Robots take giant leap forward

The world’s most advanced set of robot legs has been developed by a team of scientists in the US, raising hope for advancements in understanding how the brain controls muscles and could help with the treatment of spinal injuries.

The team of experts from the University of Arizona discovered that they could mimic the central pattern generator (CPG), a part of the spine that partially controls the hips, knees and ankles. They were then able to design artificial legs with the information.

Announcing the findings in the Journal of Neural Engineering, the experts said: “This robot represents a complete physical, or ‘neurorobotic’ model of the system, demonstrating the usefulness of this type of robotics research for investigating the neuropsychological processes underlying walking in humans and animals.”

One of the scientists involved, Dr Theresa Klein, said: “Interestingly, we were able to produce a walking gait, without balance, which mimicked human walking with only a simple half-centre controlling the hips and a set of reflex responses controlling the lower limb.”

Another of the experts, Anthony Lewis, told AFP how the system worked: “We combined the three elements, the biomechanics and a complex central pattern generator with sensory feedback. When we put all three together, the resultant movement was very much like a human being’s and we know that because we saw a very good agreement with what we saw in human studies, particularly in the movement of the robot at the hip and knee.”

The potential for this development is huge. Greater understanding of how the brain and spinal cord translates information into moving the legs will help researchers develop treatments for spinal cord injuries.

South Korea to continue whaling in pursuit of ‘science’

Hunting whales in the pursuit of scientific research is one that many whaling countries use to justify their deeply unpopular expeditions. Amongst them is South Korea, who this week announced that it plans to continue hunting whales for the purpose of science at a meeting of the International Whaling Commission (IWC) in Panama.

A loophole in the IWC 1986 moratorium on commercial whaling permits countries to hunt whales in the name of science, and it has been used by a number of nations before, most notably Japan.

South Korea says the research they plan to carry out, off the Korean coast, is crucial to accurately determine whale stocks in the region.

The decision has drawn strong criticism from countries opposed to whaling, including Australia, who’s Prime Minister Julia Gillard said she would do all they could to block the decision. “Our ambassador will speak to counterparts in South Korea, at the highest levels of the government, and indicate Australia’s opposition to this decision.”

The head of the New Zealand delegation, Gerard van Bohemen, described the plans as “reckless,” adding “New Zealand is strongly opposed to (South) Korea’s proposal.”

In October of last year, Japan announced plans to continue its annual whale hunt in the South Ocean, despite a disastrous previous year that saw their ships disrupted and outnumbered by the Sea Shepherd group of anti-whaling protestors.

Pro-whaling countries claim that whale meat has been a staple part of their population’s diet, although in Japan it has sharply declined over the last 50 years. However, many opponents want an outright ban imposed, and for countries to strive for conserving whale populations.

Japan maintains that commercial whaling provides important scientific benefits, however at a 2010 IWC summit a 200-strong group of international scientists condemned this stance, saying: “Given the risks involved and that commercial whaling meets no essential human need, we call on all the IWC governments to abandon experiments in the

Seaweed joins fight against tooth decay

Brushing your teeth with seaweed first thing in the morning might not seem like the nicest way to start the day, but according to researchers in UK it could prove an effective defence against tooth decay.

Researchers at Newcastle University’s school of dental sciences say that enzymes from seaweed microbes have been shown to break down plaque, which builds up in difficult to reach parts of the mouth.

Dr Nick Jakubovics said: “Plaque on your teeth is made up of bacteria which join together to colonise an area in a bid to push out any potential competitors. Traditional toothpastes work by scrubbing off the plaque containing the bacteria – but that’s not always effective – which is why people who religiously clean their teeth can still develop cavities.

“Work in a test tube has shown that this enzyme can cut through the plaque or layer of bacteria and we want to harness this power into a paste, mouthwash or denture cleaning solution.”

Originally the team of researchers had been studying the marine bacterium Bacillus licheniformis for the purposes of cleaning ships’ hulls. However they then set about extracting the enzyme to see if it could be useful in preventing tooth decay.

The leader of the research, Professor Burgess, said it was an exciting breakthrough and could lead to significant improvements in dental hygiene: “It’s an amazing phenomenon. When I initially began researching how to break down these layers of bacteria, I was interested in how we could keep the hulls of ships clear, but we soon realised that the mechanism we had discovered had much wider uses.

