What Greentech Can Learn From The Segway

Blaise Zerega misses $4/gallon gasoline: The Segway is a huge success -- as a technology product. But even as high gas prices have increased sales, as reported by WSJ today, it's hard to term it a business success. And for that reason, greentech start-ups and their backers ought to examine what's gone wrong.

Launched amidst enormous hype in 2001, Dean Kamen's splendid invention has become a textbook example of how hard it is to challenge the energy and transportation industries. Relying on an electrical charge and with a 25-mile range, the Segway seemed a perfect solution for short commutes and errands around town. Not so fast.  Dozens of governments banned or restricted their use and sales fizzled.  Why was anyone surprised? Many cities won't even create bicycle lanes let alone a Segway lane. And for that matter, in towns all over America, skateboarding on the sidewalk is a crime.

So what does this have to do with greentech? Well, ironically, developing a great technology is the easy part. Bringing it to market is the difficult part -- pretty much the equivalent of changing the world. I spoke with an investor in a solar panel company aiming to retrofit large office buildings in metro areas-- the biggest hurdle he says, building codes and unions.  In some areas, local safety ordinances don't even contemplate how solar panels can be attached to the roof of a skyscraper. And in cities, with "union" buildings, finding properly trained labor can be a problem.

And that's only solar. Think of the enormous infrastructure changes required to replace gas-powered cars with those powered by hydrogen fuel cells, natural gas, or electricity. Then, imagine the enormous political pressure  that will be applied by the oil industry, gas station owners, and "citizen advocacy" groups. It's enough to make you want to start a company overseas, like Shai Agassi did.

Most worrisome then for green entrepreneurship is the potential for opposition from trade lobbyists. Remember what happened to the EV-1? If you haven't watched Who Killed the Electric Car? you should. To prevent such innovations from being stifled, entrepreneurs must win a critical mass of the hearts and minds of consumers, and very, very quickly. And as the renewed attention for the Segway shows, they're getting lots of help from the high price of gasoline.