built by Glenn Curtis and others – planes that the Wrights delayed by over a decade with patent lawsuits.

The point can be made more general: surveys of hundreds of significant new technologies show that almost all of them are invented simultaneously or nearly simultaneously by two or more teams working independently of each other. Invention appears in significant part to be a social, not an individual, phenomenon. Inventors build on the work of those who came before, and new ideas are often "in the air," or result from changes in market demand or the availability of new or cheaper starting materials. And in the few circumstances where that is not true – where inventions truly are "singletons" – it is often because of an accident or error in the experiment rather than a conscious effort to invent. "

'Uncertainty drives the search for and generation of creative ideas, but "uncertainty also makes us less able to recognize creativity, perhaps when we need it most," the researchers wrote. "Revealing the existence and nature of a bias against creativity can help explain why people might reject creative ideas and stifle scientific advancements, even in the face of strong intentions to the contrary. ... The field of creativity may need to shift its current focus from identifying how to generate more creative ideas to identify how to help innovative institutions recognize and accept creativity."'

"Innovation has become a fertile area in which companies seek competitive advantage today. This has served Apple well over the past decade. I don’t think innovativeness will be going away soon as a source of competitive advantage. But I do wonder whether time is running out on time as a competitive advantage. If agile and other innovations lead us to a world where all companies can deliver new products and services equally quickly, companies will need to find newer ways to differentiate themselves."

"Copyright law’s grip on film, music and software barely touches the fashion industry … and fashion benefits in both innovation and sales, says Johanna Blakley. At TEDxUSC 2010, she talks about what all creative industries can learn from fashion’s free culture."

"This page provides information on the use and implementation of novelty search, an evolutionary search method that takes the radical step of ignoring the objective of search and instead rewarding only behavioral novelty. This visual demonstration (requires modern browser, IE users may need to install a plugin) contrasts a search for novelty with a search for the objective."

The process of bringing together entrepreneurs has been made exponentially easier by the coworking phenomenon. If done right, these spaces become incubators for new businesses and help drive job growth in the area.

"Whereas a conventional NAND gate outputs a "1" if neither of its inputs match, the output of a Bayesian NAND gate represents the odds that the two input probabilities match. This makes it possible to perform calculations that use probabilities as their input and output."

"In this paper, we tackle the problem of innovation spreading from a modeling point of view. We consider a networked system of individuals, with a competition between two groups. We show its relation to the innovation spreading issues. We introduce an abstract model and show how it can be interpreted in this framework, as well as what conclusions we can draw form it. We further explain how model-derived conclusions can help to investigate the original problem, as well as other, similar problems. The model is an agent-based model assuming simple binary attributes of those agents. It uses a majority dynamics (Ising model to be exact), meaning that individuals attempt to be similar to the majority of their peers, barring the occasional purely individual decisions that are modeled as random. We show that this simplistic model can be related to the decision-making during innovation adoption processes. …"

'While “self-styled” seems mostly a put-down, it is a notably weak one. The user of this phrase notes that someone claims something, but lacks an official credential, or strong consensus, supporting this claim. But we the reader can also note that this speaker offers no stronger criticism, and is not willing to directly contradict the offending claim. After all, instead of calling someone a “self-styled visionary,” you might say “he calls himself a visionary, but he’s not; he hasn’t has a vision in years.”'

'*Platforms that crowdsource the creation of ideas. The idea here is to organize groups of people to innovate, develop new ideas, and solve problems that have eluded organizations that have attempted these things on their own. There are lots of examples of this, from the famed InnoCentive site (most recent challenge: clever solutions for responding to recent oil spill in the Gulf of Mexico); to the $1 million Netflix competition (which enabled the company to develop a superior recommendations system); to the very recent $1 million Edmunds Toyota Prius challenge (“re-create unintended acceleration in a car and then solve that problem and prove the whole thing to us”), to the many experiments that are being conducted at Ideascale, a platform that “empowers communities to drive innovation” by enabling them to collect ideas from “customers, give them a platform to vote, the most important ideas bubble to the top.”'

