It seems like another new story emerges about Web 2.0 nearly every day, but how much of the buzz is real and how much is hype? A new special issue of Technology Review takes a closer look at “the business of social networks.” The issue contains a number of interesting stories, including a listing of “ten start-ups to watch.” The articles note that social networking is the web’s fastest growing application, yet few firms are making money in the process---at least not yet. Even popular sites like Facebook and MySpace continue to lose money. The issue’s lead article, “Social Networking is Not a Business,” asks some hard questions about the industry’s future. It suggests that social networking sites might capture some of online advertising market but remains somewhat skeptical. In the end, it suggests that leading social networking sites might have a future that looks less like the next Google, and more like struggling or defunct early Internet firms like CompuServe, Netscape or AOL.

Access the July/August 2008 issue of Technology Review at www.technologyreview.com.

Government agencies need to embrace new models of innovation, according to a new report sponsored by the IBM Center for the Business of Government. The study presents a review of new innovation models—dubbed network-based collaborative innovation---that have been pioneered by leading firms such as Procter & Gamble, 3M, and others. This approach links organizations to outside networks (such as customers or other partners) with the purpose of generating a broader and more diverse set of ideas and possible solutions. In the process, the speed of innovation is increased. Many thorny public policy issues, including areas like environmental conservation and disaster response, could benefit from this model. Yet, government agencies are presently not well suited to this approach, which places a high premium on openness and a commitment to close collaboration. The report provides a series of detailed recommendations for internal reforms that will help create the appropriate organizational culture and structures within government agencies.

Download the 2008 IBM Center for the Business of Government-sponsored report, Transforming Government through Collaborative Innovation, by Satish Nambisan.

The Wall Street Journal reports that this week "Eureka Ranch Technology Ltd. of Cincinnati plans to unveil the USA National Innovation Marketplace -- an online registry where researchers and inventors can post ideas they've developed. Businesses can then browse through those ideas by category, much like searching through résumés at a job-hunting site. If the companies see something they like, they can contact the inventor to buy the idea or collaborate on it." 

The Proposal: A new online marketplace will let small businesses find researchers with ideas to sell -- and pitch their own work to big companies.

Three venture capital firms, including one centered on university technologies, have been named the first winners of a competitive bid to work within a newly established U.S. Department of Energy (DOE) Entrepreneur in Residence program. The program is designed to speed the technology transfer process from three DOE labs into the global marketplace by linking VCs with entrepreneurs and giving them access to DOE cleantech innovations. Chicago-based ARCH Venture Partners, the university-focused VC, will work with Sandia National Laboratory. California-based firms Kleiner, Perkins, Caufield & Byers and Foundation Capital will work with the National Renewable Energy Laboratory and Oak Ridge National Laboratory, respectively. Each firm will select an entrepreneur to work for a year in the labs to identify promising clean technologies and develop commercialization plans. These entrepreneurs in residence and their VC sponsors will select a technology for commercialization and negotiate a license with the DOE. They'll be using a standard agreement introduced by the department that is based on successful university start-up licenses, featuring an equity stake as full or partial consideration for the license. Both DOE and the VCs will put in $100K as seed money. At the end of the year, the firms will have to reapply for consideration. Other national labs are expected to sign up for the program as part of a rolling introduction.

Technology Review has recently released its latest list, “The 10 Emerging Technologies of 2008.” As always, the list contains lots of interesting new ideas and technologies that promise tremendous future advances that could affect all of our lives. For example, wireless power, which transmits electricity via magnetic resonance, could mean the end of scrambling around the airport looking to plug in your laptop. Meanwhile, connectomics is a new means to mapping the brain that promises a better understanding of diseases such as autism and schizophrenia. Finally, cellulolytic enzymes will help make it easier and cheaper to create biofuels from cheap biomass such as prairie grass, wood chips, and agricultural waste.

“The 10 Emerging Technologies of 2008” appears in the March/April 2008 issue of Technology Review.

The Severe Trauma Simulation Army Technology Objective (ATO) is researching capabilities to realistically simulate the look, feel, smell, and clinical accuracy of severe trauma for training medics, combat lifesavers and soldiers. Severe trauma simulations will be tied to training scenarios appropriate for the current Operational Tempo in the Global War on Terrorism and include after action review capabilities. While many of the objectives of the Severe Trauma Simulation ATO are being met by existing contracts, RDECOM-STTC is still looking for research in the area of olfactory stimulation to support realistic training. 

Response Date is 3/31/2008.  View complete entry at: http://www.salt.org/index.htm?salt.asp?pn=industry

While the term biodiesel is a name for an alternative clean fuel, it is also used as a term for a blend of petroleum diesel and the alternative clean fuel.1 Biodiesel blends are denoted as, "BXX", for example B20 is 20% biodiesel, 80% petroleum diesel.1 Many people think of biodiesel as using French fry oil but fuel-grade biodiesel has an industry standard, ASTM D6751 to insure proper performance.

Biodiesel production continues to grow with volumes of 25 million gallons in 2004 to 75 million in 2005.2 A study completed in September of 2006 by John M. Urbanchuk of LECG states: “that America’s biodiesel industry will add $24 billion to the U.S. economy between 2005 and 2015, assuming biodiesel growth reaches 650 million gallons of annual production by 2015.”3

Total annual production capacity, including the plants that chose not to list their production capacity is 864.4 million gallons. It is important to note that production capacity differs from the actual number of gallons sold. In January 2007 there were 105 producing plants across the United States.4

Eight emerging trends are transforming many markets and businesses. Executives should learn to shape the outcome rather than just react to it.

1. Distributing co-creation
2. Using consumers as innovators
3. Tapping into World of Talent
4. Extracting more value from interactions
5. Expanding the frontiers of automation
6. Unbundling production from delivery
7. Putting more science into management
8. Making businesses from information

The complete article from McKinsey Quarterly is free with registration at http://www.mckinseyquarterly.com/Information_Technology/Eight_business_technology_trends_to_watch_2080_abstract

A new report assessing the returns received by angel investors in the U.S. found that investors participating in organized groups received a return on investment that compares favorably with other private equity investments, including those of early-stage venture capital. According to Returns of Angel Investors in Groups, angel investors affiliated with angel networks achieved an internal rate of return of 37%. Exits from these investments generated 2.6 times the invested capital in 3.5 years. The study also examined the impact of key strategic factors on investment: due diligence time, industry experience, participation with the company after the investment is made, and follow-on investing. Among the findings:

The Pentagon's research arm selected three dozen semifinalists that will duel for limited spots in a robot challenge that tests how well autonomous vehicles can navigate city streets without human help.

Two dozen teams previously competed in a similar contest in a desert setting sponsored by DARPA, including Stanford University, whose converted Volkswagen won last year's race in the Mojave Desert. The 12 other contenders are first-time participants.

The announcement was made Thursday during DARPA's annual trade show in Anaheim.  The 36 teams will battle it out during the semifinals in October at an urban military training facility on the former George Air Force Base in Victorville. Only 20 will move on to the final race on Nov. 3.