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Innovation Watch Newsletter 4.26
December 24, 2005

ISSN: 1712-9834


In this issue...


As we reflect on this year and look ahead.... startling advances in science and technology; a global economy transformed by offshoring; social discontents, unrest, and changing values; a tipping point in the global balance of power; scarce energy resources; climate change... new challenges and opportunities.

Medical trickery...

Newsweek reports that AIDS, lupus, hepatitis C, and allergies could eventually be combated using a drug that triggers the innate immune system -- the master controller that direct's the body's response to infection. Dr. Arthur Krieg of Coley Pharmaceuticals is testing such a drug on lung-cancer patients -- injecting them with synthetic DNA that is benign, but looks like a virus. "We can trick the body into thinking a cancer is a kind of viral infection," he says. The treatment is now in Phase III trials. Coley is testing a similar drug for hepatitis C.

Immunizing the internet...

Researchers at Tel-Aviv University have developed a new strategy for combatting viruses on the internet. "Honeypot" computers on the network would attract viruses, determine how they infect, and distribute an antidote. Honeypots would be connected through a secure parallel network, allowing the antidote to be quickly and widely distributed -- more rapidly than the virus could spread. New Scientist says that in a network of 50,000 nodes with 200 honeypots, only 5% of computers would be infected before the virus was stopped.

Beyond marketing...

Advertising is dying, Faith Popcorn writes in Chief Executive. The web is supplanting newspapers and magazines. Commercial radio is being challenged by podcasting. Users of digital-video recorders are already skipping 60% of the ads inserted by the networks. Consumers, she says, are rejecting "artificial, highly scripted, top-down marketing." In the future, she says, companies will reach consumers through culture. The things that people care passionately about... "the music, the fashion, the language, the technology, the spirituality of generations."

Medical offshoring...

The Hindu reports that National Health Services in the United Kingdom will contract with a company in India to interpret x-rays, sonography, CT scans, MRIs and PET scans offshore. The value of the business could be approximately $1 billion. The processing of laboratory specimens could be next. National Health Services has already assessed the company's infrastructure, and has conducted pilot tests.

Boys in trouble...

The Kansas City Star reflects on the rough ride of growing up male -- "Learning disorders. Dropout rates. Violence. Stuttering. Obesity. Gambling and video game fixations. School suspensions. Hyperactivity. D's and F's and general disengagement, despite medication to sharpen attention." Boys account for 90 percent of juvenile arrests for violent crimes. William Pollack, a clinical psychologist at Harvard, says, "boys are in trouble."

Global crime...

Mother Jones interviews Moses Naim on the globalization of crime, author of the book Illicit: How Smugglers, Traffickers, and Copycats Are Hijacking the Global Economy. Naim says there is a growing market in designer clothes, human beings, drugs, weapons, and endangered species. Some 40 percent of 'Procter & Gamble' and 60 percent of 'Honda' products, he says, are inauthentic. The illicit economy is approximately ten percent of GDP. Slavery is estimated to be worth an estimated $7 to $10 billion a year. "It took four hundred years for the slave trade to bring 12 million people to America from Africa," Naim says. "It took less than ten years to traffic 30 million people in Southeast Asia in the last decade."

Global markets...

China and India are exporting more, The Globalist says, but the market is asymmetrical. Asia is providing "goods for the overly-indulgent American consumer." In 2004, Chinese consumption actually fell to 42% of its GDP. U.S. consumption, in contrast, was 71% of GDP. Per capita spending in India is only about $400 per year -- not large enough to be significant. Not only has the developed world not found new consumer markets for its goods, it is also losing ground as the developing world -- enabled by the internet -- increasingly sells knowledge-based services.

Be careful what you wish for...

Buckyballs are expected to play a large role in the nanotechnology revolution. However, researchers at Vanderbilt University have found that when they are dissolved the water they bind to DNA molecules and deform DNA. This could have negative -- if not catastrophic -- consequences for biological processes in humans and other organisms. "This research shows that if buckyballs can get into the nucleus," chemical engineer Peter Cummings says, "they can bind to DNA. If the DNA is damaged, it can be inhibited from self-repairing."

Lost civilization...

Will the future remember us? The Mail & Guardian says maybe not. Our digital photos may not survive hard disk drive failures, and ever-changing storage technologies and formats. "If photographers do not think seriously about digital preservation," the newspaper says, "there is a danger that the information revolution could turn into a new dark age."

David Forrest


we welcome your comments and feedback at mail@innovationwatch.com


SCIENCE

First Picture of Living Human Retina Reveals Surprise - [Live Science] Imaging thousands of cells responsible for detecting color in the deepest layer of the eye, scientists found that our eyes are wired differently. Yet we all -- with the exception of the color blind -- identify colors similarly. The results suggest that the brain plays an even more significant role than thought in deciding what we see.

