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"Bug Labs wants to make innovating hardware as simple as innovating software," writes Mitch Wagner. "So they created the Bug, an open source hardware design and software for building modular mobile devices."

Developers can snap together a cell phone, camera, LCD display, GPS, accelerometer, and more to build custom tools. Software innovators have a simpler job than hardware innovators, said Peter Semmelhack, president and CEO of Bug Labs, making a presentation at the O'Reilly ETech Emerging Technology Conference in San Diego Wednesday. "The world of atoms is very different from the world of bits," he said. Software innovators with an idea for a new application have a wealth of open source code to use, and the Internet handles distribution.