ELECTRIC COMPANY: International CES is one of the most high-profile trade shows in the world, Gary Shapiro said, because the Consumer Electronics Association’s strategy “has been that we have continuously redefined the show ... to expand and to capture innovation that’s current.”

strategy that’s focused on innovation. Since Sept. 11, 2001, we have not focused on a strategy of innovation; we’ve gone the oppositeway, and our government has made a series of bad deci- sions which has affected our national ability to innovate—from closing the doors of our country to the best and the brightest fromaround theworld, to closing the doors on trade, to expand- ing the deficit and sending us in an inflationary spiral and aweak dollar, which is certain to occur in the future.

If your son is three, then he was born right about when the economy was melting down. Was the financial crisis the immediate impetus for your book? Afew years ago our board had a rather strategicmeeting where we said, “Forget the agenda. What is important for the health of our industry—the technology industry in the United States?” That’s how we define ourselves; we’re a U.S.-only association. Despite the success of our [international] event, we represent the U.S. economy and the needs of U.S. companies.We said, “What’s the most important thing in the next five to 10 years?” And everyone on our board agreed very quickly it was the health of the U.S. economy. And everyone agreed, we will not be doing well. These are serious business leaders—many of them head stock-exchange–traded companies—and they were agreeing with each other that they were in trouble in the next five to 10 years.

Based on that meeting,wecame up with a strategy and a plan www.pcma.org

of saying, “Focus on the U.S. economy first.” Recently, our board was the only association board that I’m aware of that as soon as the [National Commission on Fiscal Responsibility and Reform] came up with its findings—actually, even before —we embraced them.We support deficit reduction, because we view it as so serious for the future of the country. And we formed something called the Innovation Movement

a couple years ago.We’ve already attracted over 100,000Amer- icans to it. The Innovation Movement is based on the fact that we as a nation have a unique advantage compared to others.We are focused on innovation. That’s who we are. That’s judging by not only what’s coming out ofmyindustry, but [also] biotech- nology, medicine, music, movies. The strategy of the United States, in my view, should be

focused on innovation.We should recognize who we are, and I think PresidentObamaand Republicans and Democrats are close [to doing that]. I think the answers they come up with aren’t— I don’t think it requires the government to start choosing win- ners and losers and things like that.But I think it does require an acknowledgement that this iswhowe are.Here are our strengths: We’re entrepreneurial. We’re innovative. We have very, very bright people, and we want the brightest people to come here. And that has not been our strategy as of the last few years.

Within the context of The Comeback and the Innovation Movement, how do you define “innovation” itself?

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