Possible Miniature Solar System Discovered - [Associated Press] Astronomers have discovered what they believe is the birth of the smallest known solar system. Peering through ground- and space-based telescopes, scientists observed a brown dwarf -- or failed star -- less than one hundredth the mass of the sun surrounded by what appears to be a disk of dust and gas.

Only 40 Genes Separate Your Pet Dog from a Wolf - [Telegraph] The difference between an obedient, friendly dog and a big bad wolf could be down to as few as 40 genes, according to a study into tameness.

Scan a Brain and Predict the Future - [New Zealand Herald] Neuroscientists at Washington University School of Medicine in St. Louis have found they can predict whether test subjects will succeed or fail at a game by scanning their brains.

Water Once Covered Mars - [IOL] Surrounding Mars's north pole are underground "layered deposits" that are believed to be fine strata of ice, according to research presented at the headquarters of the European Space Agency. The find is "nearly pure, cold-water ice," with only two percent contamination by dust. Beneath these deposits are large amounts of sand that is probably "cemented" with water ice.

Immunity's Master Controller - [MSNBC] Researchers are working to understand -- and manipulate -- the body's innate defenses.

The End Of Aging? New Study Examines Evolutionary Explanations For 'Biological Immortality' - [Science Daily] Though getting older may seem inevitable, a major new study examines the point in human life when your body simply stops aging.


TECHNOLOGY

Future Is Now With Microchip Implants - [WCBSTV] It sounds like science fiction, but Nick Minicucci is getting a microchip implanted in his arm. The chip is smaller than a thumbnail, but allows doctors access to all of his medical records with only the swipe of a scan.

Web Tool Puts New Face on Wikipedia - [c|net] The popularity of Wikipedia, an online encyclopedia to which anyone can contribute, is spawning a host of complementary tools and offshoots.

Nanotube Foams Flex, Rebound with 'Super Compressibility'
- [Composites News] Films of aligned carbon nanotubes can act like a layer of mattress springs, flexing and rebounding in response to a force. But unlike a mattress, which can sag and lose its springiness, these nanotube foams maintain their resilience even after thousands of compression cycles.

Monkey Gene Chip May Help Researchers - [Red Orbit] Researchers studying infectious diseases, such as AIDS, may be able to find answers more quickly thanks to a new tool that lets them see how a Rhesus monkey's 20,000 genes respond.

Viral Cure Could 'Immunise' the Internet - [New Scientist] A cure for computer viruses that spreads in a viral fashion could immunise the internet, even against pests that travel at lightning speed, a mathematical study reveals.

Atom Hauler: Molecular Rig Snags Multi-Atom Loads - [Science News] A molecule with a knack for picking up and delivering atoms may prove a useful tool for atomic-scale construction.

NASA Offers Prizes for Robots and Astro-Drones - [MSNBC] NASA announced two new cash prizes, each with a weighty $250,000 purse, in a pair of contests aimed at developing robotic systems for space exploration.


BUSINESS AND ECONOMY

Credit Cards to Restrict Lending - [BBC] Credit card companies are to monitor more closely the way their customers spend and repay money.

Twilight In Italy - [TIME Asia] What happens when old-world craftsmanship collides with harsh new commercial realities? Welcome to Manzano, Italy's chair-production capital, as it is battered by cheaper Chinese rivals.

Close to Home - [CFO Europe] Many CFOs find that shifting operations to faraway, low-cost locations is not always a good idea.

Cultural Relevance - [Chief Executive] In 2006, the long-predicted death of advertising will reach a critical point. Equally important, forward-thinking corporate leaders will build their marketing strategies not around media but around culture.

Does Your Company Belong in the Blogosphere? - [HBS Working Knowledge] Bloggers have damaged a number of companies, but it's time to think of the blog as your friend. Skillful blogging can boost your company's credibility and help it connect with customers.

Greenspan Warns of Rising Deficits - [Boston Globe] Outgoing Federal Reserve chairman Alan Greenspan warned that America's exploding budget deficit and a protectionist backlash against soaring trade deficits could disrupt the global economy.

Now, Medical Process Outsourcing - [The Hindu] Business worth around $1 billion could move into India from the U.K. shortly with the National Health Services (NHS) in the process of firming up contracts for rerouting pathology services to other countries.


SOCIETY

Raising Our Boys Better - [Kansas City Star] Learning disorders. Dropout rates. Violence. Stuttering. Obesity. Gambling and video game fixations. School suspensions. Hyperactivity. D’s and F’s and general disengagement, despite medication to sharpen attention.
In the above matters, boys outnumber girls 2-to-1, at least. Within the swelling ranks of kids deemed autistic or dyslexic, it’s 4-to-1. Suicide, 5-to-1.

Hugs Might Go Online Soon - [Earth Times] Soon, parents who travel too often or live away from their children would be able to keep in 'touch' with them. For, a system developed in Singapore's Nanyang Technological University (NTU)'s Interaction and Entertainment Research Center is aiming at being able to transmit hugs and touches online.