"It has long been known that scientific output proceeds on an exponential increase, or more properly, a logistic growth curve. The interplay between effort and discovery is clear, and the nature of the functional form has been thought to be due to many changes in the scientific process over time. Here I show a quantitative method for examining the ease of scientific progress, another necessary component in understanding scientific discovery. Using examples from three different scientific disciplines - mammalian species, chemical elements, and minor planets - I find the ease of discovery to conform to an exponential decay. In addition, I show how the pace of scientific discovery can be best understood as the outcome of both scientific output and ease of discovery."

"WHEN TEXT IS free to combine in new, surprising ways, new forms of value are created. Value for consumers searching for information, value for advertisers trying to share their messages with consumers searching for related topics, value for content creators who want an audience. And of course, value to the entity that serves as the middleman between all those different groups. This is in part what Jeff Jarvis has called the “link economy,” but as Jarvis has himself observed, it is not just a matter of links. What is crucial to this system is that text can be easily moved and re-contextualized and analyzed, sometimes by humans and sometimes by machines."

"The three-dimensional solar structure could, at least in principle, absorb a lot more light and generate more power than a flat panel containing the same area footprint. The hope is that all unused light which has been reflected off one panel would be captured by other panels. Panels of this type would be most ideal in circumstances with limited space."

"I am going to take a different perspective on the relation between young firms and job creation, however. I want to explain its mathematical inevitability, and I’m going to do that using the probabilistic idea of the drunkard’s walk."

"Both McLuhan and Heidegger are unequivocally pessimistic about technological change. I wonder if it’s not possible to do further damage to their ideas by blurring their warnings together. I wonder if McLuhan isn’t also talking about reframing thought as a reified and externalized storehouse of “raw material”. Certainly, when you watch digital addicts trying to function in the physical world, you recognize their discomfort with the body (boring!); but also their discomfort with the mind as private, internal, and sacred (even more boring!). The mass Gnosticism of the internet seems more like yearning for release from body and soul. Nevertheless, we remain nailed in place."

"So it probably would not take much for politicians to be persuaded that the press is essential to democracy, and that its survival ... depends on government support. Advertising revenue would be replaced by government subsidies, raising predictable questions about the impact on content.
The alternative is to focus on what communication technology cannot do: create rather than transmit a good story or a good policy. There will always be a market for quality. The disruption caused by emerging communications technologies consists in the fact that the best pens may not be on the staffs of newspapers, and that policies need not be formulated only in the corridors of government."

"So why not incorporate it into a savings account? Take a small interest rate cut, say a tenth of a percent, from each savings account, and then randomly give that to a few members, conditional on them saving money. I think it’s brilliant, and it doesn’t surprise me that it’s started with credit unions, where some of the most consumer friendly innovation is being tried. Where most commercial banks are looking to payday lenders for innovation, credit unions appear to be looking at cutting edge behavioral “nudge” style work for innovations to help people build their financial lives. How cool is that?"

"Scrum set the flywheel in motion and caused the rest of the IT process life cycle to respond. ITIL’s processes still form the solid core of service support and we’ve improved the processes’ capability to handle intense work velocity. The organization adapted by developing unprecedented speed in the ability to deliver production fixes and to solve root cause problems with agility."

"Over the past year, VNL, based in Haryana, India, has reengineered the traditional technology of the dominant cellular standard, called GSM, in order to create base stations that only require between 50 and 150 watts of power, supplied by a solar-charged battery. The components can be assembled and booted up by two people and mounted on a rooftop in six hours."

"An end to frivolous patents for business processes will be a blessing to online commerce. Meanwhile, the loss of patent protection for software could make programmers realise at last that they have more in common with authors, artists, publishers and musicians than they ever had with molecular architects and chip designers. In short, they produce expressions of ideas that are eminently copyrightable."

"That insight led Mr. Martin to begin advocating what was then a radical idea in business education: that students needed to learn how to think critically and creatively every bit as much as they needed to learn finance or accounting. More specifically, they needed to learn how to approach problems from many perspectives and to combine various approaches to find innovative solutions."

"Since the launch of DataSF last summer, the City’s clearinghouse of government datasets, we have seen our tech community create new services and products never dreamed of within the walls of government. And now we are giving people access to technology systems like our 311 call center through open source, so they can decide how and when they interact with government.

We face many challenges today, none more urgent than the economic crisis, but with it comes an opportunity to seek new ways of governing. In San Francisco, like other cities, we are using this opportunity to engage our greatest resource, the public, to build a government that works better for all of us."

