Posts Tagged ‘invention’

00628 Invention Driven Innovation for Education

October 8, 2010

AP’s Kathy Matheson’s article on educational invention is at http://tinyurl.com/322y3cr. It seems that at last a national support system is emerging for eLearning products and services – maybe.

Our U.S. technology based and innovation driven industries enjoy a total of $150 billion in research funds annually. Defense gets half, National Institutes of Health $30 billion and National Aeronautics and Space Administration $20 billion*. Educational technology? Just about zip – maybe $100 million on a good year. Education is just now being recognized as an industry to be driven by technology based innovation.  With research lagging far behind, where are the other vectors of support. The market?

The U.S. formal education industry spends $1 trillion each year, and is willing to invest for access, efficiency and effectiveness. For most entrepreneurs the lack of technology infrastructure, turnover in policies, leaders and curricula, and cumbersome purchasing procedures presents a significant marker barrier. Entrepreneurs have tended to invest their talent and funds in more attractive markets. How about the public sector?

The Department of Education has a $650 million fund to boost education innovation that is focused on entrepreneurship. University of Pennsylvania wants to create an entrepreneur incubator linked with their Department of Education. ASU has grouped their world class ed-tech research groups into SkySong with its enterprise incubator under the leadership of Julia Rosen, Assoc. VP for Innovation and Entrepreneurship. They held the first national education entrepreneur summit this spring. It was modeled after Michael Moe’s similar eLearning industry conferences in the 1990’s.

The expectation is that the education market for technological innovation will become a rival to health care. It’s an admirable goal but we have a long way to go if the health care model of technology is a model.

Another down side for entrepreneurs is that the Venture Capital system destroyed itself ten years ago with its dot-com melt down. During the 1990’s half of VC funded entrepreneurs could expect an initial public offering where they could take their enterprise to the next level. Almost all they can expect now is to be acquired by another company where the entrepreneur leaves with a big pay day. On the brighter side, let’s do a visionary road map:

Factor of 10 and then another factor of 10 increase of federal R&D funding for eLearning research.

A boom in entrepreneurship driven marketing of innovative digital content, curriculum, assessment and delivery systems.

A return of the IPO and a healthy VC dynamic to grow $5 million enterprises to $500 million.

I know that there is a fine line between road maps and wishful thinking. But maybe the Black Swan is about to alight on the eLearning entrepreneurs’ pond.

* “Federal Research and Development Funding: FY2008,” 2007, Congressional Research Service.

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