U.S. CTO: Infrastructure growth needs private sector investment

Summary: The technology backbone of the United States needs a major overhaul and government alone can't do it, the nation's first chief technology officer said today. It's going to take a cooperative effort, including a massive influx of "hundreds of billions" of private capital dollars, for the U.

The technology backbone of the United States needs a major overhaul and government alone can't do it, the nation's first chief technology officer said today. It's going to take a cooperative effort, including a massive influx of "hundreds of billions" of private capital dollars, for the U.S. to catch up to its global peers.

CTO Aneesh Chopra delivered a keynote address this morning at the Consumer Electronics Association's Digital Downtown event in New York City. The U.S., he said, is "dead last" on the global stage when it comes to the tech infrastructure and yet bandwidth usage in the U.S. is expected to increase five-fold by 2013.

"We've stood still while the rest of the world has caught up or exceeded us," he said.

The U.S. is going to have to bring "all stakeholders to the table" for this discussion, he said. "We want equity, growth, application value...we have multiple public priorities, and the bulk of capital [investment]...will be a private sector endeavor."

In his keynote, Chopra outlined the four areas, or "pillars," of growth in need of attention: harnessing the potential for economic growth; innovation and policy reform in areas such as energy and education; increasing secure connectivity across the nation; and using "retail 2.0" strategies in government efforts, such as in employment and social services.

"Step by step, piece by piece, we're going to make progress," Chopra said.

As a way of holding himself publicly accountable, Chopra said he plans to keep a "report card" that peers at the White House, such as National Economic Council director Lawrence Summers, will sign off on. Results, he said, will be posted regularly on a blog.

"It's my responsibility to ensure...we deliver," Chopra said.

Chopra used Google and its "20 percent time" initiative - which allows employees to devote 20 percent of their time to a project that interests them. "How do we think about that 20 percent time in the spirit of the commonwealth?" Chopra asked

Businesses should be spending time and energy - or encouraging it - on projects that not only help the company's monetization efforts but also double as a public service. For example, mobile app developers could design educational tools that help student learn tackle difficult subjects, such as algebra.

"We all have a little bit to contribute," he said. "If framed the right way, there are opportunities for benefit by all parties."

To pull this off, the government needs to use "market leverage," not law, to entice people and companies to contribute resources to a common good. Companies and government will need to work on linking university research and development with creative minds and business-savvy entrepreneurs. And, of course, there will be the challenges of framing public policy in Washington. It won't be easy and it won't change overnight, he said.

"The single biggest [piece of] leverage going forward will be the intersection of design and innovation," he said. "There's an opportunity for technology and innovation to play a role."

Topics: Emerging Tech, CXO, Government, Government US

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25 comments
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  • Cap & Trade

    Yes, and the Cap & Trade errr. Tax & Trade will destroy the economy as well.


    Good luck...
    Christian_<><
  • Private investors just got slaughtered over Chrysler

    And you think anyone of them would be dumb enough to get involved w/ government any more?
    LBiege
  • RE: Private sector necessary to achieve infrastructure growth, U.S. CTO says

    If the government wants private sector involvement and investment, it would be in all our best interests for the administration to abandon their focus on SCREWING the private sector.
    Deacon336
    • LOL & The Private Sector never rips people off

      It think we have plenty of evidence that the US
      private sector is ripping the general public
      off. The inching forward progress of computer
      tech is a known case of patent and tech hording.
      Why should they deploy faster if they can demand
      the same fee for a micro-advancement as for what
      is truly ready?

      In the US disk drive manufacturers never release
      the latest consumer ready tech. Instead they
      incrementally release each patentable aspect and
      milk that for every buck. They could stop
      research and we would still see new devices
      based on old research for 15-20 years.

      The reason foreign countries have not taken over
      the drive industry is that the EU and Asia still
      honor patents even if no devices are being
      produced. Wait until Brasil decides to get into
      computer tech. Brasil does not honor patents
      that way. They have a do not stand in our way
      policy. You manufacture it there or give up you
      rights in their country.
      wellduh
      • Your thinking is baseless and flawed

        wellduh,

        Do you, or have you ever worked in the industry you are critiquing? If so, please reference your direct experience.

        Have you quantified the technology advances and historical price trends? If so, please share your analysis.

