AMERICA’S LEAD IN TECHNOLOGICAL INNOVATION: A LETTER TO THE ECONOMIST (November 25, 2008)

As Amar Bhidé of Columbia Business School argues, America’s lead in technological innovation cannot be as easily threatened by China or India as some American businessmen seem to believe nowadays (“A Gathering Storm?” November 22, 2008). Even if inventions take place abroad, they can still be capitalized in America, which has a wide lead in their diffusion and commercialization. In addition, Americans are much more eager than others to try new things, which is part and parcel of their entrepreneurial business culture. But there is one aspect of this problem that Bhidé leaves out: American openness to newcomers. In the wake of September 11, 2001, the country has become much more insular than it has been ever since the end of World War II. The American educational system used to be the main gate through which potential technological innovators entered the country and became familiar with its culture, business or otherwise. If there is any long-term worry about America’s technological decline, it concerns that precious gate. It must be kept wide open, for inventions will rarely cross borders all by themselves.