Over the past few years, there has been much debate over the pros and cons of a globalized economy. Syracuse University School of Information Studies (iSchool) Associate Professor Jason Dedrick has been researching the influence that innovative industries have on globalization. Dedrick worked with Greg Linden from the University of California, Berkley and Kenneth Kraemer of the University of California, Irvine to develop a case study on the iPod for the International Trade Commission, which was recently featured in The Huffington Post.
Dedrick and his colleagues found that in a globalized economy, innovation industries benefit American workers and the American economy more than other countries. The report reached two key conclusions: “Most of the high-paying jobs in the iPod value chain are still in the United States, even though more jobs overall are offshore” and, “the total wages paid to the U.S. workers are more than double those paid overseas.”
According to Dedrick, Apple relies on workers in the United States to fill the higher-paying research, development and engineering jobs. The report estimates that in 2006, Apple workers received more than $1 billion in earnings. $750 million of this went to U.S. employees. As countries around the world improve their technology and education, it is possible that these high paying jobs may be outsourced; however Dedrick believes manufacturers are the ones in trouble.
“I think the U.S. can keep producing the Apples and Googles of the world,” he said in the article. “I’m worried about the people losing jobs in manufacturing these days – workers across the age spectrum. I’m not so optimistic that we’re preparing those people for the jobs of tomorrow.”
Jason Dedrick is an Associate Professor at the iSchool. His research interests include the globalization of information technology, the economic and organizational impacts of IT, national IT policy, the offshoring of innovation and knowledge work, and Green IT. Prior to coming to the iSchool, he was senior research fellow at the University of California, Irvine. He is co-director of the Personal Computing Industry Center, sponsored by the Alfred P. Sloan Foundation.
The report also received news coverage on Smart Planet, Mainstream Nemesis, Financial Times and Minyanville. You can download the full report, Innovation and Job Creation in a Global Economy: The Case of Apple’s iPod, here.