Abstract: This article describes that many high tech products such as fabless chips, LCD for monitors, TVs, handheld devices like mobile phones, power semiconductors for solar panels are no longer produced in United States because the industrial commons required for the manufacturing of these products have been lost through outsourcing for short term cost benefits. The article defines industrial commons as the combined capabilities of the high technology firms and the other companies in the industry such as the suppliers of advanced materials, tools, production equipment, and components.

The article’s main conclusion is that the U.S government and industry should work together to revive the country’s industrial commons and thus restore the ability to manufacture a wide array of high technology products. The article also provides a number of suggestions to the policy makers of the U.S businesses about the role that government can play to rebuild the industrial commons and thus realize continued innovation and sustainable economic growth in United States.

Published: Harvard Business Review, July–August 2009

Authors: Gary P. Pisano and Willy C. Shih

Link: Read Full Article