Innovation pessimism_ Has the ideas machine broken down_ _ The Economist

the ec onomist c ars fromtheprinteditionbriefing rec

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: hows firms in ric h c ountries s hipping low­s k ill tas k s abroad when offs horing c os ts little, thus driv ing apart the wages of s k illed and uns k illed work ers at home. Ov er time, though, offs horing rais es wages in les s ­s k illed c ountries ; that mak es innov ation at home more entic ing. Work ers are in greater demand, the inc ome dis tribution narrows , and the ec onomy c omes to look more lik e the pos t­s ec ond­world­war period than the 1970s and their aftermath. Ev en if that model is mis tak en, the ris e of the emerging world is among the bigges t reas ons for optimis m. The larger the s iz e of the global mark et, the more the world benefits from a giv en new idea, s inc e it c an then be applied ac ros s more ac tiv ities and more people. Rais ing As ia’s poor billions into the middle c las s will mean that millions of great minds that might otherwis e hav e toiled at s ubs is tenc e farming c an ins tead join the modern ec onomy and s hare the burden of k nowledge with ric h­world res earc hers —a s haring that information tec hnology mak es ev er eas ier. It may s till be the c as e that s ome parts of the ec onomy are immune, or at leas t res is tant, to s ome of the produc tiv ity improv ement that information tec hnology c an offer. Sec tors lik e health c are, educ ation and gov ernment, in whic h produc tiv ity has prov ed hard to inc rea...
View Full Document

This document was uploaded on 02/16/2014 for the course MGMT 237 at UPenn.

Ask a homework question - tutors are online