As innovative products have always done, products from this laboratory often displayed a profound grasp of many things that were already known, combined with a willingness to strike out in new directions. The phonograph, for instance, drew on past work on telegraphs, telephones and electric motors. In six years, the invention factory at Menlo Park secured more than 400 patents. The U.S. Patent Office eagerly awaited packages that were wrapped in a certain type of red tape - because that meant a package from Menlo Park. Second, nothing stimulates innovation more than the rapid exchange of information, knowledge and ideas.
Faster transmission begets greater discovery.
We see this today in the area of e-commerce. Third, and last, there must be clear financial incentives for successful innovations. Clearly, there has been no lack of financial incentives adding fuel to the fire for high-tech companies in the commercial world. But frankly, there is still a dearth of attractive and compelling financial incentives in defense procurement, despite many positive developments initiated by Dr. Gansler and others. That is something that should shock every one of us in this room.