A little over two years ago, we set out to identify ways for AARP to stimulate innovation in the marketplace that would benefit people over 50. We were and are driven by our mission – to enhance the quality of life for all as we age.

Since then, we have focused on innovation and entrepreneurism by and/or for people 50+. We have created scholarships at DEMO to ensure that startups and older entrepreneurs have an opportunity to pitch their ideas and companies to prospective investors. One of our recent winners, Neurotrack, has a technology that can diagnose Alzheimer’s in pre-symptomatic people, opening up therapy design opportunities previously thought impossible. Since being on stage at DEMO, the company has been approached by prospective investors and strategic partners. AARP also has worked to get the attention of startups and venture investors to explore the opportunities presented by the 100 million person market of people 50+, to fund and develop product and service solutions that address their needs and wants. In doing so, we have established relationships with health incubators, VCs and entrepreneurs. One result has been the huge response to AARP’s Health Innovation@50+ LivePitch day — where we had 80 startup applicants for 10 slots, to pitch ideas to investors and to AARP members at our recent Life@50+ Event & Expo in New Orleans.

These are just a small example of our efforts. All that aside, I have to say that the most fun thing and promising thing we have done is to sponsor the FIRST LEGO League Seniors Solution competition. FIRST has been around for over 20 years and stands for For Inspiration and Recognition of Science and Technology. The nonprofit was started by inventor Dean Kamen and has programs for kids from 6-18.

Recently, teams in the FIRST LEGO League, in grades 4-8, were given a challenge for the latest competition — find technology solutions that will benefit older people. The challenge is international and will culminate in an international event later next year. But today, at the Embassy of Sweden in Washington, D.C., three FIRST LEGO League teams showed off their stuff — and boy was it great, as were these kids!

One team designed a solution to cure Alzheimer’s – an injectable nanobot (a really, really tiny robot the size of the head of a pin) that when it enters the brain of someone with the disease releases an enzyme that dissolves the plaque, and releases stem cells that help grow new neurons. Why didn’t I think of that?!? Even more impressive was how much these sixth- and seventh-graders learned about older people, about Alzheimer’s, and the empathy they displayed for other people — in this case, ones much older than themselves. It was really wonderful to see.

One of the LEGO projects by a team of middle schoolers asked to design collaborative solutions for improving the lives of older people.

Another team designed a knee brace to help people with arthritis, that had a motor, and kept the knee warm or cold as required, and made it easier to walk and exercise. The third team created a design for an insole that, utilizing a gyroscope, would help people keep their balance walking up and down stairs.

This was innovation at its best. This was getting kids interested in science, math, engineering, and technology. This was giving kids an opportunity to learn what it is to cooperate in a competitive setting and learn teamwork for a common purpose — a key goal of the FIRST organization. And this was helping kids learn about people and the challenges they face, and recognize that they are agents of change. They can change the world. And they can make it better for everyone of all ages. This was thrilling.

So many boomer entrepreneurs these days, so little venture capital interest.  Despite a growing number of boomer entrepreneurs starting up businesses, investors like the very public Vinod Khosla refuse to believe in funding companies started by people over the age of 35. He not only does not seem to recognize the age advantage that older entrepreneurs may have, he seems to get a kick out of letting us know – first from a podium in Bangalore, no less — and if we didn’t get it in late 2011, he says it again at the Churchill Club in September, 2012.  His point? “The older a person gets, the longer it takes to adjust to change.”  People over the age of 45, he says, are noticeably slower in adopting new tech than, say, teenagers.  Interesting observation! At 27, he was a cofounder of Sun Microsystems, back in those early days of VC hope and optimism. He is now a very wealthy boomer at age 57. Ironic, too, that 47-year-old boomer and former Sun Microsystems CEO Jonathan Schwartz (well past Khosla’s definition of youth) founded CareZone earlier in 2012 to address gaps in the elder caregiving market.  Makes one wonder if Khosla would reject the idea of investing in Schwartz’s start-up just because of Schwartz’s age! Let’s ask — is it wise and thoughtful to listen to someone like Khosla who seems to be channeling his young self?

Boomers have the money and experience – do they start companies?  As it turns out, the highest rate of successful entrepreneurship, according to the Kaufmann Foundation, is among those 55-64 — twice the success rate of those age 20-34.  According to a Newsweek article, their “start-ups get less recognition in the press, but they tend to involve more complex technologies like biotech, energy, or IT hardware. They also tend to sell products and services to other businesses, which consumers rarely see but which do most of the heavy lifting in powering innovation and economic growth.”  That means that they understand channel strategy, something that may elude the 20-somethings who are coding away in their garages. And more to the point, they simply do not have the business relationships established that are the foundation for cultivating channel/distribution partnerships. And if you’re interested in solving Big Data challenges at an Enterprise level, it helps if you’ve actually experienced the challenges of working in an Enterprise.

