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The study found that arts and crafts activities - such as painting, dancing and filmmaking - are closely related to success of the scientists, engineers and other innovators who create new companies and inventions that stimulate the economy. Yet during the past decade Michigan has cut funding for the arts by some 90 percent - from about $25 million in 2002 to $2.3 million this year. In Detroit, officials attempting to balance the budget have proposed large cuts to the city's arts and cultural institutions.

"Climate change caused by global warming is slowing down world economic output by 1.6 percent a year and will lead to a doubling of costs in the next two decades, a major new report said."

Despite a shaky economy, many web companies are in hypergrowth.  This is reminiscent of the five-year period over a decade ago when companies like Amazon, Netscape, eBay, Yahoo, Google and PayPal were built. One challenge, which isn't new, is the battle for consumer attention.  If you're looking to grow your user base, is there a best way to cost-effectively attract valuable users?  I'm increasingly convinced the best way is by harnessing a concept called social proof, a relatively untapped gold mine in the age of the social web. What is social proof?  Put simply, it's the positive influence created when someone finds out that others are doing something.  It's also known as informational social influence.

Humans are pretty good at rolling with short bursts of pressure, but chronic uncertainty throws us for a loop. Anticipating a major stressful event can be worse than the actual occurrence itself, research shows.  When we fear the hatchet will fall, when the future is a fog, when we're paralyzed by powerlessness, we start to flip out. We pile on more work than we can handle. We don't take sick days when we need them. We start fueling up on coffee and cigarettes, and dropping the things that are good for us, like leisure activities and trips to the gym. Under chronic stress, our immune systems start to buckle from "overresponsivity."

"Pathbreaking research by a group of scholars including Eric A. von Hippel, a professor of technological innovation at M.I.T.'s Sloan School of Management, suggests that the traditional division of labor between innovators and customers is breaking down. Financed by the British government, Mr. von Hippel and his colleagues last year completed the first representative large-scale survey of consumer innovation ever conducted. What the team discovered, described in a paper that is under review for publication, was that the amount of money individual consumers spent making and improving products was more than twice as large as the amount spent by all British firms combined on product research and development over a three-year period. "We've been missing the dark matter of innovation," Mr. von Hippel said from his office in Cambridge, Mass. "This is a new pattern for how innovations come about." "

von Hippel and Baldwin also produced a related, intriguing paper in 2009 that can be found here http://hbswk.hbs.edu/item/6325.html entitled "Modeling a Paradigm Shift: From Producer Innovation to User and Open Collaborative Innovation." The conclusion of the paper reads: "We conclude by observing again that we belive we are in the midst of a major paradigm shift: technological trends are causing a change in the way innovation gets done in advanced market economies. As design and communication costs exogenously decline, single user and open collaborative innovation models will be viable for a steadily wider range of design. They will present an increasing challenge to the traditional paradigm of producer-based design - but, when open, they are good for social welfare and should be encouraged."

Strapped for time and cash, small local businesses are increasingly turning to free and low-cost social media tools for their marketing efforts. Not surprisingly, the world's biggest social networking site tops of the list of preferred tools. Seventy percent of local businesses use Facebook for marketing, according to a new report from Merchant Circle, a network of U.S. local business owners. This represents a 20% increase over the previous year. The report notes that for the first time, Facebook is being used more than Google by local businesses for online marketing.