Creativity trumps the downturn

Recessions can be the tool of 'creative destruction', if governments get out of the way and do not prevent the next wave of entrepreneurial experimentation by 'softening' the impact of the recession and distorting the efficient allocation of capital. Gordon Brown, take note: companies and governments have to fail. George Gilder, always an enthusiastic prophet, writes of the coming possibilities in Forbes. He identifies four areas that the financial wizardry of venture capitalism can nurture: 'cloud computing', grahics processing, nanotech engineering and energy saving construction materials. Gilder is useful for identifying waves of start-ups and linking them to wider technological change.

A great line is where Moore's law is referenced as insufficient for our needs:

This vast expansion of the scale of computing across the network, however, renders Moore's Law doublings inadequate to meet the need for speed. A key answer is the movement of optical technologies to chips themselves by such companies as Luxtera, a venture startup in Carlsbad, Calif., technologies based on Caltech advances that link fiber directly to chips. Azul Systems of Mountain View is pioneering a combination of Java-based parallel processing with virtualization software to produce multitrillion-bit-per-second performance in data centers.

A contentious but thrilling point if we wished to measure the proximity of a singularity event. As a useful summary of tech developments, Gilder is hard to beat. Nanotech filters allow pure water to be sucked up from a fetid puddle and new construction materials allow towers to be lighter and stronger and more radical. All know that I love radical architecture: wierd, wonderful and wandering off the set of last century's sci-fi cityscapes.

*One has to look elsewhere for exciting biotech, Gilder's only blind spot.