i tell my kids, i said, look, it's two cars full of love, one car has a stranger, the other car has dick cheney you get in the car of the stranger. >> if you took all the money republicans spent to stop health care, all the money democrats spent trying to get health care, you know, we could have had health care. >> it's amazing to be in washington, d.c., all the history, the amazing buildings, and yet, here we are at the hilton. >> it's hard to be funny with the president of the united states sitting right next to you looking at you, and yet, somehow day in and day out, joe biden manages to do it. >> the white house correspondence dipper, president obama, and late night talk show

hosts headline the event before celebrities, journalists, and the white house press corp.. it starts with the red carpet arrivals live today at 6:15 eastern on c-span. >> gary schapiro outlines strategies used to strive in today's economy now on booktv. >> thank you, rick, i appreciate the introduction, and thanks to all of you who give up your time to be here, and listen, and i hope this will be interactive after awhile. the map is i speak a little bit, and then we have some interaction and questions. i spoken of many, many groups around the country and around the world about the issues, and every group is different with different interests. a little bit more about my background. i do head a trade association. it's a non-profit organization of over 2,000 technology companies, everyone you expect

from microsoft to sny, best buy to target to companies like google and yahoo. companies at the cutting edge, and i have been in the position for over 20 years and i started out as a lawsuit in washington, d.c., actually. i walked into the job to be honest, stayed there, moved up, and took over which was about 20 years ago. we, as a nonprofit trade association focus on the united states, doing public policy, research, and advocacy and industry standards and engineers working and research people, and we're out there promoting innovation and entrepreneurship. we also own and produce the world's largest event by many definitions. it's the international ces held each january in las vegas. we get over 150,000 of the closest friends to las vegas, and it's not open to consumers.

it's only open to people with legitimate business interests including over 5,000 journalists, over 35,000 people there outside the united states come to vegas, 3,000 exhibiters, and a lot of people from the financial community, and, also, from communities that are relevant, broadcasting, cable, satellite, telephone, madison avenue, hollywood, everyone. how many of you have been to that event by a show of hands? okay. very few of you. the people on my staff don't count. [laughter] yes, you do count, actually. [laughter] along the way, we have written a couple books, and i say, "we" because it's a group project. my name's on it, but there's a lot of people behind it. the book is owned by the trade association, not me. we are passionate about innovation. innovation, if you think about it, is something which is by definition is doing something different that has value.

i used to say "doing something different people pay for," but weeks ago, i had to talk to the executive leadership of the u.s. government customs and border patrol, and i realized if you're in government, you could be innovative, and people are not necessarily paying for it, but it has value, and so what is it about innovation that's different to me, though, is almost everything innovative has -- is good, causes growth, causes jobs, helps economy, does a lot of great things to make life better and, also, often threatened another business, another status quo, something somebody else is doing and sometimes innovating is challenging because you do something different by definition. through my career, that's important because a started out and spent a lot of time as a lawyer on the fact there was a court decision going -- which held in 1981 that this new

innovation, which, for the first time, allowed you to watch tv when you wanted to watch it, the vcr for the younger people, a video cassette recorder, and you could record and shift in time what you watched so you could watch it later. this was a breakthrough technology and scared hollywood because they always controlled movies and television programs you watchedded when they wanted you to watch it, and they fought the product and won in the federal court of appeals, and the court found it was an illegal product and had to be stopped. it went to the supreme court, and i was very much involved in that every step of the way. after two oral arguments, the supreme court ruled by one vote, one person, 5-4, that the vcr was a legal product changing everything, and that's the sunny bait decision, the magna carta of the innovation world saying

products can be legal if they have legal uses. one of the legal uses found in that product is they said, you know what, time shifting over the boadcast television is not illegal, but totally legal. that's a decision reverberating today. there's a lawsuit, a couple lawsuits, one in new york, one in california against different products which do the same thing, and networks, televisions, still fighting the same battle 30 years later. so that was just one example of a technology coming along and changing the status quo. there was reverberations. i testified in congress there's a treaty that few people know about on the property that we are, as the united states is a signature to, says among other things that you,ing anything that you create is automatically copyrighted once you put it down into physical form. if you write an e-mail, it's a

copy of the original. if you draw a picture, if you -- you don't have to do anything. you don't have to file with the copyright office or put a " c" with a circle on it. you all own the copy righted material. the amount of damage to collect in lawsuits are limited by -- unless you copyrighted it with a notice and filed for it with the office, but it is copyrighted with protections. that has begin rights to a lot of things, and at one point, the interpret, itself was threatened. i argued it's okay to take an e-mail, copy it, and move it along and not be charged with a copyright violation, which is shocking. if we didn't cut and peas, i don't know how we'd write anything. [laughter] there's extreme examples to get control, innovation is something which is also important in another sense, and that is that the u.s., as a nation, and who we are, what we do, and i want

