Aart de Geus
Paul Brest &
Silicon Valley Leadership Group
2001 Gateway Place, Suite 101E
San Jose, CA 95110
Ideas, Innovation, Inspiration
Printing provided by: American Printing
Ideas, Innovation, Inspiration
1.................................................................. Dianne Feinstein
3.................................................................. Alan Salzman
5.................................................................. Tom Werner
7.................................................................. Carol Larson
9.................................................................. Kevin McCarthy
11................................................................ Vinod Khosla
13................................................................ William D. Watkins
15................................................................ Emmett D. Carson
17................................................................ Gavin Newsom
19................................................................ Steve Westly
21................................................................ Mike Splinter
23................................................................ Ann S. Bowers
25................................................................ Chuck Reed
27................................................................ Aart de Geus
29................................................................ Paul Brest &
31................................................................ David G. DeWalt
33................................................................ David Cush
35................................................................ Mike Klayko
37................................................................ Shai Aggasi
Help California Grow Jobs
By Dianne Feinstein
U.S. Senator, D- CA
Partnerships between the government and the private sector are complicated
endeavors, particularly in times of economic stress and strained budgets.
But an innovative loan program from the Department of Energy is making it
possible to bring clean energy technologies to the marketplace, and it has the
potential to be an economic and environmental ”game-changer” for California.
Most recent tech purchase: Passion outside family/work:
iPad My friends
An innovative loan The program was created in 2005 to
provide government loans to build Last book read: E-book or paper:
program that renewable energy projects. The plan The Interrogator E-books, mainly
translates to 65,000 new was to use these loans to leverage
private investment and create jobs.
jobs and clean electricity
for millions of homes. And it is working.
The return on investment for projects like Solar Millennium is striking: every $1
spent on federal loan guarantees creates $13 in private sector investment.
The loan guarantee program, which I have worked to protect and extend over
A recent report by the U.S. Chamber of Commerce said, “Financial mechanisms,
the past year, has committed $35 billion to support clean energy projects. That
like loan guarantees and other concessionary financial products…can make
translates to 65,000 new jobs and clean electricity for millions of homes.
new and clean energy technologies like nuclear and renewable power signifi-
cantly more cost competitive while using little or no federal funds.”
One bright example of what can happen when technology, private sector inno-
vation and government support come together is the Solar Millennium project in
Even though the loan guarantee program makes good sense for taxpayers,
weans us from foreign oil and puts people back to work, it doesn’t enjoy universal
The $2.1 billion project broke Public-private partnerships
ground in 2011 and is the largest California is a natural
similar to the loan guarantee The U.S. House of Repre-
solar plant currently under con- headquarters for sentatives earlier this year
struction in the world. The project program...are a template for
has created more than 1,500 renewable energy tried to eliminate the
high-technology jobs and program, which would
jobs and will power more than projects and green jobs. have gutted dozens of
95,000 homes with clean elec- economic growth. loans already in the pipe-
line. I gathered a group of Senate colleagues from both parties who recognize
the fundamental value of supporting these job-creating tools and saved the
The California Employment Development Department estimates up to 500,000
employees spend at least part of their time working in green activities, many in
the manufacturing sector.
Public-private partnerships similar to the loan guarantee program—those that
leverage small amounts of federal dollars into large projects—are a template for
California is a natural headquarters for renewable energy projects and green
high-technology jobs and economic growth.
These highly selective, rigorous applications are also the new model for coopera-
•First, our state requires one-third of all electricity to come from green sources by tion in an era of government debt and deficit.
2020, a standard that will help generate expansion in emerging green sectors.
The future is solar, wind and biofuels, electric cars, fuel cells and energy-efficient
•Second, we have a solid baseline of renewable energy production. In 2009, buildings and manufacturing. Those industries are certain to grow. It is our job to
11.6 percent of California’s electricity came from sources such as wind, solar
make sure they grow in California, and we remain at the forefront of innovation.
and biomass. Another 9.2 percent of electricity came from large hydro plants.
•Finally, California’s vibrant venture capital sector understands the value in
clean energy and the green economy. California companies receive as much
venture capital as the other 49 states combined: $11.5 billion in 2010 and $3
billion in the first quarter of 2011.
01 Game Changers 2012 Game Changers 2012 02
By Alan Co-founder and CEO
VantagePoint Capital Partners
In 2012 we are going to see the implementation of several key technologies in
the area of energy innovation and efficiency as we continue to modernize our
energy and resource-related industries. These innovations have global implica-
tions and, like many technological changes during past decades, will profoundly
impact the industries involved and change the way we approach our energy
and resource requirements moving forward.
One of the most interesting developments to watch in 2012 will be the commer- Most recent tech purchase: Passion outside family/work:
cialization of energy-efficient light-emitting-diodes (LEDs) for general illumination, Lighting control system Architecture
a development that will revamp the entire global lighting industry this decade.
Last book read: E-book or paper:
LEDs use semiconductor tech-
nology to create light and
Local companies are pio- On China E-book
consume approximately 80 neering new integration
percent less energy than
methods for LEDs to dra- ing energy storage or
hybridization with natural
The breadth of the industry
incandescent lights of the
same output. Lighting is one of matically drive down cost. gas to address demand transformations enabled
the last analog technologies to convert to digital, and the implications are during evenings or through energy innovation will
profound. In addition to being energy efficient, LEDs provide high-quality light, periods of limited solar
can last decades and introduce a host of digital applications (e.g., control from availability. This flexibility become increasingly apparent
your smart phone, occupancy sensing) not possible with traditional lighting tech- addresses the dynamic to the broader public next year.
nology. energy needs of large
utilities and enables renewable, safe power to be available when and where it is
In late 2012 we will see the Local companies are
pioneering new integra-
world’s largest utility - scale tion methods for LEDs to The breadth of the industry transformations enabled through energy innovation
also will become increasingly apparent to the broader public next year. The
solar power plant come online. dramatically drive down
cost and enable a progression of vehicle electrification initiated by Silicon Valley-based Tesla
broad suite of LED prod- Motors will become evident in 2012 as Tesla and several major auto manufactur-
ucts for home and commercial use. In 2012 a Silicon Valley company called ers release second-generation electric vehicles (EVs), and EV infrastructure com-
Switch Lighting will market the first replacement LED bulbs that are virtually identi- panies such as Palo Alto-based Better Place roll out their sophisticated whole-
cal to traditional 60-, 75- and 100-watt incandescents. These long life, super- country charging and battery-swapping solutions. Smart Grid efforts pioneered
efficient light bulbs willprovide the quality of light we want (pleasing color, instant by local companies such as Silver Spring and Trilliant will start to move beyond
on, full dimmability, no mercury) with better energy savings than, and none of meter installations to high-value in-home consumer applications. And solar pho-
the limitations of compact fluorescents (CFLs). tovoltaic (PV) prices will continue their relentless price decline making solar
systems cost-effective for the majority of Californians in 2012.
In late 2012 we also will see the world’s largest utility-scale solar power plant
come online to provide massive quantities of clean energy generated from the The time is right for these changes as we confront global resource limitations,
sun. The 392 megawatt power plant, currently under construction in California’s changing dynamics in world energy markets and technologic breakthroughs
Mojave Desert by Oakland-based BrightSource Energy, will supply power to which are providing innovative solutions to age-old problems. How we generate,
more than 140,000 homes and reduce carbon emissions by 400,000 tons per manage and consume energy is undergoing fundamental change and Silicon
year. This is the first wave of many such plants to come on-line globally and they Valley is once again leading the way.
are sized to provide power output comparable to traditional nuclear or fossil-fuel
Utilizing a unique mesh network of robotically controlled mirrors which track and
focus the sun’s rays on a central heating tower, the BrightSource technology
produces high temperature steam to run standard turbine generators. The Bright-
Source system is designed to provide continuous reliable power by incorporat-
03 Game Changers 2012 Game Changers 2012 04
A POST-INCENTIVE WORLD
By Tom Werner
There’s no place on Earth like The growth in solar in
Silicon Valley. Innovation thrives in Most recent tech purchase: Passion outside family/work:
the midst of a community that Silicon Valley and Apple iPad and Nissan Leaf Triathalons
takes action, small companies can around the world is due in
drive major change and there is a
demand to work at a pace that large part to pro-renewables Last book read: E-book or paper:
can be exhilarating. It is this envi- public policy that has driven Fortune’s Formula E-books
ronment that allowed SunPower to
see its solar technology, designed scale and cost reduction, as billion. This means that
and built for specialty applica- with any high-tech California taxpayers – and
We are the poster child of
tions, transform into an affordable therefore all Californians – how progressive public policy
and mainstream choice for homes product. are saving money thanks
and businesses. Solar is already a game changer in California and around the to the CSI.
can work to create businesses and
world, but we are just beginning to see the full scale of the opportunity for solar jobs, while reducing energy costs
to provide a major portion of our new power generation needs over the next five The CSI was designed to
years. reduce incentives as solar
for everyone at their homes,
prices come down and it schools and businesses.
