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davepamn davepamn
 
February 13, 2009 04:26 AM

If the US is a powerhouse in advanced technologies why does it run a deficit in these areas?

If an US company is a leader in an advanced technology, why does the company incur a deficit?
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ssharon ssharon
 
 February 13, 2009 05:32 AM
I'm not sure which company you are referring to, but just because the company is American does not mean that all the research and advanced technologies are actually developed in the United States. This means that the local branch of the company can be doing relatively poorly (maybe even a deficit) while overall the company is healthy and successful.

Take intel for example. Some of their most impressive chips were designed in Israel. Israel not only has 5 different intel facilities it was also the first development center outside the US. Most people think that the US is behind the advanced technologies that intel develops when in reality it is a worldwide effort. At the end of the day many US based companies don't actually develop or manufacture their products in the US and so we end up with a technology deficit.
Source(s):
http://www.intel.com/jobs/Israel/
http://seattletimes.nwsource.com/html/businesstechnology/2003658346_intelis...

Asker's Rating:
• Globalization makes manufacturing the technology cheaper outside the us, but the exchange rate makes the US corporate earnings look good?


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kubigjay kubigjay
 
February 13, 2009 01:31 PM
A lot of research is developed in the United States, as well as the rest of the world. A large advantage the United States has is a large network of Universities that pair with corporate research groups. These Universities help spin initial ideas that the corporations develop, not always well.

Making good Technology is not the same as making a profit. Just because a new idea is technically better it doesn't mean it will be profitable to the company. Many companies sink a ton of money into R&D; only to find that better business decisions would make them more money.

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