to spend a couple seconds talking about that because it's unique. i know traveling so many countries around the world, that the rest of the world looks to the united states as the most innovative country. the reasons are multifollow. one is we are an immigrant culture. even the native american indians came here a few thousand years ago by crossing, i believe, the theory is the berring strait. most of the people that came here, other than african slaves, came here voluntarily for a better life. for the most part, a lot of the genetic structure is based around the fact we derived from people who want a belter life which is something. i'm learning, actually, i learned in the last few weeks, that's carried forward in the genes. there's recent research that the way you are is just in your personality characteristics, it's carried forth in the genetic structure. we have a united states

constitution which is very special. it has a first amendment, which is encouraging people to give their opinion and to speak and talk without fear of the government coming back on you. not only protects the press, but it protecting anyone with an. to give that. that's not true in a lot of countries. the natural reaction when you come up with a new innovation or idea or something like that, those not positively affected by that scream, try to get the government to stop you. that's still happening. the government, itself, is less likely to come down on you because you disagree with the government or the way you are doing something or an existing practice. that's important. another reason it's important innovation is special to the united states in my view is that we're the most -- this goes against the immigrant -- the melting pot, the most heterogeneous culture by far. it's occurred to me more recently that's a good thing and bad thing. the good thing is there's

diversity of opinion for new ideas. you go to japan, expect the japanese all group think. they don't have the word for "no" in the culture. everyone agrees. it's, like, everybody's going along, and it's very difficult for them to disagree with the prevailing view. in the u.s. company, it's different unless it's a strong bos and they don't usually last very long. diversity of opinion is welcomed. that's how you get along. now, some people say the u.s. is not doing well. look at the test scores of kids and people say, oh, my gosh, we're 14 in science, this and that, and the tests are just measuring learning. the culture of america is a culture of questioning, of asking questions in the schools, pushing back, saying why or why not. that makes us very different. if you put all those things together, our culture, our diversity, our focus on innovation, who we are, and what

you come up with is the fact that the rest of the world are looking at silicon valley, hollywood, music industry, publishing industry, biotech industry, think of every internet company of any significance, they are american companies, whether it's google or yahoo or ebay, amazon, wikipedia, 4square, twitter, all the businesses increasingly copied in the world, but they are u.s. created and bred. tieing this to education, many of them like facebook and microsoft, by people who don't graduate college, but that's the way it is. the -- so i start with that premise. the first back was about -- called the comeback, how innovation restores the american dream, focused on the thact we are -- fact we are the most inno vattive country. we have to welcome immigrants, embrace them, celebrate them, get the best and brightest here, focus on what we are good at,

innovation. we're not a great, you know, factories in china, india, in a lot of mxico and elsewhere, and we don't want those here. americans will not do that work. americans want work that is mentally challenging, and if you're beyond a 3 #rd agreed degree, the jobs are just not good for you. that is what we do. that's who we are. what that book proposes is a haul of changes to the legal systems, our laws encouraging innovation, and a lot are happening in different ways whether it's focus on free trade, additional spectrum, getting the best and brightest, the immigration debate where people already agree, dealing with the deficit and other things. the reason i was able to do this as a leader of the innovation industry in the united states and at least in terms of electronics is that a few years ago, we many a very -- we have a group of volunteers that guide

me that report to, and we had a really good meeting, and the meeting, like, most volunteer organizations, and for some reason, i don't know why, at that meeting, i just said put aside the agenda for a second. how are we going to do in our industry in the next five to ten years? the answer that came back around the table for me that are natural optimists because most ceos in business are, we're not going to be doing well. why? they came back and had the same answer because the u.s. economy will not be doing well. well, the u.s. economy's not doing well. why? >> basically because the deficit is out of control. that's all we do is spend money on servicing the debt on the deficit. it was compelling. i was never a deficit hawk, and that shook me up. you know, you do the math, if you do the math, stls a problem as a nation that everybody's talking about.

