NIB Syndrome ?? (Not Invented in BRIC)

This post is written by Ernst Max Nielsen:

The TII 2006 Conference invitation (Tech Transfer in the 21st century ) reads as follows for one of the themes: Production to low-wage economies is a positive influence and should be encouraged. True, false or what can be done?

It's a funny question! Outsourcing to BRIC countries is a fact and in the free economies of the exporting countries, it's unthinkable to intervene in any efficient way. So I'll re-phrase the question from a tech transfer perspective.

For some time now, we have seen (at least in Europe) a view that says: "Fine to send labour-intensive production to BRIC countries (Brazil, Russia,India and China). So much more important is it that we (in the West) build up a competitive edge in the knowledge economy, design matters and other value added contributions to products and services".

The assumption in such views is that BRIC countries are not competitive when it comes to knowledge production, innovation,- as sources of innovation. It's a false view!

If you'll follow the links to articles about BRIC in the Category List on this site, you will see good examples of how and why the NIB thesis is wrong (NIB="Not Invented in BRIC" ;-) It's a fact that BRIC countries are innovators and not just copy-cats.

So the re-phrased questions is: Exporting Production AND Knowledge Production to BRIC is a positive influence. True, false or what can be done?

Let us analyse the question from the "what can be done" perspective! In an European context, we tend to analyze what the impact might be for regions, the SMEs (Small Medium-sized Enterprises), corporations, civil society etc.

From my dealing with business, I see it this way: globalization means that the most competitive actor, wherever located, will win. But it's wrong to focus on Technology only: the key to success is NOT the Technology isolated, but much more the ability to bring customized products and services to given markets. The bottom line is that globalization means a more equitable exchange.

The big question for innovation service providers (including businesses themselves) and policy makers is whether their regions nourish the conditions for such competitive advantages. And if they don't, how then to establish them. Such thinking has led to a whole school of "Cluster thinkers": to promote "Regional Clusters" drawing on some of the original thinking and analyis of Michael Porter.

For the SMEs, this means that they belong (or don't) to such clusters - and they had better start now if they don't. For regional policy makers, they'd better start monitoring their region's competitiveness. And do something if they fall behind.

For consumers and civil society: reduced competitiveness means reduced living standards measured by monetary means.

I shall continue the analysis later in prepartion of the TII 2006 Annual Conference.

Comments

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