Technology innovation, intellectual capital must not be movedoffshore

By ara c. trembly

H.G. Wells' classic novel “The Time Machine” depicts a distantfuture in which England's industrialized society has “evolved” intoa world in which workers and consumers have become separate butstill co-dependent cultures, with the physically superior workerspreying on the lazy, ineffectual consumers.

Wells' dark vision shows us the peaceful Eloi (the consumers), aphysically weak people who spend their days playing like childrenand their nights huddled and hidden in fear of the Morlocks (theworkers, who actually provide the warmth and energy for theplanet). The Morlocks live and work in the energy plantsunderground and can't seem to tolerate the daylight. They havedevolved into nocturnal cannibals, and among their favorite dishesis the helpless Eloi, who are eminently ripe for the picking.

So, their co-dependent dance goes on, with the Morlocks breedinga food source and the Eloi “enjoying” a habitable climate, likeprized cattle being prepared for the slaughter. Certainly, we ofthe 21st century would regard such a scenario as horrid andimpossible, yet we have only to look around us to see that seedsare being sown that could lead us down a similar path–and thattechnology is intimately involved.

It's no secret that the United States is moving away from beinga manufacturing economy and toward being a service economy, andthat in itself is not necessarily a bad thing. Clearly,technology–and in particular the Internet–has helped enable thisshift to producing ideas and intellectual property instead of boltsand widgets. But what happens when we not only stop manufacturinghard goods but also stop manufacturing new ideas?

IDG News Service reported several months ago that MicrosoftCorp. Chairman Bill Gates was warning companies not to outsourcetheir core business functions and staff. He cautioned thatcompanies should beware of outsourcing for cost savings alone andshould keep their key engineering and intellectual propertyresources at home. “If you rely too much on people in othercompanies and countries…you are outsourcing your brains, where youare making all the innovation,” he said.

Coincidental with this disturbing trend is our own government'sseeming endorsement of a growing foreign “worker class” that willtake the dirty, low-paying jobs “no one else wants to do.” As anation of consumers, that appeals to us, so we look the other wayas multitudes of illegal aliens stream across our virtuallyunprotected borders each day–even as some Southwest states havedeclared states of emergency because they are unable to supporttheir new “residents.”

Meanwhile, the number of American students choosing to go intoengineering and information technology is declining, meaning we canlook forward to fewer American innovations in those areas.Apparently, these students feel they won't make enough money inthose professions, so they are opting for what they believe will behigher paychecks in other areas. Those paychecks, of course, willallow them to consume more and more things.

Where are these trends leading us? The culture of consumerismknows only one value–acquiring the best goods and services at allcosts. This culture eschews making things, and it cannot bebothered coming up with innovative ideas. We are fast becoming anation that wants more toys and more playtime, and very little ofanything else. In essence, we aspire to become the Eloi.

Outsourcing is neither a good nor a bad strategy. It is an ideathat makes sense for non-essential areas of a company in manycases, but it is clearly dangerous in the long run when essentialresources–human or intellectual–are involved. Perhaps the mostdifficult task for any corporation in today's breakneck businessenvironment is to maintain a balance between in-house andoutsourced operations that maximizes profits while minimizing riskto the very resources that make a company viable.

What can we do to avoid becoming the lazy, effete Eloi of thisworld upon whom stronger, more assertive forces (both within andwithout) will inevitably prey? We can reward technology innovationrichly and provide incentives to U.S. companies and individuals whoinnovate. We can stop being irresponsible when it comes toshort-term profits from outsourcing key resources. We can fortifythe borders and get back control of our own nation.

Wells' 1898 novel made the point that when man loses hisassertive will to work and innovate, he loses his freedom. It is apoint well taken more than 100 years later.