republicans think ce with cut spending, democrats think we can raise taxes. they are both half right. they are missing the third iningredient. you can solve a deficit. you have three choices. anyone, any company, any business, anyone has the same three choices socially if you have a financial problem like the one we have where your revenue and your expenses are totally mismatched. you can raise your revenue. you can raise taxes. you can cut your spending. both republicans and democrats are right, but the third thing to do is growth. you can grow your economy. if you grow your economy, you know, people go off of unemployment, tax revenues increase, a lot of go ahead things happen, and growth in the economy only comes from innovation. that's why innovation is so important. that's why innovation is a strategy to foster and celebrate and recognize as a nation we're the best in the world at it. that book did well, thrilled to

see policymakers showed me they read it, talked with me about it, and i'm excited about that, but then, honestly, i got -- as i went around the world talking about it because countries say what do we do? cities and states want to be silicon valley, and the answer, quick answer, by the way, you don't want to be like them because they are unique. you know, they grew from stanford, a unique group, but every part of the world has its own strengths and weaknesses, play from what you have, do it with a plan. in my career, 30 years of dealing with people like bill gates, steve jobs, and others like that, i know the people, see them in environments, and i talked to the employees, got to know the winners and some of the loser. the opportunity there was to say what is it that makes someone different. in thinking about it, i realized that it's not only what companies do. it's what you do in your own life and how you run yourself or how you run a government.

it's all the same. it's whether you're innovative or not. the truth is, i mean, it is true. i got a black belt with my family years ago. .. you'd be clever and creative. never just two answers. there's always a third answer

and the ninja takes a third answer. and anyona, hundreds of years ago, was in japan, not korea. but in japan, the anyone jazz were -- ninjas were you always outgunned but they always won because they were clever, they thought outside the box, they were disciplined, they were trained, they had a goal and they operated seamlessly and had a lot of conton generals si planning and they won. i have a five-year-old son. i'm always challenging him to be a ninja, and i love it when he says, daddy, isn't that a ninja approach? that makes me think i'm partially succeeding as a parent. but part of the role of being a parent is, i think, in any view, is to instill confidence in your children, and you instill confidence when they make the wrong decisions. gave them choices and don't tell them what to do and they succeed on that basis and they think for themselves. one of the things i lament and

it's part of this book, is the fact we are changing as a society in different ways which are not healthy. we have changed in a country in the sense it used to be the kids would win and lose. now if your kid doesn't win, well, then you don't want -- in sporting events, you're afraid your kid might get hurt. every indication as a parent you are every bone in your body wants to protect your child from a teacher that gives your kid a bad grade or something else. but you have to let them get hurt, because if you think back in your own life and think back when you learned the most, it's been when you have failed. it's when you have not succeeded. when you succeed, you think you're smart. just get arrogant. when you make mistakes, you learn, whether it's in a permanent relationship or business or something you have none -- have done in life. which is another thing about

american society which distinguishes us from virtually every other society. we're the only society i'm aware of where it's okay to fail. because that, in business, is it badge of learning, a badge of experience, shows you learned something. one over the most common interview questions is employers asked tell me about when you failed and what you learned. that's part of our culture. failure is okay. it goetz good wilkes taking. i you have never failed, you haven't taken rests and in business, if you have no beside debt, you're not offering enough credit. and apple has failed. microsoft has failed. i have failed a lot, and i give a few examples in the book. that's when you learn and grow and take risks, and without something -- it's cultural, we're getting away from it. i had the joy last week of

guest-hosting on cnbc for the -- co-host can for cud low, -- kudlow and one of the things we talked about this school 0 school who cancelled the horizon -- honors program, and they stopped it because the kids who didn't make it would be upset. the united states has createdmer companies, every year, since world war ii, than europe has created since world war ii in total. there's a lot of reasons for that, it's expensive to create a company in europe, you can't fire people in europe. another is a culture of innovation that exists here. so, there's a myth in american society of the entrepreneur doing it all alone, and the

truth is that doesn't happen. thomas edison had hubs of scientist working for him. bill gates had a lot of guys working for him. and steve wozniak is out of the becomes ninja think -- thinker, but every company, there's team of people behind the outside visible person. i have yet to meet an entrepreneur who did it alone. it doesn't exist. one of the other myths -- this is coincidence with what i think is the strength of american society and dare if say even some of the laws i achieve over. when you hire people, the temptation is to hire someone just like you acts like you your background, win to your school or society. that's the worst thing you can do. you want to hire people that are not like you. that compliment your weaknesses that are different.

our diversity is one of the great american strengths. this is a diverse population. that's good. that's who we and are we should celebrate and it that's what makes us wrong abuse diverse people come with different approaches and ideas, and it's just that you're more open to new ideas. if you accept the fact their defendant -- different people around you. another thing that ninja innovators do is look at failure, and going back to failure, not as something bad but what do you learn from it? everytime we have a failure in my organization, which is frequently, or my home life, it's not -- i try to resist, who is to blame? like the first thing. and it's not my fault. i hate that. who cares whose fault it is. what happened. what tide we learn from this? i think i have that discussion daily in my life. what are we going to do next time avoid it.

