Securing America’s International Business Future
The greatest threat to future U.S. prosperity and job prospects is the insufficient interest our leaders have in deploying resources to ensure that American engineers, managers and entrepreneurs are the best in the world at commercializing innovations and improving business processes.
The greatest threat to future U.S. prosperity and job prospects is the insufficient interest our leaders have in deploying resources to ensure that American engineers, managers and entrepreneurs are the best in the world at commercializing innovations and improving business processes.
Twenty years ago we presented a process-learning perspective on what was needed to ensure that America continues to be a winner in free trade markets and a shining city on the hill. Drawing on how Great Britain lost its lead in was the creation of well-paying jobs through superior commercialization of innovation.
Since then, individuals such as Michael Porter have been outspoken about the need for a major public policy-driven innovation initiative, but little action has resulted. Interest in the topics of learning and innovation has actually declined in public discourse over the past 11 years, as measured by Google trends. It should have increased instead.
Meanwhile, the world moved on. The extraordinary growth of Asian economies, in particular China’s, over the past 20 years has dramatically changed the challenges and raised the stakes. According to the World Bank, in terms of port container traffic the Chinese economy has grown logistically from being about equal to the U.S. in 2000 to being four times larger in 2015.
Judging by these traffic flows, a lot more experiential learning is being done in the Chinese economy—and it’s not just learning how to move containers. It is learning how to develop, market and distribute new products to the market. Learning-by-doing has made many sectors of the Chinese economy more capable and competitive than their counterparts in the U.S. This enormous learning advantage gained by active international traders, many of them from Asia, appears to have been insufficiently recognized by the political and business leadership of the U.S. Failure to learn because of not doing will lead to diminished results for the U.S. economy. It will bring lower wages and greater income inequality to the United States over the next several decades. We propose a number of public/private sector initiatives that can be implemented rapidly by a new administration to rebuild the nation’s competence and confidence in its process-learning capabilities and commercialization of innovation.
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