Saturday, March 26, 2005

Falling Off the High Tech Throne

The US is no longer king of high-tech. This is very hard for non-technical people to understand, since in your world if one has a head start you always maintain that edge. This is not true with technology. There is something called a “leap-frog effect” in technology adoption. This explains why people late to the technology game can jump ahead of the pack. As an example, South Korea and Costa Rica, have better quality and higher penetration of broadband service than the US. South Koreans are probably the most advanced users of the Internet in the world now.

Falling Off The Competitive Edge, written by two researchers at the Center for American Progress, reports on the successful “leap-frogging” that several 2nd and 3rd world countries have achieved:
"The United States' trade in advanced technology products used to be one of our economic high points. But in the last year, the United States dropped from number one to number five in the list of successful information technology economies—replaced by places like Singapore, Malaysia and Ireland. We're now running trade deficits in high-tech products—something that won't change without serious policy intervention, says economist Christian Weller.

To regain control of the slipping competitive edge, policymakers need to act. A comprehensive innovation policy would be one place to start. Policymakers should allocate more resources into research and development of new technologies and to the distribution of existing technologies, so that they can enhance U.S. productivity on a broad scale.”

8 Comments:

Blogger char said...

Like the Meryl Streep movie, "Postcards from the Edge" (1990) (Based on Carrie Fisher's semi-autobiographical novel), Streep plays a down and out actress on the comeback trail.
Perhaps, we can call it "Postcards from the COMPETITIVE Edge"

March 28, 2005 at 6:55 AM  
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October 27, 2005 at 11:52 AM  
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February 9, 2006 at 3:21 PM  
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