and that what ninjas too, you learn. no matter how much you plan something in life, the plans are met with reality, or, that i was say in war, the best beatlefield plans go awry in battle. stuff happens in life stuff happens, in business, stuff happens in wars. you have to think on your feet. you have to be nimble and be quick and be prepared. but you have to be ready to do stuff. and i give a whole bunch of examples. i'm happy to talk about where people change and act flexibly and quickly to too something different. so what do you do? if you have a challenge and -- you do you meet it? you try to think outside the box and brainstorm. one of the cultural values i like in our organization, we are really good at brainstorming and the rule for brainstorming was no bad ideas. there's all different groups

approaching things different. we have meeting rules we follow and then we go down and use techniques to come up with what we think is a viable idea. when you start out you get some of the best ideas, and i doesn't matter in my organization. i appreciate good ideas come from anywhere and i especially value the people on the front line with the customers because they're hearing first hand what should be done, how to deal with things. our sales person -- our vice president of sales develop something called sure, which i love. sure. stands for sense of urgency, responsiveness and elm. the if you're calling with a complaint or not happy. you're calling, upset, so the person should responsible to you and get back to you. a sense of urgency. your call is important, and you can create criteria for that in terms of time.

empathy. their important. you have to say you understand the person is frustrated. that's basic customer service but that's one program we license out to others and use it and it has made a defense in allowing us to become the top of our field in the world. another thing we do, which i think is important and part of the ninja program, is we set very clear goals. we define what are successes. i meet with people every day. and i don't ask a brilliant set of questions. but one i always ask, how do you define your success? about half the time people can't answer that question. at it like on send or on obama -- on sendty. and we have 150 employees and every one of them is on incentive compensation, which is tied into overall goals for the organization. and those goals are developed by a staff team, reviewed by the

entire staff and commented on, then go to our governing board for approval. those goals are smart goals, s-m-a-r- scific, measurable- attainable, realistics, with a timetable. and we score offers and then we -- that determines our bonus. every employee also has their own smart goals which tie into this. i had an hour and a half meeting going over incentive compensation. the question is how that individual met their goal and ills the pool funded. and then that should get you a lot of results, and that's how people measure their success and what every good business will do or even as an individual, have goals. i see us running out of time. if you're interested in -- i guess i should caution you about one thing. i've learn we are on c-span, which is nice, so if you ask a question, don't let that intimidate you.

that's an opportunity. one of the rules we have for employees when you go somewhere on the organization's dime, you should ask a question, get e get noticed, doing something. you're not just there to take notes -- over indicationly you are. but i love questions. i can go into specific innovation or organizations or countries or government. i'm happy to talk about child raising even. any questions? thank you. i can even get personal if you what. >> i'm peggy miles. what about disruptive technologies and from your experience in the consumer electronics field, if you have an established company, what would you suggest to them has to how they would change, such as the record industry or the movie industry inlight of these situations. >> i have suggestions for all industries.

in the book i talk about broadcasting specifically because they have been so reluctant -- take the broadcasting industry. they had 100% market share in the early 1960s, and now the average american family -- only -- it's less than 8% of homes now rely sluice live on over the air broadcast. so that changed dramatic limp the market share has been doesn't you leave to look at where the trends are. there are trends clear that are going to happen. i'll give you four or five of them quickly. how will this change industries? certain trends. in 20 years, most of the cars on the market will be driverless. think about that. if you're in the collision dent improvement business or an emergency room doctor or you're selling auto insurance, or you're a driver, if i'm right -- and i think i am because the technology is there, just a matter of bringing the cost down. that's a great thing.

those people -- some people may want to drive and there will be a lot of live dislocation for that. ou recall be in a car and have time on your hands instead of driving. if you're disabled or drunk, what an opportunity to get yourself home. so a whole knew consumer market place which will be developing. i could be wrong, but there's a few other trends. we're going to clearly telemedicine. that's obvious. healthcare costs are killing us. there's an opportunity to monitor remotely. there's so many sophisticated devices. the sensing equipment is there the ability to use algorithms. my wife wears something 23 hours and 45 minutes a day, except when she showers. it monitors her caloriic output, she monitors what she eats, able to have a couple of kids at ama,

advanced maternal age, and lose the weight quickly. so that was a big deal for her and it's worked. there's a lot -- she is also a doctor, so very focused on these things. so the bottom line is there's great opportunities out there in health care that will change. what of the things which will be real, not earth-shattering, not as important as high definition television but up a hd. the next generation of high definition of the picture resolution, huge big screens. what changed is screens have gotten better, cheaper, bigger, thinner, and they weigh less. so you can gate phenomenal screen to the point soon we'll have wall tv everywhere wishes different video inputs that will adapt to you or play what you want. but ultra hd is another step towards wall tv. that will be there. and other sensing devices. the internet of things will be there. things will talk to each other.

