Andy Grove, a founder and one time CEO of the semi-conductor giant Intel Corporation, has taken billions of dollars of product from startup to mass production. He correctly points out that most observers do not understand the job implications of what he calls the “scaling phase”, which is that part of the cycle that moves the product status from startup to mass production. Manufacturing is a key component of the scaling phase.
In the July 5 issue of Business Week article “How to Make an American Job” he presents a clear and detailed description of how the economist and financial experts lack of understanding of the scaling phase led America to give up leadership positions in critical industries. They did this in the mistaken belief that moving manufacturing out of the United States to “low cost labor” was a wise strategy that would only affect manufacturing lines. The consequences of this action to our nation’s workers, along with our position in the global economy, have been severe. To quote “Without scaling, we don’t just lose jobs; we lose our hold on new technology. Losing the ability to scale will eventually damage our capacity to innovate.”
He gives strong and specific advice on what must be done to recover some of our losses. It is a discussion of what is working, regardless of ideology. He describes how the governments of Asian countries have had great success in guiding and assisting their industries into critical areas against us. As a former Hungarian who came to the US in 1956 he is well informed on how a capitalist system can outperform a rigidly planned system. However we must recognized that our system is now being outperformed by the Asian system. We must intelligently incorporate some features from the Asian system if we are to compete.
. This is only a sampling. To hear from someone with real knowledge Please read the article.
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