Thursday, July 12, 2012

How Can America Regain Its Business Edge Internationally?

Intel CEO Paul Otellini fears the United States is losing its competitive edge to Asia, and he's spending hundreds of millions of his company's dollars to get it back.

In February 2011, NBC ran a public relations generated story in its series, America at the Crossroads, which extolled the virtues and endeavors of Intel, a U.S. company that is spending billions of dollars of its capital on research and development and K-12 education.  The overall message was that America once led the way in innovation and has time and again transformed the economy, but what will be the next big thing?  Intel was pitched as working vigorously and leading the way towards the goal of finding “the next big thing.”  The company’s CEO however believes the next big thing will not be just one thing, but a combination of hi-tech, green-tech, and bio-tech.
The story mentioned the obstacles we have all heard; companies shipping jobs overseas because of high corporate taxes and an education system that doesn’t match up with competing countries.  The Intel CEO said that entrepreneurship is not the problem in the U.S., the problems are that companies are too quick to ship jobs overseas where there are business incentives and also university trained workers, going on to say that the U.S. has to create conditions where both U.S. and foreign firms want to invest here.
It was a clever PR piece and presented Intel almost as the lone warrior out there fighting for America in its effort to regain preeminence in the economic world.  Intel has spent billions of dollars on factories in Arizona, New Mexico, and Oregon.  Also mentioned was the company A123 that is building lithium batteries to put cars and to back-up our nation’s electrical grid at its plant in Michigan.  MIT achieved great PR value for its professors being the brainchild of A123 and for having 26,000 active companies created by its alumni.
The story was filled with images of workers and hi-tech equipment and was fantastic PR for Intel, A123, and MIT.  It took an issue that almost everyone sees as critical to our future, though they may disagree on how best to fix it, and painted Intel as the possible savior.

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