right you we communicate on the internet. soon devices will talk to each other and know you come into the room, they go on. the way things are produced is changing dramatically. 3-d printing is huge. 3-d printing is getting down to a couple of thousand dollars and you can have a device in your home and it will create anything you want. the software is available. over 100,000 free apps which change -- produce things. now there's some controversy, could produce a gun but that's the french right enough it's the cheap things, hard plastics, but soon we can do that with foods, with biological, maybe even organize gaps, you can create things and that has so many ramifications and ways for so man different interests, and if

you're an existing industry, how too you feel with radical change? you have to think outside the box. there's a common view in organizations in big organizations, which i agree with, which -- big organizations are incapable of doing that because you're so busy protecting your current business model and your revenue flow that all the energy goes to that and everything else is secondary. so it's very common for big organizations to create a separate group that works on something groundbreaking. been the book about steve jobs, that's what apple was doing. steve jobs recognized he needed the energy segregated. one of the great things about america is we favor the small entrepreneurs and this is one of them. an entrepreneur can come along and be so much faster than big companies. big companies have silos, a lack of communication. the incentives are structured so you're not communicating with each other.

there's like thousands of reasons why big corporations do not innovate well and they're very frustrated. there are exceptions and i give a few of them in my book. in addition there's a company like 3m which has a corporate policy, must get its income out of new products over a five-year period, and that is their culture, and they've managed to do that there's so many others just stuck in the past. and you can see these companies are going to go down or go away or the stock price goes to nothing. so if you're in a big organization and trying to -- an individual cell -- i've asked people how do i sell my boss on something or the president -- this goes to empathy, which i will say is not my strongest trait, but that's putting yourself in the other person's shoes. solve their problem paint them the picture of something they want. solve it for them in a way that

is not risky for them or is explainable and defense s able and you have done your homework. the people advancing companies solve their bogs' problems, shape treasure successors, move up, flexibility, volunteer, all sorts of things. doesn't really matter. one of the most senior people, senior vice president who runs our trade show, doesn't have college degree. she was an entry level registration assistant. she volunteered for every job possible and was totally strategic, always training someone to replace her, and now she is running all our events and doing a lot of strategy. so, it's your ability to sell and paint a picture that answers. >> i want to ask a press question. you have worked with a lot of companies innovative, companies in the communication business and are taking market share readers, customers, away from the old line media companies.

the old line media companies don't fit your smart model, which seems very smart, in the approach to the changing world. what recommendation does you have for either the big media companies themselves or those of us who are trying to keep our jobs in the media world, to innovate, to embrace the future and to succeed? >> that's a great question. there are companies that have done it well. the wall street journal is an example of a company in my view, which is -- they're phenomenally well, and have tried different thingsful they have an online printed approach which works, and people say it's very high quality journalism, in my view, very objective and important and required reading. certain publications have done that. but there are publications out there which i'd be surprised if nip in this room heard of

because my son, who is 29, told me last night he is getting paid to write for a web site, and he said, i get a manipulate of 300,000 -- get a million of 300 mental views. have you heard other of a web site called cracked? there's two or three. your young. that's why. so, cracked, and i knew mad magazine, crack was the weak alternative. well, crack evolved for me the second tier publication for kids to the first tier comedy site in the world but most people under 35 know about and it most people over 35 don't. i think the thing to do is be curious, explore, final out what others are doing. i don't want to be one of these people that are biased against the media but sometimes i feel i am. sometimes it's driven -- we're focused on some star that has done something rather than some

substance that matters. there's a lot of me-too going on. prevailing story lines we don't get a. from that -- as opposed to a lack of original journalism. and i am -- don't want to pretend to be an expert in journalism but it is my fantasy job to write the stories about so many things going on in government, about so many different issues. i think i would try different things. if i owned a up newspaper, i'd k my readers, here is the thing. tell me what stories you want written. tell me what to do. crowd source your stories. do something different. if you're a broadcaster, what law says you have to have news on the hour and half hour. don't you think people would like to get their news or weather at a different time? they're still doing the same thing the same way, the same revenue model and not adopting and they're fighting everything