        Have you evaluated the gross and net profit margins of the products you are indicting? Again, please share your analysis.

        Please provide your evidence to substantiate your rant so this community can evaluate your claims.

        And BTW, do an inflation adjusted cost analysis of this:

        "The IBM 3390 Direct Access Storage Device series was introduced November 1989, offering a maximum storage of up to 22 gigabytes. Cost of a storage system varied by configuration and capacity, between $90,000 and $795,000"
        cyberguild
  • Fire the CTO

    If you want economic growth of any kind, get the government OUT of business. Everything the government touches goes in the crapper.

    With the host of 'czars' His Divine Shadow has appointed, he's changed the very nature of our government. Gone is the Republic in which I grew up, now we have a pseudo-communist state.

    The Founding Fathers never, under any imaginable excuse the Supreme Court wants to invent, intended for the federal government to have the amount of authority over the private sector, from the economy to our individual lives, that it has grabbed. No crisis of any kind permits the federal government to ignore its mandate or change its nature. The only reason His Divine Shadow and the Divine Order in Congress have managed this power grab is the ignorance, foolishness, and the entitlement mentality of the effete American public.

    53% of the American voting populace deserve to live in a gulag. A lot of them will get to do so.
    hiraghm@...
    • Dumb Post!

      Typical response of the ignorant Republicans who are unwilling to give an extraordinarily popular President a chance. 3/5 to 2/3 of Americans endorse the job Obama's doing, but the ignorant minority (and yes, Republicans are a huge minority thanks to the debacle of the last 8 years!) refuse to see that they had a chance and failed miserably...now it's the chance for the other side to repair the damage.
      kirbster66
      • Look Who Is Actually "Dumb"!

        Your name-calling is typical of the ignorance of liberal socialists who are now trying to take over the country and in case you haven't looked at the polls lately---Obama is getting a BIG backlash of resistance for his misguided Economic "Spend Now and Pay Later" Stimulus Package!

        A MAJORITY of Americans would like to see Obama cancel the stimulus package so we don't die from our debt if the plans in the package continue.

        Here is some poll data info that definitely shows your ignorance and refusal to acknowledge real TRUTH:

        Polling data show that Mr. Obama's approval rating is dropping and is below where George W. Bush was in an analogous period in 2001. Rasmussen Reports data shows that Mr. Obama's net presidential approval rating -- which is calculated by subtracting the number who strongly disapprove from the number who strongly approve -- is just six, his lowest rating to date.

        M.E. CohenOverall, Rasmussen Reports shows a 56%-43% approval, with a third strongly disapproving of the president's performance. This is a substantial degree of polarization so early in the administration. Mr. Obama has lost virtually all of his Republican support and a good part of his Independent support, and the trend is decidedly negative.

        A detailed examination of presidential popularity after 50 days on the job similarly demonstrates a substantial drop in presidential approval relative to other elected presidents in the 20th and 21st centuries. The reason for this decline most likely has to do with doubts about the administration's policies and their impact on peoples' lives.

        Recent Gallup data echo these concerns. That polling shows that there are deep-seated, underlying economic concerns. Eighty-three percent say they are worried that the steps Mr. Obama is taking to fix the economy may not work and the economy will get worse. Eighty-two percent say they are worried about the amount of money being added to the deficit. Seventy-eight percent are worried about inflation growing, and 69% say they are worried about the increasing role of the government in the U.S. economy.

        When Gallup asked whether we should be spending more or less in the economic stimulus, by close to 3-to-1 margin voters said it is better to have spent less than to have spent more. When asked whether we are adding too much to the deficit or spending too little to improve the economy, by close to a 3-to-2 margin voters said that we are adding too much to the deficit.

        Support for the stimulus package is dropping from narrow majority support to below that.

        So you call that "extraordinarily popular"? Let's call truth, "Truth" and not subject ourselves to lies based on the liberal political agenda we are blindly pushing that is based on moral relativism and is not truth-based.
        Yammimoose
      • Foundations of the Republic

        Kirbster, Have you ever read anything about the thoughts of our founding fathers? Not just 8th grade history books. Have you ever read (for yourself) Common Sense, Rights of Man, Age of Reason, The Articles of the Constitution? Do you have any idea how much they loved freedom and feared government?
        They spent vast amounts of time researching other types of governments and failed experiments of the past. The US is based on having just enough government to keep anarchy at bay. Not own 2 of the 3 biggest car makers.
        Try reading "The 5000 year leap".
        Or even just Common Sense.

