The globalization of innovation | Main | Homesourcing to housewives in Salt Lake City
The challenge from Dalian, China
[Excerpt from The World Is Flat, Chapter 1, "While I Was Sleeping," p. 34 ff.]
"I've taken a lot of American people to Dalian, and they are amazed at how fast the China economy is growing in this high-tech area," said Win Liu, director of the U.S./EU projects for DHC, one of Dalian's biggest homegrown software firms, which has expanded from thirty to twelve hundred employees in six years. "Americans don't realize the challenge to the extent that they should."
Dalian's dynamic mayor, Xia Deren, forty-nine, is a former college president. (For a Communist authoritarian system, China does a pretty good job of promoting people on merit. The Mandarin meritocratic culture here still runs very deep.) Over a traditional ten-course Chinese dinner at a local hotel, the mayor told me how far Dalian has come and just where he intends to take it. "We have twenty-two universities and colleges with over two hundred thousand students in Dalian," he explained. More than half those students graduate with engineering or science degrees, and even those who don�t, those who study history or literature, are still being directed to spend a year studying Japanese or English, plus computer science, so that they will be employable. The mayor estimated that more than half the residents of Dalian had access to the Internet at the office, home, or school.
". . . In the past one or two years, the software companies of the U.S. are also making some attempts to move outsourcing of software from the U.S. to our city . . . We are approaching and we are catching up with the Indians. Exports of software products [from Dalian] have been increasing by 50 percent annually. And China is now becoming the country that develops the largest number of university graduates . . .
". . . It is like building a building. Today, the US., you are the designers, the architects, and the developing countries are the bricklayers for the buildings. But one day, I hope we will be the architects."
Posted by Martha Rudolph at March 2, 2006 04:51 PM