Friday, January 20, 2006

Is Production "Pulling" Knowledge Work to China? A Study of the Global Computer Industry

"China has become the world s largest producer of computer hardware, driven by large scale investment by multinational and Taiwanese companies. At the same time, computer hardware production and employment in the U.S. have fallen by about one-third since 2000. A new concern is that knowledge activities such as new product development are being pulled along with manufacturing to China. Based on a study of the notebook PC industry, it is concluded that production is pulling some product development activity to China, although the shift is also driven by the availability of low cost engineering talent. While the U.S. has retained its role in marketing, concept design, and product planning, it has lost many of the engineering jobs associated with notebook design. The number of jobs affected is relatively small, but the movement of knowledge work may portend similar changes in industries with larger numbers of jobs at stake." Source : Center for Research on Information Technology and Organizations. I.T. in Government. U.C. Irvine

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