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Innovation

Global Investor Focus, 02/2007 Credit Suisse

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Global markets T-shirts from China, roses from Ecuador, wine<br />

from South Africa: faster communications and transport, simpler financial<br />

systems and the political will to remove trade barriers are making<br />

international commercial relations more interdependent. Production<br />

takes place where costs are lowest or know-how is greatest. The<br />

worldwide market offers opportunities: wider prosperity, bigger sales<br />

and more resources. But international competition also creates insecurity<br />

and fear. In Western countries, jobs for low-skilled employees<br />

are scarce. Migration has brought additional labor on to the market,<br />

and different cultures clash. The search is on for improved working<br />

patterns and fair and even-handed terms of trade.<br />

Why now?<br />

The World Wide Web The Internet Logistics a means of In communication,<br />

the past, trade routes lay along difficult and dangerous<br />

tracks. and a This network meant all that in one. goods manufactured at a distance were<br />

a knowledge platform, a trading exchange<br />

Regardless of place and time, people rare meet and and precious. swap wishes Nowadays and a gigantic transport network spans<br />

ideas almost instantaneously. One the person globe. may Every be looking day, tonnes for a of goods are conveyed in modular<br />

solution to a specific problem. Someone containers else may by have air, an truck, idea, rail but and on container ships. Technical<br />

not know a suitable application for it. progress Perhaps their makes virtual it possible paths will to increase the speed and efficiency of<br />

cross. The result is a fresh product and, the flow in some of goods. cases, In an particular, innovation.<br />

Many websites serve as platforms nization for ideas of processes and then facilitate at docks and depots. This not only saves<br />

automation allows better synchro-<br />

the process of innovation. Realizing time, the but new also used expensive to be lonely, storage. On the other hand, climate taxes<br />

backroom work. Later, it became a more-or-less and increasingly linear scarce process fossil in fuel resources may well increase<br />

institutionalized research and development transport departments. costs again. Now, Renewable in energy sources are therefore<br />

the Internet age, it is often a chaotic vital interplay to the of logistics disciplines. sector.<br />

Photo: image100/Corbis<br />

NASA/Roger Ausloeser/zefa/Corbis Ressmeyer/Corbis<br />

The radio<br />

In 1896, Russian Alexander<br />

Popov transmitted the<br />

words “Heinrich Hertz” to<br />

a receiving station 250<br />

meters away. But Guglielmo<br />

Marconi is generally credited<br />

with inventing radio at<br />

round the same time, while<br />

the ground-breaking work<br />

of Nikola Tesla also played a<br />

vital part in this innovation.<br />

The airplane<br />

On 17 December 1903,<br />

two American brothers,<br />

Orville and Wilbur<br />

Wright, made their first<br />

successful machinepowered<br />

flight over a<br />

distance of 260 meters<br />

at Kitty Hawk, North<br />

Carolina.<br />

The computer<br />

1946 was the year ENIAC<br />

was created — the first<br />

Electronic Numerical Integrator<br />

and Calculator. In<br />

1947, IBM built the SSEC<br />

(Selective Sequence<br />

Electronic Calculator),<br />

a hybrid computer featuring<br />

vacuum tubes and<br />

electromechanical relays.<br />

1900 1790<br />

1800 1910<br />

Fluorescent tube<br />

Superconductor<br />

Tank<br />

Conveyor-belt production<br />

1920 1810<br />

Steamship<br />

Supermarket<br />

Zip fastener<br />

Television<br />

Traffic light<br />

1930 1820<br />

Helicopter<br />

Photocopier<br />

Teflon<br />

1830 1940<br />

Atomic bomb<br />

Transistor<br />

Electric motor<br />

Bar code<br />

Telegraph<br />

Scanner<br />

Fuel cell<br />

Rubber tyre<br />

1840 1950

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