that come along. if the spend the energy'm not fighting but investing, it would be very different. with newspapers and print media and publishers -- just dealing with personners, i feel for them they don't know how much hard copies to print. it depends on the book at it difficult. but the smart ones are doing research and coming up with database decisions, algorithms based on whatted anded in the past and what works and what doesn't. and when everybody talks about the cloud, what it really means -- what is significant about the cloud not that all the data is somewhere. what its significant it that there are increasingly quickly analytics being developed which allow you to assess what works and doesn't work and develop business strategies as a result of that, and that is missing from a lot of businesses today, especially in the media world. they're not out there responding. what they're doing is if someone has a reality show based on

singing, there wil be all of a sudden five shows on storage and garages and pawn stores. all there is it basically replication rather than trying to be creative. the most important thing in life is to be creative and original and find your own voice you open business, your own thank you. if you're always copying, you're always a step behind someone else. one of the most common mistakes in the best interests -- business world, it's a human tendency to try to preserve what you have, think the world is not going change, but yet your competitors are monomericking the same decisions you are in my world of consumer electronics, the reason it's a lousy business, everybody is building excess factories for the hottest items but not very profitable. so rather than building their own product that is original,

like apple, they're going out and trying to replicate a successful company and by that time the successful company has moved on to something else. i saw another question or two. >> i'm a cofounder of a startup. i have a question about during the past days -- past week, "the new york times" and the "washington post" had articles about the threat of the united states losing its startup supremacy because of other countries to attract from other' -- from the world, and if reminds me a little bit of, after sputnik, the government launched the nation at risk to try for schools to kind of keep up a little bit with innovation and homework was pushed and other things and then we kind of

fell asleep a little bit again. but what is your -- what are your thoughts around these being real threats or whether the countries are doing and what can government do or what is government doing to support startups in america? >> well, first of all, thank you for the question, and thank you, most deeply, for coming to america and starting a business. you're the immigrant success story we want to emulate. i know about your business, text to message business. you allow people to congress tact their congressman through a simple text approach and i know it's been used successfully. but in terms of -- i'm not worry evidence about other countries doing well. that what we want. we want other countries to try to be like us, to have innovation. i don't think that's a bad thing. we don't have a monopoly on innovation, i mentioned the immigrant population that says, not only highly educated but

also entrepreneur. we want those people to come here and stay here and feel welcome here. there are other things that are threatening. seem to be coming up. for example, when i asked 2000 company, if we can get congress to change one thing, what it be in change the law on patentsment almost every company is being threatened by these patent trolls, people that buy up an old pat tent, they have no employees other than lawyers for the most people and people that wright threatening letters and scare the heck out of startups and it chokes off their funding, and for larger companies it's taking away hundreds of millions of dollars of settlement because the minimum of defending, is a million dollars, and for. companies it's the difference between profit and loss. you don't know what the result is going to be so you find --

these trolls are smart. they know your financial and your choke point and they force you into a settlement. so there's a proposal now in congress, which is bipartisan, which actually would say that very simple change of the law. if you do not have an separating belt that is creating something, and you lose a pat tent lawsuit. you have to pay the loser's fees. so it's a loser pay system like in britain. near just one area for patents, that would make a big difference. we also have to -- president obama gave a brilliant state of the union address in 201 , when he talked about the american dream and innovation. right after my book came out and everyone swore it was from my book. it wasn't. what he gave was a visionary speech about who we are as americans and what we do, and this should be our strategy, and here's the things we have to change. but i think we are threatened by some of the things, frankly, he

has done. 5,000 rules propose net the -- proposed in the last four months. no one can keep up. it's difficult. there's a lot of barriers. we also have this healthcare thing which frankly no one quite understands and a lot of people are saying, including nancy pelosi, we don't know what it is but we have to pass it anyhow. so now that has become a barrier to start a business because of the uncertainty. not because of what it its in. because people aren't sure what is it in. and similar to what is going on between the republicans and democrats with regard to the budget. what think government do? they can just become adult. perform responsibly do the job we pay them to do. part of the challenges can we have this crazy system of elections where almost one congressional district is far to one side, and you have -- most of america is in the middle but most of our politicians are on