“If we can contain it within toothpaste we could be creating a product which could prevent too decay. This is just one of the uses we are developing for the enzyme as it has huge potential, such as in helping keep clean medical implants such as artificial hips and speech valves which also suffer from biofilm infection.”

The end for Blackberry?

Once the king of the smartphone industry, Canada’s struggling phone maker Research in Motion (RIM) has just announced yet more losses, compounding a steady decline over the last few years that has seen firms like Apple, Samsung and Google dominate.

RIM, whose Blackberry phone proved so popular with business clients for much of the last decade, declared losses of $518m for the three months to June. Revenues for the first quarter 2012 fell to $2.8bn, down by a huge 43%. The losses have meant significant job losses of 5,000 staff.

Alongside the losses, RIM have announced that their proposed new operating system, Blackberry 10 has also been delayed until 2013, adding speculation that it may never see the light of day.

RIM’s hold over the market has evaporated as rival manufacturers have successfully merged the consumer and business segments, meaning RIM’s business focused offering was redundant. When RIM tried to offer Blackberry phones that were more entertainment focused, some argued they’d neglected their core market.

The future strategy of the company has become unclear. Recently announcing that they had appointed two investment banks to advise them, the company said: “We are aggressively working with our advisers on our strategic review and are actively evaluating ways to better leverage our assets and build on our strengths, including our growing BlackBerry subscriber base of approximately 78m, our large enterprise installed base, our unique network architecture and our industry-leading security capabilities.”

Where they go from here is unclear. Potentially spinning off some services, like the popular Blackberry Messenger, to rival providers is one area that could open up more users, but would likely mean less incentive for people to stick with their Blackberry phones.

What is certain, however, is that something drastic needs to change to prevent RIM from losing all relevance in the highly competitive smartphone industry.

Banking disunion threatens EU

The line of credit to Spain from fellow eurozone governments may help to stabilise a fragile banking system, at least in the short term, but it is a missed opportunity. Spain’s banking crisis provides a perfect opening to move towards a European banking union.

In the medium term, help to Spain will merely reinforce the link between the sovereign and the banks’ problems, causing even greater fragmentation in the European banking market and pushing Spain closer to potential insolvency by increasing its debt burden. By contrast, a direct equity stake in Spanish banks taken by an appropriate eurozone investment vehicle would decouple bank and sovereign risk. It would represent a decisive step toward unified European banking supervision, which could imply easier liquidation of non-viable institutions.

Insurance cannot be arranged once a crisis has erupted, because solvent countries and banks will not, and should not, pay for insolvent ones

Such a move would also contribute to banking integration if the equity stakes were sold in an open EU-wide auction. The issue is whether such a vehicle, and the appropriate control mechanisms for assisted banks, can be established in a short time frame.

A banking union is a necessary condition for survival of a monetary union that is unable to implement a strict no-bailout policy for member countries. Such a union should be understood as a centralised bank supervisor, resolution authority (RA), and deposit insurance fund (DIF), at least for systemically important and cross-border institutions, as well as a unified rule book for prudential supervision. There are, however, four major issues that must be confronted in order to move ahead with such a banking union.

First, a significant degree of fiscal integration is required, since an effective European RA requires a burden-sharing agreement among countries. In the US, the Federal Deposit Insurance Corporation (FDIC) resolves institutions up to a certain size and insures deposits for all banks. Failures of large banks must be addressed through intervention by the US Treasury.

In the eurozone, where there is no single Treasury, a DIF and RA should be financed with levies on banks, with a backstop agreed among the governments before a crisis strikes. Indeed, insurance cannot be arranged once a crisis has erupted, because solvent countries and banks will not, and should not, pay for insolvent ones. A European DIF would address the next crisis, but not this one, though a European RA could start functioning with funds from the European Stability Mechanism (ESM).

The second issue that must be resolved is the design of the DIF and RA. A case can be made that both functions should be integrated within a single agency, which should have three main characteristics:
– Levies or insurance premia on banks should be calibrated to the perceived risk positions of institutions according to market indicators such as credit-default spreads. Flat premia would merely induce cross-subsidization of risky banks by safe ones.
– Following the FDIC model, the agency should be bound by a prompt corrective-action procedure to avoid the regulatory forbearance that we have witnessed so many times in banking crises, from the Savings and Loan crisis in the US in the 1980’s to Japan in the 1990’s. Spain is the latest example.
– The agency should limit taxpayers’ exposure by wiping out shareholders and subordinated debt holders if needed in a restructuring procedure. The idea that no bank can fail, and that no losses for bank investors are to be permitted, implies an unbearable burden on public budgets, as the case of Ireland demonstrates.