        SirLanse
  • RE: Private sector necessary to achieve infrastructure growth, U.S. CTO says

    While I am not a big fan of government, the private sector has bent the public over and had their way for a long time. The trick is to keep the private sector in check without destroying it.

    Either way, I heard nothing here suggesting that anything will happen, so how can anyone really have an opinion about nothing?
    RedVeg
    • NONSENSE

      This current, created economic crisis was created by government intervention and attempted social engineering.

      If you want to keep the private sector in check, grow used to poverty.

      The most wonderful times in the history of the U.S. to live in were in those times when the private sector cut loose and flourished. The 1980s come to mind, and the 1950s, and 1890s...

      Heck, the boom of the 1920s was thanks in part to the creativity and flourishing of the private sector evading prohibition.
      hiraghm@...
      • RE: Nonsense

        Amen! The government IS THE PROBLEM. What have they ever done for us, anyway??? Besides roads. and water. and the internet backbone. and a safety net for when our jobs are shipped off to India by our loving corporations.

        OK - besides roads, water, the internet, a safety net, what has the government done?

        What we need is more entrepreneurs. Like Time Warner, who will charge you per MB you use the internet. And Aetna, who will decide which doctors you can and can't see and what procedures you can and can't have done.

        You see, the government is the problem and we need to embrace capitalism more.

        mflanery
      • those booms...

        were caused by government spending and R&D in the prior decade:
        1920s: WWI
        1950s: WWII
        1990s: have we really forgotten about arpanet already?
        scripter
  • RE: Private sector necessary to achieve infrastructure growth, U.S. CTO says

    What's this talk about allowing employees to devote 20% of their time to something that interests them? And the stuff about contributing resources to the common good?
    Sounds like SOCIALISM to me!!! COMMIES!!!
    mflanery
  • Just like that!

    I have not accepted the premise that we have fallen behind and need to catch up. Are we supposed to buy this because the CTO says so? What he is really saying is, you really need me and my office and my department and need to spend more tax money on us.
    What do you think he was going to say?
    edcoyle
    • Right. And add this

      Once the Internet is privatized, expect toll booths, fees and membership dues at every major intersection. And with our Fascist congress (includes both parties), it won't take long for the money grubbing corporations to seize control and squeeze us like a boa constrictor.
      Telexer
  • Behind "the rest of the world"

    These claims that we're behind the entire world are just plain crap.

    For one thing, comparisons are often apples to oranges. If we compare a geographically enormous nation like America to a small one where the majority of the population is compressed in a handful of cities, results will be skewed since it's easier to provide ultra-high-speed access to people in major metropolitan areas than it is to do so in medium and small towns. We have a significant rural population in the U.S., and I'd wager that most other countries don't provide any better access to their rural populations than we do.
    ParrotHeadFL
  • RE: Private sector necessary to achieve infrastructure growth, U.S. CTO says

    Well he had to say something.

    ISPs are rolling out upgrades as fast as they think they need to and can make a profit by doing so.

    My thought is the government should stay the bleep out of it other than requiring that the various service providers continue to be able to communicate with each other and trying to make sure that there is something that at least resembles competition at most locations.
    deowll
  • Aiming for Paradise of Pastoral Backwater

    All assuming that Americans want advancement to the
    expensive technological edge. I think most Americans
    over 30 would prefer to see the US become the new
    Tahti. Smoke more pot.

    So maybe we ought to be banding with the Taliban and
    extremist Islam rather than fighting against it. From
    technical and economic view point our national
    cultural future view is the same -- relaxed with zero
    population growth as ideal.

    But then who says people over 30 should get a vote?
    The younger "I want the fastest, newest tech" people
    simply need to start being the primary technological
    workforce.
    wellduh
    • Cheaper to live in the tech backwaters

      The thing is bleeding edge is double expensive.
      First the devices and software itself and then
      making up for any stuff that fails to meet its
      hype to the level required by the project.

      The US can be the new Mexico. We got the immigrant
      population to carry off the atmosphere. Time for a
      Siesta. Sure I did not do much today -- but nobody
      was able to rip me off either.
      wellduh