The US Does IT Best

I was recently asked to contribute to an Information Week piece on the state of the US IT industry - which got me thinking about the United States’ technological strengths and weaknesses relative to the other players in the global IT landscape.  The US hasn’t been the dominant base for IT production for many years.  We still don’t graduate all the engineers and PhDs we need, we don’t have the fastest or furthest reaching broadband nor do we have the most Internet users per capita.

However, the US has, without a doubt, been where the most impactful IT innovations have taken shape over the last 50 years. The rest of the world may have caught up when it comes to solving existing problems like the ones mentioned above, but they still have a ways to go when it comes to what’s coming next.

If the history of the IT industry has taught us anything it’s that nothing is static, absolute or guaranteed.  No market is secure, no market is ever truly lost and no country or company’s place on the IT ladder is assured.  Today’s weakness may well be tomorrow’s strength as the players increase capacity, develop efficiencies, solve old problems and create new ones.  This type of reactive business model works well for some, and in some circumstances, but it is inherently dependent on countless external variables.

Innovation on the other hand, is largely self-sustaining and drives, rather than follows, IT industry evolution.  Innovators can leverage other’s hard-earned solutions and improvements to propel new offerings into the IT marketplace.  For example, the astounding amount of high quality manufacturing capacity in the world means that anyone who can translate their own good idea into a concrete product can have a global impact.

I’m probably not the most objective observer but I’m quite bullish on the future of the US technology industry.   Here are six specific things I think the US has going for it at the moment:

1.    IT will be the dominant critical factor in the success of alternative energy, next generation power grid and energy conservation. Entirely new classes of IT equipment, software and services will emerge to serve these “green” opportunities.
2.    The US has the strongest SMB and tech entrepreneur environment. Big innovations and announcements from the largest companies in IT get all the ink but it’s the small tech entrepreneur who is the backbone of the US IT industry. If they weathered the last 18 months they can thrive in the future.
3.    Strong demand for bandwidth. Whether through the air or through advanced fiber networks the demand for more bandwidth will open up the opportunity for new data and content intensive applications for handhelds and particularly in our cars.
4.    Hospitality and education will be points of heavy emphasis for integration of much more advanced IT systems. Users will demand the ability to have the same experience they enjoy in their home or office when they are away.
5.    Two words - cyber security.
6.    The US workforce is more flexible and capable of adopting the soft-skills necessary for the next generation of technology workers.

To the latter point, the US’s position as “chief IT innovator” is challenged by the fact that thousands of highly skilled individuals working in the US IT industry will be retiring over the next 20 years.  We haven’t yet responded with a consistently effective way to replace these outgoing workers with IT professionals of (not just equal but) superior quality.  If US companies can’t get them here they will be forced to seek them globally.

The largest threat to the US IT industry however, is the health of other sectors. Will financial services rebound? Will the boom in health care IT really happen? Will carriers continue to invest in broadband infrastructure? Will state governments have enough money to purchase the technology they need to run leaner and more efficiently for their citizens?  The answers to these questions will have a huge impact on the health of the US IT sector.

The US IT industry is powered by innovation, creativity and a driving need for all businesses to evolve, grow and be more productive. The uniquely American sense of individualism, optimism and entrepreneurial spirit makes the US the most incredible incubator of creativity and original thought the world has ever seen.  While I can’t say that this will always be the case, I can say that I don’t see it changing any time soon.

Happy innovating America!