So what’s up with boomer entrepreneurs? Duh, they’re succeeding.  The Wall Street Journal was so taken by this trend that their Smart Money arm began profiling them last year in a column called Second Chances.  Here at AARP, we have launched an online resource for 50+ entrepreneurs and we are exploring additional tools, resources, online communities, and off-line meet-ups and courses because, unlike the Silicon Valley Venture Capital club, we actually believe in and encourage this great potential.  These success stories, like those highlighted in the Smart Money column, are too often under the radar of tunnel-vision VCs. This is likely a result from not looking around to see what light their age-narrowed lens shuts out.

The venture community’s investments should transcend age. VCs, for whom most bets fail, including those of Khosla Ventures, need to vary and broaden their Valley-centric perspective and search for great new business ideas from the 50+ entrepreneurs who would be pleased to describe them.  They need to understand that 50+ entrepreneurs may have the most discretionary money to invest, the connections and work experience to execute, plus the motivation and drive required to start a business that works.  As a result, they will create wealth. These are entrepreneurs on stage at DEMO pitching their ideas. They are start-ups in the incubator classes of Rock Health, Startup Health, and Healthbox. And they are the start-ups that have received VC and angel investment in brain fitness, aging in place technology, e-commerce, Internet travel sites, financial services and other verticals. Sectors where boomers and older people account for over 50% of total consumer spending are ripe for disruptive innovation, but continue to be underserved. Those VCs who are paying attention to these start-ups could play a role growing these companies to even greater wealth … and profit.     

There’s an app for that – but usage by older adults is stalled.  Boomers and beyond have the spending power, but they aren’t snapping up tablets and smartphones. Pew’s latest smartphone numbers tell the story – smartphone usage has not grown beyond 11% among the 65+.  And tablet ownership, despite many cute stories, has only grown to 13%. Yet you and I both know that that these phones and tablets provide significant utility, from easy access to discounts and savings to calculating insulin levels to preserving information. That is, the utility exists for those that have the phones.

For reasons that may range from worry about advertising targeting to cumbersome usability to price to youth-orientation of the apps, many older adults aren’t convinced.  So what could help eliminate barriers and engage them? Vendors must demonstrate interest in acquiring them as customers – because they already have functionality and capabilities that users of all ages need. Consider a few tactics and incentives to accelerate adoption:

Sponsor competitions and hacker incentives for app creation and device migration.  Last month USAID sponsored a Hacking for Hunger weekend – in which software developers, online and in person, joined a round-the-clock marathon of software development aimed at solving the global issue of food insecurity. And this past week, the National Council on Aging received a $2 million grant from Atlantic Philanthropies to streamline the disparate processes that enroll older adults in programs that could reduce food insecurity.  Sponsoring competition for innovation, as AARP just did at Life@50+, will also bridge the device and app gap. AARP’s foundation and nonprofit peers could combine initiatives and incentives to create the next wave of apps that make a difference in people’s lives. Get a few apps that highlight product discounts, devices and services, plans, into the hands of the 50+ population that does not have them now and may not see the benefit.

Target device deployment through special interest groups.  Microsoft’s Surface announcement and launch last week comes on the heels of the latest iPhone 5, now top-selling Samsung Galaxy and just before the upcoming mini iPad. This creates a competitive window of opportunity. Imagine if a carrier like Verizon or a Microsoft regional sales organization partnered with local nonprofits and social service support groups to contribute and distribute Surface tablets? These have adjustable touch (among other accessibility features), that could be especially useful to those with arthritis or Parkinson’s disease.

Highlight useful applications in carrier demonstrations. Carriers like Verizon, Sprint, and AT&T are missing a sizable opportunity to convert feature phone loyalists to smartphone plans – searching online will find little from them indicating they want these customers. Where are the ads that show a person over the age of 50 enjoying the phone? Why not show how boomers and seniors can find travel and caregiving tips from any location, speak requests to Siri, get turn-by-turn spoken directions from Google? How about sponsoring a contest of how best to reach them?  As the AARP and USAID initiatives prove, if you challenge talented people to be innovative – then engage the resources of large vendors like Microsoft, Google and Apple, the device gap will eventually just be an artifact that is so yesterday. 

Photo via Phil Roeder on Flickr.