We are now entering The growth in solar in Silicon Valley
and around the world is due in large
has been far more
successful than anyone predicted. In Northern California, we expect to com-
a new phase for solar part to pro-renewables public policy plete the program within a few quarters. After that, we are working to ensure that
as we transition to a post- that has driven scale and cost reduc-
tion, as with any high-tech product. In
customers continue to enjoy the benefits of their solar investments through net
metering – a policy that gives credit to homeowners for energy they generate
incentive world. California, the state’s California Solar beyond what they use at any point in time. In contrast to more than 21 states in
Initiative (CSI) has been extremely the nation, California has effectively capped net metering at the level to match
successful, with adoption twice as fast as planned. Look around and you’ll the current solar program, leaving future, post-CSI, installations without this
already see solar panels on your neighbor’s roof. Drive by Brocade or Applied crucial piece of the solar value proposition. We are working to ensure that
Materials and see solar parking lots. Utilities like Pacific Gas & Electric have customers continue to have the right to invest their own private dollars into solar
literally bought into solar, deciding that owning solar power plants distributed systems that benefit all of California.
through their grid is a wise investment and a reliable, low-risk addition to their
power generation portfolio. Solar has created thousands of jobs in California, including approximately 1,000
at SunPower in the Bay Area and more than 2,500 additional jobs across the
But we are now entering a new phase for solar as we transition to a post- state through our dealer partners. We are the poster child of how progressive
incentive world. The SunPower team has aggressively lowered solar costs to the public policy can work to create businesses and jobs, while reducing energy
point where we will be able to sell systems affordably after the completion of costs for everyone at their homes, schools and businesses. Governor Jerry Brown
California’s solar program which is now within view. Costs have dropped by has proposed to double down on distributed renewable power like solar, and we
about half in the past five years while power prices have increased, sharply at have proved that solar is delivering today and can grow rapidly to create eco-
times. Today, homeowners can finance their affordable solar systems like they nomic benefits to our communities across the state.
can a car and save money every month on their electric bill. Even better, there
is a great rate of return when customers see cash back in their pockets as a result
of their solar system.
Businesses can buy solar power through a power purchase agreement, with no
up-front capital cost required. Schools and water districts are saving money and
protecting jobs by reducing electricity expenses for decades into the future.
More than $1.3 billion is calculated to be saved by public sector solar customers
who are participating in the CSI. Of this total, schools account for more than $1
05 Game Changers 2012 Game Changers 2012 06
By Carol Larson
President and CEO
David and Lucile Packard Foundation
In difficult times, with tight budgets, there are no easy decisions. Hard choices
mean communities need to invest their money where they will have the biggest
impact. And Silicon Valley has, and continues to recognize the critical impor-
tance in investing in early learning.
Economist and Nobel Every dollar invested in early
laureate James J.
Heckman points out childhood education produces Most recent tech purchase: Passion outside family/work:
that this important a 10 percent annual return on Blackberry Curve 3G Travel
larly among disad- investment. Last book read: E-book or paper:
vantaged children, is a critical way to reduce the country’s debt and increase its
productivity. Every dollar invested in early childhood education, he notes, Travelers’ Tales San Francisco Paper
produces a 10 percent annual return on investment. It is too late, he writes, for us
to wait until disadvantaged children are 5 years old to begin their formal educa- Nearly $4 million has already been raised to build one of these early learning
tion if we want to decrease negative social and economic outcomes. facilities in Santa
Clara County in
This next year will be an opportune
In 2012, several important Investing in early learning has the Franklin- one, with developments arising
been, and continues to be, a McKinley School
components of early significant aspect of the Pack- District. There is
from the beginnings of Educare
ard Foundation’s work. In 2012, an impressive list and transitional kindergarten.
education...have the potential as several important compo- of partners-
to be one of the great game nents of early education come including the Silicon Valley Leadership Group- and ground breaking is expected
to fruition, we anticipate great in 2012. Not only will this mean a high-quality approach to serve those children
changers of the year. alignment of the efforts in this most in need, but the Educare school will include a professional development
arena, particularly here in institute to serve as a teaching and learning center on high quality early educa-
Silicon Valley. Together, they have the potential to be one of the great game tion, as well as a family resource center.
changers of the year, and they are opportunities to seize and build upon.
Looking outside our region, more than 40 states have signed on to a shared set
First, 2012 will mark the beginning of transitional kindergarten in California. This is of clear education standards that states can voluntarily adopt, known as the
a significant shift in policy, making kindergarten a two-year process for the Common Core State Standards, for kindergarten through high school. With a
youngest of children in their grades (those turning 5 between September and greater understanding of what it takes to reach these standards comes further
December) and serving as a bridge between preschool and kindergarten. recognition of early learning as the necessary first step to ensure that all children
Children with the greatest gaps in school readiness are the least likely to have are ready to succeed when they get to school. And Santa Clara County had
had access to high quality preschool, and the transitional kindergarten year will already demonstrated its recognition of that, with a broad based and collabora-
provide these students with additional time for social and academic develop- tive group creating the Santa Clara County Early Learning Master Plan.
ment, to ensure they are better prepared to begin school. Research has shown
that moving this entry date up can increase math and reading test scores in Waiting to close the achievement gap until students begin school is waiting too
elementary school and help close the achievement gap. long. Starting early yields our greatest return on investment.
Second, 2012 marks a year in which we will continue to see the development of This next year will be an opportune one, with developments arising from the
a project bringing a much-anticipated model for high-quality early education to beginnings of Educare and transitional kindergarten, along with the continued
California. Educare is a growing national network of schools that serve at-risk collaborations of many valuable partners working to make a big difference for
children from birth to age 5. Children who spend two or more years in an children. And there is no greater investment than this.
Educare school have been shown to emerge better prepared for kindergarten.
The schools offer full-day year round programs with well trained teachers using
research-based practices and strategies. The children are taught social, emo-
tional, and educational skills, all as part of the effort to allow them to enter
elementary school at the same level as those from higher socioeconomic house
07 Game Changers 2012 Game Changers 2012 08
By Kevin McCarthy
Majority Whip, House of Representatives
America continues to be the
largest and most advanced
The competition that our
economy in the world, but we nation faces is real.
are facing ever-increasing
competition from emerging economies such as China, Brazil and India. The com-
petition that our nation faces is real. To remain the leader, we must promote free
enterprise and innovation.
Most recent tech purchase: Passion outside family/work:
I believe that America’s best days are still ahead. From the iPad, to the develop- iPad Bicycling
ment of civilian space travel and advances in renewable energy, many of the
world’s most profound technological advancements have been generated Last book read: E-book or paper:
right here. Imagine what the future holds if we continue to be champions for
innovation. Our vision for America must be unapologetic. We must continue to In-n-Out Burger: A Behind E-book
be No. 1 to ensure our children and grandchildren have more opportunities than the Counter Look
we did. But to make this vision a reality, we must implement policies that support
it. As we look forward to 2012, Congress must take action to honestly address our
debt crisis, reform our regulatory structure and modernize our tax code. Work on these issues has decades. We need to clean up
and modernize our tax code so
already begun, but they American businesses and work-
The single most impor-
The single most important way
tant way to ensure will prove critical as we ers can compete on a level-
America’s continued to ensure America’s contin- playing field and stay competi-
move into 2012. tive in the global marketplace.
promise is to take con-
trol of our debt.
ued promise is to take control We also need to incentivize U.S. corporations to bring money back from overseas
Recently, the Congres- of our debt. to reinvest in American jobs. Today, these corporations hold an estimated $1.5
sional Budget Office reported that our debt is expected to hit 70 percent of GDP trillion in accumulated earnings overseas. Tax repatriation is one way to help
this year, up 30 percentage points from 2008. The CBO also reiterated that the bring some of this money back. It is estimated that a 5.25 percent effective tax
higher the debt, the higher the interest rates and the inevitability of future tax rate would result in $565 billion coming back into the U.S., a $300 billion increase
increases – which we all know kills jobs and investment. We cannot ignore our in GDP over the next five years and the creation of one million jobs over two
debt crisis. Just look at Greece. My Republican colleagues and I have been years.
working to address our debt since we took control of the House this year and will
continue to fight to reverse our debt clock because we know that the future of Work on these issues has already begun, but they will prove critical as we move
our economy and children depend on it. Reducing our debt is also a key way to into 2012. I know that America can continue to lead the world in innovation and
increase the confidence that will help unleash entrepreneurship and investment technology, and cutting red tape, modernizing our tax code and bringing down
again. the trajectory of our national debt are game-changing policies to reinvigorate
Government overregulation is another issue that kills jobs and discourages invest-
ment. In fact, government regulation costs our economy over $1.75 trillion every
year, according to the Small Business Administration. One solution to this problem
is the Regulations from the Executive in Need of Scrutiny (REINS) Act. This legisla-
tion would require Congressional review and approval of any Federal govern-
ment regulation that would have an annual economic impact of $100 million or
more. We also must reform other areas of our regulatory structure. Ripe for reform
is the U.S. Food and Drug Administration’s approval process for new medicines,
therapies and medical devices. The current process lacks transparency and
consistency, causing innovation of life-saving technologies to be delayed or
outsourced to European competitors. Not only are we making it more difficult to
provide patients and doctors the therapeutic choices they want, we are foolishly
allowing good-paying life-science jobs to permanently leave our shores.
