An Innovation Arms Race?

Posted by jeckert on 02/02/2011

It used to be that the United States was the innovator, China the cheap producer.  But now, as innovation has followed manufacturing and production overseas, America is faced with a whole new breed of competition from China: competition in technological innovation.

The Wall Street Journal reports:


China says there's nothing threatening in its efforts: It simply wants to modernize. Developing homegrown technology is better than continuing to pay stiff royalty fees for foreign inventions, the Chinese ministries say. As for "re-innovating" or "assimilating" foreign technology, that's no different from what Japan and Western countries did when they industrialized, they add.


U.S. companies don't see it that way. They worry, for example, that China's new approval process is holding up products at the border as technicians examine designs with the intent of doing a little early "assimilating."

So, there is legitimate worry among U.S. innovators that intellectual property rights are being violated, giving China the eventual upper-hand in both production and innovation.

Read more.

Related recent Blogs

@KeepitMadeinUSA on Twitter

  • A good sign? More laid-off workers are finding jobs in their fields. 42 min 36 sec ago
  • .@royhouseman from @steelworkers talked about what's next for #SOSJobs on @BloombergNews. Check it out: 1 hour 27 min ago
  • ICYMI: Our @ScottPaulAAM chatted w/ @EdShow about why it's so vital we level the playing field for U.S. tire makers. 1 hour 45 min ago
  • Obama admin placed tariffs on China-made tires, but expired. Hope tariffs are put back in place, but we also must be more proactive. #edshow 17 hours 12 min ago
  • Countries like China subsidize tires they produce. Tariffs level the playing field for U.S. manufacturers & workers, says @ScottPaulAAM. 17 hours 15 min ago
  • "Tariffs help to level the playing field -- nothing more and nothing less." -@ScottPaulAAM 17 hours 16 min ago
  • On @EdShow NOW: Unfair trade practices mean tire manufacturing workers are struggling to keep their jobs... 17 hours 17 min ago
  • Our @ScottPaulAAM will be on the @EdShow in the next segment... tune in NOW! 17 hours 27 min ago
  • .@royhouseman on Taking Stock @pimmfox: U.S. steel producers can compete in a growing market as long as the playing field is level #SOSjobs 17 hours 52 min ago
  • If domestic OCTG producers can compete in a growing market it will provide the an opportunity for significant growth. -@royhouseman #SOSjobs 17 hours 54 min ago