"Creation spaces have the potential to generate increasing returns — the more participants that join, the faster new knowledge gets created and the more rapidly performance improves. They bring into play network effects in the generation of new knowledge. In contrast, traditional knowledge management systems are inherently diminishing returns propositions. Since existing knowledge is by definition limited, it requires more and more effort to squeeze the next increment of performance improvement as existing knowledge gets more broadly distributed."

"Until and unless Western executives begin to aggressively challenge these assumptions and awaken to the potential of institutional innovation, they will remain vulnerable to attack. They must begin to recognize that the most promising forms of innovation emerging in developing economies are not at the level of individual products or services but rather at a much deeper level – novel approaches to scalable peer learning shaped by institutional innovation."

"Western executives (think CEO) may be having difficulty grasping the changes that Hagel describes because they run counter to cultural trends emerging among this generation of transnational elites ( not just big business). Increasingly, formerly quasi-meritocratic and democratic Western elites in their late thirties to early sixties are quietly embracing oligarchic social stratification and use political or institutional power to “lock in” the comparative advantages they currently enjoy by crafting double standards through opaque, unaccountable authorities issuing complex and contradictory regulations, special exemptions and insulating ( isolating) themselves socially and physically from the rest of society. It’s a careerism on steroids reminiscient of the corrupt nomenklatura of the late Soviet period."

"When producing a movie, everything stems back to this box: IDEA. In the 1940s, these were the sources of ideas: "Play," "Short Story or Novel," "Newspaper Story or Current Event," "Original Story," "Magazine Article," or "Historical Incident." Way off on the left, however, there's one additional source that's not shown above: "Vice President in Charge of Production." If you want something unoriginal done that isn't in print or in the history books, go talk to the VP, he'll get it done. On another note: this particular flowchart is one of the few places the words "Restaurants," "Mimeograph," "Arsenal," "Publicity," and "Bits & Extras" fit together so well. From the 20th Century Fox flowcharts collection."

"Inventors and practitioners will need to take these developments into account when preparing and prosecuting applications. For example, it may be necessary to review a broader cross-section of prior art than was previously necessary, or to consider filing evidence of unexpected results earlier rather than later in the course of prosecution. By being proactive, practitioners will expedite prosecution and avoid unnecessary fees and RCE filings. "

"This is a degree of uncertainty that can't be fixed by changes in evaluation standards.

As for innovation, lists and lists of research suggests that patents reduce software innovation.

There was a time when if you wrote something, you owned it, you could sell it, you could give it away. It could be put in the accounts and it could be used as the base for collaboration. Now, ownership of a piece of software is hopeful speculation. There is no reliable way to have a settled expectation regarding the boundaries or the extent to which you own a piece of software. This uncertainty, and this unfair regulation is what the Supreme Court has the chance to rid us of by giving the USPTO a reliable tool for excluding software ideas from patentable subject matter."

"DFA is an innovative 501(c)(3) organization with a unique business model combining elements of a non-profit organization with those of a biotech company."

"The NY Times reports that architects Irene Cheng and Brett Snyder “have created a virtual map to guide users around Manhattan to sites where projects they describe as ‘visionary’ were planned but never built. The map is available as an interactive iPhone application…that uses GPS technology to detect when a user is near any of the roughly 50 notable sites, triggering a feature that allows the user to learn about the proposal through the architect’s foiled designs and words. ‘It’s a wall-less museum where the art isn’t even there,’ Mr. Snyder said. ‘The juxtaposition of what could be against what is’.”"

Also? I will not work on your fucking website for equity, nor even listen to your pitch.

"At the moment, any of us who use web applications tend to spend a lot of time and effort populating application databases to make them useful to us. But when we do so, we tend to lose control of our data. They go into a private database schema, and what access we have to that depends entirely on what the application allows us to do. Sometimes there are reasonable ways to get the data back out (some kind of an XML dump perhaps), sometimes not. But always the application is in control. And linking data across applications is, in general, somewhere between hard and impossible.

FluidDB can change all that by leaving the user in control of his or her data, granting the application only such permissions as necessary or desired, and ensuring that the user retains flexability and control."