the side and the extremes and you have to pass their test. i'm part of a group called no labels and it's dedicated to the fact you should put your country before you party and people should talk across the aisles and come up with solutions. nolabels.org, and we have 53 member office congress, and they're meeting and talking to each other. so what can our government do? you know, senator mcgovern was a very liberal democratic senator. ran for president i believe against richard nixon. he didn't win at all. he is a very good senator, stayed as a senator, but retired and opened up a business, and after he had the business for a few years he wrote something pretty profound. he said i had no idea as a legislator that all these well-intentioned things i do was a new burden for a business and

there was a cost to it. and what i think we should do, we should elect people to congress who have been in business because they'll understand that there's always a tradeoff for anything well-meaning. so what can the government do? i hate to say it but consider the fact jobs are the biggest -- we need jobbed jobbed and if yot that as number one, like bill clinton did, they'll approach it differently than the other goals. i could spend hours giving you other examples but i appreciate the question, and again, thank you for coming here. >> gary, you revved to the "wall street journal" here at the press club, very pertinent article today. atlanta pediatrician whose hand was getting numb as her wheel was cold and she came up with a device to help deal with inknock calculations and make it painless. what can parent does, what can schools do, and what can

employer does? you have already commented on governments to some extent. what can they do also so that we have a more creative, more innovative nation. >> talk about it. i think part of emotional intelligence and adulthood is self-awareness of your weaknesses and your strengths, and being able to put yourself aside and say, that would we have to do here? i think we need a national dialogue on innovation. one of the few things democratss and pup republicans believe in. growth and innovation, and having done a whole bunch of book signings, i'm often touched and approached by people like that, doctors and others who have seen a need and can address it and we're we're sharing a moment in history today, right now where never before in the history of mankind has it been easier for somebody to start a business. anyone with access to the internet can start a global business and it's gotten easier. if you had a hardware product you had to have a thousand chip

designers. now it's well under 100. and a small group of people. you get the idea. you hire some applications writers and you have a product because the time of creating a product and selling a product has gone almost to zero and that's an opportunity. i think we have to do as a society and country, talk about innovation and international strategy, and i am going to get personal and tell you why i am passionate about this. as a couple of -- i am 56 years old. i have two older kids, 29 and 28 years old, delightful kids,ing too great by almost every measure but i also got remarried later on in life when i was -- i don't know -- 46 or so, and i married a woman a few years younger than me, who i'm not supposed to tell her age, and i could get in major trouble, and we didn't talk about having children because we thought we

were past that age but after a few years of marriage she got pregnant, and that caused a lot of intro specifics on my part because being an older parent is very different than being a younger parent. when you're young are, at it something you do part of the cycle of life. you just do it. as an older parent -- first of all i wasn't sure i wanted to second i realizeled i would not be alive for most of my kid's life so a fair question to your kid, is that the right thing to do? and it caused a lot of intro specifics and it changed me. i do not want to leave this society worse than i found it to this kid. as a generation, while weed anded in having phenomenal innovation and great progress and technology, we have totally failed the next generation by stealing from them. so that's why i'm passionate about innovation. shockingly, despite this experience, i have a son would turns five, and a wonderful, delightful kid, and i might add, he speaks three languages, not

allowed to watch television. we have a -- he speaks map -- mandarin and polish, and money wife believes champion is the future and we have a fulltime chinese nanny. my wife is from poland and still peeks that language with him and her parents. and english, because they the only thing i understand and i want to know what's going on occasionally. having given all that experience i'll share you more, how incredible or dumb or lucky i am. my wife got pregnant again and now we have a ten-month-old child. it was an interesting experience in the doctor's office but here we are. it really shapes my passion. i'm fortunate that the leadership of my organization supports this total match between innovation. we have created called the innovation movement. dedicated to principles that the most important thing for the nation is innovation. let people fight about the

deficit in term office tasks and spending. we are the only organization that actually supported the simpson bowls commission sayings race tasks and cut spending but we focus on policies that lead to innovation so that's what we believe our government should do. it's free. innovation movement.com. and also, as parents, i think you should take about -- give your kid confidence, focus on them making decisions,ol now make it for them. talking about some big issues, lest time on celebrity, more time on science. and in terms of our schools, i'm not one of these people -- my father was a sixth grade teacher. i know dish don't know how difficult -- i've heard how difficult it is to be a teacher. on the other hand, some people audio learners, some video, some people personal, some read books. people are different and our

schools have to recognize that, and just as in my world of employees, we treat our employees and pay. theferently. if they don't work out we move them along teaching is a little tough. although my father was onon organizer for teacher i'm not sure that unions make as much sense as they should especially even as you go up to tenured teacher, at the university level. i was asking a president of a very large local university what his biggest problem was, and he said it's the tenure system combined with the age discrimination lawsment we have people who are 80 years old and we're not allowed to get rid of and they were trained 0 years -- 60 years ago. so we have to paytive rep chalet and recognize teachers are important and val kubel should be paid as such. my father-in-law who escaped communist appellant -- poland with his wife and my wife. and they couldn't survive

