Challenges in the Global Marketplace:
Computers, Connectivity and Competitiveness
America 's success late in the 20th century did not, however, go unnoticed. Others throughout the developed world watched as the Internet Boom created wealth, and they, too, wanted to start companies based on new technologies. In the past, new companies with global ambitions started in regions rich in natural resources with an infrastructure that supported trade. However, it became increasingly possible to compete in the global marketplace at the end of the 20th century, as powerful desktop computers, advanced software and improved communications lowered the barriers to entry for highly motivated entrepreneurs in other countries.
Today, several reports, such as those authored by the Task Force on the Future of American Innovation and the Council on Competitiveness, warn that other nations are investing to improve their competitive position while the U.S. is resting on its laurels. As evidence of increasing danger, these reports cite the growth in R&D investments by other nations, the growth of high-tech equipment production in China, the increase in patents filed by entrepreneurs outside the United States, and the increase in scholarly publications by faculty in other nations.
Skeptics have questioned some of the statistical evidence in these reports and have suggested there is no cause of alarm because the United States appears to be holding its own. In rebuttal, those who worry that the U.S. is losing its competitive edge have argued that stable output is no longer sufficient and that it is difficult to conclude that the U.S. is holding its own when one looks at international comparisons of schoolchildren on standardized tests and the magnitude of the U.S. trade deficit.
What other issues should we consider?