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SILICON SILIC CHIP www.siliconchip.com.au Publisher/Editor Nicholas Vinen Technical Editor John Clarke – B.E.(Elec.) Technical Staff Jim Rowe – B.A., B.Sc. Bao Smith – B.Sc. Tim Blythman – B.E., B.Sc. Nicolas Hannekum – Dip.Elec.Tech. Advertising Enquiries Glyn Smith Phone (02) 9939 3295 Mobile 0431 792 293 glyn<at>siliconchip.com.au Regular Contributors Allan Linton-Smith Dave Thompson David Maddison – B.App.Sc. (Hons 1), PhD, Grad.Dip.Entr.Innov. Geoff Graham Associate Professor Graham Parslow Dr Hugo Holden – B.H.B, MB.ChB., FRANZCO Ian Batty Phil Prosser – B.Sc., B.E.(Elec.) Cartoonist Brendan Akhurst Founding Editor (retired) Leo Simpson – B.Bus., FAICD Silicon Chip is published 12 times a year by Silicon Chip Publications Pty Ltd. ACN 626 922 870. ABN 20 880 526 923. All material is copyright ©. No part of this publication may be reproduced without the written consent of the publisher. Subscription rates (Australia only) 6 issues (6 months): $65 12 issues (1 year): $120 24 issues (2 years): $230 Online subscription (Worldwide) 6 issues (6 months): $50 12 issues (1 year): $95 For overseas rates, see our website or email silicon<at>siliconchip.com.au Recommended & maximum price only. Editorial office: Unit 1 (up ramp), 234 Harbord Rd, Brookvale, NSW 2100. Postal address: PO Box 139, Collaroy Beach, NSW 2097. Phone (02) 9939 3295. ISSN 1030-2662 Printing and Distribution: Editorial Viewpoint Risk aversion stifles innovation Reading Dick Smith’s autobiography for the review (p37), I noticed several recurring themes. Two of them are “surround yourself with capable people” as a business strategy (good advice!) and the concept of “responsible risk-taking”. I have felt for a while that the latter is sorely missing from the Australian landscape, especially now; clearly, Dick feels the same way. He’s referring to the concept of being willing to take risks as long as you judge them to be reasonable, such as climbing a cliff or flying a helicopter through bad weather. For this to work, one has to be capable of assessing risk and taking personal responsibility for one’s own safety (what a quaint concept!). While I see over-the-top risk aversion all over our modern landscape, one area in which it is evident within Australia is in the fields of business, technology and innovation. Have you noticed how most multi-billion-dollar global juggernaut companies, especially those which are technology-based, are from the USA (or sometimes Europe)? Australia has plenty of fine minds, including scientists and engineers, so why can’t we create success stories like those? ‘Brain drain’ is part of the problem, with many Australians moving overseas to America (or other places) chasing better prospects (including me, briefly). A lot of it comes down to risk vs reward, including both ends of that equation. In terms of risk, American and European investors are more willing to bet their money by investing in up-and-coming technologies and concepts. Australians seem to view the stock market as a kind of bank account, especially now that we have enforced superannuation, and demand low risk (and get relatively low returns as a result). Many people turn up their noses at rich people, but it’s the drive to become one of them that has made so many people work hard to create the foundations of modern life. Dick Smith did this when he created Dick Smith Electronics (his ex-senior manager, the late Gary Johnston, did it again with Jaycar Electronics). Dick decided to ‘quit while he was ahead’, unlike many others in his position, but that’s beside the point; his desire for money and success drove him to create something valuable more than once. But younger generations (and this includes me) have mostly been raised in a cocoon, never being allowed to take many risks. I don’t think I’d have the guts to do what Dick or Gary did. I’m not sure I could have even created Silicon Chip from scratch like Leo Simpson and Greg Swain back in 1987, even though I seem to be able to keep the magazine going just fine. Unless we allow young people to use (and hone) their judgment responsibly and learn how to weigh up risks and rewards, I don’t see how we can compete on the global business and technology stage. And that can’t happen if we don’t allow people to use their judgment. Innovation and risk-taking are activities that often go hand-in-hand. How many realise that there is risk in the act of not taking any risks? You miss many opportunities when you’re laser-focused on the negatives and ignore the potential positives. We wouldn’t be where we are today if our ancestors were huddled in caves, scared to go out into the dangerous world. Some of them took journeys of thousands of kilometres in small canoes to settle far-off lands; they didn’t even know if, or when, they would see land again. Imagine having the fortitude to do that! And we’re pretty much all descended from those brave explorers. by Nicholas Vinen 24-26 Lilian Fowler Pl, Marrickville 2204 2 Silicon Chip Australia's electronics magazine siliconchip.com.au