Destroying American Jobs (ie Kodak)

[tw]

From the IEEE Spectrum of Jan 2012:

There is a theory making the rounds that technological innovation is slowing down and thus can no longer support the economic growth we’ve come to expect. It’s not normally the sort of thing IEEE Spectrum would cover – we write about innovation rather than its absence. …

But the possibility of a tech slowdown that rattles the global economy can’t be dismissed. Look, for instance, at the dearth of fundamentally new drugs coming down the development pipeline. Or consider that the speed in which we travel are no better and are in some cases worse than they were in the 1960s.

The basic argument was set out two years ago in an e-book called “The Great Stagnation” … [Cowen] contends that our innovations increasingly consist of refinements to established technologies, most of the hatched decades or even lifetimes ago. …

Interestingly, Cowen makes a grudging exception for electronics and information technology, which continues to barrel ahead. …

But even in electronics, there are unsettling developments. The evidence, too, is in this issue. Moore’s Law – the backbone of the IT revolution – now faces by far the most onerous obstacles in its long history, and measures to keep it going are getting ever more heroic.

Noted earlier in “ Technology - see the future from history ” is why that number has so kept the IT industry innovative. It is not based in spread sheets and other lies. Instead, that parameter is based in the purpose of every business – its product.

It’s no accident that a lawyer (Kenneth C Frazier – see second of Destroying American Jobs (ie Kodak) ) is Merck’s chief executive because he subverted laws (discovery) to protect Merck from a disaster created by its previous enemy. Raymond V. Gilmartin, a business school graduate, started in 1994 (see first of Destroying American Jobs (ie Kodak)). Its no accident that this same lawyer also was complicit in the firing of Joe Paterno (see "Hail to the Lion" - Philly Inquirer) by making decisions without first learning facts. And it’s no accident that this drug company therefore is using money games to create profits rather than innovate new drugs.

Big Pharma is not driven by a product oriented parameter such as Moore’s law. Executive get massive bonuses by buying other companies and other money games. Promote a myth that money games make higher profits (as Fiorina foolishly claimed to waste HP money buying Compaq). Big Pharma may even (or intentionally) create some drug shortages to get protection from government. Big Pharma is more and more driven by profits – not the product. They even successfully got George Jr to keep domestic drug prices 40% higher – also called corporate welfare. Got a business school graduate (George Jr) to subvert the free market and innovation to protect profits.

The only source of economic growth, wealth, strength, jobs, and products is innovation. That means the boss must come from where the work gets done. One of many requirements necessary so that innovation can happen.

According to spread sheets, more profitable is to let Chinese do the innovation. Which makes job growth more difficult. But sure does enrich the elite top 1%.

Meanwhile, Kodak's buggy whip innovations created bankruptcy. Only a fool or business school graduate would think innovation, market dominance, and profits can be achieved by developing products for a declining industry. But then look who got richer by subverting even more American jobs.

Polaroid - once Dr Land died, then innovation stopped. Another trophy for the MBA Hall of Fame.