In 2008 I wrote an editorial 'Does Six-Sigma Stifle Innovation?' in response to an article that had appeared in Business Week 1 . I have thought more about this but in a broader context than just six sigma.In the early 1970s about one in four US workers were in manufacturing; today its about one in ten. Only about 30% of US GDP derives from manufacturing. The numbers in Europe are approximately comparable. I dont think that this should be a huge concern. In the early 1800s about 70% of the US workforce was involved in agriculture, compared to less than 5% today. Yet the agriculture productivity of the US is unsurpassed.Most of the really important work now and in the future will be done by knowledge workers. This includes new technology creation, the design and development of products and services based on this new technology, and improvements in productivity in existing technologies. In other words, innovation. I think there are two kinds of innovation; breakthrough innovation that creates new technology, and incremental innovation that improves existing technology to increase productivity. Energy, pharmaceuticals, transportation and communications are examples of areas where breakthrough innovation will lead to economic growth and development. Automobile and medical device manufacturing are examples of incremental innovation.Quality technology should play a major role in this. Unfortunately, quality technology is most often thought of in terms of its application to manufacturing. But many aspects of quality technology are essentially knowledge generation tools (designed experiments are an obvious example), so with a shift in focus the profession should be able to position itself to play a key role in the knowledge economy. Quality technology and the associated statistical techniques are an integral part of the general process of innovation. Let me give a few examples.Almost all businesses use computers for scheduling, inventory management, supply chain management, accounting, customer record-keeping and other related activities. This is a rich source of data that can be mined with statistical tools for information that can be used to determine how these activities can be improved and controlled to provide better value for their customers.Six sigma has already made important contributions to healthcare. This needs to become more widespread to control costs and improve service. Frisén 2 provides an excellent survey of how statistical quality control tools are being used in business, finance, healthcare and public health. Many medical devices collect real-time data on the patient, and with the intelligent use of SPC-like algorithms could allow physicians to instantly monitor the condition of their patients or in some instances for patients to continuously monitor their own health. Fraud detection in finance is another area where the techniques discussed by Frisén have considerable utility.The medical device industry is one that thrives on incremental innovation. So is the emerging solar energy industry. Design of...