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What portion of design is still U.S.-based versus what happens overseas?
Scalise: When Craig Barrett testified before Congress last Friday, he said 80 percent of Intel's R&D is done here, so I can't break it down exactly the way he broke it down, but I think that probably gives you the answer.
So when you're choosing to locate design elsewhere, how do you guarantee the intellectual property will be protected?
Scalise: There are lots of ways to go about that. If you're talking about in the case of these companies designing semiconductors, you can partition it in a way where the work that is being done in a given area doesn't really have enough knowledge. They know what they've got to do relative to another piece, but they don't have enough knowledge to have the IP under their control, so they can't do a lot with it. That's one way of dealing with the issue.
What can the U.S. learn from China?
Scalise: They're making huge investments in the university infrastructure. They're also increasing their funding, their basic research at these universities. We're at 0.7 percent of GDP (gross domestic product) going into basic research. They are at 1.5 percent. They have a smaller GDP right now, but that's OK. They are still a higher level, but they're going to bump that up to 2.5 percent.
The third thing that they're doing, and again I think it was described here, is that the states are taking the entire risk in the investment so that the companies don't even have to go to the financial community and say, "We want to make a new investment and here's why we are worthy of our loan or whatever, a bond float to do this." If you're getting funded by the state and then it's being leased back to them, I mean, that's about as generous as I've ever heard of. Japan did something similar to that in the 1980s but not even as aggressive as that. So the point is, they are being very, very aggressive about all of the things that we were talking about need to be done here. They're doing them already.
Today 85 percent of that market is served with imports from around the world. The vice premier told us their objective is just to turn that around so that 85 percent is delivered from within China and 15 percent from outside. If you're going to deal with an environment like that and you want to hold out in a market share, you're going to have put some capacity out there. You may not want to do it, but you may not have a choice if you want to stay in that game. But that doesn't mean you can't do your critical mass here as well.
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The idea is simple: give big, rich corporations our tax dollars
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good for America. Of course, that's way too simplistic for today's
economy where there is no longer any such thing as Corporate
America (they're all multi-national), but that won't stop
Republicans from pushing it on us.
for the amazingly low price of $3/gallon.
The idea is simple: give big, rich corporations our tax dollars
and they'll produce for us! What's good for Corporate America is
good for America. Of course, that's way too simplistic for today's
economy where there is no longer any such thing as Corporate
America (they're all multi-national), but that won't stop
Republicans from pushing it on us.
- Math Skills?
- by foolmetwice July 5, 2006 10:51 AM PDT
- Why would any right thinking american student waste their time getting engineering or math skills? They already know if they did that down the road they would be replaced by an alien with an H1B visa. They may even have to train their replacement. The real problem is that companies are controlled by evil greedy self-serving individuals with obscene salaries and perks and no imagination. All they know how to do is please similar get-rich-quick stockholders. Good riddance Ken Lay and may others soon follow!
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