OK, time for a quick “I told you so” moment. Readers will recall that as long ago as November 2007 I questioned whether — with the end of the Bush-era restrictions then quite obviously in view — it made sense for states to be investing their own money in embryonic stem-cell research capacity, especially on economic-development grounds.

Now, with President Obama’s reversal of the Bush policy, The New York Times is out with a story that quite correctly wonders whether the president’s decision “has removed the original raison d’être for the California program and others like it.”

More on State stem-cell programs revisited

As of this morning’s radio/Youtube address, President-elect Obama is said to have filled the balance of his science team. In scientific terms, it is an exceptionally fine group, and the prominence of the announcement underlines that this will be an administration that makes its policy decisions in the context of the best currently available human knowledge. How refreshing!

Not only that, but “science policy” — a discipline which embraces the study of public investments in science and technology itself — is indirectly but definitely in the domain of Science Advisor-designate John Holdren, who currently directs the Program on Science, Technology and Public Policy at Harvard’s Belfer Center. That means this administration will not only be applying sound science to the “mission agencies” but also it will also be thinking carefully about policy for our science-funding agencies themselves, and about innovation more broadly.

And yet, without being in the least grouchy (as I often am) about all this fine news, there are some things to watch for, from the perspective of technology-based economic development. More after the break. More on Some observations on the Obama science team, and what to watch for

One of the pleasures of reading the American Scientist in the last decade or so has been the writing of Prof. Henry Petroski, the engineer and historian of technology currently on faculty at Duke University. Petroski used his columns in serialized fashion to lay out his since-published theory of “success through failure.”

By this term, Petroski means that as engineers innovate — for example, using new materials or methods to push the envelope of what it is possible to design and build — they inevitably make mistakes by relying on models (tangible or numerical) of previous technology to assess their designs’ reliablity and safety. Often only after catastrophe strikes — perhaps a structural failure of some kind like a Tacoma Narrows Bridge or a Kansas City Hyatt walkway — does the profession look backward and ensure that its design and test tools are updated to match the reality of leading-edge technique. There are certainly analogues outside civil engineering, as anyone can verify who has followed Intel’s search for insanely subtle chip bugs. In any case, Petroski suggests that anticipation and avoidance of catastrophic failure is possible, but only if one understands the hubristic risks of conventional design and thinking.

Well, now. We are presently in the midst of a catastrophic failure of financial engineering. Financial engineering is a construct invented in academia to recognize that the term “finance,” used historically for an essentially analytical discipline, practically a branch of applied economics, was no longer adequate to describe the activities of Wall Street in designing and delivering to the marketplace new financial instruments. Engineers design things. They have quantitative skills (e.g., great attention to detail, facility with simulation modelng, capacity to solve systems of differential equations, etc.) that are lacking in the general population, even those with strong business skills. Ergo, designing new financial instruments was an activity of financial engineers, who must be trained and socialized as such.

More on Paging Dr. Petroski to the Financial Engineering graduate lounge, stat!

Possibly spurred by the online publication two weeks ago of Sen. Obama’s answers, Sen. McCain has now delivered his own responses to the 14 questions posed by Science Debate 2008. You can read both campaigns’ responses side by side and judge their merits for yourself.

The McCain replies exhibit the same odd dissonance between the well known public “voice” of the candidate himself and the it-could-only-be-a-committee locutions of his science team. For example, Team McCain gushingly praises the “transformative” impact of communications technology on family lives, while we know that Sen. McCain himself admits he is still getting to know the Internet and is presumably not obsessively texting Cindy all day long. . . . However, up to some odd tonal quirks like the candidate’s campaign-long enthusiasm for the multifaceted role of community colleges, the McCain responses, like Obama’s, seem generally within the scientific mainstream and both replies have strengths and weaknesses.

In fact, some responses were quite similar, right down to use of the same vocabulary and buzz words (emission reductions through “cap and trade,” a “balanced” space program, a “permanent” R&D tax credit, etc.). However, McCain emphasizes for-profit innovation a bit more than does Obama. For example, his climate-change reply, he proposes a $5,000 a car tax credit for zero-emission vehicles while also taking a swipe at past alternative-fuel efforts that have “thrown around enough money subsidizing special interests and excusing failure.” Hmm. I hope he has in mind avoiding the Arizona alt-fuels tax-credit debacle.

More likely, he was simply thinking of his parallel call to “eliminate wasteful earmarks in order to allocate funds for science and technology investments.” That one may stick in the craw of many of the backers of Science Debate, among whom are responsible officers of universities that a generation ago would never have sought research earmarks, as a matter of pride, but now do so routinely, as a matter of perceived competitive necessity.

Not surprisingly, the McCain answers spend a lot of time on nuclear energy (a sector to which Obama himself has not been entirely unfriendly, given the prominence in Illinois of Exelon, the nation’s largest nuclear operator). McCain also shows perhaps more regard than Obama for the role of defense technology expenditures in civilian innovation and market-building. His discussion of ocean health is particularly admirable for its insistence on equal focus on the problems of the Great Lakes and our freshwater system. I did think the space answer was weak, though, considering its length. One other element that was notable to me: a specific call for the U.S. to help train a new generation of African agro-scientists in service of a new Green Revolution on that troubled continent.

Go read them yourself.