China prompting western creativity: Chinese manufacturing exporters are capturing low-skill production but driving high-skill innovation in the west

Citation

Bloom, N. (2013), "China prompting western creativity: Chinese manufacturing exporters are capturing low-skill production but driving high-skill innovation in the west", Development and Learning in Organizations, Vol. 27 No. 3. https://doi.org/10.1108/dlo.2013.08127caa.007

China prompting western creativity: Chinese manufacturing exporters are capturing low-skill production but driving high-skill innovation in the west

Article Type: Abstracts From: Development and Learning in Organizations, Volume 27, Issue 3

Bloom N., Draca M. and Van Reenen J.Finance & Development, December 2012, Vol. 49 No. 4, Start page: 22, No. of pages: 3

Reflects on how many western manufacturing companies are successfully facing the growing economic power of China, where the tenfold increase in China’s share of imports to the USA and Europe between 1987 and 2007 may have cost many low-skilled workers their jobs. Argues that the dramatic surge in Chinese exports to Europe and the USA is good news for the economic prospects of western economies, which must be based on innovation, while Chinese exports have encouraged the best companies in advanced economies to become better, powering the innovations that will provide future growth. Suggests that western manufacturers should adopt a policy response to enhance human capital through education and training as this would ease the transition of displaced workers across jobs and allow competitors to seize the opportunity for Chinese trade to drive their creative sectors while producing cheaper goods for their consumers, benefiting both China and the west. Concludes that, while training is difficult or uneconomic in some areas, for example, workers nearing retirement in heavily depressed areas, regional assistance and generous compensation will soften the blow and help those who wind up losers from globalization. ISSN: 0145-1707 Article type: Viewpoint Reference: 42AC130 (Permanent URL)

Keywords: China, Finance, Financial economics, Globalization, International economics, Manufacturing, Organizations, USA