America’s outdated tax structure is also hurting investment in American ingenu-
ity. We need to reduce our corporate tax rate. It is one of the highest in the world
and we are the only industrialized country that has not lowered it in the past two
09 Game Changers 2012 Game Changers 2012 10
By Vinod Khosla
Think back 10 years ago. Google had just gotten started (as a late comer to the
saturated field of search); Facebook and Twitter didn’t exist. There were no smart
phones and no one thought there would be 400,000 iPhone apps that exist
today. And there were few “black swan” technologies - ones with large impact
(versus slightly incremental advances). Nassim Taleb defines a black swan as an
event of low probability, extreme impact, and with retrospective predictability.
Black swans can be positive or negative and are found in every sector.
Most recent tech purchase: Passion outside family/work:
The fundamental flaw in con- I recall fifteen years ago Withings Body Scale Education and
when we were starting poverty alleviation
ventional wisdom is the inability Juniper Networks, there
Last book read: E-book or paper:
to see past the probable to the was absolutely no inter-
On Being Certain Paper
est in replacing tradi-
possible, to the “black swan!” tional telecommunica-
tions infrastructure (ATM was the mantra) with internet protocols. After all, there So what are these next generation black swan energy technologies? These are
were hundreds of billions of dollars invested in the legacy infrastructure and it risky investments that stand a high chance of failure, but promise earthshaking
looked as immovable as today’s energy infrastructure. Conventional wisdom impact if successful: making solar power cheaper than coal or at least viable
would say that one should make incremental improvements to maximize the without subsidies, economically making lighting and cooling 80 percent more
potential of the existing infrastructure. The fundamental flaw in conventional efficient. Consider 100 percent more efficient vehicle engines, ultra-cheap
wisdom is the inability to see past the probable to the possible, to the black swan! energy storage and countless other technological leaps that we can’t yet imag-
Improbable is not unimportant. I believe the likely future is not a traditional ine. It’s unlikely that any single shot works, of course. But even 10 Google-like
econometric forecast but rather one of today’s improbable becoming disruptions out of 10,000 shots will completely upend conventional wisdom,
tomorrow’s conventional wisdom. Who would be crazy enough to forecast in econometric forecasts, and, most importantly, our energy future.
2000 that by 2010 almost twice as many people in India would have access to
cell phones than latrines? Wireless phones were once only for the very rich. A We can reinvent the
black swan technology need not be constrained with the limits of the current infrastructure of
It is essential to spread the
infrastructure, projections or market. They simply change the assumptions. society by harnessing concept of “black swan tech-
and motivating bright
Too much time focused on Many argue that since we minds with a whole
nologies” to create the right mindset
new set of future in entrepreneurs, policymakers, inves-
short-term, incremental already have some alternative
energy technology today, we assumptions, asking
solutions will only distract from should quickly deploy it. They “what could possibly
tors and the public: that any-
be?” rather than thing is possible.
working on the homeruns that fail to see the potential of the
black swan technology possi- “what is.” We need to create a dynamic environment of creative contention
could change the assumptions bilities; they discount them and collective brilliance that will yield innovative ideas from across disciplines to
allow innovation to triumph. We must encourage a social ecosystem that
around energy and because they mistake improb-
able for unimportant and encourages taking risks on innovation. It is essential to spread the concept of
society’s resources. cannot imagine the art of the “black swan technologies” to create the right mindset in entrepreneurs, policy-
possible which technology enables. I believe doing this alone runs the risk of makers, investors and the public: that anything is possible. If we harness and
spending vast amounts of money on outdated conventional wisdom. Even more motivate these bright new minds with the right market signals and encourage-
importantly, it won’t solve the problems we face. Too much time focused on ment, a whole new set of future assumptions, unimaginable today, will be
short-term, incremental solutions will only distract from working on the homeruns tomorrow’s conventional wisdom.
that could change the assumptions around energy and society’s resources.
While there is no shortage of existing technology providing incremental improve- A version of this appeared earlier in Derek Bownds’ Mindblog.
ments today - whether today’s thin film solar cells, wind turbines, or lithium ion
batteries –they are simply irrelevant to the scale of our problems. They may make
interesting and even large businesses, but will not impact the prevailing energy
and resource issues at scale. For that we must seek out radical ideas with low
probability of success; we must invest in black swan technologies. We must
enable the multiplication of resources that only technology can deliver.
11 Game Changers 2012 Game Changers 2012 12
By Bill Watkins
There is a lot of talk today about an American manufacturing renaissance. But,
to be honest, I don’t see a robust comeback in the U.S. industrial sector any time
soon. What I do see, however, is industry after industry – from solar energy to
computer components and assembly – vanishing in America and migrating
offshore to low-cost labor markets. Most recent tech purchase: Passion outside family/work:
Camera for Bike Helmet Poetry
We simply can’t expect to I’m especially – and painfully –
aware of China’s highly
regain our manufacturing persuasive subsidy model,
Last book read: E-book or paper:
prowess if we cede whole which has lured a host of U.S. Feast of Crows Paper
industries to China. across the Pacific. Indeed,
And, like many fledgling and cutting-edge domestic industries, LED lighting
would remain grounded in the U.S. as an industrial value-creator if there was a
China is offering some of our best firms the opportunity to rapidly scale with cash,
new funding mechanism that harnessed either public- or private- sector capital.
free land, free buildings, favorable pricing, a huge market, and the back-end
prospect of selling low-cost goods to the world.
That’s why I believe we should create a
series of new-industry development funds There are already
We simply can’t expect to regain our manufacturing prowess if we cede whole
industries to China, and if we can’t create, construct and retain new industries in
that are backed by federal, state or several similar
corporate dollars. Regardless of the fund-
ing source, the financial process would and existing funding
our own country.
work the same under this proposal: the structures that could
From my perspective, the real problem is that government and business aren’t
money would be used to domestically
manufacture lead- and mercury-free LED be deployed here.
working together in America. As the Chinese subsidy model shows, this puts us at
a competitive disadvantage because companies and countries all over the
lighting for numerous communities. And the communities would, in turn, pay the
world are profitably collaborating.
funds back over the course of seven or eight years as a result of LED savings that
reduce energy usage by more than half.
To its credit, the I believe we should create a series
Energy (DOE) of new-industry development funds There are already several similar and existing funding structures that could be
has recently that are backed by federal, state
tried to anchor
emerging or corporate dollars.
An energy service company, or ESCO, for example, is a commercial business
that offers a variety of energy solutions. An ESCO also installs or builds the project,
clean technology industry in the U.S. by extending R&D loans and grants to many
and ensures energy savings during the five- to 20-year period in which a capital
companies in this field. Despite its good intentions, though, the DOE ended up
investment is paid back.
limiting risk for many venture capitalists.
There is also a U.S. government program known as "Super-ESPC" – or Energy
Critics of national clean energy policies and programs also say Washington
Savings Performance Contracts. Since the 1990s, “Super-ESPC” has been respon-
shouldn’t be in the business of picking winners and losers among industries. But if
sible for nearly $3 billion in ESCO contracts.
we don’t choose the winners, then other countries will do it for us, and we’ll lose
every major industry except defense manufacturing, which holds national secu-
In another effort to preserve clean technology manufacturing in this country,
Representative John Garamendi, D-CA, has recently introduced new legislation
that would create American jobs by ensuring that taxpayer dollars are spent on
Still, I strongly believe that we can compete with aggressive, opportunistic and
American-made renewable energy systems. My strong feeling is that if we don’t
well-organized nations like China.
adopt a “Buy America” program like this, we’ll need to enforce our trade rules
much more stringently than we currently do.
My business, for example – manufacturing innovative light-emitting diode (LED)
lighting that delivers high power, energy-efficient and cost-effective solutions
This is clearly just one idea among many. We have to start developing a host of
that open new markets in solid-state lighting (SSL) – requires significant upfront
policies to build and hold new American industries, or we’ll soon be buying virtu-
capital investment in order to drive technology development, manufacturing
ally all our next-generation technology – including LED lighting – from offshore
ramp-up, scaling that pushes costs down, exporting and profitability.
purveyors. That would be a tragic economic outcome for our country.
