Knowledge: Our New Competitive Advantage

The NY Times article “New York Bets on High-Tech to Aid Upstate” explains some interesting ideas about the future of the Hudson Valley’s economy. At one time in our nation’s history, American had a competitive advantage in manufacturing. A competitive advantage is where one country is more efficient, for some reason, than another in producing an item. In our manufacturing heyday, we had better machines, managers, workers, and cheaper raw materials then anyone else. With the rise of globalization, we no longer have the cheapest labor, materials, or are the only ones with the know-how.

America does have a new competitive advantage though; knowledge. Although globalization has also meant the spread of ideas and education, many of these ideas still emanate from American universities and businesses. The growth of technology based industry in the Hudson Valley is indicative of this trend. With the finest higher education system in the world, we have a natural advantage in these industries. As the article articulated, companies from all over the world are moving to the Hudson Valley to conduct business. The economic benefits of this move are obvious but the educational implications are just as important. These companies are the future for the Hudson Valley and for most of America for that matter as globalization continues to flourish.