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Successful countries today are not necessarily large geographically, nor richly endowed with natural resources, nor able to project military power beyond their borders. More and more, the countries to look to are those which have managed to expand opportunities for their populations through the full exploitation of the opportunities afforded by the world economy through international trade, foreign investment, the adoption of new technologies, macroeconomic stability, and high rates of saving. In building the Innovation Capacity Index (ICI), the authors draw on a sound theoretical framework and the best available data to correlate the wide-ranging set of relevant factors, policies, and institutional characteristics which play a central role in boosting a nation’s capacity for innovation.

In sharp contrast, in Europe, not even the Church was able to restrain the new technology and all its uses. In all of these examples, one sees innovations spreading gradually, sometimes over several decades, “diffusing across countries and regions as people moved up learning curves and gained efficiency through practicing and improving the new techniques” (Goldstone, 1996). An interesting question—to which we shall turn our attention more fully in the next section—concerns the factors that may help create an environment that nurtures the capacity for innovation.

What is new is the sheer computing power of today’s data centers. This power has grown to the point where it is now feasible for individuals and institutions to move virtually all of their computing work out of their server rooms and into somebody else’s data center, whether it’s a data center run by Microsoft, Google, IBM, Amazon, or somebody else. The advent of “the cloud,” much like the advent of the Internet and the electricity grid before it, has the potential to catalyze a new wave of innovations for a number of reasons: •Cost Savings: Cloud computing relieves people with big ideas of the large costs of setting up their own servers or acquiring other hardware.

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An Ethics for Corp Governance


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