The business of the world

In a speech to the Society of Newspaper Editors on January 17, 1925, U.S. president Calvin Coolidge made one of the terse statements for which he is typically remembered today: "The business of America is business." As so frequently happens, time has rendered that statement wrong. In this

Nothing makes that clearer than the stories in this issue of ELECTRONIC BUSINESS. Even while the electronics industry suffers through the downturn, companies around the world are seeking ways to work smarter.

"Consumer Market Entices Chip Makers," page 20, our look at the top semiconductor companies, details how Sony, Toshiba, Texas Instruments and others have set their sights on the consumer electronics space. They're looking for a big payoff in providing the brains that power gadgets for a populace that wants to be perpetually connected and entertained, wherever it may be.

In "Extending Legendary Success," page 50, Karen Cohn looks at Legend Computer, a company making waves in the People's Republic of China. Consider the irony of a company based in a Communist country exceeding the business success of competitors rooted in capitalism.

Here at home, the specter of worldwide terrorism has sparked interest in homeland security, and in "No Secure Way to Homeland Security," page 46, National Editor Tam Harbert presents a unique perspective on how electronics companies can most efficiently secure the federal government as a customer. Finally, in "Trickle Down Trouble in the Venture World," page 40, Norm Alster looks at the challenges the venture capital community faces as it prepares for the next wave in business to crash over them.

Fortunately, we don't believe the VC community's challenges presage more trouble for the industry. We prefer to look at the resourcefulness of companies here and abroad as they collectively respond to these difficult days. Getting back to Calvin Coolidge: He was so noted for being taciturn that when news of his death circulated in 1933, Dorothy Parker quipped, "How could they tell?" Unlike Silent Cal's quote, Parker's question is still valid today. If someone tells you the industry is in the doldrums, ask how they can tell—because somewhere in the world, companies are figuring out how to bring it back to life.

Howard Baldwin is a consulting editor for Electronic Business. Let him know what you'd like to see in upcoming issues of the magazine by sending e-mail to feedback@eb.reedbusiness.com .