The US can't manufacture the Kindle. Is that a problem?
Apple's iPod - designed in California, made in China.
Amazon's Kindle - designed in the US and also, made in Asia.Is that a problem? This Harvard Business author thinks there is. I see his point about how the US is falling behind in manufacturing technologies, and how this contributes to the trade deficit as the US buys from Asia. Of course, Kindle sales are a relative drop in the ocean but if this is happening for other products and services, it is something that should be addressed. I'm drawing comparisons with the car manufacturing belt in the US (e.g. Michigan, Ohio) that have been badly hit by the downturn, and am wondering if too much was invested in 'traditional' manufacturing (automobiles) while giving up the competitive edge in up and coming technologies.The US should, of course, continue to innovate, even if it cannot physically produce the goods its inventors conjure up. It cannot lose that edge, or else all will be lost. I think that, with the right intellectual property laws and enforcement, greater margins come from royalties than from manufacturing. Of course, the US would be helpless to stop a slew of Kindle clones made by other companies in Asia. This seems to be happening already. US companies that rely on others to produce their goods will face the threat of having their intellectual property misappropriated.
The article isn't the end of the story. Look also at the quality of the comments - and the people behind those comments. This is the 'creme de la creme' type of responses you'd like to have on an intellectual blog. I haven't had time to run through everything, and expect that more comments will be added on in time. But I have to agree with one of the comments which says it boils down to poor management, which causes companies to lose competitiveness. Mindset shapes technology, innovation and pretty much everything else.
Keep an eye on this trend.