The third issue concerns whether the scope of a banking union should be the European Union or the eurozone. A banking union is not strictly necessary for a high degree of financial-market integration. Countries that want to participate in the banking union but not in the eurozone face a dilemma, because they will have to move toward fiscal union (via burden-sharing) even if they do not wish to join the euro. This dilemma is particularly stark for the UK.

The ECB’s massive refinancing operations to provide liquidity to have strengthened the link between sovereign and bank risk

A banking union is not sufficient for the monetary union to survive. There is no deposit insurance fund that could sustain a run on deposits in Italy. To cope with sovereign risk, a degree of political and fiscal integration is needed.

Europe’s financial crisis has led to a re-nationalisation of banking systems across the EU, with bailout policies in countries like Ireland, Belgium, the Netherlands, the UK, and now Spain contributing to the trend. The ECB’s massive refinancing operations to provide liquidity to the financial system have also strengthened the link between sovereign and bank risk.

The naive belief that integrated European regulation and supervision would follow financial integration has proven to be false. There are now only two options: integrate ahead of markets – that is, give the ECB supervisory powers for systemically important and cross-border institutions, unify prudential rules, and create an RA with money from the ESM – or permit the current disintegration process to continue and await the euro’s relatively quick demise.

Xavier Vives is Professor of Economics and Finance at IESE Business School.

© Project Syndicate 1995–2012

EU infrastructure on the road to nowhere

As European leaders meet to discuss a series of ways to kick-start economic growth, massive infrastructure investment is being touted by some as the answer.

Talk of raising nearly €130bn to invest in transport, technology and renewable energy has increased in advance of this week’s two-day summit in Brussels, as it’s seen as a way to create swathes of jobs and boost struggling industries.

However, some feel it is unlikely to have much of an effect. HSBC’s chief economist Stephen King says the amount being discussed is “tiny,” amounting to under one percent of all 27 EU countries combined national income. He also does not see much point in increasing the amount, pointing out the large-scale transport projects in Spain and Greece that have done little to stimulate growth.

King says talk of infrastructure investment is often just a means for politicians to look like they have a plan: “In too many cases, large-scale public sector infrastructure projects merely satisfy a politician’s need to “do something”, whether or not the activity involved ultimately delivers the predicted benefits.”

It is clear that investment is needed in parts of Europe, particularly in the east. However, a recent investigation by Reuters shows that despite setting aside billions of euros over the last decade for infrastructure towards the east of Europe, a fraction of the pot has been used.

A fund of €14.9bn for transport projects, notably the Trans-European Transportation Network, has seen just €1.65bn used. The reason for this is thought to be due to funds only being paid out on completion of the projects.

If countries are unwilling to get infrastructure projects off the ground in the first place, then talk of increased EU investment is unlikely to be much more than that.

Pay-as-you-go broadband set to strangle services

As online media has become more sophisticated, the constraints on internet providers’ networks become all too apparent. Despite the promise of ‘all-you-can-eat’ broadband, some providers are struggling to maintain the quality of their networks.

Consumers’ hunger for online streaming services, such as Youtube, Netflix and Spotify, has caused groups to try and look at ways to keep the reliability of their networks going. In the US, some are increasingly looking at applying a meter to users’ internet connections to see how much bandwidth they use and to then charge accordingly.

Time Warner Cable, for example, have given some users a ‘usage tracker’ to install in their houses that will be rewarded with discounts for not going over a set amount of bandwidth a month.

Encouraging people to use less of these high-bandwidth services is likely to prove unpopular with business however, particularly after yearly promises of increased speed and high capacity networks.

The trouble the networks face is keeping up with demand. As services become more advanced, particularly with the imminent arrival of mainstream internet-equipped televisions, the networks are going to have to find a way to pay for rolling out stronger networks.

A Comcast spokesman told NYT: “Our network is not an infinite resource, and it is expensive to expand it.”

