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					                                                                               Dianne Feinstein
                                                                                Alan Salzman
                                                                                 Tom Werner
                                                                                 Carol Larson
                                                                               Kevin McCarthy
                                                                                Vinod Khosla
                                                                                 Bill Watkins
                                                                               Emmett Carson
                                                                                Gavin Newsom
                                                                                 Steve Westly
                                                                                 Mike Splinter
                                                                                 Ann Bowers
                                                                                 Chuck Reed
                                                                                Aart de Geus
                                                                                 Paul Brest &
                                                                                Jacob Harold
                                                                                Dave DeWalt
                                                                                 David Cush
                                                                                 Mike Klayko
                                                                                 Shai Agassi




                                                                      GAME2012
                                                                      CHANGERS
Silicon Valley Leadership Group
2001 Gateway Place, Suite 101E
       San Jose, CA 95110
          408.501.7864
            SVLG.ORG

                                                                      Ideas, Innovation, Inspiration
                           Printing provided by: American Printing
                                               AMERICANPRINTING.COM
      GAME2012
      CHANGERS
      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 &
                                                            Jacob Harold
31................................................................ David G. DeWalt
33................................................................ David Cush
35................................................................ Mike Klayko
37................................................................ Shai Aggasi




                                  Sponsors
         Public/Private
         Partnerships
         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
                                                                                         Reckless Endangerment
                                            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,
 Blythe, California.
                                                                                         weans us from foreign oil and puts people back to work, it doesn’t enjoy universal
                                                                                                                                               support.
 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-
 tricity.
                                                                                         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
                                                                                         program.
 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.
 jobs.
                                                                                         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
                     Energy
                     Innovation
                       Efficiency
                        for 2012
                              Salzman
                     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
                                                                                           most needed.
       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
 power plants.

 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
                    Solar
                             MOVING




                    Next
                                    TO THE




                    Level
                        A POST-INCENTIVE WORLD

                        By Tom Werner
                                   CEO
                                            SunPower Corp.



 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
           BUILDING
              ALIGNMENT
                IN EARLY
          LEARNING
                        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
 investment, particu-
 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
 holds.



07 Game Changers 2012                                                                                                                                       Game Changers 2012 08
               Leadership
               ThroughFree
               Enterprise
               & Innovation
               By Kevin McCarthy
                        Majority Whip, House of Representatives
                                                   R-Bakersfield



 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
                                                                                        our economy.
 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
              Black
                                     The




             Swan
              Technology
                  By Vinod Khosla
                              Partner
                                            Khosla Ventures



 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
                          How
                         Build
                                                      to



                     Retain
                                                      and



              American
                                                      new


              Manufacturing Industries
                                  By Bill Watkins
                                               CEO
                                                             Bridgelux
 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
                                                    manufacturing        companies
 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
 Department of
 Energy        (DOE)         of new-industry development funds                          There are already several similar and existing funding structures that could be
                                                                                        deployed here.
 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
 the
                                                                                        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,
 rity value.
                                                                                        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
       1Valley:2Different

       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.
 difference.
                                                                                          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
 individual superintendents.

15 Game Changers 2012                                                                                                                                   Game Changers 2012 16
                 Regaining
                  California’s
                  ROLE AS AMERICA’S
                 Opportunity
                                    CAPITAL
                        By Gavin Newsom
                                   Lt. Governor
                                                           California

 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
                                            Managing Partner
                                            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
       AGE
                 Welcome to the


                                                                   of

       CONNECTIVITY
                               By Mike Splinter
                                             CEO
                                                       Applied Materials


 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
                                                                                                                            innovation leader.
                                                                                            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
    DISRUPTIVE TECHNOLOGY
    IS JUST
    WHAT      EDUCATION NEEDS
                  By Anne Bowers
                      Chair and Founding Trustee
                                        Noyce Foundation




 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
                                                                                        the market.

        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
 Working
          Speed
                 at the



            Business of


                           Create Keep
                                to




                                                          Jobs
                                               and




                           By Chuck Reed
                                      Mayor
                                                          San Jose

 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.
 deadlines.
                                                                                        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
                        A
                National
           Energy
             Leadership
                                                Mission
               By Aart J. de Geus
                          Chairman and CEO
                                                 Synopsys, Inc.




     Energy        touches
     everything: transpor-
                                     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
                             nations.
     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.
     breakthrough alternatives.
                                                                                            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
                                                 Revolution in

     Donors                                      Individual
                                                 Giving

                          By Jacob Harold
                                Paul Brest
                             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
                                                                             giving
                                                                                  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
Give.

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

29
02 Game Changers 2012                                                                                                                                Game Changers 2012 30
        Smart Grids
                 Cyber
           Must Be
        Protected
        Against Attacks
                                    DeWalt
                        By DavePresident and CEO
                             Former
                             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
            Creating
            Airline
            Fostering Innovation
                                         2.0
            Through Competition
                  By David Cush
                        President and CEO
                                        Virgin America




 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
                                       A
               Tale
           of Two
           Clouds
                     By Mike Klayko
                                  CEO
                  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
 significant technologi-
                           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
                                                  Better Place


 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
            GAME2012
            CHANGERS
            Ideas, Innovation, Inspiration


                          Acknowledgements
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

American Printing




Design by Colin Buckner

				
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