Have we finally moved competitiveness beyond the intellectual level? Is it also true of innovation? The farthest distance to traverse is not external but rather between the head and the heart? But once competitiveness and innovation get to the heart it is easier for them to come down to the gut – where they become instinctive? Or why Singapore and Hong Kong are atop the competitiveness ranking?
The writer used to confide with his Indian friends that they may be too smart for their own good! Before China became an economic power, India was well ahead with their economic infrastructure. Of course, they kept to a lot of restrictions and for many years their economy performed below its potential! Yet their strength in information technology became handy with the coming of Y2K. And given their low-cost structure global companies came over while India in turn was lifting certain currency restrictions. And beyond IT they have raised their manufacturing capability – for example, developing the world’s cheapest car. And the UK acknowledges India as their biggest manufacturer, and respects their ability to acquire iconic British auto brands! They have a ‘strong sense of innovation’ – which they define in jest as: ‘you have to be an innovator to simply survive in our country’!
The Chinese, on the other hand, are ‘natural entrepreneurs’? Negotiating with the Chinese while tough – i.e., it requires patience – would have a better than even chance that a win-win agreement could be had? Of course the Chinese have their weaknesses too – their exports are driven by cheap-priced consumer goods made from cheap labor, for example, which can’t be perpetual? (China will have to continue raising wages before labor becomes unhappy about the country’s economic profile? Which means the imperative of producing higher value-added products would also apply to them?) The Germans, on the other hand, has demonstrated their strength in industrial equipment or higher value-added products, and grew their economy while the UK, for instance, was entertaining a double-dip. Yet major Chinese companies have invested in the US – even buying respected US brands that suffered during the recession – and thus would have access to both US technology and the big US market. In short, it is not surprising that China has overtaken Japan as the world’s 2nd largest economy . . . with India anticipated to move up next to China.
Like the Indians, we have demonstrated smarts too, but in global competition and in the global market, we need to move past the intellectual level and on to the pragmatic, real world? For example, we can intellectualize competitiveness and innovation but until we roll up our sleeves and actually compete globally by producing innovative and compelling products, we would remain marginalized? We better hurry and get our basic infrastructure up to competitive standards – a requisite to successfully embark on our identified strategic, competitive industries? Media should then hold the Administration’s feet to the fire?
Competitiveness and innovation ought not to be restricted by parochial instincts? For example, many years ago we concluded – when NBA players first came to Manila and demonstrated their brand of basketball – that a good small team would not measure up against a good big team? The same principle applies to capital, technology, systems and talent – the imperatives of competitiveness and innovation?
And in China, South Korea and Taiwan today, for example, they have brought in lots of these elements from the West. The point was driven again to the writer when his Eastern European friend proudly commented that (as he stepped out of the elevator one morning) he had to switch to English because the people he bumped into were not local employees – because he has tapped into Western capital, technology, systems, talent and then some!
That’s the global economy’s definition of inclusion – not narrow but truly global? A bit of reality not lost to one of India’s largest conglomerates – they have opened their search for the next CEO to foreigners?
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