corporate espionage Archives

Latest read: Hot Property

Its all in the timing. The global economic crisis has placed my latest read Hot Property: The Stealing of Ideas in an Age of Globalization into a pretty unique light. Regardless of the delay in the US economy the impact of globalization, technology and good old corporate espionage has impacted the world’s stage in manufacturing and distribution.

From aspirin to automobiles with computer technology stolen right in the middle. Author Pat Choate, an economist was the 1994 University of Oklahoma Arthur Barto Adams Alumni Fellow. He has also written Agents of Influence: How Japan Manipulates America’s Political and Economic System.

The core arguments focus on the use of historical legal patents and technological advances of foreign companies competing against American interests by stealing. Today its known as corporate espionage. The end result: the US government does not protect companies in today’s global marketplace.

This book will leave most Americans frustrated. Globalization has changed the way people and business must evolve to simply stay in business. The auto industry is a timely example of how America lost this business to global competition.

The old assumptions in American business do not work today. When you innovate and invent, patents will protect your dedication and hard work against competitors around the globe. How wrong Choate proves this idea is today.

Hot Property will quickly show you how far from the truth the real-world works … against you. Reminds me of T-shirts I see around the Univ. Wisconsin-Madison campus: “Don’t let school get in the way of your education”.Choate illustrates how major American companies like GM, Microsoft and Cisco are powerless to stop Chinese counterfeiters. To remain a “favorable company” in the Chinese market, American companies sacrifice their own development, technology and employees while trying to gain business in China. It is somewhat amazing to see the RIAA use it’s legal arm against elderly Americans for downloading an MP3 file but turn a blind eye to the stunning levels of piracy in China.

I found myself fascinated by China Shakes the World: A Titan’s Rise and Troubled Future – and the Challenge for America by James Kynge. Yet most of the time I was also infuriated over how America has fallen asleep regarding China’s threat to our economy. Kynge has written an excellent book that should be read by every school teacher, mayor and businessman.

It was my goal to finish this book before the end of the summer Olympic games. But I needed time to finish Randy Pauch‘s one of a king book The Last Lecture (review is here) so this week was plenty of time to complete this book.

Infuriating? Yes Kynge shares a startling story about how the Chinese almost secured the assets to the American company that produces stealth coating to the B-2 bomber. Yes THAT Stealth Bomber. Now are you interested in what Hynge has to say? It was Financial Time’s Book of the Year.

So how does America’s secret stealth technology (a skin made with highly specialized thermoplastics and composites which are radar-absorbent) come within arms reach of the communist Chinese? Did they try to steal it? No, they almost purchased the technology outright.

What about pirating and corporate espionage? China plays this game very well too. And based upon the communist’s approach to banking, well lets just say their idea of business as usual includes very loose, corrupt accounting…kinda reminds me of Enron.

If you are frustrated with the RIAA’s music lawsuits against college kids encourage the RIAA to go to source in this matter: China. The Chinese have truly become the world’s leading Pirate Nation. A word of note to the music and movie industry: Do you really believe your lawsuits against college kids is making a dent in your attempt to stop pirating? Go to China.

The Chinese impact
It’s not on the gold medal stand in women’s gymnastics. As the saying goes … if your not cheating, your not winning. Regardless, it was the American gymnast Sacromone who fell of the beam and floor exercise that cost the team gold medal. I know the Olympics bring out national pride. We all feel good about cheering for our athletes during the 16 days of competition. But what about the other 349 days of 2008?