A Wall: Constrain, Protect, or Lead

Source: ChinaDaily

Picture Source: ChinaDaily- Cracks appear in the Great Firewall of China

“God created the world, the rest was made in China,” sings Lourd de Veyra. The concern about the Asian factory has lingered for decades. Overlooked has been its gradual strategic transformation from imitator to integrator, or even innovator.

Will China overtake the U.S. and become the new No.1 economy of the world? This anxiety seems as misplaced as earlier forecasts such as Japan’s economy surpassing the U.S. by 2000.

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For Your Long-Term Success Sponsor Innovation And Enter Asian Markets, with Peter R. Dickson

In a recent column in Marketing Management we explained the inevitability of the rest of the world catching up to us in business and technical expertise and why it is imperative that we increase the productivity of our innovation commercialization as a nation. We suggested nationwide innovation scholarships that create thousands of new businesses started by American engineers, scientists, artists, artisans and other innovators.

In this column we expand on our proposal by explaining how CEOs like yourselves in collaboration with universities can gain great benefits by increasing the innovativeness of your company by sponsoring and working with innovators. For, say $25,000 you can support the commercialization of an innovator’s idea. The University pays another $25,000 because Universities must be forced to invest at least some of their endowment in innovation and walk the talk when it comes to a re-structuring of the U.S. economy. So what you get is a $50,000 scholarship in your name to help start-up an innovative idea in your industry. Such collaboration can then work in local incubators or by developing a cluster of innovations in order to accelerate social ventures as the S&R foundation does at Halcyon House in Washington D.C.  Good idea? No it’s not a good idea, it’s a great idea so this is what you have to do.

Get together with other local CEOs and approach your local University Presidents and insist they develop such a program that you as a group can support 50:50. It will happen. If you persist it will happen and you will be forging a much better future for the United States by serving your own self-interests as well.

Oh and another thing. Almost all of the growth in consumer product and service markets over the next 50 years will be in China and India and it will be huge. Are you in on the ground floor on this? Do you have a Chinese partner yet? An Indian partner If not, then you are giving away these market to, by then local Chinese and Indian companies that in 10 years will be coming  over here and to all those international markets which you serve now. If you’re not prepared, they will eat your lunch. This is a certainty.  They will be the largest consumer product and service companies in the world. And if they learn by doing and they do a lot more than us, they will be best in the world at doing things well. Think about an Indian partner and investing in these markets. Think about a Chinese partner and investing in these markets. You owe it to your customers, your employees and your successor.

Peter Dickson (dicksonp@fiu.edu) is an Eminent Scholar and Professor at Florida International University

Michael Czinkota (czinkotm@georgetown.edu) is a Professor of international marketing at Georgetown University

This article is also published by CEOWORLD Magazine. See at: http://ceoworld.biz/2016/04/18/long-term-success-sponsor-innovation-enter-asian-markets

On Freedom and International Marketing, Part 2: Linkages between Two Dimensions

This is one of the published series on the linkages between freedom and international marketing.

International marketing contains the freedom of almost unlimited growth potential. Activities confined to domestic borders may well run into limits of expansion. International market opportunities relax these limits quickly. Instead of restrictions, the international marketing paradigm encourages the stripping away of restraints; instead of limitations, there is the encounter of opportunity.

Freedom also means not being forced to do something one does not want to do. There are economic migration pressures that force people to move from their rural homes into urban areas or from their developing countries into industrialized ones. Industrialized nations, in turn, speak about immigration pressure. For both sides, little if any freedom is involved here. Most individuals who do the moving would much rather stay home but cannot afford to do so due to economic exigencies. The recipient countries might not want to welcome the migrants but do so in response to political and humanitarian pressures. International marketing may have been part of what triggered some of these migrations, but it also can be instrumental in stemming the tide. It can provide the economic opportunity for individuals at home so that they need not migrate. Thus, it lets individuals become productive contributors to the global economy free from pressures to shift locations.

When the long-standing rivalry between socialism and market orientation was resolved, market forces and the recognition of demand and supply directly affected human rights and the extent of freedom. With all humility and gratefulness we can conclude: Markets were right! In country after country, market forces have demonstrated typically greater efficiency and effectiveness in their ability to satisfy the needs of people.

International marketing has been instrumental in stimulating these newly emerging market forces. In spite of complaints about the slowness of change, the insufficiency of wealth redistribution, and the inequities inherent in societal upheavals, a large majority of participants in market-oriented changes are now better off than they were before. Without the transition provided by international marketing, these changes would not have come about that swiftly.