Pension? Start Saving from Birth - [The Guardian] We're living longer - so the next generation will have to pay more to fund our retirement, never mind theirs.

So, How Long Have We Got? - [The Guardian] Not only are we living longer, we're living longer than we'd ever imagined we would, and this, apparently, is nothing to smile about.

The Global Underworld - [Mother Jones] The editor of Foreign Policy explains how smugglers, traffickers, and copycats are hijacking the world economy.

Precarious Lives - [Mother Jones] The promises on which many of us have based our entire economic lives are no longer being honored.

The Growing “Global Interior” of the United States - [Globalist] Rather surprisingly, Nashville, Tennessee has become a major destination for immigrants arriving to the United States. In this Globalist Perspective, Anne Farris dispels the myth that immigrants only flock to metropolises like New York City — and argues that Nashville exemplifies how smaller communities are dealing with immigration.


GLOBAL POLITICS

How Bush Plans to Get Out of Iraq - [TIME] Pummeled by charges that Bush either does not have a workable strategy for drawing down troops or is concealing one for political reasons, the White House put out a 38-page "National Strategy for Victory in Iraq" in conjunction with his remarks at the Navy Academy outlining how he will decide when sizeable numbers of troops can come home.

Challenges Facing Europe in a World of Globalization - [Heritage Foundation] Whether the EU has grand ambitions to become a superpower or not, whether it sees itself creating a new international order or wants to enlarge into Asia and North Africa, I think that without the willingness to tackle rigidity and stagna­tion in the major EU economies, the project will not have much of a chance.

Squaring the Circle of a Flat World - [Globalist] With all due respect to Tom Friedman, there’s nothing flat about this unbalanced global economy. Stephen Roach, Chief Economist and Director of Global Economic Analysis at Morgan Stanely, argues the global economy is distinguished far more by its disparities and tensions -- and how the resulting imbalances are likely to be vented in world markets.

Russia Confirms Iran Arms Deal - [Telegraph] Russia has confirmed that it has signed an arms deal with Iran but said the weapons were only for defence.

Why Sharon Quit His Party - [TIME Europe] Ariel Sharon left the Likud Party he helped found because it had become an obstacle to his plans for long-term peace and security for Israel, he said. And he and his aides believe that the risks he's taking in launching a new centrist party will pay off by returning him to office at the head of an even more stable coalition.

The Bomb Proliferates - [Le Monde Diplomatique] The original intention in preventing the proliferation of nuclear weapons was less the preservation of the world from nuclear destruction than the retention of military supremacy for those states that had it already, plus a few chosen allies. What will happen now?

Russian Diplomat Defends NGO Reduction - [ABC News] A top Kremlin diplomat defended pending legislation that would severely restrict non-governmental organizations, telling a visiting U.S. envoy Friday it was part of Russia becoming a democracy.


ENVIRONMENT

Pollutants Link to Rise in Diabetes Cases - [Telegraph] The dramatic rise in the incidence of type 2 diabetes could be driven in part by exposure to pollutants as well as obesity, according to a study.

Science Faces 'Dangerous Times' - [BBC] Fundamentalism is hampering global efforts to tackle climate change, according to Britain's top scientist.

Climate Model Refutes Predictions of Wetter Sahel - [Science and Development Network] Africa's drought-prone Sahel region faces "dramatic drying" during the next 50 years because of climate change, according to a new computer simulation.

Emissions Trading Cannot Solve Amazon Deforestation - [Science and Development Network] Some say that emissions trading under the Kyoto Protocol should be used to preserve intact areas of the Amazon rainforest as well as to restore deforested regions. This is a commendable aim — but there are several reasons why it is unlikely to work in practice.

Swiss Lean Towards Approving GMO Moratorium - [Swiss Info] Voters appear to have accepted a proposal for a five-year ban on genetically modified organisms (GMOs) in Swiss agriculture.

Computer Simulation Shows Buckyballs Deform DNA - [PhysOrg] A new study raises a red flag regarding the safety of buckyballs when dissolved in water. It reports the results of a detailed computer simulation that finds buckyballs bind to the spirals in DNA molecules in an aqueous environment, causing the DNA to deform, potentially interfering with its biological functions and possibly causing long-term negative side effects in people and other living organisms.

Failing Ocean Current Raises Fears of Mini Ice Age - [New Scientist] The ocean current that gives western Europe its relatively balmy climate is stuttering, raising fears that it might fail entirely and plunge the continent into a mini ice age.


THE FUTURE

Ghosts of the Digital Future - [Mail & Guardian] There are more photographs around than ever before and, thanks to the growth of digital photography and cameraphones, there may well be more photos taken this year than in the whole of history. But how many will still be there 50 years hence.


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