The roots of American innovation are deep
In the past century, most new products and services were developed first
in technologically advanced societies - predominantly in the US. And now
some Americans fear that all those bright young Chinese and Indians will
steal not just the routine jobs, but also the precious skills. Growing
hostility towards outsourcing has brought an isolationist backlash -
reduction of visas for skilled jobs. The feeling is that foreign workers
will simply take their learned skills back home.
The biggest asset in the US is its culture of entrepreneurs and
innovation which goes back to its roots in the birth of a new nation,
the "wild, wild West" that thrived on risk and change. Older societies
do not foster innovation, encouraging only the wisdom of the past.
New ideas come from an attitude, an ambience, a culture that embraces
change.
Today there are venture-capitalists and startup companies all over the
world, trying to emulate US successes of the 80's and 90's. But beyond
just new technology, it requires deeper changes in customer attitudes.
When I started a company in England, the primary barrier was customer
acceptance - many established companies just didn't want to buy from
a small startup; it was an obstacle you had to overcome. Your products
had to be established before they'd give you a try. They were dubious
about small companies, and suspicious of the word "entrepreneur".
By contrast, my US startup (Action Instruments) generated faster growth.
Many customers felt that being small was an "advantage". When my very
first customer was ready to place a large order, he asked, "Who is
Action Instruments?" I stopped. How could I tell him that he was in
fact my first customer, without losing the order? So, I blurted out
spontaneously, "Action is a large company in its early stages!"
He laughed, and gave me the order...
After the success of the technology era, and in spite of the dotcom
crash that followed, most people in the US still feel positive about
small companies and new technology. In one major example, Action was
selling industrial computers against IBM - and we won simply on the
merits of our products. I don't think that could have happened in any
country but the US.
Mind you, my experiences were decades ago. Today, the entrepreneurial
spirit flourishes in many other countries. But the US culture still has
a vast lead, and will remain pre-eminent for a long time. This is why
many immigrants are significantly more productive in the US than in
their home country.
The hardship of joblessness and the complaints about outsourcing will
simply stimulate a new breed of entrepreneurs and innovators to change
the face of business. It's happened before, and it'll happen again!
There is another side too. Innovation makes everyone richer. The Japanese
push for Quality in the '70's and 80's was quickly embraced by the US,
with ISO 9001, TQM, Six-sigma and other programs that have had significant
results.
While the rest of the world strives to catch up in the innovation race,
the world will be a better place for all. India, China and many other
countries will compete, but the competition can only result in mutual
improvements. There are benefits for all who run the race.
That Seldom Heard Encouraging Word
One Giant Global Labor Pool
Making sense of outsourcing and offshoring
Lester Thurow: Globalization and Prosperity
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