Intel And Verizon Stifle Innovation

On the Politico web-site it says:  'Concerned about the failure to innovate -- and convinced that it is the key to a vibrant economy -- officials at Intel, the world's largest maker of semiconductor chips, are convening a high-level conference in Washington next month. There, Obama administration officials, high-tech gurus, NGOs, corporate titans and academics will share ideas on how to spur economic recovery through innovation. '

The Politico web-site continues: '"You need to create circumstances that encourage risk-taking and entrepreneurship," said Peter Cleveland, Intel's vice president of government relations.'

Politico adds: 'Verizon CEO Ivan Seidenberg echoed that sentiment last week when he proclaimed "investment and innovation has never been more important than it is right now."' 

The irony in this that it has been the telcos who, for 30 years, have stifled technological advance in the US by dribbling out bandwidth like misers, charging hugely for it, and delivering appallingly flaky networks.

That combination must have, for instance, delayed the growth of wireless data services by a decade.

Intel, through its Wintel monopoly of the PC industry, has made it virtually impossible for any other company to make significant money in the PC business, the biggest market for semiconductors for the last 20 years.

This has reduced the non-Intel semiconductor industry's ability to invest in R&D, and has reduced the appetite of venture capitalists for investing in semiconductor companies which target computer markets.

So the best way to stimulate innovation in America is to break up the Wintel monopoly, and open up the wireless telecommunications industry to more competition.