Innovation and Jobs Creation in the United States in a Globalized Economy

The 2^nd industrial revolution was lead by the United States because we had an abundance of natural resources and we used them in the development of new capital and technology inventions. Furthermore, we had large enough internal market, which allowed mass production and a market of many consumers. Today, the United States still leads the global economy in innovations; unfortunately we gave away our production jobs to countries like: China, Vietnam, Philippines, and Thailand. For an example let’s take Apple, an American innovation that has its largest market in the USA. Apple has contributed to the economic growth of the United States and kept its high paid jobs in engineering in the United States. But, production jobs that require low skilled workers were moved to economies with cheaper labor. So we can see the same pattern as in the 2^nd industrial revolution in the USA in a globalized economy, high skilled workers are benefiting from American innovations, while low skilled workers are losing jobs.

For further information and data please go to:

http://pcic.merage.uci.edu/papers/2011/InnovationJobCreationiPod.pdf