Category Archives: Economics

Posts exploring the economic impacts of science and engineering. The value of strong science and engineering practice has many benefits to the economy – directly and indirectly. Many countries are focusing their future economic plans on advancing their scientific, engineering and technology communities and creating environments that support scientists and engineers.

Recapturing R&D Leadership

Recapturing R&D Leadership by John Teresko

Lieberman says manufacturers need to focus on two concerns, the first is avoiding other people’s patents and the second is getting patents of their own or getting some exclusivity on the things that they’re making or designing. “Unfortunately it is virtually impossible to either know or satisfy yourself in advance of coming out with a product that you’re not going to infringe somebody’s rights.

Manufacturers should also focus on lobbying for more sensible patent laws. From our previous post on research support by Governments:

I happen to side with those like Lawernce Lessig that believe we are harming the United States economy by having a government policy that too restrictive about intellectual property. I believe countries that have sufficient clout to stand up to the United States, and who have a more sensible IP policy will gain a great advantage if the United States were not to adjust policies based on the ideas of Lessig and others.

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USA Engineering Jobs

Jobs Update: The Death of U.S. Engineering by Paul Craig Roberts

The alleged “shortage” of U.S. engineering graduates is inconsistent with reports from Duke University that 30 percent to 40 percent of students in its master’s of engineering management program accept jobs outside the profession. About one-third of engineering graduates from MIT go into careers outside their field. Job outsourcing and work visas for foreign engineers are reducing career opportunities for American engineering graduates and, also, reducing salary scales.

The number of students that go into other fields does raise questions. However, I do not think the data provides answers on its own. Given that engineering majors are the highest paid graduates it is not a case that the students options are poor. It could well be that the engineering students are very capable in many ways and find jobs that are not focused on engineering (say management, finance or …).

Engineering curriculums are demanding. The rewards for the effort are being squeezed out by jobs offshoring and work visas. If the current policy continues of substituting foreign engineers for American engineers, the profession will die in the United States.

Once again the whole area of engineering jobs and the future is complex. But once again I disagree with the thinking presented here. The competition from abroad will increase greatly going forward. That is because every country that is focused on competing with the most successful economies is focused on improving their engineering capabilities. They all want the high paying and economically valuable jobs.

See more posts on science and engineering careers.

NSF Funds Center for Quality of Life Technology

Carnegie Mellon University and the University of Pittsburgh (Pitt) have been awarded a $15 million, five-year grant from the National Science Foundation (NSF) to establish an engineering research center that will develop technologies to help older adults and people with disabilities live independently and productively.

“The purpose of our new center is to foster independence and self determination among older Americans and people with disabilities,” said Kanade. “If the technology we develop at the QoLT ERC can delay the need to send people from their homes to assisted living or nursing facilities by even one month, we can save our nation $1.2 billion annually. We need to apply the same ingenuity that we’ve used for military, space and manufacturing applications to improve the human condition.”

Japan has also been investing heavily in such technology including robots. Japan’s population is more elderly and the needs and benefits to Japan have lead them to invest heavily in technology to assist an aging population.
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Engineers in the Workplace

Vivek Wadhwa again addresses the question: Engineering Gap? Fact and Fiction. This is a question that deserves a continued look – I still believe we do need more focus on educating more engineers:

Additionally, the positive macro-economic effects of a strong scientific, engineering and technology community to an economy are not necessarily directly correlated to high salaries for those workers. That is one positive factor, but even if those salaries were not high the other benefits of innovation, manufacturing leadership, invention, etc. would still benefit the economy. So a country that is investing in the future could sensible target investments in science and engineering education even without increasing salaries pointing out that the supply and demand in the market was indicating a shortage of those workers.

