| Sanity check: Is the U.S. losing
its role as the world leader in information technology?
Issue: U.S. as IT leader
The United States is the birthplace of both
the personal computer and the Internet. It has written the rules for using
business technology to deliver staggering increases in worker productivity.
It has given the world major innovations in the microprocessors that power
computing and electronics devices of all sizes and functions.
The U.S. has quite simply served as the undisputed
leader and catalyst of the global IT industry for the past 40 years. Yet
the landscape has changed rapidly over the past decade, and especially
in the past five years, as the U.S. is now facing challenges across the
board from nimble innovators in Europe and Asia.
In the past several months, many journalists
and commentators in the U.S. have made bold assertions and dire predictions
about America’s decline as a force in technology. Below is a list of some
of the more prominent (and most dire) reports, including links and some
quotes that provide a brief synopsis of each one.
US Losing Its IT Chops (TechNewsWorld)
“The United States has
fallen to seventh place among 122 economies in its network readiness, or
ability to leverage the opportunities of IT, according to a report … by
the World Economic Forum [sponsored by Cisco]. Denmark supplanted the U.S.
at the top of the list thanks in part to its regulatory environment, government
leadership and vision in leveraging IT for growth.”
“I’m surprised we were in
the No. 1 spot in 2006,” said Safa Rashtchy, senior research analyst with
Piper Jaffray. “The fact is, as much as we don’t like to admit it, we are
not the leading edge of Internet and wireless technologies. Part of the
reason has to do with our economy and lack of government support; it’s
also a byproduct of the extremely competitive market.”
U.S. Technology Deployment Leadership
Threatened by Emerging Economies (Info-Tech)
“The world’s emerging economies
are narrowing the technology deployment gap with the U.S. and other developed
countries, says a new global study conducted by Info-Tech Research Group
and KnowledgeStorm. While the U.S. is still the global leader in the implementation
of technology-enabled business solutions, adoption of these systems by
enterprises within regions such as India, Africa, Asia and Latin America
is growing due to confidence in the ability of technology to transform
business…
“Emerging economies can
play catch-up quickly because of the ability of these countries to adopt
the latest versions of technology that’s already been tried, tested and
improved in established economies. From an Information Technology (IT)
solutions perspective, India has already joined the ranks of established
economies because of the willingness of its IT managers to embrace sophisticated
solutions.”
Study: US Lags Behind in Broadband
Speeds (PC World)
“The U.S. is lagging behind
other industrialized nations in the availability and use of high-speed
broadband connections, according to a report [by] Washington-based Communications
Workers of America… According to the report, the U.S. is 16th in the world
in deployment and availability of high-speed networks…
“The U.S. [also] lags behind
other nations when it comes to cost of broadband access… Speeds of 50Mbit/sec.,
which is not available to residential consumers in [the U.S.], is available
to Japanese consumers for roughly US$30 per month. U.S. consumers typically
pay $20 for about 1Mbit/sec. service and $30 to $40 for about 4Mbit/sec.
service.”
Perspective: America’s tech moment
of truth (CNET)
“In the past few years,
other nations have caught up with, and in many ways surpassed, the United
States in reaching important milestones, and the future is probably going
to get worse… A decade or so ago, roughly 35 percent of the investments
in leading-edge chip technologies were made in the United States. In the
last five years, only about 10 percent to 12 percent of those investments
landed stateside… Many of these overseas investments are made by U.S. corporations.”
Turning Our Backs on Tech: Corporate
America has to make IT jobs sexy again (Fortune)
“In the global battle for
infotech supremacy, is America surrendering? Recent evidence suggests that
the U.S. is at least thinking about giving up. I’m talking not just about
America’s ability to produce the fastest chip or most popular software
but also about something potentially even more serious: the ability of
all businesses to be world-class users of information technology…
“The more worrisome problem
is what’s happening with the kids. Moving herdlike, as usual, they’ve decided
that IT is excruciatingly uncool. Of course it was the coolest thing on
the planet just seven years ago, when interest in computer science as an
undergraduate major hit a 20-year high. But then a lot of things happened.
The dot-com boom went bust at just the time companies stopped hiring staff
to fix Y2K problems. More important, the pop culture image of infotech
workers flipped from dot-com billionaires in Gulfstreams to Dilbertesque
drones writing code in cubicles and Third World masses working for pennies
an hour.”
Sanity check
After reading those articles, it’s easy to
get pessimistic about the current state of IT in the U.S., but I would
caution against concluding that the U.S. is doomed to tech mediocrity for
the following four reasons:
1.) The U.S. is at a tactical disadvantage
at the moment — Since many of today’s latest technologies (in virtually
every field) are simpler to use and implement, have more features, and
are much cheaper than their predecessors, international upstarts have a
big advantage right out of the gates when they establish their internal
IT infrastructure. These upstarts get to build their infrastructure from
scratch, unlike many of their U.S. rivals, which don’t have the luxury
of a clean slate but have to face the difficulties of data migration and
staff retraining when upgrading or migrating to the latest technologies.
That means new rivals have the advantages of new technologies. However,
this advantage will even out and disappear over time as the upstarts become
entrenched in their current systems. The irony is that the technology itself
— much of it created by U.S. companies and often including major innovations
in recent years — can be one of the major factors that allows startups
to quickly make up ground on incumbents.
2.) This was bound to happen as IT helped accelerate
globalization — One of the most significant changes that has come with
the rapid advancement of computers and networks has been the world-changing
developments in communications technology. Just think of it … you can now
make a good-quality Skype video call from the U.S. to China and be connected
for over an hour, and it’s free! These changes have connected people more
quickly and cohesively than ever before, have spread new ideas and developments
across the planet, and have driven the powerful forces of economic globalization.
With all of these forces at work, it was only a matter of time before more
people from new parts of the globe got involved in the technology sector
and helped drive it forward in new directions.
3.) Silicon Valley is still the epicenter of
the technology world — Clearly, not all of the best ideas in technology
are hatched from that overpriced stretch of real estate from San Jose to
San Francisco, California. Companies such as Vidoop (in Tulsa, Oklahoma)
and Zoho (with its product teams in India) have proven that. Nevertheless,
there are still more new and innovative tech ideas concentrated in Silicon
Valley than anywhere else on earth. And with Google, Intel, Yahoo, Apple,
and so many other tech giants anchored in Silicon Valley, nothing is going
to change that fact anytime soon. More of the greatest innovations in technology
are coming out of the U.S. than anywhere else.
4.) The sleeping giant hasn’t woken up yet
— The U.S. can never go back to having the kind of unparalleled tech leadership
position that it enjoyed a decade ago. That genie will never go back in
the bottle. There are simply too many players involved now and too much
competition. However, the sleeping giant does need to wake up and acknowledge
that it is under attack from various competitors. Many of the problems
that the IT industry faces in the U.S are due to complacency, and that’s
fixable. The U.S. tech industry must shake off that complacency and work
toward creating a better regulatory atmosphere for tech companies to flourish
here (with help from the U.S. government, of course), a better approach
to reigniting interest in tech education, and a better sense of the areas
where the competition is winning and where there are still opportunities
for U.S. companies and workers to take the lead in today’s multinational
IT industry.
Do you think the U.S. has lost its role as
the world leader of IT? Why or why not? If you do think so, what do you
think are some of causes? Where do you think the U.S. still has opportunities
to lead? Join the discussion. |