"This is a very long explanation, but the punch line is that as these large institutions adjust their portfolios and potentially abandon these more aggressive strategies, the amount of overall capital committed to alternative assets will undoubtedly shrink. As this happens, the VC industry will shrink in kind. How much will it go down? It is very hard to say. It would not be surprising for many of these funds to cut their allocation in the category in half, and as a result, it shouldn’t be surprising for the VC industry to get cut in half also."

"As the speed of technological progress continues to accelerate, innovation threatens to outpace architects’ and designers’ working knowledge of materials thereby limiting their applicability. In order to stay at the cutting edge of design, a knowledge of the uses, properties, and sources of new materials is essential. A companion to the Transmaterial books written by Blaine Brownell and published by Princeton Architectural Press, Transmaterial online is intended to be a clear, concise, accessible, and carefully edited resource that provides information about the latest and most intriguing materials commercially available."

"It turns out that many of the great waves of creative destruction that have reinvented Silicon Valley didn't start there. More important, they didn't even start with the profit motive.

Rather, they started with interesting problems and people who wanted to solve them, exercising technology to its fullest because exploring new ideas was fun."

"The emphasis shifts from contracts and legal sanctions to trust and transparency as companies work together, aligned with their customers' interests—sharing core values, business practices, infrastructure, and systems. Amazon's marketplace and eBay's webs of buyers and sellers are early prototypes of these federated networks. Apple and Facebook are struggling to understand the rules of engagement that should govern relationships with their applications developers. You can see them climbing a new learning curve through trial and error as they figure out how to build and sustain economies of trust."

"Each of these examples is based on a story I've heard of an innovative project that died not because it was a bad idea, but because of societal inertia. Given how tough it is to start new projects (and find financing and support) under normal circumstances, innovators facing this kind of opposition often end up contenting themselves with incremental -- sometimes downright meaningless -- gains."

"Oddly, certain kinds of workers in Massachusetts cannot be shackled by noncompetes: doctors, social workers, and broadcasters among them. But why should a TV anchor be allowed to jump from one station to another, while we make an EMC engineer take a year of unpaid leave before he can form a new company? How does that benefit our economy? My biggest concern is that new legislation only requires noncompetes to be “reasonable,’’ rather than nixing them entirely. To ensure that we get there, individual employees will have to dive in to this debate - rather than leaving it to big companies who know how to lobby. And CEOs who are willing to think about the good of the state’s economy - beyond their own firm’s desire to avoid spawning potential rivals - should speak up."

"Being a 501(c)(3) has also made Kiva feel comfortable asking its members to help cover the organization’s operating costs, which totaled $5.9 million in 2009, according to Fiona Ramsey, Kiva’s director of public relations. Jackley zeroed in on the idea of optional transaction fees at the 2007 Net Impact Conference. She was on a panel with members of two related nonprofits—DonorsChoose.org Inc., which allows people to donate directly to United States classroom projects, and the GlobalGiving Foundation, which facilitates direct donations to a wide range of projects around the world. An audience member asked the panel how each organization covered its costs. Jackley learned that DonorsChoose suggested that users make an optional 15 percent donation in addition to their base donation. GlobalGiving, in contrast, automatically took a 10 percent fee out of users’ base donations."

"As we all, ahem, know, entrepreneurs are callow twenty-somethings. Except, as Dane shows, that isn't true. Building, in part, on some research by another Kauffman colleague, Vivek Wadhwa, he shows that entrepreneurs' average age skew considerably older than is accepted wisdom."

"The best thing about raw data is that almost everyone knows how it works. This means that as far as the data (re)user is concerned, the datasets are text files (or perhaps a close variant) that they can download, open in some default application, and get some immediate use out of it."

"Most inventors are unsuccessful, and most patents never get used. Countries that are full of inventive genius don't necessarily have booming economies. Spreading innovations is a haphazard process dependent on luck, or culture, or fickle government support... it's not a golden road to wealth and power. Innovating is an easy process compared to "un-inventing" huge installed technologies. Asbestos got yanked out of American schools, but asbestos bricks are all over the "poor world.""

"We are defined by what we build. It’s not just the engineering ambition that designed these structures, nor the 20 people who died building the Brooklyn Bridge. It’s that we believe we can and decide to act. I’m happy to report our new President agrees when he says,

“In reaffirming the greatness of our nation, we understand that greatness is never a given. It must be earned. Our journey has never been one of shortcuts or settling for less. It has not been the path for the faint-hearted — for those who prefer leisure over work, or seek only the pleasures of riches and fame. Rather, it has been the risk-takers, the doers, the makers of things — some celebrated but more often men and women obscure in their labor, who have carried us up the long, rugged path towards prosperity and freedom.”"

