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and then they came out with this consumer ＇software＇ program and people could do it
themselves； and I shaped them so magazines could use them。 I just upload them as a
series of JPEG files。 。 。 Morphs have been a good business for different magazines。
I even get fan mail from kids！〃
Greer had never done morphs until the technology evolved and created a new；
specialized niche； just when a changing market for his work made him eager to learn
new skills。 〃I wish I could say it was all intentional；〃 he confessed。 〃I was just
available for work and just lucky they gave me a chance to do these things。 I know
so many artists who got
washed out。 One guy who was an illustrator has become a package designer； some have
gotten out of the field altogether； one of the best designers I know became a landscape
architect。 She is still a designer but changed her medium altogether。 Visual people
can adapt； but I am still nervous about the future。〃
I told Greer his story fit well into some of the terms I was using in this book。 He
began as a chocolate sauce （a classic illustrator）； was turned into a vanilla
commodity （a classic illustrator in the computer age）； upgraded his skills to become
a special chocolate sauce again （a design consultant）； then learned how to become
a cherry on top （a morphs artist） by fulfilling a new demand created by an increasingly
specialized market。
Greer contemplated my compliment for a moment and then said； 〃And here all I was trying
to do was survive…and I still am。〃 As he got up to leave； though； he told me that
he was going out to meet a friend 〃to juggle together。〃 They have been juggling
partners for years； just a little side business they sometimes do on a street corner
or for private parties。 Greer has very good hand…eye coordination。 〃But even juggling
is being commoditized；〃 he complained。 〃It used to be if you could juggle five balls；
you were really special。 Now juggling five balls is like just anteing up。 My partner
and I used to perform together； and he was the seven…ball champ when I met him。 Now
fourteen…year…old kids can juggle seven balls； no problem。 Now they have these books；
like Juggling for Dummies； and kits that will teach you how to juggle。 So they've
just upped the standard。〃
As goes juggling； so goes the world。
These are our real choices： to try to put up walls of protection or to keep marching
forward with the confidence that American society still has the right stuff； even
in a flatter world。 I say march forward。 As long as we keep tending to the secrets
of our sauce； we will do fine。 There are so many things about the American system
that are ideally suited for nurturing individuals who can compete and thrive in a
flat world。
How so？ It starts with America's research universities； which spin off
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a steady stream of competitive experiments； innovations； and scientific
breakthroughs …from mathematics to biology to physics to chemistry。 It is a truism；
but the more educated you are； the more options you will have in a flat world。 〃Our
university system is the best；〃 said Bill Gates。 〃We fund our universities to do a
lot of research and that is an amazing thing。 High…IQ people come here； and we allow
them to innovate and turn ＇their innovations＇ into products。 We reward risk taking。
Our university system is competitive and experimental。 They can try out different
approaches。 There are one hundred universities making contributions to robotics。 And
each one is saying that the other is doing it all wrong； or my piece actually fits
together with theirs。 It is a chaotic system； but it is a great engine of innovation
in the world； and with federal tax money； with some philanthropy on top of that； ＇it
will continue to flourish＇ 。 。 。 We will really haVe to screw things up for our absolute
wealth not to increase。 If we are smart； we can increase it faster by embracing this
stuff。〃
The Web browser； magnetic resonance imaging （MRI）； superfast computers； global
position technology； space exploration devices； and fiber optics are just a few of
the many inventions that got started through basic university research projects。 The
BankBoston Economics Department did a study titled 〃MIT： The Impact of Innovation。〃
Among its conclusions was that MIT graduates have founded 4；000 companies； creating
at least 1。1 million jobs worldwide and generating sales of 232 billion。
What makes America unique is not that it built MIT； or that its grads are generating
economic growth and innovation； but that every state in the country has universities
trying to do the same。 〃America has 4；000 colleges and universities；〃 said Allan E。
Goodman； president ofthe Institute of International Education。 〃The rest of the world
combined has 7；768 institutions of higher education。 In the state of California alone；
there are about 130 colleges and universities。 There are only 14 countries in the
world that have more than that number。〃
Take a state you normally wouldn't think of in this regard： Oklahoma。 It has its own
Oklahoma Center for the Advancement of Science and Technology （OCAST）； which； on its
Web site； describes its mission as follows： 〃In order to compete effectively in the
new economy； Oklahoma
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must continue to develop a well…educated population； a collaborative； focused
university research and technology base； and a nurturing environment for cutting…edge
businesses； from the smallest start…up to the largest international headquarters。 。 。
＇OCAST promotes＇ University…Business technology centers； which may span several
schools and businesses； resulting in new businesses being spawned； new products being
manufactured； and new manufacturing technologies employed。〃 No wonder that in 2003；
American universities reaped 1。3 billion from patents； according to the Association
of University Technology Managers。
Coupled with America's unique innovation…generating machines…universities； public
and private research labs； and retailers…we have the best…regulated and most
efficient capital markets in the world for taking new ideas and turning them into
products and services。 Dick Foster； director of McKinsey & Co。 and the author of two
books on innovation； remarked to me； 〃We have an 'industrial policy' in the U。S。 …it
is called the stock exchange； whether it is the NYSE or the Nasdaq。〃 That is where
risk capital is collected and assigned to emerging ideas or growing companies； Foster
said； and no capital market in the world does that better and more efficiently than
the American one。
What makes capital provision work so well here is the security and regulation of our
capital markets； where minority shareholders are protected。 Lord knows； there are
scams； excesses； and corruption in our capital markets。 That always happens when a
lot of money is at stake。 What distinguishes our capital markets is not that Enrons
don't happen in America…they sure do。 It is that when they happen； they usually get
exposed； either by the Securities and Exchange Commission or by the business press；
and get corrected。 What makes America unique is not Enron but Eli