Turning Invention Into the Mother of Innovation

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June 10 (Bloomberg) -- Jay Walker, founder of Priceline, discusses the perils of the U.S. patent process, the state of innovation in America, explains why most innovation is never seen by the public and marketplace and his efforts to innovate the insurance industry. He speaks on Bloomberg Television’s “Market Makers.”

Always the same.

What did you invent?

For most people -- how many patents do have?

I hold a 730 u.s. patents.

Are you most proud of any particular patent?

The underlying invention that created a $60 billion mac market.

Rice line.

I'm working very hard -- priceline.

How do we get them into the u.s. economy?

There are 2 million u.s. patents that have never generated one dollar of licensing income.

That is a great question.

Why?

The only way to get a license in america is to have a lawsuit.

We have a country where, if you are an inventor and you invented a solution to a problem and you can't sue somebody, you will not get anybody to license it.

The system is broken.

I don't want to start the conversation on a down note.

Let's talk about innovation.

You belly wait for us.

-- evaluate for us.

Most innovation in the world is making things a little bit better.

If they are a guy creating a new chemical, it's about making things better.

Most things are about singles and doubles.

A professor from northwestern wrote a very provocative and influential paper.

Innovation in america is dead.

That's not true.

We have an innovative nation -- all we have to do is look at the types of innovations that bubble to the top.

When you look at what's going on on college campuses and what's going on in medical research, you see innovation all across the economy.

What you don't see is a lot of innovation getting into products and jobs.

You see plenty of people innovating -- his criticism is that america is no longer the home for transformative innovation.

I wonder what countries he is visiting.

If we are not the home, what is uber all about?

What are the face books and things we see?

I don't see those things coming from abroad.

Economies are not grown by transformative innovation.

They are grown by blocking and tackling.

Is that an insult to you?

All the great minds are these 25-year-old.

There is plenty of innovation at ibm and microsoft.

They have norma's amount of r&d -- enormous amounts of r&d. they don't license them outside and don't get patents on them.

If they do, they can't get a license.

Why don't the ibms and microsoft of the world get credit for the innovation that is going on inside?

Ibm has suffered at the hands of shareholders lately and uber raised money to $17 billion.

Or we to believe that there is nothing going on at ibm that is as valuable as what uber has done?

It was originally a hardware manufacturing company.

It went into consulting.

Ibm has been steadily innovating . maybe not as much as it needs.

It is a big company and it's tough to do.

You look at the ibm today and is completely different from the ibm of 40 years ago.

The insurance industry is exactly the same.

You look at ibm as an innovator today?

When i visit their campus, i'm not sure if i feel like it's a hub of innovation.

You might not feel the buzz, but you go into ibm labs addressing innovation.

When you are growing off a base as big as ibm -- look at the insurance industry.

You want to see in an industry that is in need of innovation.

There has been some -- there has been some innovation on the insurance side.

Catastrophe bonds.

Some innovation.

The good health insurance and life insurance, disability and long-term care -- you look at innovation, good look at those segments.

Life insurance as part of the safety net of our country.

Try to find their life insurance today.

Nobody buys it.

It is too much trouble.

You were the guy with 700 patents.

You run ted med.

Give us a good idea.

How do you innovate in the insurance industry?

Here is how we do it.

We start giving americans a chance to change their premiums when they behave differently.

We create and adjust will product that uses our lifestyle to say, hey, if i'm eating better and getting exercise and sleep, my life insurance premiums are to drop.

Employers start to paying for my insurance if i start acting healthier.

We have no feedback loops.

Isn't that already happening in the health insurance industry?

Of wellness programs here.

You are the exception.

Most of corporate america has yet to figure out how to create wellness sense for employees.

We have the phones and the networks and the begin of software.

You will see changes in behavioral feedback loops in insurance and health that you have never seen in the last 50 years.

That will be pretty exciting for america.

What is something we can look at as right for innovation?

Health care is right for innovation.

Anybody who has been to the doctor's office and has filled out the same form 10 times were had an elderly parent who has not been nearby who has to somehow manage care remotely understands, we need to change the game.

Are we anywhere near the funding to innovate?

When you unlock entrepreneurs and innovators, it's amazing what you can do with very little funding.

We have the bones, the cameras, motion sensors.

We have the elements.

What we need are the inventors to put this together.

We are good at putting systems together.

We leave the world at knitting things together.

The chinese may be better at making it, but we are better at putting it together.

It is the beginning of what

This text has been automatically generated. It may not be 100% accurate.

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