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FedUpAmerican

Are American Engineers in Short Supply?

The following are excerpts from an opinion article by Prof. G. Pascal Zachary of Arizona State University, in current issue of IEEE Spectrum. In it he argues that not only outsourcing of jobs including high-tech, but, ironically, technical innovations have also led to some destruction, rather than creation, of jobs in America. "The simplest explanation for the employment crisis is "jobless innovation." Exciting new technologies are coming onto the market, but they don’t appear to require many people. The new generation of Internet stars, for instance, employ far fewer people than the older tech titans. And Silicon Valley, which remains by far the most fertile innovation cluster in the world, has experienced sharp declines in employment over the past 10 years. The Bureau of Labor Statistics found in 2010 that high-tech employment in Silicon Valley (including biotechnology) fell by a staggering 19 percent over the course of the 2000s and that Silicon Valley wages also fell, nearly 14 percent. The decline in jobs and wages occurred, all the more shockingly, alongside the revival of Silicon Valley as a global innovation center. Not only did the area spawn major new companies, such as Twitter and Facebook, but it also saw a startling series of victories by Apple in the new arenas of the iPod, then the iPhone, and most recently the iPad. And yet despite achieving stunning dominance in smartphones and tablet computers, Apple today employs 10 workers in China for every worker in the United States." "The jobless-innovation phenomenon results partly from globalization. Grove points to two related problems: Breakthroughs made by Americans in the United States are increasingly scaled up in Asia, robbing the country of expected employment benefits. More significant innovations are arising offshore, too, Grove reports, so that "scaling and innovation take place overseas." Scholars have labeled this phenomenon "the offshoring of innovation." They point to a marked rise in R&D activities in China and India especially, but also notably in Brazil, Indonesia, Russia, South Africa, and other rapidly growing economies. Offshoring creates a significant drag on U.S. employment, scholars say. A new book,The Global Auction: The Broken Promises of Education, Jobs, and Incomes, published in December by Phillip Brown, Hugh Lauder, and David Ashton, argues that there now exists an ample pool of "cheap brainpower," outside the United States, largely in low-wage countries, with predictable effects on the U.S. labor market." "Applying more technology to cure the jobs crisis carries another paradox. Many emerging technologies destroy jobs, in a process that the Austrian economist Joseph Schumpeter famously labeled "creative destruction." http://spectrum.ieee.org/at-work/innovation/joble…
— April 7, 2011 6:58 a.m.

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