Penalising people for going over their data allowance is something that might bring in some more money, but it is also likely to stifle some of the innovation seen in online media. Perhaps instead of charging the consumer for using these services, providers should look to the businesses themselves for a contribution to the upkeep of their networks.

Immigration means innovation for US

A study into the contribution of immigrants to the US economy has shown that they are contributing 75 percent of all registered patents.

The Partnership for a New American Economy found that foreign students at the best US research universities were playing important roles in developing new technologies, but were also facing difficulties with visas once their studies are completed.

The value of the students’ innovation to the economy is clear from the areas they are focusing on, with science, technology, engineering and maths seeing the most amount of registered patents associated with the students.

The group, set up by New York Mayor Michael Bloomberg, also found that the mother countries of the students were encouraging them to return home in order to help drive their own economies.

The study encourages the government to do more to help these students remain in the US after they graduate, so that they can continue to offer their skills and innovation to the economy. Under current laws, foreign students can only stay in the US for between 12 and 29 months, depending on whether they have got a relevant job.

Highlighting the important contribution these immigrants are making, Bloomberg said in a statement to the NYT: “Now that we know immigrants are behind more than three of every four patents from leading universities, the federal laws that send so many of them back to their home countries look even more patently wrong.”

With consternation from groups about the lack of jobs for US born workers, however, relaxing immigration laws will not be something warmly received by all. Indeed, Eric Ruark, from the Federal for American Immigration Reform group, says: “No one is asking what is in their best interest, the American worker. It’s what is best for the employers. What is best for the foreign workers. It’s not as if the foreign workers aren’t skilled. What’s being ignored is we already have a domestic work force that has the same skills.”

Will Microsoft’s tablet scratch the iPad’s surface?

Last week Microsoft announced its latest foray into the hardware market by showing off its new Surface tablet computer.

A direct attempt at challenging Apple’s iPad, the Surface will run on the Windows 8 operating system, and is the latest in a long line of tentative attempts by Microsoft, more known for its software, to establish itself as a computer manufacturer.

Previous attempts include the Zune mp3 player, and the aborted tablet Courier, which came in the form of a two-screen notebook.

According to the NYT, however, Microsoft’s tablet announcement is a desperate move by the software giant to stem the tide of customers moving to Apple products, particularly in light of the failure of Hewlett-Packard’s tablet efforts.

It is also surprising that Microsoft has moved away from its hardware partners, such as HP and Dell, in order to make the device. Usually focusing on their operating system, it is believed that Microsoft has seen how Apple has benefited from controlling both the software and hardware design and wants to exert similar design controls on the finished product.

Lou Mazzuchelli, a technology entrepreneur and former analyst, told NYT: “You’ve got this sclerotic partnership where the partners don’t have any oxygen to be innovative. I believe Microsoft was painted into a corner. If they didn’t move soon, Apple would have so much of a lead, it would be almost impossible to catch them.”

The trouble for Microsoft, however, is that their track record with hardware design is patchy at best. The Zune player tried in vain to match Apple’s iPod, but was discontinued in 2010 after poor sales. Attempts to launch mobile phones, such as the Microsoft Kin, and tablet’s like the Courier were aborted before launch, despite over-the-top presentations that saw CEO Steve Ballmer try to capture the imagination in the way former Apple chief Steve Jobs did on so many occasions.

If Microsoft is to succeed, it should maybe focus more on getting their hardware partners to integrate the Windows 8 operating system into their devices, instead of Google’s Android system. Apple are likely out of reach in the all-in-one stakes.

Anti-piracy legislation rejected by EU

A European trade committee has rejected proposals to curb internet piracy and intellectual property infringement, describing the international treaty as “too vague.”

The Anti-Counterfeiting Trade Agreement (Acta) was launched in 2008 with the aim to create a globalised standard system of copyright agreements, but has received a great deal of criticism by both politicians and campaigners.

Critics of the legislation claim it will infringe on civil rights, including freedom of expression and communication privacy. They have also attacked the harsh penalties the treaty would give to anyone breaking the rules.

Speaking after the vote, Peter Bradwell, a spokesman for anti-legislation organisation Open Rights Group, praised the politicians that voted against Acta: “MEPs have listened to the many, many thousands of people across Europe who have consistently demanded that this flawed treaty is kicked out. This is the fifth consecutive committee to say Acta should be rejected. It now falls to the vote of the whole European Parliament in July to slam the door on Acta once and for all, and bring this sorry mess to an end.”