communism. he says because you basically had a system which didn't work in some areas. what he does talk about, at least in the communist country, we respected teachers more and respected scientists. they didn't make as much as athletes make here, which is not the american way. i'm not going to take that issue on because that's the free market thing, but we have to respect and appreciate those that are teaching our kids. >> good evening, mr. gary. my name is miguel joey. i'm a motivational speaker on diversity and change. you mentioned several times today the importance of the multi cultural diversetive in the u.s. how do you think we can apply innovation in the immigration reform? >> thank you for the comment. i'm still stuck on the fact you're a motivational speaker on diversity, and i'm humbled you

would ask auestion. immigration reform. i think the democrats are there, run runs -- republicans are getting there. diversity is important and it's strong. but right now, the immigration laws -- today's laws before congress may change chem -- are crazy. not only in terms of the ph.ds and master degree people we're training and kicking out of the country, but the fact that the house of representatives passed, with almost every democrat voting against it last year, legislation which would have taken the slots we give for random lottery winners, which might meet a goal of diversity and giving them ph.ds, i'm all for diversity but i don't think these people into this country because they won a lottery. we should decide who we want here and good after those people and whether it's because they're smartest, cleverress, morse entrepreneurial people in the world. i don't want someone who says this is how you get you free

ticket to the u.s. the other thing that makes me look insensitive, 90% of the votes are filled by family members and it's a broad concept. so republican say they have to wait on line, there's no toned that line because they're more family members because once you become a family member, then you have family members members andy people and do things like that. it's crazy. so i would change the -- if i was king and could make laws, i would change immigration laws to get the best and the bright, the entrepreneurs, the people weapon want, and before we let family members and other people in, there's criteria. are you going to be a burden on social service? do you speak english? there's a novel concept. why not -- can you pass the citizenship test? are you of good moral standing and -- i mean, so, our entire system now is clogged with family members. i understand that -- of course you want your family members he. i also see, and i hear about it through various people that are

dealing with this, including my wife, who is a doctor, who deal waifs lot of poor people, how the system is played and gamed and people come here and get free healthcare. it's not a good thing. so i love diversity but i'mment competence based diversity and that's how i would do it. that can sound ongoing there is a value in randomness, but above randomness i think is getting people who will buy into the culture of the u.s. as well, who will learn to speak english and will share our values. our values, for example, like -- i don't want to offend anyone but there are certain societies in the mid-east which devalue women. don't let them drive. which are unacceptable in america. i don't want people that think women should be enslaved to come to the united states. that is my prejudice. i don't know if -- i'm not in charge anyhow so what

difference? ladies and gentlemen, thank you for coming. i see my time has elapsed so i'll -- i'm supposed to tell you i will be here if you want to sign and talk to me, as long as you want me to be. thank you for coming. [applause]

>> if you cut demand for somebody's product per total we 60%, here's what actually happens. the average amount medicare reimburses per day in a hospital has grown by five x. since 1983. so, 60% decline in the number of patients, five x increase in the price. we should all be so lucky. i want to be in that business. now, there's another statistic

which is entirely sort of irrelevant but fascinating. hospitals tell medicare what their costs are. so that medicare can compare the price they pay to hospital's costs. so, in those years that medicare increased the price bay by household by five times, hospitals reported that their costs had increased eight times. so, the interesting thing is, our demand collapsed. in any industry that would bev def -- devastating. medicare pays five times as more but the hospitals say they're only getting reimbursed oh ho% of their costs down from 70%, and one of my most fun -- you have to stand outside to see this -- medicare insists that hospitals perform medicare services at a loss. and that loss has been growing. you can see the number. that loss has been growing over

the last decade. since medicare patients are the bulk of our hospital patients, nobody has ever successfully explain and medicare never asked why people are still building hospitals? because you would think if you lose money on every patient you want to reduce volume, not increase volume. there's a lot of that in health care. a lot of things in health care you go if i get off the island and think in terms of the real world, you know, if you have a decline, probably wouldn't be increasing -- building new factories. i want to spend one more moment on prices. because prices are the circulatory system of the real economy. one of the things mow misunderstood in health care, but these things drive the way human beings receive service. one of the things we assume is that we pay for health care. the question is, how do we pay for health care? one of the arguments i i'm making today is the how