From Vivek Wadhwa’s most recent article:
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China Builds a Better Internet

China Builds a Better Internet (site broke the link so I removed it)

China is looking to become a scientific leader, with projects like China’s Next Generation Internet, to strengthen their economy by creating

its own scientific and technological breakthroughs—using a new and improved version of today’s dominant innovation platform, the Internet. “CNGI is the culmination of this revolutionary plan” to turn China into the world’s innovation capital, says Wu Hequan, vice president of the Chinese Academy of Engineering.
…
The United States’ reluctance to invest in IPv6 makes it more likely that China will be in a position to gain the first-mover advantage it seeks. A draft version of a January 2006 report by the Department of Commerce on IPv6 contained a section on competitiveness that highlighted several threats to U.S. Internet leadership, including a further shift of high-tech R&D and product innovation eastward and less available investment capital because of the higher costs of maintaining IPv4 networks. What remains to be seen is whether China can develop the services that take advantage of the next-generation Internet. But China’s researchers are already working on it. At the IPv6 Global Summit in April, China’s major telecommunications and Internet companies got up on stage one by one and told the audience that they have research facilities dedicated to developing these services.

IPv6 is coming, in fact it is already here, though in a limited way. The work started in 1994 when the IPv6 working group was established and proposed standard adopted by the Internet Engineering Steering Group.

IEEE-USA chief calls for IPv6 adoption:

Adoption of a next-generation Internet Protocol by China, Japan and South Korea and other Asian countries should raised questions about U.S. innovation policy, the president of IEEE-USA told an IPv6 conference here Friday

Google Jobs in Michigan

Google brings in new jobs and hope (Update: Detroit Free Press removed the page so I removed the link – The NY Times has learned how to use the web so you can view their article – news on the Office location) to Ann Arbor, Michigan. Google will open a new research and support center in the University of Michigan home town. It is not a coincidence that Larry Page, of Google’s co-founders graduated from Michigan’s Engineering school. Google would not locate this facility in Ann Arbor only for that reason but his familiarity with the area and a desire to take advantage of the University of Michigan played a role, I believe. This is one more example, for how good schools aid economic development.

Listen to Page’s address at the 2005 commencement for the Michigan College of Engineering.
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Safe Water Through Play

photo of merry go round for safe water

Play Pumps

It’s a simple idea. As children spin on a merry-go-round, water pumps from below the ground. It is stored in a tank just a few feet away, making a safe, plentiful supply of water available in the community.

Nearly 700 PlayPumps have been installed in South Africa, providing safe water to a million people living in rural communities. Thousands more PlayPumps will be installed throughout Sub-Saharan Africa, bringing the many benefits of ready access to clean drinking water to millions of underserved people.

Women for Science

A new report, Women for Science, is available from the InterAcademy Council:

Realizing that the low representation of women in science and engineering is a major hindrance to global capacity building in science and technology, the IAC formed an Advisory Panel on Women for science with the mandate to review previous studies, provide examples of effective projects already implemented, and issue a set of actionable recommendations addressed particularly to the world’s science and engineering academies.

The report is a comprehensive report. The report includes a large list of online resources.

The InterAcademy Council:

In May 2000 all of the world’s science academies created the IAC to mobilize the best scientists and engineers worldwide to provide high quality advice to international bodies – such as the United Nations and the World Bank – as well as to other institutions.

In a world where science and technology are fundamental to many critical issues – ranging from climate change and genetically modified organisms to the crucial challenge of achieving sustainability – making wise policy decisions has become increasingly dependent on good scientific advice.

Related (added when I had to update the link to the report – when are people going to learn to keep urls as permanent addresses?): Engineering Education at Smith College – Diversity in Science and Engineering – Women Working in Science – Girls in Science and Engineering

Singapore Supporting Science Researchers

Grooming research talent seen as crucial for Singapore by Jeana Wong

And to attract overseas talents, it will need to build world-class facilities, attract skilled mentors and focus its research spending on clear areas in which it has a strong hold.

He says it is not unusual for governments to develop infrastructure and talent in the basic sciences at the tertiary education level.

Singapore reportedly is even looking at proposing a grand management plan for an Indonesian island.
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China challenges dominance of USA, Europe and Japan

China challenges dominance of USA, Europe and Japan in scientific research according to UNESCO Science Report 2005

The report says that “the most remarkable trend is to be found in Asia, where gross expenditure on R&D has grown from a world share of 27.9% in 1997 to 31.5% in 2002”.

This hardly seems impressive compared to the growth of Google say. However the amounts of money for global R&D are huge and so changes as less dramatic than other areas. Still this is significant and seems likely to continue to move in this direction.
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