INNOBLOG

Innovation is the engine of economic growth. Companies that create new products, services, and business model can create profitable growth and substantial consumer welfare. Yet, sometimes there can be too much innovation.

Consider a recent article in The Wall Street Journal describing how automakers are creating new ways for drivers to start their car. Instead of manual keys, more than 50 2008 models feature push-button starters. Drivers of push-button cars still have to carry a small device that emits a wireless signal that authenticates the driver.

Not to be a Luddite about it, but what exactly was wrong with using a physical key to start a car? The process is familiar, it is easy to transfer a key to another driver and the process takes about 10 seconds.

Saving 10 seconds is wonderful in todays hectic world, but theres a catch...

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