All posts by Rob Atkinson

chavez

What Would Cesar Chavez Think?

I keep telling myself that the claims of tech populists about net neutrality could not get wackier, but then they go and say something that makes you realize, “yes they can.” Case in point, Alex Nogales, of the National Hispanic Media Coalition, writing this week:

“We just won a historic victory, a critical step towards equality for Latinos in the digital age. Yet many American Latinos are unaware of this win and the tremendous potential it brings for us and our families to achieve full participation in the American Dream: better educations, better jobs, more financial stability and more political power. No, unfortunately, I am not talking about important and much needed reforms to education, immigration, criminal justice, and the other major issues before us today. But this victory has far reaching implications for the way we leverage our burgeoning political power in these kind of fights in the months and years to come. So what is this beautiful, mysterious victory? On February 26, the Federal Communications Commission voted to adopt “Network Neutrality” rules.”

If Cesar Chavez were alive, I wonder what he would say. How would a man who

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flag

Time for America to Throw in the Competitiveness Towel

In 1871, America became the largest economy in the world. 144 years later we need to admit that while we’ve had a good run, it’s time to let other countries have their turn. China just overtook us as the largest economy last year. And other nations, like India, are on their way up.

So I say, let’s stop being selfish. We can get used to being number 2, or even number 20. We’re America after all, we can do anything, including lose gracefully.

Besides we don’t want to hurt other nations, especially those poor ones. We have lots more money than the Chinese and Indians. Why then are we trying to compete with them and not letting them have our high wage industries that they need more than us. If they want to take our aerospace, machinery, heavy equipment, computers, software and life sciences industries, who are we to say no, even if they use unfair methods to win. After all they are poor, so it’s okay for them to cheat.

Now it is true, as China specialist Michael Pillsbury writes in The Hundred Year Marathon, that China has

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bb

Wheeler Sets the Broadband Bar Higher than South Korea

Recently, FCC Chairman Tom Wheeler gave a speech arguing that “A 25 Mbps connection is fast becoming ‘table stakes’ in 21st century communications,” with the implication that anything less than 25 mbs is not really broadband.

This is an odd sort of statement, as it appears to be based not on any real analysis, but simply on the Chairman’s opinion. He tried to provide some rationale for this number when he stated “It’s not uncommon for a U.S. Internet connected household to have six or more connected devices – including televisions, desktops, laptops, tablets, and smartphones. When these devices are used at the same time, as they often are in the evenings, it’s not hard to overwhelm 10 Mbps of bandwidth.” I don’t know about you, but I personally am generally not using two devices at once. And as the Census Bureau reports, the average household size in the U.S. is 2.58 people with the median size being less. So, the majority of households are not overwhelming 10 Mbps of bandwidth.

So, if sub-25 Internet connections are not really broadband what does this mean in terms of what nations have

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clock

The Clock Is Ticking on ITFA

Since 1998, the Internet Tax Freedom Act (ITFA) has been essential in promoting the expansion of e-commerce and ensuring a level playing field for Internet businesses. This will change on December 11th without decisive action from Congress.

The moratorium on Internet access taxes has been a central tool in driving innovation and the exponential growth of the Internet over the last two decades. It has spurred development in nearly every sector of the economy from Silicon Valley technology giants to new entrepreneurs to more traditional industries such as manufacturing, health care and education.

Since the ITFA was enacted, the Pew Charitable Trust estimates Internet usage among Americans has grown from below 25 percent in 1998 to over 85 percent today. For minorities, the growth in usage has occurred primarily in the last decade. These gains could be reversed if the act is allowed to expire and costs on Internet access rise.

What’s more, helping consumers, schools and small businesses continue to access the Internet is not a partisan issue. Permanently extending the moratorium on Internet access is widely supported in both the House and Senate by both parties. Everyone agrees:

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rutgers

Memo to Governor Christie: Time to Shut Down Rutgers University

For a long time, I and many other Washington tech policy types believed that our nation faced a shortfall in the number of highly skilled scientists and engineers (e.g., the STEM workforce) and that this shortfall hurt U.S. innovation and competitiveness.  But as Keynes once said when asked why he changed his mind, “when the facts change, I change my mind, what do you do sir.” So I am grateful to Rutgers professor Hal Salzman for pointing out the error of my thinking.

Salzman tells us that only one out of four STEM graduates works in their field (it’s actually 1 out of 2 and he knows this). He tells us wages for STEM workers have been flat for the last 16 years (STEM wages actually increased about twice as fast as non-STEM wages). He tells us that engineering colleges produce 50 percent more graduates that are hired into engineering jobs each year (actually its one to one, not 1.5 to one). He tells us that IT employment is below its 2002-2003 peak (actually between 2003 and 2010 IT workers grew by 19 percent while total employment fell by 0.8%).

