While our big U.S. technology companies are more interested in returning shareholder value via financial engineering, technology companies abroad are investing for the long term into R&D and patents....If this trend keeps up, U.S. companies are in big trouble moving forward. Just like Motorola and Lucent.
http://finance.yahoo.com/news/chinese-firms-pour-money-u-131741991.html
This is nothing new. It started way back around Apple’s early days, when it was manufacturing in Taiwan. Apple was able to hold the brand name value, but it triggered a clone market. The whole supply chain was set up for a local company to step in to manufacture alike products with very little extra effort. When margin became thin, US companies abandoned the products and Asian manufactures took over. Today Foxcon can do ODM and ship tens millions of unit in a few months time. Such capabilities do not exist in US. Even if you wanted to build in US, you had no options.
Good points