ON-SHORING INNOVATION

According to a new study published by the National Academies, a Washington organization that advises the U.S. government on science and technology policy, America continues to be the world leader in creating new products and services has remained remarkably resilient over the past decade—even as more research and development by U.S. companies is done offshore.

And while the report makes a compelling cases that U.S. companies are succeeding, it does not address the issue of U.S. innovation's benefit (if any) to the U.S. worker.

Still, given all the debate over offshoring, the report's central findings are interesting. The authors marshal a wealth of evidence to show that, thanks to innovation, globalization hasn't eroded U.S. leadership even in some industries where there has been a substantial offshore shift in engineering and design.

There are cases where the U.S. can lose a commanding lead when domestic manufacturing disappears—namely in flat-panel displays and lighting. Macher also concedes "there are problems on the horizon" regarding America's future competitiveness. Other nations are starting to mimic many of the strategies that give the U.S. an innovation edge.."

via BusinessWeek