Energy Innovation Posted by James Lamond

One of the focuses of last night’s speech was how innovation at home can effect competition abroad.  For example, on energy the President said:

We know the country that harnesses the power of clean, renewable energy will lead the 21st century. And yet, it is China that has launched the largest effort in history to make their economy energy efficient. We invented solar technology, but we've fallen behind countries like Germany and Japan in producing it. New plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea.

Well I do not accept a future where the jobs and industries of tomorrow take root beyond our borders - and I know you don't either. It is time for America to lead again.

This reminds me of a story.  In 2007 Toyota lobbied against tougher mileage standards in draft energy bill.  Why would a Toyota lobby against this? Because their fleet is already follows the stricter Japanese standards.  So their cars already have the lower mileage than their American counterparts, therefore Toyota’s fleet will continue to dominate the market for low mileage vehicles, all the while stifling innovation for American car companies. 

Now, a lot has happened since then, including a huge stimulus bill that contained over $38 billion in government spending and $20 billion in tax incentives for energy innovation.  However, this same stubbornness among many in congress still exists today, as we saw last November when Republicans staged a boycott of the mark-up for the The Clean Energy Jobs and American Power Act.

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