Why Do We Have to "Innovate"?

In Innovation Policy + Deficit Reduction = Politics As Usual? I described some of the policy debates concerning the appropriate role of the Federal government in promoting the types of innovation that can eventually simulate the U.S. economy and U.S. employment. There are many different practical, political, and philosophical issues involved in these debates that seem, to me, to boil down to basic and longstanding disagreements about the roles of the Federal government and the private sector.
Gene L. Dodaro, Acting Comptroller General, U.S. Government Accountability Office (GAO) gave a presentation on November 2010 titled Acquisition Reform Challenges Facing Government. Referring to GAO’s strategic plan, Dodaro’s presentation addressed large-scale acquisitions as “targets of opportunity,” repeating the often-heard criticism that “… much of the government’s major investments have faced persistent cost and schedule growth.” His analysis is a very intelligent review of the challenges involved in reducing acquisition costs. Here I suggest an approach he doesn’t discuss but which is based on concepts he presents.