Monday, August 31, 2009

Must-read piece in Business Week on reviving American research

Name an industry that can produce 1 million new, high-paying jobs over the next three years. You can't, because there isn't one. And that's the problem.

America needs good jobs, soon. We need 6.7 million just to replace losses from the current recession, then another 10 million to spark demand over the next decade. That's 15 million to 17 million new jobs. In the 1990s, the U.S. economy created a net 22 million jobs (a rate of 2.2 million per year), so we know it can be done. Between 2000 and the end of 2007 (the beginning of the current recession), however, the economy created new jobs at a rate of 900,000 a year, so we know it isn't doing it now. The pipeline is dry because the U.S. business model is broken. Our growth engine has run out of a key source of fuel—critical mass, basic scientific research...

I don't exactly buy his precise prescriptions, but he's surely right about both the nature of the problem and the magnitude of response that is needed.



Comment by Anonymous Charles:


Interesting piece.

My worry is how to generate the basic scientific research and innovation when so many of the entry levels jobs (particularly in IT) are being outsourced.

In the last few years I've noticed that IT teams are becoming older (I'm 38 and often feel like the youngster in the room).

Without the entry level programmer jobs innvation and new ideas will be stifled and innovation and basic research / new ideas both here in England and in the US will decline...

4:04 AM  

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