Itâs hard, I admit, to draw a straight line between the loss of, for example, television manufacturing in the United States through the 1980s to the stumbles by Boeing and Intel over the past decade. But if we think about technology ecosystems as communities of engineering practice, it makes sense that factory closures accelerated as process knowledge dissolved, prompting production problems and more job losses. And it also makes sense that Chinese workers went from merely assembling iPhones to producing a some of their most valuable components as well.
Related Quotes
But is has had, at best, a surface-level understanding of its success. Silvia Lindtner, a professor at the University of Michigan and my wife, has spent more than a decade studying Shenzhenâs technology ecosystems. In 2015, the Austrian government asked her how to create a Shenzhen in the Alps; in 2016, the White House invited her to present on how the United States might learn from the success of Shenzhen. She has felt, as I do, that these agencies misunderstood the point of Shenzhen. They were still more interested in individual inventors rather than understanding it as a community of engineering practice. The obsession with invention has clouded Silicon Valleyâs ability to appreciate Chinaâs actual strength. Rather than seeing tools and blueprints as the ultimate ends of technological progress, I believe we should view them as milestones in the training of better scientists and manufacturers. Viewing technology as people and process knowledge isnât only more accurate; it also empowers our sense of agency to control the technologies we are producing.
Now itâs more obvious that the departure of manufacturing has created economic and political ruination for the United States. We are still only beginning to understand how much it set the country back technologically.
Many of the United Statesâ most storied companies have been ailing. Detroitâs automakers, having limped along for decades, are now stumbling through the transition to electric vehicles. US Steel, General Electric, and IBM are shadows of their past selves. Intel, mired in cycles of blown product timelines and layoffs, went from a semi-conductor trailblazer to a clear laggard behind Taiwanâs TSMC.
Mostly, though, I think the problem lies with American policymakers and executives who fail to grasp the importance of process knowledge.
American manufacturers spent the better part of three decades unwinding its stock of process knowledge when it opened so many factories in China. Every US factory closure represents a likely permanent loss of production skill and knowledge. Line workers, machinists, and product designers are thrown out of work; then their suppliers and technical advisers struggle as well. Entire American communities of engineering practice have dissolved, leaving behind a region known as the Rust Belt. Some mayors and governors tried to stem this receding tide. But they were continuously scorned by economists and executives, who sought low-wage production in the name of globalization. Still today, many American economists doubt there is anything special about manufacturing and put their faith in the inevitable march to a service economy.
Everything starts from the recognition that something has gone quite wrong in US technology. Too many people have argued away the strategic importance of manufacturing. And the solution has to involve reconstituting its communities of engineering practice that prioritize process knowledge. It means attempting to build up every segment of manufacturing: training workers and creating incentives for manufacturers in order to relearn mass production.
This scenario sounds a bit fantastic, but if the iPhone were built in the United States rather than Shenzhen, then an American cityâ say Detroit, Cleveland, or Pittsburghâ might be hailed as the hardware capital of the world.
The United States must regain, at a minimum, the manufacturing capacity to scale up production that emerges from its own industrial labs. If it does not, continuing to value scientific breakthroughs rather than mass manufacturing, then it might lose whole industries once moreâ as it did by inventing the solar photovoltaic panel but relying on China to produce them. The United States likes to celebrate the light-bulb moment of genius innovators. But there is, I submit, more glory in having big firms making a product rather than a science lab claiming its invention.