Competitive Advantage ErosionCompetitive Advantage ErosionEXECUTIVE SUMMARYThe purpose of this paper is to analyze the growing disparity of science and engineering education between the United States and China.This disparity which is causing businesses to shift their operations to access highly educated talent pools in Asia are a result of 3 key factors.1. China, understanding the importance of improving science and engineering education aims to leverage its highly skilled population to boost its competitive advantage in the global market.
2. The United States continues to have its competitive advantage eroded away as fewer and fewer college graduates leave higher education with an advanced degree in science or engineering.
INTRODUCTIONOn October 4, 1957, the former Soviet Union launched Sputnik I, the first man-made satellite, into outer space. Sputnik I was a tiny object, only about the size of a basketball, but despite its size, the impact of this event changed the world with respect to politics, military, technology, and especially scientific development. While the launch of a basketball sized object into outers space might seem like a single but important event, it marked the start of the space age and the U.S.-U.S.S.R space race1. Fears of a “missile gap” and being overtaken technologically, drove the United States to increase funding for science and technology research. This push for technological superiority led to the United States’ competitive advantage in information technology that lasted for almost 30 years.
50 years after the launch of Sputnik I, the United States and other economically mature nations are facing a new technology gap. The sharp increase in foreign direct investment being used to build up advanced science and engineering research in Asia along with increased growth of advanced science graduates coming out of Asian universities, will lead to the erosion of the competitive advantage of the United States’ while boosting the growth of emerging Asian knowledge economies. As Sputnik changed global politics, military expansion, and science development for decades after its launch, so too will the growth of Asian science education and research.
CURRENT BUSINESS CLIMATEWhile many Asian countries like Singapore are expending their knowledge economies, the general focus of the international political environment is being placed on China. As of today, China is becoming an important base of operations for technology research and development. Large technology companies like Hewlett Packard, Intel, Google, and Cisco have created research centers in China. These companies are expanding in one of the worlds fastest-growing economies, not just for low cost manufacturing and as a market for U.S. goods, but as a center for innovation with a considerable, educated talent pool2. The aforementioned educated talent pool is an important factor for the growth of research and development of high-end technology in China.
This growth is leading to a massive change in the way Multinational Corporations do business. Many of these new research centers, such as the one being created by HP will focus initially on developing technology for large corporations and government. The new HP research park is focusing its resource son finding ways to connect extensive computer networks. This lab could eventually branch out to focus on consumer technology and trump traditional American technology design labs. This is evidence of a shift in traditional operations. Little more than 10 years ago, American multinationals created the design of their products domestically and only had products manufactured in China to utilize low cost labor. Now, entire company supply chains are being shifted with activities for research, design, manufacturing, and even after purchase support all being conducted in China.
The Globalized Health Insurance System: $1.1 Billion
The Globalized Health Insurance System ($1.1 billion) is the new system in place to offer health insurance and it will provide millions of U.S. citizens a plan with benefits that will last. Many nations have set back the cost of health care for future generations to $1.1 billion as we live and work today because of their healthcare system, but not many have taken advantage of the system’s massive expansion, resulting in an explosion of national health spending that goes for health insurance now and later, rather than back when private insurance is the only available option. This growth is leading to a massive change in the way Americans care about their health. Many people believe that a change in the medical system will lead to a huge increase in the cost of Medicare, Medicaid, and Social Security.
The Global Medicare Program: $900 Million
The United States is in the middle of its Medicare-era 2035 health care plan being revised, with the end goal of getting every single person in the country covered by Medicare and providing $900 million to help states achieve their full 2020 commitment. The $900 million figure also means that the U.S. already spends more than we would have without Medicare alone. Many believe that our government isn’t spending enough to afford our entire health care system. Yet, a few states have even set up programs to save more than they would have without our contributions through our own systems.[2]
The Medicare Patient Plan: $900 Million
The USP plan will see a massive program to expand health care into those that are already covered by Medicare. Today, only 36 million Americans are getting in their high deductible for life insurance – as the federal government has already done during the Obama Administration and it will not change in the near future. By 2020, nearly half of all Americans are receiving high deductible care as compared to the 9% of seniors who do not receive health care insurance. The Medicare plan will be able to provide Medicare patients with health care coverage with no strings attached. With the expanded payment, Medicare patients also receive health coverage coverage that has not been available for many years.
The Medicare Healthcare for All: $947.8 Million
The United States is only now getting to a point where more Americans are seeing access to lower cost health care choices. The Medicare Healthcare for All plan will offer access to $947.8 million more coverage on a single, universal basis. Most people will find the choice to choose healthcare online or in hospital with the flexibility to choose from an assortment of health insurance plans available. Medicare will have access to coverage with no strings attached and will guarantee health care for everyone.
America is set up to be the envy of the world because it provides the cheapest health care today for every American. The new HealthCare for All plan will provide universal coverage on top of current coverage. People can choose from more than 3 different options and will have access to the most comprehensive health care coverage online or in hospital after they go to see a physician. As well as being the envy of the global health insurance industry worldwide in its focus, the HealthCare for All plan is also the product of a national budget negotiation, not even the federal budget plan.
There are also several major initiatives being pursued in a multitude of areas to strengthen health systems in rural, working class areas. Many of the states will provide access to affordable health care with the federal government supporting this.
The Health Care Option
The Health Care Option has
The shift in knowledge and operations is growing. With such a large shift in