Tom Hoffman cites an interesting paper on innovation in the education sector. Be sure to read the paper itself and not just the summary. In addition to some great tidbits ("it turns out that the health sciences R&D climate in the US - and most of the breakthroughs - depend largely on government funding of innovation through the NIH and at universities") it also provides some compelling insights into the distress of the education innovation market. I think that the observations are certainly accurate, everything from the lack of investment in research and development to the oligarchical commercial sector in the field to the difficulty in reaching and speaking to the market. I don't think that some of the solutions that seem obvious - like pooling buying power and research - are necessarily the best way to go, because such 'big' solutions tend to impose a uniformity on the system that is not healthy (and is endlessly subject to politics and manipulation). But the small-scale solutions defy easy explanation.