As broadband adoption levels off, the older adult population loses.  The flurry of interest in getting older adults online seems to be fizzling – unfortunately, before they are all online. Occasionally there is some excitement here and there, for example, the Google fiber project in Kansas City, but overall, the National Broadband plan seems tired, adoption has leveled off.  That is unfortunate – since only 45% of the 65+ have subscribed. Cynicism is up, though. Folks appear to be waiting for demographic changes to boost adoption – without anyone else having to do any hard work.   Note the National Telecommunications & Information Administration (NTIA) report: “Someone who doesn’t have broadband access will be excluded from the job market. The day will soon be on us when seniors’ health care providers need them to have broadband access for better service delivery.”

100% broadband access could optimize the reach and market for health IT. Why does it matter? Without broadband access, we know that those who need remote monitoring of chronic disease — won’t get it. Those whose health could improve from a remote specialist consultation without suffering a long car ride – won’t have it. Those who need information about ‘patients like them’ — won’t find it. Those who don’t even know yet what they don’t know about health and wellness – will not find it. Yet there are hundreds and thousands of sites that could inform them – including AARP’s own growing and lively content.  And then there’s our partnership with Microsoft to drive the use of Personal Health Records (PHRs). Oops – that’s an online service and would require broadband.

So whose job is it to make this happen – or is everyone waiting for someone else?  Clearly the public sector and organizations like NTIA or the FCC haven’t gotten the job done to reach full broadband participation among older adults. Quite a few senior-focused non-profit agencies and organizations would benefit if all were online (like ASA, AoA, NCOA, etc.), but they don’t see this as their job to beef up and broaden broadband access among constituents. Perhaps they agree with the Wall Street Journal that expanding broadband adoption is a waiting game: “Old people who don’t bother with broadband will die, and younger people who can’t imagine living without it will either demand it where they live or move to places where they can get it.” Meanwhile, agencies like SSA want to halt paper statement distribution to save money – spawning lobbying groups that say, hold on, everyone is NOT online yet!

Vendors – take over, the public sector and non-profits aren’t getting this done. So there are all of these parallel expectations and investments that rely on online access to reach the older customer. The older customer has a number of health-related needs that can be met online and, surprise, they can pay for services. Did I mention that boomers own half of the nation’s wealth? So tech vendors – telecom like Sprint, Verizon, Comcast, AT&T; search engines and software – like Google, Yahoo,  Facebook, Microsoft;  services and portals – like Amazon, eBay, Autotrader – all want to get at some of that wealth. Push the public sector aside – make it happen. Buyers are waiting.

Photo via Flickr user pfly.

So many age 50+ customers –yet marketers obsess about youth. So I wonder, being exactly in the age demographic of the prospective buyer of BMWs, what’s up with their marketers? BMW seems on a quest to reach the young through social media. But the actual buyer my age isn’t shopping for cars that way – and today’s young people don’t have the money for that car! Here’s the reality: baby boomers own half of the nation’s wealth. That’s $2.3 trillion. As for the 65+, according to Pew Research, the median net worth of households headed by someone 65 or older was $170,494. If I were BMW, I’d sit up and find the right audience.

Marketers seem clueless about the 50+ buying power. Let’s face it, if you’re marketing to a wealthy and older demographic, you really need to find the audience where they are. And guess what? That’s not at trade shows like CES, CTIA. Maybe they’re great places to meet other marketers, who seem mostly to be young guys. And yes, they may be cool places to see what innovations are hot. But your customer is someplace else, searching for, but not finding, products and services aimed at them.

Here’s where we come in – meet us at Life@50+. Want to speak to that market segment that controls $3.5 trillion in consumer spending? Do you market travel, technology, home furnishings and other consumer products and services? We’ve got the place, we have the customers– and I’ll be there to meet you. Check out the Life@50+ event in New Orleans September 20-22 – where companies of all sizes can attend, interview prospective customers, exhibit and/or sponsor.

Let me tell you what to demo – products and services that work for all ages. Before you walk in, ask yourself a few questions: Is my tech product as easy to hold and manipulate as it could be if the customer’s vision, dexterity, or hearing is not perfect? Are my instructions clear and is my terminology designed for the customer – or, like too many vendors, is it just for internal meetings of my product team? Before manufacturing ramps up, have we asked and received complete answers about usability and design for all age groups? And if the answer is no, then I want to know, why not? And really, this should come first: “What’s our 50+ strategy?”

Jody Holtzman is leading AARP’s first startup pitch event, taking place next week in New Orleans. Want to tell him more about what technology appeals to you? Does your company fit the “50+ friendly” description? Let him know in the comments, or by Tweeting at him.  

Photo via Flickr user singapor3.