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CIB Podcast: Dr. Michael Mandel

The Innovation Shortfall: America's Hidden Global Failure

A high-wage country such as the US either has to develop innovative products and services to compete with low-cost countries or accept a lower standard of living. Looking back, the Internet Decade in the US (1998-2007) was much weaker on this front than many realized. The leading-edge tech industries moved most of their production overseas, while the domestic economy suffered from an “innovation shortfall.” Few successful new products or services were created outside the financial sector and a few narrow slices of IT. The result: virtually no growth in real wages and private sector jobs in the US. Can we keep this from happening again?

Dr. Michael Mandel, Chief Economist at BusinessWeek, discussed these topics with CIB fellow Christine Lio-Soon-Shun. (September 2009)