However, many businesses are eager for some form of leglistlation to be brought in to protect their intellectual copyrights and protect jobs. Johannes Studinger, from the international media union UNI MEI, said: “The majority of jobs in our knowledge-based societies rely on intellectual property. Counterfeiting and piracy, including on the internet, are creating a global black market threatening the economic basis of real jobs in the creative industries. It’s a global problem that needs a global response. We need a tool like Acta.”

So far countries including the US, Australia, Japan, and Canada have signed up to the agreement, while 22 EU members have independently signed the treaty. However, with the European trade commission’s rejection, it is likely the legislation will need to be rethought.

JC Penney’s structural shift

The company, which had long survived by offering hundreds of sales and coupon promotions throughout the year, suddenly decided to stop them all and instead switch to an everyday low pricing structure. Not surprisingly, this new strategy has not been well received by JC Penney’s core consumer group, deal shoppers.

The company’s new CEO, Ron Johnson, originally announced the revamped strategy about a month before the changes took effect. Both shareholders and market analysts were initially optimistic about the proposed changes, largely due to Johnson’s background. He was instrumental in helping Target, another retail giant, to develop its corporate branding theme of offering style, along with savings. During his time at Apple, Johnson also came up with the idea of creating retail stores specifically for selling Apple products, which have been extremely profitable. Naturally, investors were convinced that Johnson could turn JC Penney around.

A prime concern is the seemingly complicated pricing structure, which may be turning off customers. Items are marked with as final price, a monthly special or an everyday price. Blue-tagged items are marked down the most, but are only available on two Fridays per month; monthly specials get a different coloured tag each month, while red tags are for items in the everyday pricing plan.

The market audience for JC Penney is very different from that for Apple products. Most JC Penney shoppers are big discount hunters and are willing to clip coupons. Speaking about the mindset of the typical American bargain shopper, a consumer research specialist said, “Consumers want deals and they’re willing to wait for them. When you train customers to shop at big discounts, that customer is not going to change.”

The abrupt departure from offering sales and coupons by mail or email literally turned off many of JC Penney’s consumers. The company reported a big first quarter loss of $163m, overall revenue in stores is down nearly 19 percent and internet sales are down nearly 28 percent. Several economic experts directly point the finger at the new pricing plan; one HR consultant said that the steep decline in sales is most probably “a direct result of a huge combination of those changes. This was just too drastic of a step…coupons are a point of pride with many people”.

Speaking to investors, Johnson admitted there were issues, saying, “The transition has been tougher than we anticipated.” Company COO, Mike Kramer, was more blunt, calling coupons themselves a “drug” and adding, “We did not realise how deep some of the customers were into this. We have got to wean them off this.” Johnson’s overhaul plan for JC Penney is supposed to take four years. The question is whether he will be given that long to complete it.

Paying for sustainable tourism

With the UN’s Rio+20 conference taking place this week, a great number of proposals for improving sustainability in different industries have been announced. One such industry is tourism, which was the focus of the ‘Green Innovation in Tourism’ event.

Businesses are often reluctant to offer more sustainable packages

Tourism has long been a difficult industry to push towards sustainable practices. Businesses are often reluctant to offer more sustainable packages as costs are believed to be higher. Similarly, holidaymakers traditionally want luxury on their trips, rather than paying a premium for a greener experience.

However, businesses are being encouraged to think towards the future in order to profit from more sustainable practices. The United Nations Environment Programme’s Chief of Sustainable Consumption Arab Hoballah said: “Being green is often associated with increased costs for businesses. However, the essence of innovation is to identify least cost opportunities and solutions, decoupling tourism growth from resource use and environmental impacts and using resources more efficiently.

“Green innovation in tourism can improve existing business models, leading to positive results to companies, customers, public authorities and local communities through job creation and better living conditions as well as the housing ecosystems.”

Brazil’s Minister of Tourism Gastão Dias Vieira added: “The definition of competitiveness in tourism is closely linked with three objectives: development, inclusion and conservation. There can be no economic growth in tourism without sustainability, without conservation of natural resources and without incentives to citizenship.”

Reaping the rewards of a more sustainable approach to tourism is attractive to businesses thinking more long-term, however persuading travellers to pay up front for it now may be a hard sell.