As Software and Hardware Advance Together, the Next Innovation Wave Rises

Craig Venter, the scientist who first decoded human DNA, is a speed junkie who owns dozens of sports cars and motorcycles. His favorite ride: a red Tesla Motors Model S sedan. Venter says the appeal isn’t just that the Model S is a smooth, quiet drive, but that it’s also something of a gadget. Its wireless connection lets him stream Internet radio stations and unlock the doors with his smartphone. When the car suffers from glitches, like the time its 17-inch touchscreen panel died, nobody had to come to his La Jolla (Calif.) home to repair it. “While I slept that night, a software engineer logged on to the car, found the problem, and fixed it,” Venter says. “I mean, it changes everything about transportation. It’s a computer on wheels.”

The Model S is just one example of the growing range of software-infused machines that could be a huge boon for the U.S. economy. From smoke detectors to jet engines, machines are more efficient than ever, and they’re becoming more powerful thanks to code. This merger of hardware and software plays into America’s strengths, giving clever companies the chance to redefine all manner of consumer objects and industrial hardware in the same way Apple rethought the phone and Tesla the car.