Manufacturing is still critical to the economy United States. Clyde Prestowitz, says it's time to start realizing the positive spillovers that manufacturing creates... Read more
Stephen Olson at Chinese Development Institute Conference
Clyde Prestowitz giving presentation to CDI...
Steve Olson teaching trade negotiations at the Mekong Institute...
Stephen Olson to speak at upcoming workshop organized by the International Institute for Trade and Development on
"Economics of GMS Agricultural trade in goods and services towards the world market"
Chiangmai, Thailand Sep 8-12.
Summary of Early Findings
Robert B. Cohen, Senior Fellow, Economic Strategy Institute, December 4, 2015
Click here to download as a PDF
1. Were you surprised by the 2.2 % figure for US productivity growth in the third quarter and the 3.3% figure for US productivity for the second quarter?
Yes? A number of economists – including Google’s Hal Varian in the WSJ – have argued that government statistics are not measuring the “Silicon Valley” effect on the economy correctly.
2. Software – i.e., the New IP -- is driving US growth and corporate strategy. The Fortune 500’s growth and the growth of many Silicon Valley firms, such as Facebook, Apple, Google and Amazon is driven by The New IP. When GM consolidated its data centers recently, it said it wanted to operate like Google, Amazon and others.
3. Waves of software innovation – such as the rise of containers in 2015 -- are part of the New IP and are driving recurring cycles of far lower prices to create services and applications. GE’s CIO recently said that before changing to a more agile – read New IP – infrastructure, it paid $65,000 to run an application; now, running the same app costs just $6000.
4. Clouds and the New IP are being used in at least three different ways. There is not just one approach to using the New IP or cloud computing ecosystems writ large. We see firms using the New IP to:
5. Over the past few years, a top priority for highly competitive businesses has been to be the most innovative firms that deploy and control agile software – the New IP. The best examples of such firms are Facebook, Amazon, Apple, Google, Netflix and Gap. By adopting the New IP, these firms run and manage analytics and infrastructure (i.e., computing, storage and networking) much better than their competitors.
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