13 Game Changers 2012 Game Changers 2012 14
Worlds By Emmett Carson, Ph.D
CEO and President
Silicon Valley Community Foundation
Silicon Valley is fast becoming two distinct communities, one rich, the other poor
– an interconnected yin and yang that experience very different realities. If the
region is to continue its historic success, we must narrow the widening economic
gap and provide people with a good quality of life and the full range of jobs and
housing that are the hallmark of any thriving community. We must find a way to
accommodate both the technology employees who are redefining our world
and the everyday people who teach our kids and drive them to school, police
our streets and nurse us back to health when we are sick. Most recent tech purchase: Passion outside family/work:
iPad 2 Collecting African art
It is widely understood that A coalition of busi-
California’s state government is
nesses and founda- Last book read: E-book or paper:
financially broke and our gover-
nance process is broken. Revenues tions could make a The Post-American World For books, paper.
do not match expenses and govern- For magazines &
ment policy making based on politi- significant difference. newspaper, digital
cal ideology, supermajorities for revenue increases and voter-based propositions
is not working. While local county and city governments function better, most The argument that there are large, single districts in other cities that are not
have exhausted their reserves and have little statutory authority to increase successful is specious. At least those cities know who is accountable and who to
revenues or significantly reduce expenses. Within this admittedly depressing persuade to advance innovation. Silicon Valley business and foundation leaders
scenario a coalition of businesses and foundations could make a significant must accept nothing less than the reform of this dysfunctional system.
While Proposition 13 engenders both enormous public emotion and fierce politi-
Silicon Valley’s technology companies are world renowned for thinking outside cal rhetoric, the facts are clear and compelling: it has significantly reduced
the box and making the impossible possible. Foundations are perhaps one of the revenue for higher education and shifted the property tax burden away from
few remaining institutions that enjoy the public’s trust and have resources to try businesses to homeowners. Until these facts are widely understood, we will con-
new things. Silicon Valley companies need only look to David Packard and Jim tinue to starve our higher education system while simultaneously eroding our
Morgan for inspiration that it is possible to lead a successful company and take region’s long-term competitiveness. Companies will find it ever more difficult to
a leadership role in addressing the Valley’s challenges. Together, businesses and recruit families to a high cost area in which houses purchased by new residents
foundations would have the intellectual talent, public credibility and resources bear a disproportionate property tax burden although these individuals do not
to engage public and elected officials to tackle two critically important game disproportionately use more services.
changers in the areas of education and fiscal reform.
Yes, the issues of reforming Reforming educational dis-
It boggles the imagination that our It boggles the educational districts and
tricts and modifying Proposi-
imagination that modifying Proposition 13
region’s public schools are not our region’s may appear insurmount- tion 13 may appear insurmount-
international models for using public schools able, but they should be
able, but they should be immi-
are not interna- imminently more doable
technology to teach our children. tional models for than the magic of the nently more doable than the
using technology to teach our children. Perplexingly, most of our public schools technological revolution
prohibit Internet access for students who have unlimited access at home or on that we experience every magic of the technological revo-
their smart phones. Moreover, a community that has built a world-wide reputa- day. All we need is the lution that we experience
tion for innovation that relies on highly skilled workers steeped in math and collective vision and will of
science is systemically failing to educate our kids in these subjects, especially kids our business and philan- every day.
of color. It is estimated that just 39 percent of the region’s high school graduates thropic communities.
meet math requirements to attend a California public university.
You could not design an educational system with less accountability than what
we have in San Mateo and Santa Clara counties. Santa Clara County has 32
separate school districts, 19 of which are in San Jose, while San Mateo County
has 24 districts. It is simply impossible to hold anyone accountable for the dismal
educational outcomes of our children with so many different school boards and
15 Game Changers 2012 Game Changers 2012 16
ROLE AS AMERICA’S
By Gavin Newsom
Senator John F. Kennedy
used to roast the Eisenhower
We have the highest edu-
Administration’s overly-rosy cated and most produc-
economic forecasts by com-
paring them to “a policeman
tive workforce in the
bending over a body in the country.
alley and saying cheerfully,
‘Two wounds are fatal. The other one is not so bad’.”
As a small business owner and Lieutenant Governor, I’m reminded of those words Most recent tech purchase: Passion outside family/work:
every time I’m asked to make the case for investing, expanding or otherwise Flipboard for iPad Photography
creating jobs in California.
Last book read: E-book or paper:
I know from personal experience that there is no better place to live, work or The Next American Economy: Paper
invest than California. We have the highest educated and most productive
workforce in the country. We are home to the most diverse regions, communities Blueprint for a Real Recovery
and Tribal nations. Hollywood entertains the world. Silicon Valley keeps the world
connected. San Francisco and San Diego drive the global biotech industry. Our
Central Valley produces the most abundant agricultural output in America. Cali- This is not about creating more government bureaucracy; it’s about consolidat-
fornia is truly a global epicenter of innovation. ing and streamlining our efforts, providing a one-stop entry point for business
assistance, while supporting regional economic strategies.
We must organize around a But a troubling percep-
tion has taken hold At the same time, we will establish working groups that includes a broad coalition
new competitiveness and across the financial of individuals, to build consensus and make recommendations for action around
economic development team landscape that key issues including data, regulatory smoothing, regional alignment, trade,
California’s economy is manufacturing, and workforce development.
for California. now stuck in a state of
permanent stasis, that we’ve somehow lost our mojo, and that recessionary pres- Additionally, California must
sures have been exacerbated by partisan paralysis in Sacramento. That percep- immediately begin promot-
Too much is at stake in Cali-
tion is because California’s in crisis. We have the second highest unemployment ing both trade and its inter- fornia. Something has
rate in the nation. Out of 58 counties, 52 are suffering from double-digit unem- national presence as an
ployment - 21 of which exceed 15 percent. economic priority. The
to change dramatically.
agenda calls for the development of comprehensive export strategies for each
That’s why I’ve spent my first year as Lieutenant Governor traveling across the of our state’s regions, which will in turn benefit our entire state. California must
state and the country to find out what’s working and seeking best practices. re-launch its brand internationally. That is why this fall, through private-public
partnerships, we will reestablish an official state presence in international mar-
With the support of leading business and labor organizations and national think kets, beginning with China.
tanks, we developed an “Economic Growth and Competitiveness Agenda for
California.” This agenda is designed to start a new dialogue about specific and And finally, it’s no secret that California is home to the top innovation centers in
achievable action steps – that are low-cost, high-impact – that will set the course the nation -- San Francisco, San Jose, and San Diego regions are the state’s top
to success, working toward more challenging issues by building trust and a sense generators of patent applications (per 1,000 employees) and high-tech employ-
of common purpose and vision. Working together, we will regain California’s ment. Federal laboratories like Lawrence Livermore and Sandia/California repre-
leadership role as America’s opportunity capital. sent enormous intellectual assets, as does the University of California system,
which holds one of the largest patent portfolios in the world. Therefore, it’s essen-
In light of the fact that the agenda is broad in scope and forward-looking, it’s fair tial that the Federal government locate one of the three new U.S. Patent and
to ask: Where do we go from here? What can be done at this critical moment? Trade satellite offices in California. In the coming months, I will work with our legis-
lative leadership and Congressional Delegation to make this a reality.
The Governor has already taken the first step by adopting the agenda’s top
recommendation and appointing a new job czar for California. Too much is at stake in California. Something has to change dramatically. I look
forward to convening our first annual Economic Growth and Competitiveness
We must organize around a new competitiveness and economic development Summit within 180 days as we work together to shift the dialogue and get Califor-
team for California. With the extraordinary leadership of Assembly Speaker John nia moving again.
Pérez, a bill will soon arrive on Governor Jerry Brown’s desk that establishes a new
economic development agency for the state. A version of this article first appeared on HuffingtonPost.com.
17 Game Changers 2012 Game Changers 2012 18
By Steve Westly
The Westly Group
The U.S. Chief of Naval Opera- Silicon Valley companies
tions, Admiral Gary Roughead,
recently gave a speech noting are busy inventing a
that climate change in the new clean energy future.
Arctic is creating the world's Most recent tech purchase: Passion outside family/work:
"Fifth Ocean, the first new ocean since the Ice Age." He said the Navy is making HP Laptop Tennis
plans now to accommodate fishing fleets migrating to the Arctic, major new
resource extraction ventures and a new shipping lane over the top of the world Last book read: E-book or paper:
from Europe to Asia, all within the next two decades.
The Battle of Britain: Five Months Paper
The Harvard Health Project estimates that 83 million people will die in China of That Changed History
lung-related diseases over the next 25 years.
The Environmental Protection Agency has noted that 25 percent of the particu- sunlight depending on the weather and what they’re doing that day. “Smart
late matter over Los Angeles now comes from Asia. windows” have been the dream of architects for years but the cost has been
prohibitive. Soladigm has a new process that will reduce the cost of these
What do these three points suggest? There is a dramatic increase in the amount windows by 60percent, making them affordable to the mass market for the first
of pollution in the world — and that this is likely creating global climate change. time.
