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The reason the United States is in danger of losing its innovation lead? Provincialism.

By | July 14, 2009, 11:59 PM PDT

If you’re a multinational company, where should you locate your research and development organization or your organizations for innovation, if you will?

There’s a debate being featured on the McKinsey Quarterly site that might inform your answer. One side suggests centering that activity in Asia (outside Japan), specifically in places where adversity and challenging economic conditions are inspiring ingenuity in transportation and mobile telecommunications. Think about Tata’s Nano car. Could it have been developed quite as quickly in the United States? I sincerely doubt it, not because we don’t have the brains but because other roadblocks would exist in policy and political lobbies. The other side doesn’t argue for these nations so much as it argues against the United States, referring quite pointedly to its troubles in education and its lack of a national “policy” on innovation in general.

Either way, I found it quite telling that neither of these essays holds up one nation as the leading light in innovation; both, in fact, argue why the United States is not likely to maintain its long-time status in this position.

In my mind, innovation is less a state of place and rather a state of my mind. I’ve never personally been to India or China or anywhere else in Asia for that matter. But think of all the families from those parts of the world who send their children to the United States for higher education. When they return to their countries, they bring not just their book-learning but infusions of the American cultural, including new ways of thinking that will inspire corporate ideas over the coming decades. They’re inspired to innovate for all sorts of reasons, necessity, altruism and, of course, monetary gain.

If Asia will be the next center of innovation, as one of the essay writers on the McKinsey site argues, it would be in America’s interest to rethink its exchange programs with nations in that geography and encourage our own college students to spend some time abroad—a tradition we’ve long encouraged in partnership with European universities.

I think that United States can reenergize its tradition and remain an innovation leaders by looking both inside at all the challenges that face our nation—healthcare, clean energy and education—and looking outside for inspiration. But if we engage in R&D provincialism, failing to look outside our own country not just for ideas but for points of collaboration, then we will not claim this title just a few decades from now.

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Heather Clancy

About Heather Clancy

Heather Clancy is a contributing editor for SmartPlanet.

Heather Clancy

Heather Clancy

Contributing Editor

Heather Clancy has written for United Press International, ZDNet, Entrepreneur, Fortune Small Business, the International Herald Tribune and the New York Times. She holds a degree from McGill University. She is based in New Jersey.

Follow her on Twitter.

Heather Clancy

Heather Clancy

I am fascinated about how businesses of all sizes can transform their operations through technology -- not just to make themselves more efficient, but to rise above their competitors. That's the theme for my two ZDNet blogs, Small Business Matters and Next-Gen Partner. For SmartPlanet, I'm focused on profiling inspirational and controversial business leaders who have great leadership lessons to share. I also write regularly and passionately about corporate social responsibility and sustainability issues for GreenBiz.com.

Occasionally, I will pop up at an industry conference in some sort of speaking capacity. In cases where an engagement involves a sponsor that may be covered in this blog, that fact will be disclosed in coverage as appropriate.

My corporate writing work usually consists of crafting research white papers about some aspect of technology or moderating Webcasts. In the event that my commentary (in written, audio or video form) mentions a company for which I have provided consulting advice, I will disclose that fact. However, there is no connection between these projects and topics that I cover in my blogs.

She writes for SmartPlanet and is not an employee of CBS.

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RE: The reason the United States is in danger of losing its innovation lead? Provincialism.
The issue of provincialism is mischaracterized in my view. It's a stretch to think the average American is more provincial than the average Chinese, Egyptian, Russian, etc. The situation is that our classless society (though far from perfect or complete) leads us and the rest of the world to compare "Joe the Plummer" (remember him?) with the elites in the rest of the world. Now, is good old Joe more provincial than an elite Chinese student who experiences an exchange program here in the U.S.? Well as Sara might say -- "You betcha!" But is his counterpart from Podunk China that much more sophisticated then our Joe?

