We’re stuck and $365 million may not help. The United States places an unusual degree of importance on the reliability of yearend standardized tests. These tests have been around for 15 years and, because we have so little performance data, we try to use them for a variety of purposes. For many reasons, the tests haven’t improved much. The new barrier is the dual fixation on cost and comparability.
Innovation occurs when markets are efficient–where supply meets demand, where consumers quickly (and often ruthlessly) express preferences, where risk is rewarded with return. Blockages can occur either on the buy or the sell side, but they often slump into complacency together.
In the case of educational testing, we have a set of complicated political problems resulting in weak demand for assessment innovation. The next generation of artificial intelligence will help make better test items faster and cheaper to score. But this is more a political problem than a technical problem.