We’re about to see a steep While much of the We’re about to see a steep uptick in initial public offerings for clean tech com-
panies. There were two
nation is engaged in a
uptick in initial public offerings political debate over blockbuster IPOs in the I’m excited that we may
for clean tech companies. whether we can con- clean tech sector last year be on the brink of building
tinue to use carbon- (Tesla Motors and Amyris –
based fuels and whether global warming is fact or fantasy, Silicon Valley compa- both of which are based in a new clean energy economy
nies are busy inventing a new clean energy future. Here are three examples: the Bay Area). This year and that Silicon Valley firms are
there have already been
Tesla Motors: Tesla Motors made history by developing and selling the first four major clean tech IPOs, at the forefront of this.
all-electric cars that solved the range and performance problems of previous with another dozen in the
electric vehicles. Tesla has built the first electric cars that go over 300 miles with- pipeline. Why all of the economic activity in clean technology and alternative
out re-charging and that have performance that is superior to BMW and Lexus. energy?
This Silicon Valley company is well positioned to be the first large-scale electric
carmaker in America. On top of all of these advantages, electric cars cost 2/3 These companies aren’t succeeding because it’s good government policy, or
less to operate than traditional cars. Tesla plans to start selling its new $49,500 because consumers are worrying about global warming. They are succeeding
Model S sedan next year and a lower cost model soon thereafter. because relentless innovation and competition are driving the cost of these
projects down to a point where they make economic sense for everyone.
Scientific Conservation: Buildings use 40 percent of the nation’s energy and yet
there have been precious few advances in building energy efficiency over the I’m excited that we may be on the brink of building a new clean energy
last 50 years. Scientific Conservation provides energy management software economy and that Silicon Valley firms are at the forefront of this.
that helps facilities managers optimize a building’s energy use on a daily basis.
This sort of software has a payback in as little as 12 months and can save
hundreds of thousands of dollars for building managers every year.
Soladigm: Most architects would like to design buildings with more windows
because we all like to be in buildings with ample natural light and better views.
The problem is that windows leak energy and frequently require architects to
build overhangs, awnings and other expensive fixes to reduce glare and energy
use. Soladigm is a Silicon Valley-based company that builds “dynamic windows,”
allowing people inside buildings to program their windows to let in more or less
19 Game Changers 2012 Game Changers 2012 20
Welcome to the
By Mike Splinter
On January 25, 1947, Thomas The Age of Connectivity
Goldsmith and Estle Mann filed a
patent for a "cathode ray tube will be the greatest
amusement device," the founda- game changer since the
tion of the modern video game.
In 1973, Motorola won the race to commercialization of
create the cellular telephone the internet.
when Martin Cooper made the Most recent tech purchase: Passion outside family/work:
first mobile call to his rivals at Bell Labs. In the same year, researchers at the Xerox 4G MiFi modem & iPad2 Restoring a 1978 MGB
Palo Alto Research Center unveiled the first computer with a mouse, a desktop
monitor and a graphical user interface- the personal computer was born. These Last book read: E-book or paper:
were some of the great moments of the Electronics Age. They were also great
moments in American innovation, the fuel that has grown our country’s gross Encourage the Heart Paper & E-book
domestic product 60 fold since Goldsmith and Mann filed their patent. Now You See Her
creativity and talent, trigger job growth and reduce the friction for new industries
Today, America’s innovation engine still is running at full throttle powered by
to grow. We need to ensure that the U.S. is “open for business” and we need an
global demand for electronics and extraordinary breakthroughs in technology.
empowered agency to attract direct investment in the U.S.
Leapfrog advances in technology have made it feasible to mass produce
affordable personal electronics, putting smartphones, tablets and other amaz-
The current Administration
ing devices in the hands of consumers around the world. Many Silicon Valley
has taken some positive
We must make changes to
companies have been at the forefront of these advances and today are helping
to usher in a new age – The Age of Connectivity.
steps. But, there is still much maintain our competitive
work to be done at the
federal and state level. We
edge and nurture the talent we
Winning the race comes The Age of Connectivity will
need increased funding for need to be the world’s
be the greatest game
down to talent - the smart- changer since the commer-
R&D, greater focus on
science and math at the
est minds, the best ideas and the cialization of the internet as it
primary and secondary levels, a smarter approach to immigration to retain the
transforms our lives, opens
most creative solutions - and an new avenues of economic
brightest talent and the adoption of a globally competitive corporate tax code.
environment where their opportunity and rebalances
The current economic climate poses a serious challenge to meeting these goals.
the fortunes of nations
ideas can grow. around the world, including
Government officials face tremendous budget pressures at all levels, and erratic
economic indicators underscore the fact that the recovery remains fragile. We
the United States. We are entering an age when every device, from the phone
must be sensitive to these challenges, but we cannot afford to sacrifice the
in your pocket to the refrigerator in your kitchen, is not only intelligent, but
long-term health of our nation’s innovation ecosystem.
networked, communicating and operating as an extension of yourself. As this
future comes into focus we are seeing an acceleration of innovations in semi-
The next few years will bring remarkable new technologies and with them incred-
conductors, software and display technology.
ible economic opportunities. The only question is which countries will be the ben-
eficiaries. For four decades, Silicon Valley has demonstrated America’s ability to
What the average consumer does not see are the billions of dollars of research
solve the most complex technical challenges and transform great ideas into
happening in labs like Applied Materials and our customers, where we are push-
global industries. As we look to the future we must adapt, we must make
ing the boundaries of science and engineering as we seek new solutions for
changes to maintain our competitive edge and nurture the talent we need to
smaller, faster, more energy efficient chips and thinner, brighter, interactive
be the world’s innovation leader.
displays. In these markets, global competition is fierce and every inflection point
presents opportunities for new leaders to emerge. Winning the race comes
down to talent - the smartest minds, the best ideas and the most creative
solutions - and an environment where their ideas can grow.
This country, and Silicon Valley in particular, has long been the world’s incubator
of big ideas. But, we are losing ground to the emerging nations. They are
focused, well financed and absolutely committed to leading the industries of
tomorrow. It’s time to reverse that trend. We need a comprehensive agenda
that places innovation at the forefront – with specific policies that will cultivate
21 Game Changers 2012 Game Changers 2012 22
WHAT EDUCATION NEEDS
By Anne Bowers
Chair and Founding Trustee
About 25 years ago I was privi- The students were using
leged to visit a Boston school
where Seymour Papert of the MIT some very simple but
Media Lab was piloting Mind- fun and engaging technol-
storms . The kids were engaged,
the teachers were also learning ogy that allowed kids to play
and able to differentiate instruc- with concepts in math
tion. The atmosphere was very Most recent tech purchase: Passion outside family/work:
positive. Everyone was smiling and reading. iPad Piano
and eager to show off what they had learned and what they were doing.
Last book read: E-book or paper:
What was going on in this school? They were using some very simple but fun and
engaging technology that allowed kids to play with concepts in math and read- The Tiger’s Wife Paper & E-book
ing. Kids could learn in a variety of ways and proceed at their own pace while In the Plex
the teachers had time to help those kids who needed it most. The kids who got
the ideas quickly moved on to more challenging work. The students also were Fortunately, the cost of programs with technology bases has come way down
engaged in some very simple contests, the precursor of game theory. and is continuing to fall with the evolution of mobile platforms. Many young
entrepreneurs who understand how sterile our classrooms are have jumped into
To make real progress in edu- Mindstorms is based on
simple robots that kids
cation, business as usual has direct to draw geomet- Some examples: Late Nite Take a look at this market-
to be discarded. ric figures based on
math directions the kids
Labs that give classrooms
access to virtual micro- place. It can be
themselves develop in scopes and Bunsen burn- disruptive in the best
teams. It did not sweep the country even though the student’s gains in profi- ers, enabling real lab
ciency were quite remarkable. Why? The two primary reasons are: science to be part of class- possible way.
rooms. And a math program called Mingoville which enables the teacher to
• U.S. policy supports schools that operate on an early 20th Century model that present math concepts visually and students to work at different levels while
is made worse by “No Child Left Behind” policy. It has caused schools to focus giving performance feedback to both student and teacher.
obsessively on how kids do on mindless tests so the schools focus on mindless
drill and kill. It will be difficult for these programs to reach classrooms because early stage
funding is difficult. There is some middle stage funding interest but most investors
• The education market is so fractured that it is hard to penetrate with innovative do not want to take the risk of investing before there is an income stream of
tools unless you have lots and lots of marketing dollars like the big textbook about $1 million. This is a big opportunity for brave investors looking to make a
publishing companies do. significant difference in education. The recent sale to News Corp. of Wireless
Generation, a pioneering program that introduced handhelds into classrooms to
Recently I have seen excellent educational content delivered on mobile record student reading scores demonstrated that there is a market.
devices and notepads, with lots of graphics and video often using gaming
theory to engage kids. These are easy for teachers to use and engaging for kids. The consequences of our failure to change U.S. schools are huge. Take a look at
Plus, they address the big challenges that schools face, including immediate this marketplace. It can be disruptive in the best possible way.
feedback on student tests and collection of student performance data at the
class, school and district level, so problem areas can be spotted and addressed.