"Lenders are offered returns based on a rolling six-month average so dud projects will be offset by sales of profitable ones. It takes just a few deals to strike it big, Huynh and Stack say, and because it is a community that is not just passionate but also knowledgeable, better projects are likely to get funded.

The promise of returns is enough to get former investment banker Andrew de Montille excited.

"I put money in the bank not because I consider it as a charitable investment," says de Montille. "Rather, I am very confident that some of the projects will do well enough to be profitable to the investors.""

"At one point, Mark commented that they have a "deliberately unsustainable" business model. In other words: do great stuff while you can, and when you can't do it anymore, stop. This is the model that governs most businesses and artistic endeavors. It's the reason terms like "jump the shark" exist. Most companies, rock bands, and sports teams are only brilliant for so long. Then they start to slide. Then they die."

“The Barter Theater first opened its doors in June 10, 1933, providing relief and diversions for Depression-era audiences. It was founded by Robert Porterfield, a young actor who suggested that audiences barter homegrown produce for admission. Its motto was “With vegetables you cannot sell, you can buy a good laugh.” Crowds were receptive to the idea of ‘ham or Hamlet,” and an estimated 80 percent of the audiences paid with fruits, vegetables, and livestock, or dairy products.”

"When I give talks on this, a question usually comes up about how far we can go with this, and the questioners usually ask about scenarios that I really don’t think are possible. And I always tell them that I don’t think their scenarios are possible based on our current understanding and tools. But then I add that 10 years ago everybody thought that the stuff I’m showing was impossible, so who knows? Hell, a mere 5 years ago, before I started working in this field, I was teaching optics for photographers, and in the lecture on the resolution limit of a lens I would say that what I’m showing them in that lecture is one of the few timeless results that is unlikely to be supplanted by new technologies (as opposed to, say, the lecture on how a CCD detector works). And now I’m working on beating the diffraction limit. So who knows?"

"Kelvin did not believe that heavier-than-air flying machines were possible and he regarded X-rays as a hoax. Kelvin’s ingenuity was manifested even in cases where his overall predictions were wrong. He gave a lecture on the state of physics at the turn of the twentieth century, and - not unlike Hilbert’s famous lectures in mathematics - claimed that physics was nearly complete and all problems would soon be settled. He mentioned, however, “two clouds on the horizon,” the unexpected behavior of ether in the Michelson-Morley experiment and the problem of the spectrum of the black body radiation. His genius as a physicist was manifested by the fact that of all the scores of open problems in physics present at the time (as there always are), he pinpointed the two problems that subsequently led to revolutions: the ether problem led to relativity, and black body radiation to quantum theory."

"I’m single. I’m childless. I cared for my mother at the end of her life and for a friend, years before, through 10 months of brain cancer. If, as the saying goes, everything that goes around comes around, someone will do the same for me.

But that’s magical thinking, not a sensible plan for the future. I’ll still have to ask a friend to take me home, or hire a car service, after my next colonoscopy. After almost a decade, I still shudder at the memory of my reconstructive wrist surgery, alone in a hospital where they mixed up my chart with someone else’s. Before the operation and after, I couldn’t even open a bottle."

"This decision has confirmed what was already obvious from a plain reading of the statutes, that Minnesota cities can use their bonding authority for deploying the essential infrastructure of the next century."

General point: "How can people of good conscience within such populations change the cultures that are stifling them?"

"Go to parties. You can’t even start to know what you may find on the envelope of serendipity"

"If America is to maintain its scientific and technological edge, it needs to inspire and support its most talented scientists and engineers through the early stages of their careers..."

When it comes to graceful expertise, I am reminded of the intentional stance Ron Jeffries and Chet Hendrickson take in their work.

Almost every one is truly useful.

The key: "...it needn't be bureaucratically untenable."

µphilanthropy

"I suspect that true innovation doesn’t have to put up toll roads."

"There should be a two-year waiting list to get into your company."

"A basic theory of human endeavor suggests that the smartest people who will ever work in a field are those who work in that field when it is new."