I don't think so! Our relative openness as a society (though once again still not perfect!) continues to give the U.S. an edge, I believe. Sure, the internationally sophisticated Chinese citizen is a great asset to his nation - we have plenty of those types in America too! But if his country cousin dreams of becoming a plumber...he had better emigrate to these shores.
Posted by Stan K.
15th Jul 2009
+1 Vote
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RE: The reason the United States is in danger of losing its innovation lead? Provincialism.
Think Globally, Act Locally...
So often have we been taught that, but how many people in developed societies actually know what that means?
I'm a post graduate IT student from Sydney Australia, and although I'm a local (SE Asian background), I can see how someone from China or India has alot more to gain from formal higher education systems here or in the States. Most of my peers in my classes are from those 2 countries, and many aren't just attending class to get permanent residents. Most are quite passionate and want to do something and achieve more than what they currently have.
Although I believe a number of passionate innovators, those who dream and build products from their garage or basement for enjoyment, will always be found in the suburbs of American / Australian cities, I also believe more and more people from countries like China and India will do the same. Combine this with the easy access to labour & time (to think and develop ideas), you will soon find that the only thing stopping them from becoming innovation leaders will be how much political and monetary capital the governments / companies invest in developing them.
With the current trends of student exchange, it is guaranteed that innovation will become outsourced even quicker. The question is, can we capture it before someone else?
Posted by joseph.pham@...
16th Jul 2009
+1 Vote
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RE: The reason the United States is in danger of losing its innovation lead
The simpler reason is, Executive Directors of USA Corporations are graduates in the arts of greed and mismanagement by exploitations and marketing pushes and not by a focus on delivering better goods and services which are beneficial and wanted.

The consumer is wiser and sees the cultural erosion as well as quality and usefulness of products and services, yet, the consumer will stay bounded to the existing monopolies and political interferences at the market place.

America can be only better, if it return to a more modern way of being The lands of Opportunities" if it follows a more modern method as I recommend to growing our culture and quality of life.
Posted by surfins@...
16th Jul 2009
+1 Vote
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RE: The reason the United States is in danger of losing its innovation lead? Provincialism.
Why will America fail to remain a leader in innovation? Really, do you want the simple truth? Profits. We have been moving away from capitalism for many years and are making even greater steps that way. Sure, some innovation happens under fascism, socialism, and other government managed economies. Profit potential motivates innovation in a free market, so you actually harness greed for the greater good of the people. America stood as a land were you could go from poor to becoming rich.

If you want to talk about greed and corruption, don't we make leaders of corrupt people and then wonder why future generations grow up and show signs of uncontrolled greed, lack of ethics, and even greater corruption? Personally, I don't understand why corrupt politicians get reelected. Usually the excuse we use is that, despite how corrupt they are, they support programs or bring government money that we want. And it isn't just our political leaders, our media finds it very profitable to sell movies about greed, lust, corruption, murder, and a general lack of personal ethics? If we didn't buy it, they couldn't continue creating and selling it because there would be no profit. So we are to blame for destroying the personal integrity necessary for capitalism to work to its fullest.

Does AMD and Intel innovate and compete because of altruism? No. They compete for market share and profits. So you can find all sorts of reasons for why innovation may be slowing in America, but the more we take away the money of the rich, especially of those attempting to transition from poor to rich, the more we'll see America lose its place as a leader in innovation. We used to be the best place for innovation because someone with a great idea could build a big business essentially from the ground up. Now, it seems that companies too big to fail according to some government dictate get benefit while we up the taxes on the rich to pay for that failure. I think of them as taxes against success. For when you take away failure and make those that succeed pay for those that fail, you also take away success by the very nature of what you are doing.

Think of it this way. If everyone got the same score on a test whether you studied or not, would you study? I am sure that most of us will say yes at first. But what if that were true for this test, the next test, and every test after that? How many would stop studying because their score would never differ them from those that never even looked at the material? You could never say how wonderful it is on your resume that you got XYZ certification because no person or institution would know if you learned anything that improved your skills. The same thing happens when you take away the profit motive. Whether you believe it or not, profits need to exist and government really needs to stay out of the details of our economy.
Posted by dedrizen
16th Jul 2009
+1 Vote
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RE: The reason the United States is in danger of losing its innovation lead
I think this article deserves a retraction. Your opinion is very poorly
founded unless you go visit these countries and understand the
strength that their culture gives them.

Innovation in America is dead because we began taking the home
economics and shop classes from our high school. It began when we
removed the confidence of the average American to change their own
oil or, GASP, balance their own check book.

We are breeding a nation of idiots unto which we have not yet experienced the full consequences.

I believe America is the birthplace of innovation. Not only that, I believe
it is the country most advantageous in its diverse cultural and historical
upbringing which allows it to create and build people of unique
backgrounds. This is most intrinsic in a wide and varying angle of
attack in problem solving and creative thinking.

Heather and Joe, fellow readers, please read "The World is Flat" by
Thomas Friedman. I believe it will be very beneficial in understand the
level in which our game must be elevated to compete in the global
marketplace.
Posted by Ajay.A.Desai@...
12th Aug 2009
+1 Vote
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RE: Online Makeovers for Baby Boomers
We have been living in Montana for the past 5 years and I am not supri sexshop to find it #3 on the "worst" list. Considering a sexy shopmove to Idaho to escapthe high cost of living a low income in MT. There may not be a sales tax here but they get you if you own property!
Posted by marquesthomas
24th Jul 2011
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