Teachers also have the ability to differentiate instruction even in large classrooms
and use engaging material for kids of all learning styles. The material helps the
teacher improve as well. We do need better teachers in classrooms, but most
current teacher training would look familiar to Rip van Winkle.
Technologies that address these problems are disruptive – in a positive sense –
because they change the classroom, break the strangle hold of the text book
companies, and empower both teacher and student. To make real progress in
education, business as usual has to be discarded.
23 Game Changers 2012 Game Changers 2012 24
By Chuck Reed
San Jose is proud to We can capture economic
be the Capital of
Silicon Valley, the growth in Silicon Valley by set-
innovation center of ting policies that are clear and cer-
the world, but we
must compete glob- tain, strengthening our base of tech Most recent tech purchase: Passion outside family/work:
ally for companies sector companies and working at Droid smartphone Bicycling
and talent. Many
states and countries the speed of business. Last book read: E-book or paper:
offer substantial “The Startup Game” E-book
incentives to convince our tech companies to move their R&D and manufactur-
ing facilities, as well as jobs, out of Silicon Valley. However, we can capture eco- housing units for future employees and their families are currently under con-
nomic growth in Silicon Valley by setting policies that are clear and certain, struction, and 3,000 more are expected to break ground by Fall 2011.
strengthening our base of tech sector companies and working at the speed of
business. These efforts have already had an impact.
Tech companies make up 30 percent of San Jose’s employment base and fuel As Michael Klayko, CEO
our economy. We are home to thousands of tech companies whose investments As we look ahead to 2012, we of Brocade Communi-
in facilities and equipment generate revenues globally and create jobs locally. must build on these successes cations, said recently,
Their investments drive demand for commercial real estate and housing, as well “The City of San Jose
as for goods and services. Every tech sector job creates two or more jobs in the to capture the jobs that our tech was able to meet our
service and supplier sectors, so encouraging our existing companies to expand companies are starting to add needs by working on
and create jobs in San Jose will be our focus for the future. our expedited time-
back as they expand their table to find an appro-
San Jose wants your com- As Mayor, my message is operations. priate site and facilitate
this: San Jose wants your
pany to locate here, stay company to locate here,
the permit process.”
here,and grow here. stay here, and grow here – Tom Werner, CEO of SunPower Corporation, added, “We’re pleased to be
and we will work at the moving to our new headquarters and continue our investments here in California
speed of business to help you. When I meet with CEOs who are considering major thanks to the City of San Jose’s economic incentives and the state’s long-term
investments in San Jose, they tell me that this is the single most important incen- energy policies.”
tive that we can provide.
As we look ahead to 2012, we must build on these successes to capture the jobs
For that reason, we’ve developed programs to help businesses meet their time- that our tech companies are starting to add back as they expand their opera-
lines. Through our Special Tenant Improvement (STI) program and expedited tions. The City Council has already approved additional staffing to make the
reviews and inspections, our permitting team helps facilitate development expansion of our STI and expedited plan review programs permanent. In addi-
projects from start to finish. San Jose now issues building permits in hours and tion, the City is currently developing a strategy for reducing development-
offers a streamlined process that saves customers time and money. We also con- related taxes and fees to ensure that the cost of relocating or expanding in San
duct numerous inspections on time to help companies meet their construction Jose remains competitive with other municipalities.
With companies like Brocade and SunPower leading the way out of the reces-
San Jose has also implemented policies that encourage companies to locate sion, I am optimistic about the future of Silicon Valley. But we can’t take anything
and expand in our city, like the North San Jose Area Development Policy. This for granted.
policy provides for an additional 27 million square feet of R&D, office and manu-
facturing space; 32,000 housing units; and 2 million square feet of regional and We must nurture and support our tech companies to ensure that the next wave
neighborhood-serving retail in our city’s prime employment center. Environmen- of innovation happens here in San Jose, the Capital of Silicon Valley by continu-
tal and traffic reviews are already completed and certified, and an infrastruc- ing to work at the speed of business.
ture plan is in place to support the proposed development. More than 1,100
25 Game Changers 2012 Game Changers 2012 26
By Aart J. de Geus
Chairman and CEO
It’s not a question of “if” but
tation and construc- “when” energy availability
tion, lighting and
heating, cell phones
and effectiveness becomes the
and computer cen- dominant urgency for all
ters, high tech and
low tech. Every Most recent tech purchase: Passion outside family/work:
aspect of human endeavor and productivity is both enabled and limited by the
availability and application of energy.
1959 Guitar Amplifier Electric Blues Guitar
Unfortunately, today’s energy consumption causes ecological side-effects of E-book or paper: Last book read:
massive cumulative proportions and is far less efficient than what state of the art
technology could achieve. In addition, energy use is not uniform in the world
Paper The Little Engine that Could
and will increasingly become the vortex of global political stress and instability.
It’s not a question of “if” but “when” energy availability and effectiveness The opportunity with one mandate to attack four fundamental problems — the
becomes the dominant urgency for all nations. world energy/ecology conundrum, the sharp U.S. STEM education decay, the
continued U.S. manufacturing decline and the persistent U.S. unemployment
This is an enormous challenge but also an unprecedented economic opportu- problem — makes a U.S. all-out 10-year energy leadership mission an exciting but
nity for the country that is first at systematically engineering and deploying also daunting objective. It requires top-down leadership and critical mass.
Be it in countries, companies or communities, leadership is leadership is leader-
Thus, if there is one mission that will have more impact on human destiny than ship: Set the mission, sign-up and align the team and call the play. Top-down
anything else, it’s how we master the skill to dramatically better generate, trans- energy leadership is an imperative and our president owns the country’s mission.
port, store, save, use and manage energy. From a global view, U.S. energy inno- In this case, the buck stops at the top.
vation leadership is a necessity. From a national competitiveness perspective,
What’s needed is a comprehen- energy creation, Mr. President, it is time The U.S. has incredible
application and bench-strength and
sive call to arms to unleash the cre- c o n s e r v a t i o n for you to take action. industrial experience
ative, entrepreneurial and scal- must be the rally-
ing mission to
waiting to be unleashed. We have thousands of true leaders who do not ask
what their country/ company/ community can do for them, but instead seize the
ing talent of the nation. stimulate and moment, add brains and muscle, and accelerate the mission. In seeking align-
transform our entire economic fabric. Great nations adopt great missions, thus ment, we can leave behind the standard “No, because…” political objections
it’s fitting that the conquest of every aspect of the energy challenge be the and embrace the very “Yes, if…” idealism and pragmatism that built this nation
transformative force for each facet of our economy. in the first place.
What’s needed is a comprehensive call to arms to unleash the creative, entre- We’re motivated and ready to move, but the country needs a center of gravity,
preneurial and scaling talent of the nation. As intimidating as that sounds, we’ve a national mandate. Mr. President, it is time for you to take action.
done it before. Remember the “We will put a man on the moon” mission? It
stimulated a wave of enthusiasm for Science, Technology, Engineering, and
Math (STEM) and accelerated decades of U.S. economic leadership. Granted,
that mandate was prompted by the launch of Sputnik and the perceived threat
of Soviet space supremacy. And yes, if necessary, we can again use national
energy security as a tactical political driver. Today, however, the threat extends
far beyond the danger of losing our nation’s competitive standing: without mas-
sive and coordinated break-throughs in every piece of the overall energy issue,
the global standard of living will cease to evolve and potentially regress severely.
We cannot remain idle!
The power of a united national mission is enormous. The country that first aligns on
“new energy” thinking with a renewed push in manufacturing will bring about
substantial job creation, export opportunities and economic rejuvenation.
27 Game Changers 2012 Game Changers 2012 28
Smart The Coming
By Jacob Harold
William and Flora Hewlett Foundation
Too often, the best In 2012, we will be watching for
nonprofits aren’t the
ones that raise the a philanthropic marketplace Most recent tech purchase: Most recent tech purchase:
most money. In 2012, that rewards excellence, not just slick Terrestrial TV antenna iPad2
we will be watching
for a philanthropic marketing or low overhead.
marketplace that rewards excellence, not just slick marketing or low Last book read: Last book read:
overhead. The Heuristics Debate The Metaphysical Club
Nonprofit organizations play important roles in American society. They are critical
providers of social goods: whether health care, education, or the independent Passion outside family/work: Passion outside family/work:
advocacy that fuels our democracy. With more than $1 trillion, nonprofits Playing chamber music Road Biking
account for almost one-tenth of GDP. Despite such scale and significance, the
nonprofit world doesn’t do a good job of a fundamental task: getting money to
where it can do the most good. Money follows marketing and relationships E-book or paper: E-book or paper:
rather than following quality. The very best organizations and the people they
serve deserve better.
