Wiredglitz

At the offices of Emo Labs in Waltham, Mass., the receptionist’s desk and the meeting rooms look like an afterthought. The real action goes on behind a glass wall in a warehouse space where most of the 15 employees are soldering wires or fiddling with knobs on machines with sine-wave displays. For a visitor used to Silicon Valley startups with programmers staring at screens or frolicking at foosball tables, this is refreshingly old-school stuff.

CEO Jason Carlson points out the testing chamber that his team built by hand from foam and wood. Then he stops and taps at what looks like an ordinary photo frame on a desk.

“Imagine you’re in your office and you need to make a conference call,” he says. “You can connect your cell phone to this frame using Bluetooth, and suddenly your call is coming from it, clear as a bell. Wouldn’t that be cool?”

For the past 80 years, all loudspeakers have been based on roughly the same idea: A magnet creates force that causes a diaphragm to vibrate, producing sound. The quality of the sound varies with speaker size, but modern TV and computer-monitor design has forced speakers to get smaller and smaller. As a result, many tube TVs from the 1970s sound better than modern flat-screen TVs.

In 2001, Lewis Athenas, a loudspeaker designer working for Boston Acoustics, saw that consumers were increasingly playing music on their computers. He was nonplussed by the weedy sound from most desktop speaker systems. Then he discovered that by replacing the speaker magnet with a kind of ceramic known as a piezo actuator, he could make a computer screen act as the diaphragm. Put a thin strip of ceramic down each side of a see-through plastic membrane, and you’ve got stereo sound.

Athenas went to work in his garage. In 2005 he finished his first working prototype, a wooden frame around a 15-inch monitor. That same year he founded Emo Labs (Emo stands for “edge motion”) and raised $15 million from local venture capital firms.

Now just about any electronic device with a screen — a laptop, a cell phone, the latest and thinnest LED TV — can also be a speaker. Want better audio in your car? Wait till you hear it coming from your windshield. Like watching movies at home? You’ll love it even more when the dialogue actually comes out of the actors’ mouths.

At Emo Labs, Carlson played me a DVD of jazz singer Diana Krall performing live in Paris. The music came through loud and clear, with rich bass tones. “Touch it,” Carlson urged. “Feel the vibration of the screen. That’s what the sound is.”

Carlson left the CEO job at Semtech, a semiconductor manufacturer in Camarillo, Calif., and joined Emo Labs in 2006. He wanted to adapt the semiconductor-industry model of producing standardized components and selling them to equipment manufacturers. So Emo spent the next few years testing equipment, getting a toehold in China and Taiwan, and persuading naysayers at the equipment firms.

“I can’t tell you how many times we’ve sat in front of engineers, and they keep asking, ‘Where’s the sound coming from again?’” says Carlson. “It’s like their minds don’t want them to believe it.”

The company is tight-lipped on pricing and on which electronics giants it has struck deals with. Those companies should make their own announcements in the first half of 2010. (The products will not carry Emo Labs branding.) Carlson says the technology will add about a 10% price premium, so consumers should pay $100 more for a $1,000 TV equipped with Emo’s speaker.

Electronics firms have been deep-discounting their products for some time now, and even Carlson admits they are wary of any technology that could drive up the price of their products. Still, given that 160 million flat-panel TVs and 150 million laptops were sold in 2009, even a tiny slice of that market would be lucrative for Emo.

And that’s not counting the global loudspeaker business, set to hit $4.2 billion in 2010, according to research firm Electronics.ca. Carlson recently installed conventional speakers throughout his house. Wiring and tearing into walls cost more than the sound equipment, he says. “It would be beautiful if you could just use picture frames in each room,” he sighs. “Especially if they were wireless.”

To that end, Emo Labs has met with a company 20 miles down the road, near MIT. Its name is WiTricity.

Courtesy CNN.

It’s 8 a.m. in a San Diego hotel ballroom, and the annual DEMOfall conference is under way. VCs and journalists stifle yawns and peck at laptops. After a morning of scripted pitches by startups that promise to “integrate smartphone remote mobile applications” or “monetize social networks by enabling live social interaction around content,” the coffee break can’t come soon enough.

Then Jason Carlson of Emo Labs, a last-minute addition to the schedule, wheels a TV and a set of giant speakers onto the stage. They’re playing the Beach Boys. Carlson whips the speaker box off to expose a sheet of clear plastic, which is producing the sound.

Suddenly no caffeine is required, no jargon necessary. Emo has invented invisible speakers. There are audible gasps. Dozens of digital cameras flash at once. Those same jaded observers start cheering.

“I didn’t think I could give a good presentation that wasn’t one-on-one,” Carlson tells me later. “I was worried I was going to be a failure.” Emo goes on to win $500,000 and the conference’s DEMOgod title.

By some measures, these are lean years for commercial innovation. In a recent Fortune Small Business/Zogby International poll, just 19% of small business owners said they aimed to introduce a new product or service in 2010; that’s an 8% decline from a year earlier. Among those looking to launch, a sizable majority — 77% — described their product as an “incremental improvement” rather than “game changing.” Like those scripted startups at DEMO, most entrepreneurs seem to be playing it safe.

But look closely at the few who are innovating — and at the products that make you go ooh — and another narrative emerges.

Hardware is back with a vengeance. Most successful products coming out of small tech companies in the early 2000s were Internet plays, like Google (GOOG, Fortune 500), Facebook or Salesforce.com (CRM). That territory has now been thoroughly mined. The most exciting products of 2010 will look a lot more like … well, like the breathtaking science-fiction stuff we always expected from the 21st century.

This, our sixth annual Next Little Thing feature, examines four companies whose products have the potential to revolutionize how we work and play. Apart from Emo Labs, there’s WiTricity, which is making electricity as wireless as Wi-Fi; Plastic Logic, whose flexible electronic reader is a generation beyond Amazon’s Kindle; and Emotiv, whose headset reads your brain, letting you control a computer without touching it.

Despite the diversity of their products, these companies have much in common. All were founded by scientists who did groundbreaking research during the 2000s. In all four cases, the founders recruited business leaders with the chops to commercialize their ideas. All are ambitious, yet modest enough to know they can’t grow without hundreds of developers and equipmentmakers. And all have one major hurdle to overcome: mass skepticism.

As Eric Giler, CEO of WiTricity, says of being headhunted by the company: “I thought, ‘Well, this is impossible. But if it’s true, the world will change.’”

Invisible Sound
Invisible Power
Flexible Reader
Reading Brain Signals