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piracy graphic

China Acts on Digital Piracy

Digital piracy is a serious problem affecting content and software creators in a range of industries. In fact, at least 1 in 4 bits of traffic on the Internet is related to infringing content. One country in which piracy has been particularly rampant is China and the United States and international agencies such as the World Trade Organization have repeatedly called on the government to enhance enforcement.

Given this, there was some cause for optimism recently when the popular streaming video program, QVOD, was shut down by the Chinese government. The order cited the large amount of pirated and pornographic content that were delivered through the service as the key cause of the decision. In addition, the Chinese have also fined Kuaibo, the firm that runs QVOD, approximately $40 million for distributing pirated content. These actions symbolize the government’s larger effort to crack down on piracy and have led several large Internet sites, such as Sina, to publically apologize for distributing pirated or pornographic content.

It should be noted that pornography is illegal in China and some have argued that the actions by the government were designed principally to reduce

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Jeremy Rifkin

Our Marxist, Techno-Nirvana is Just Around the Corner: The World According to Jeremy Rifkin

Techno-utopianism seems to be a particularly American phenomena. As I argued in The Past and Future of America’s Economy it seems like about every half century – usually as it turns out right before a big structural slowdown of technological innovation – pundits and scholars start to go overboard on how great the techno-enabled future will be. Case in point was the 1967 book Year 2000 written by Herman Kahn, noted futurist and founder of the Hudson Institute. Kahn relied on the new “science” of forecasting and ended up with a book that had the tone of “you ain’t seen nothing yet.” He wrote:

This seems to be one of those quite common situations in which early in the innovation period many exaggerated claims are made, then there is disillusionment and swing to over conservative prediction and a general pessimism and skepticism, and then when a reasonable degree of development has been obtained and a learning period navigated, many – if not all – of the early ‘ridiculous’ exaggerations are greatly exceeded. It is particularly clear that if computers improve by five, ten or more orders of magnitude over the

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jet

Both Guns and Butter? New Study Shows Innovation Benefits from Military Procurement

For much of the postwar era the United States led the world in technology, which brought significant economic benefits to the nation. That leadership was due in large part to generous federal government funding for R&D, much of it channeled through military spending. That this occurred during the Cold War was no coincidence: as William Janeway argues in Doing Capitalism in the Innovation Economy, nations have historically been unable to muster the political will for significant spending on innovation without it being part of a “national mission,” since such spending means giving up current consumption for uncertain future benefits.  In the last half of the 1800s, nation building provided the mission for America—just as that does now for China.  But after the late 1940s the animating mission that helped drive technology innovation was winning the Cold War, which we did.

The threat from the Soviet Union meant that Americans were willing to sacrifice present consumption for the good of the nation–in this case keeping the world safe for freedom and democracy. And it meant we did what it took to win—and that meant innovating. The fact that Lockheed’s Skunk

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Medical Innovaiton

Investment in Medical Innovation Produces Immense Value for Patients, Economies

Earlier today, I participated in a panel discussion entitled “The Value of Medical Innovation to Patients, Economies and Societies”, which was a part of the Pharmaceutical Research and Manufacturing Association’s Annual Meeting. The discussion centered on one common theme – prioritizing medical innovation has far-reaching benefits for society.

In the U.S., public health problems take a toll not only on individual patients but also on society as a collective whole. The Milken Institute recently concluded that the most common chronic diseases cost the economy an estimated $1 trillion each year and that figure could rise to $6 trillion by 2050. More specifically, a study conducted by the Harvard School of Public Health and the World Economic Forum found that cancer costs the economy about $250 billion in 2010 and anticipated that expense to rise to at least $458 billion by 2030. Promoting and investing in medical innovation could significantly reduce these economic costs and improve public health outcomes.

In addition, the U.S. economy benefits tremendously from expanded medical innovations and the industries it promotes. The field, which accounts for $69 billion of U.S. economic activity, produces highly-skilled jobs that pay,

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ren2

What Manufacturing Renaissance?

It is now become accepted wisdom in economic circles that America is enjoying a manufacturing renaissance. As the general theme goes: American companies are no longer offshoring factories; foreign companies are building new factories here; cheap energy is allowing manufacturers in the United States to expand; and groups like the Boston Consulting Group are telling everyone not to worry, manufacturing will rebound. Wish that it were so. Unfortunately, reality appears to be more troubling

If a manufacturing resurgence was truly occurring we would see it in an expanded number of factories. In fact, according the U.S. Bureau of Labor Statistics (BLS) there are fewer U.S. factories today than there were two years ago. Moreover, the BLS’ Business Employment Dynamics survey indicates that net new manufacturing establishment openings (openings minus closings) has been negative every year since 1999. In 2012 alone, 3,000 more manufacturing establishments closed then opened. This is not to mention the fact that manufactures in America face one of the highest effective corporate tax rates in the world, while the federal government doesn’t support pre-competitive manufacturing research centers like our competitor nations (e.g. Germany, Japan, etc…)

To be

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