Depends on whether I Paper
need to annotate
In our information-rich 21st Philanthropic
always will be
a find, understand and use this information. Individual nonprofits need to become
Century, it is time to help personal, emotional act. more comfortable sharing results - warts and all - and offering it in standardized
formats. Intermediary organizations like Guidestar need to aggregate, organize,
donors bring reason and am- Donors voluntarily give
up their resources for no and display what information exists; donors need to support the costs of setting
bition to their philanthropy. direct reward, acting up these systems; and foundations must learn to share their own data.
out of altruism, hope and sense of community. But the great challenges of our
But the responsibility rests
time - climate change, homelessness, failing education systems - demand more. While giving will always be not just with donors and
In our information-rich 21st Century, it is time to help donors bring reason and
ambition to their philanthropy. good, our world needs nonprofits. The corporate
community needs to do its
it to be smart, too. part, too. Companies with
Currently, there are now no fewer than 58 websites devoted to helping donors
with their philanthropy. Many simply reduce transaction costs. But there also are access to the donor community need to offer up their channels: Google can
sites that provide deep third-party analysis of nonprofits (GiveWell), expert display structured information about nonprofits as part of search results, Wells
reviews (Philanthropedia), stakeholder opinion (GreatNonprofits) and Fargo can provide donors with information about nonprofit performance
self-reported information from nonprofits (Guidestar). Charity Navigator, which through online banking interfaces, Facebook can integrate new streams of
long promoted a dubious analysis based only on organizational finances, has nonprofit information, Apple can offer the full use of its AppStore to philanthropic
begun a major shift toward analysis based on results, not ratios. intermediaries. Together, such efforts can create the feedback loops to drive a
high-performing nonprofit marketplace.
This increased supply of information is being met by a rising demand. Consumers
accustomed to gathering immense amounts of information for making personal In 2012, we hope to see the next stage in the evolution of a market for smart
purchases are beginning to demand similar information for philanthropic deci- philanthropy—because while giving will always be good, our world needs it to be
sions. A number of recent books are addressed to this vanguard of modern smart, too.
donors: Tom Tierney and Joel Fleischman’s Give Smart, Mario Marino’s Leap of
Reason, and Leslie Crutchfield, Mark Kramer, and John Kania’s Do More than
Even as more donors seek thoughtful giving, there are many barriers to building
a results-driven giving market. Most donors don’t know what high-quality infor-
mation about nonprofit performance looks like, where to find it or how to use it.
For any kind of mass adoption to happen, it needs to be far easier for donors to
02 Game Changers 2012 Game Changers 2012 30
By DavePresident and CEO
McAfee & McAfee Board Member
America must continue its strong market leadership by using the power of tech-
nology to drive innovation. Innovation has always been the catalyst for our eco-
nomic prosperity, competitive advantage in the global economy and our high
quality of life. However, a significant threat has emerged that can negatively
impact this prosperity at a critical point in our country’s history.
Most recent tech purchase: Passion outside family/work:
Cyber attacks are a serious
Cyber attacks can cause HTC Fusion Android Bicycling
assault on our country’s eco-
nomic prosperity and national major disruption in sectors Last book read: E-book or paper:
security. They can cause major
disruption in sectors of our
of our economy. Case in The Social Animal Paper
economy. Case in point: elec- point: electric utilities.
tric utilities. Without a function- • Nearly 50 percent of respondents in the electric industry sector reported that
ing electric infrastructure, there are no ISPs, cable providers and wireless provid- they found Stuxnet on their systems.
ers to enable hundreds of millions of Americans to go online, not to mention the
more basic functions of society. In an environment where major cyber attacks are announced on nearly a daily
basis, smart grids must be designed with security integrated into their core archi-
Our electric utilities tecture right from the start. Otherwise, they are exposing themselves to failure,
Despite the importance of industry today already putting all of us at risk and adversely affecting other core industries.
protecting the smart grid from faces a myriad of
energy challenges. One The research shows In a digital world, the impor-
cyber attacks, little progress has of the steps they are that protecting the
tance of security cannot be
been made to counter the taking to address these smart grid from cyber
problems is deployment attacks is clearly not a overlooked or put off for
cyber threat to smart grids. of the “smart grid” - top priority among
which overlay the power grid with two-way data communications that enable utilities – and it needs to tomorrow.
suppliers of electricity to monitor and control the flow of electricity to consumers. be. And it is not just consumers and business that are at risk. Department of
This is achieved through small computers connected to the power grid, thus Defense Deputy Secretary William Lynn recently said that “secure military
enabling consumers and utilities better control over their electric consumption. networks will matter little if the power grid cuts or the rest of government stops
functioning” from a cyber attack.
There are high expectations for smart grids; experts around the world believe
they will reduce costs, conserve energy and drive reliability. And industry is Despite the pro-smart grid campaign from government, industry and others, we
revving up its resources. In the U.S., the smart grid market will grow to $42.8 billion are opening ourselves to tremendous risk if we do not properly integrate security
by 2014 from $21.4 billion two years ago. And the global smart grid market is into the smart grids. If hackers can penetrate the smart grid networks, they could
expected to grow to $171.4 billion by 2014 from a $69.3 billion market in 2009. potentially disrupt the power supply of countless regions and even control who
receives electric power.
Despite the importance of protecting the smart grid from cyber attacks, little
progress has been made to counter the cyber threat to smart grids. A 2011 The importance of technology to innovation is critical for our future. In a digital
survey commissioned by McAfee and conducted by the Center for Strategic world, the importance of security cannot be overlooked or put off for tomorrow.
and International Studies questioned more than 200 global information technol- We need to address it today because the threats will only escalate in 2012 and
ogy security executives of critical electricity infrastructure enterprises. The results beyond.
illustrate a serious problem:
• 32percent of companies have not adopted special security measures for
smart grid controls,
• 56 percent of executives planning new smart grid systems expect to connect
to the consumer over the Internet, despite its well-known security issues,
31 Game Changers 2012 Game Changers 2012 32
By David Cush
President and CEO
It’s a simple premise in
business: When there is
I believe that over the next
more competition, con- 12 months the ability to
sumers win – with lower foster competition will be critical
prices and a better prod-
uct. This same premise is to our industry’s future success and
also generally good for impact travelers for de-
the bottom line and Most recent tech purchase: Passion outside family/work:
health of an industry. cades to come. LSU Sports Mobile App Fitness/Yoga
Although the notion of competition as positive for business is accepted in the
broader business landscape, in the domestic airline industry the concept can be Last book read: E-book or paper:
considered heretical. Given the current environment of poor financial perfor-
mance, broken business models and unhappy consumers, I believe that over the Too Big To Fail E-book
next 12 months the ability to foster competition will be critical to our industry’s
future success and impact travelers for decades to come. cabin amenities that reflect 1970s-era living rooms, with no infrastructure for new
technology or entertainment. Older aircraft also are not environmentally friendly.
Our view as a new airline is that more competition is positive for both consumers Virgin America’s new technology aircraft are up to 25 percent more fuel
and the industry’s long-term health. In markets where one or two legacy carriers efficient. While other sectors have adapted to meet consumer demand, legacy
dominate, consumers are the ultimate losers with poor service and high fares. carriers have been insulated. However, because low-fare carriers like Virgin
Since our 2007 launch and when Virgin America has expanded to a new city, the America, Southwest and JetBlue are focused on playing “offense” – competing
public benefits have been measurable and significant, with an outpouring of for travelers based on product – they have driven much of the innovation pres-
consumer support for our product and a dramatic reduction in average fares. ent in the industry today, be it Southwest with low fares and simplicity, JetBlue
Yet at present, expansion efforts by new entrant and low-fare carriers like Virgin introducing live television, or Virgin America with a modern, high-tech cabin
America are often systematically shutdown due to existing policies and legacy experience. Looking to 2012 and beyond, I believe the single biggest game-
carriers “squatting” on underutilized slots and gates. For our industry, the game- changer for our industry is the opening up of competition – and the end to
changer this year will be whether the government will use the FAA policies that have insulated legacy airlines by propping up inefficient models.
re-authorization bill and other tools at its disposal to champion competition and
promote the highest and best use of these scarce public assets. The ability for new entrants to The government not only
has the authority, but the
For many years, legacy compete in a consolidating responsibility, to take steps
Because there is a lack of carriers have focused airline industry space is critically im- to enhance the level of
competition, legacy U.S. air- on playing “defense.” competition for the ben-
They channel extraor- portant to consumers and our efit of travelers. The ability
lines have not kept up with the pace dinary resources, industry’s long-term health. for new entrants to com-
of innovation in other areas money and time into pete in a consolidating
propping up outdated, airline industry space is critically important to consumers and our industry’s long-
of the economy. inefficient business term health. Our ability to address these issues may ultimately determine whether
models and by blocking access to new entrants. The government has allowed our industry joins the wave of innovation spreading across the industrial world or
the inefficiencies of the larger entrenched carriers in two primary ways. First, by remains an also-ran.
granting virtual ownership status on takeoff and landing slots at New
York/JFK/LGA, Newark Liberty, and Washington/DCA, the Department of Trans-
portation has brought about a transfer of valuable public assets from the taxpay-
ers to these private airlines. Second, by not adopting effective policies to ensure
access for new entrants, innovative airlines are effectively blocked from intro-
ducing improved products and services at congested airports. The result? The
largest domestic air transportation market in the world is among the worst when
it comes to product quality.
