US tightens grip on IT leadership - report
Published: 18 Jul 2003 08:00 BST
The US will stay at the helm of the global technology scene for years to come, despite the rise of Asia as an IT manufacturing powerhouse, says a US government-funded study.
This vote of confidence was expressed in a report on the competitiveness of countries just released by RAND's National Defence Research Institute, an independent research and development centre financed by US government agencies.
RAND said the US will cement its lead in the global IT revolution because its authorities provide "a hospitable environment to IT business development". In addition, "US businesses are focused on innovation, and Americans readily accept change," it added.
The US is ahead because is willing to let uncompetitive industries fail, said the report.
"Unlike many other nations that concentrate on protecting existing businesses and institutions, the United States presses ahead with change even when it means 'creative destruction' of companies that drive its economy today in order to build a stronger economy tomorrow," said Richard O. Hundley, the lead author of this study.
The report took a snapshot of IT developments around the world and concluded most countries are lagging behind the US, with the possible exception of China in the future.
"Asia already dominates IT manufacturing, accounting for 70 to 80 percent of total world output of a wide range of important IT materials, components, and products. China is rapidly emerging as a major IT player in Asia and the world," RAND said in a statement.
The research centre added China's ascension to IT prowess could come at the expense of Asian powerhouses like Japan if its problem of economic stagnation persists.
RAND's report comes amidst growing fears of job losses in the US technology sector as tech companies continue to outsource parts of their operations to lower-cost Asian countries like China and India.
Opponents of offshore outsourcing also fear the trend will erode the country's technological leadership. The RAND report, however, skipped the topic of IT outsourcing.
Indian IT association Nasscom recently published a statement on its Web site, saying the cost savings and productivity gained from sending software coding and business process jobs to India instead increased employment in the US
Other findings from the RAND report include the following.
* Europe's restrained approach to the information revolution and its lack of willingness to let uncompetitive industries fail means that it will continue to fall behind the US in most technology areas except wireless telephony.
* Most Latin American nations are "also-rans" in the IT revolution and this will continue into the future.
* In the Middle East and North Africa, only a few nations -- Bahrain, Qatar, Kuwait, and the United Arab Emirates -- will effectively use IT to their economic advantage. Israel held promise a few years ago, but is now held hostage to the outcome of Arab-Israeli conflict.
* Most countries of sub-Sahara Africa lack educated populations and adequate financial and physical infrastructures. These nations will continue to be laggards in IT for several decades.
Let the editors know what you think in the Mailroom.
Did you find this article useful?
32 out of 73 people found this useful
- Share this article:
