A team from the University of California, Riverside, has developed a technique that augments regular GPS data with on-board inertial measurements from a sensor. Actually, that's been tried before, but in the past it's required large computers to combine the two data streams, rendering it ineffective for use in cars or mobile devices. Instead what the University of California team has done is create a set of new algorithms which, it claims, reduce the complexity of the calculation by several orders of magnitude. In turn, that allows GPS systems in a mobile device to calculate position with an accuracy of just an inch.
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