Because there is a lack of competition, legacy U.S. airlines have not kept up with
the pace of innovation in other areas of the economy. Most legacy airlines are
flying with the same type of equipment they’ve flown for the past 20 years, with
33 Game Changers 2012 Game Changers 2012 34
By Mike Klayko
Brocade Communications Systems, Inc.
Without question, the
single biggest game-
Clouds have the potential to
changer starting now fundamentally alter how we
and into the next two
decades will be the
store and process data, transform- Most recent tech purchase: Passion outside family/work:
“cloud,” which is argu- ing consumer and business GPS for back country snow mobile Golf and any outdoor sport
ably one of the most
technologies alike. Last book read: E-book or paper:
cal developments since the Internet. Clouds have the potential to fundamen- The Match: the Day the Game of E-book for books, paper
tally alter how we store and process data, transforming consumer and business Golf Changed Forever for newspapers
technologies alike. Consider these points:
• Companies are expected to spend nearly $80 billion in cloud expenditures by
2015, up from slightly over $20 billion in 2010. Whether private, public or hybrid, the cloud is reminiscent of the "can-do" entre-
preneurial attitude that has launched so many Silicon Valley careers over the last
• In addition, consumers are going to spend more than $100 billion a year in 40 years. Just as the advent of the Internet started as cooperation between aca-
mobile devices such as tablets and e-readers by 2015 from just over $23 billion demia and the private sector, the cloud offers the same potential of creating
in sales in 2010. millions of new jobs, ground-breaking innovations – even new economies, if we
all work together.
These trends will have a tremendous “downstream” impact on data and
network traffic growth, namely: How do we ensure “cloudshare” for America?
• Producing more network traffic in 2010 alone than we did in the previous 40 We require the col- Ever mindful that we operate in an
years since the Internet was invented in 1969. exceptionally competitive global
lective spirit of an economy, we need to make sure that
• Doubling the amount of digital data in the world every two years, which is a engaged citizenry to help we get out of our own way. Said differ-
growth rate faster than the famed Moore’s Law. ently, U.S. companies that can lead
us deliver the results we the rest of the world in harnessing the
Cloud - based technologies These staggering statistics need to lead a promise of the game-changing cloud,
equate to non-stop, need to work with a highly collabora-
also have the ability to enable accelerating growth in global economy. tive government to remove outdated
other game-changers or in and demand for digital regulations, archaic infrastructures and uncompetitive tax structures. We require
data and network traffic the collective spirit of an engaged citizenry.
some cases: “Life-changers.” capacity. But how do IT
companies keep up with this growth? In the Silicon Valley, there is a robust eco- This scale of engagement will help us deliver the results we need to lead a global
system of companies that are working together to deliver cloud-based solutions. economy. As a CEO, I am continually looking at ways to transform our business
In addition to bringing products and services to the private cloud marketplace, through innovation so that I can continue to create jobs and offer technologies
we are collaborating with policy makers, trade associations and federal institu- that spur job growth in other sectors. As an American, I naturally want to see my
tions to increase awareness and reduce barriers for public cloud adoption. One home country benefit from this innovation. But as a father and grandfather, I
example is the Cloud² Commission, a team of 71 experts from industry and aca- want to leave a legacy that my family will be proud of – innovation that solves
demia formed at the request of the Obama Administration to provide recom- real problems, creates jobs and wealth, and that leaves the environment intact
mendations for cloud deployment and innovation within government. for the next generation.
Game-changers in their own right, cloud-based technologies also have the
ability to enable other game-changers or in some cases: “Life-changers.” We
can reshape our educational system so that all children have a path to success.
We can find solutions that build sustainable communities and address basic
needs such as food and shelter so that everyone can thrive. And, we can
accomplish all of that in a way that benefits the environment.
35 Game Changers 2012 Game Changers 2012 36
GETTING OFF OIL
THE ELECTRIFICATION OF TRANSPORT &
ITS IMPACT ON THE GLOBAL ECONOMY
By Shai Agassi
Founder & CEO
In 2008, as oil crossed The solution involves an infra-
the $100 - per - barrel
threshold, European structure approach – a net-
drivers went on strike work that can charge electric cars
and U.S. households lost
their ability to pay mort- at home and work, and switch
gages. Gasoline, one of batteries during longer trips. Most recent tech purchase: Passion outside family/work:
the only commodities
with little or no demand elasticity, is taxing our global economy once again. An Apple TV Reading & Writing
obvious inverse relationship between the price of oil and economic growth spells
trouble for markets from New York to Beijing. Yet, much like any other use of fossil Last book read: E-book or paper:
fuels in the past, the answer is already here in the form of electrification. Atlas Shrugged E-book
Past attempts at electrification focused on battery-technology breakthroughs.
We’ve set ambitious goals like a battery with the same energy density as gaso-
line, so cars can travel 400 miles. Even if science gets there, our grid would not price volatility in the U.S. is much higher than in Europe, and its impact on house-
support thousands of high-energy outlets along our roads working in random holds is devastating. In 2008, the average U.S. household paid $3,600 more on
patterns. The technology exists to power cars with a 100-mile battery. Now is the gasoline than in 2000. In terms of the Bush tax rebate, oil taxed the economy
time to expand our innovation beyond an infinitely better battery to finding a while the government provided a tiny rebate. The impact on consumer spend-
complete solution. ing means inability to pay mortgages, slower job creation, anemic growth and,
eventually, lower tax revenue.
The solution involves an infrastructure approach – a network that can charge
electric cars at home and work, and switch batteries during longer trips. Such a
simple model, distributed across driving corridors or nations, makes electric cars In the U.S., this could be Would infrastructure across
the U.S. be cheap? No. How-
more convenient to own and operate. Drivers stop fewer times a year to switch the “Hoover Dam” ever, such a network,
batteries than they do for fill-ups today. Separating between car and battery
ownership makes those cars cheaper to purchase and operate, and more likely project of our generation. applied to a region or coun-
try, costs roughly one week of
to retain higher value than their gasoline counterparts. Thus, battery switching is gasoline use – a small investment to move from dependence on the most rooted
a range-extension and value-enhancement mechanism. monopoly in the global economy. Covering the 45,000-miles Interstate Highway
System would cost about what the U.S. economy spent to import oil in any single
Beginning this year,
Would infrastructure across drivers in Israel and Den-
day this year. What could possibly offer a better return?
the U.S. be cheap? No. How- mark have a real Growth requires business investment, which loathes uncertainty. The more volatil-
choice: Continue to live
ever, such a network, applied to a with oil’s volatility, or
ity can be removed from staples of the economy, the greater the investment,
growth, job creation and deficit reduction. In the case of oil, and the many
region or country, costs roughly sign a contract to pay a potential black swan events that can stop its flow or make it prohibitively expen-
flat monthly rate for
one week of gasoline use. miles. That is what the
sive, the lack of an alternative infrastructure is a higher risk to our economic
stability than executing such a project immediately.
company I founded, Better Place, offers – an affordable, fixed-cost solution for
the first time in nearly a century. Beyond the savings, it eliminates the cost uncer- Now is the time for political leaders to partner with the private sector to make the
tainty of volatile oil prices from our economy. The price of electricity is relatively investments to disconnect our economy from the vicissitudes of oil and lay the
stable because there are many domestic generation sources. groundwork for true economic growth in a transportation network not reliant on
oil. Israel and Denmark can show the way to change the rules of the oil game. In
Steve Mufson wrote recently about the “unpredictable forces behind oil prices,” the U.S., this could be the “Hoover Dam” project of our generation.
explaining how everything from civil war, to the rate of new cars in China, to
financial speculation impacts oil prices – and therefore the price of just about
everything. This leads to the inverse oil-and-growth relationship – you can have
robust growth or high energy prices, but not both.
Higher oil prices mean a greater wealth transfer from our economy. At $100 per
barrel, the daily amount exceeds $1 billion. Given lower taxation on gasoline,
37 Game Changers 2012 Game Changers 2012 38
Ideas, Innovation, Inspiration
Carl Guardino - President & CEO, Silicon Valley Leadership Group
Steve Wright - Vice President, Strategic Communication, Silicon Valley Leadership Group
Samantha James - Communications Associate, Silicon Valley Leadership Group
Colin Buckner - Creative Associate, Silicon Valley Leadership Group
Marcos Garcia - Graphic Designer
Katherine Lanier - Communications Coordinator, Silicon Valley Leadership Group
Iain Macleod - Communications Coordinator, Silicon Valley Leadership Group
Design by Colin Buckner