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Matthew Diaz
Matthew Diaz

Industrial Design Competition And Globalization

I teach courses in globalization, technology, competition, and service economies; geographies of development, human geography, world regional geography, principles of economic geography, industrial geography, geography of Asia, introduction to urban geography, and corporate applications in Geographic Information Systems (GIS).

industrial design competition and globalization


MacPherson, A. and Vanchan, V. (2010) Locational patterns and competitive characteristics of industrial design firms in the United States. In Rusten, G. and J.R. Bryson (Ed), Industrial Design, Competition, and Globalization (Palgrave MacMillan, UK).

Vanchan, V. and MacPherson, A. (2008) The competitive characteristics of US firms in the industrial design sector: empirical evidence from a national survey. Competition and Change,12(3): 262-280.

Vanchan, V. and MacPherson, A. (2007) The competitive characteristics of US firms in the industrial design sector: empirical evidence from a national survey. The 54th Annual North American Meetings of the Regional Science Association International, Savannah, GA.

Vanchan, V. and MacPherson, A. (2006) The growth dynamics of U.S. firms in the industrial design sector. The 53rd Annual North American Meetings of the Regional Science Association International, Toronto, Canada.

Vanchan, V. (2006) The characteristics of the U.S. industrial design firms and their relationships with client firms: empirical evidence from a national survey. Presented at the Association of American Geographers (AAG) Annual Meetings in Chicago, IL.

This report makes the case that industrial design is an underutilized growth catalyst for U.S. small and medium-sized manufactures (SMMs). Based on interviews with over 40 field experts and an extensive literature review, the report lays out why industrial design is important, offers data and examples to support those assertions, and shares successful models of practice from across the country.

On April 19, the NEA along with the BEA announced the latest data (from 2014) from the Arts and Cultural Production Satellite Account (ASPCA), a resource that provides in-depth analysis of the arts and cultural sector's contributions to the U.S. economy. For the first time, the ACPSA reported state-level data on employment and compensation in the sector including within industrial design.

The data also indicates that industrial design services was one of the fastest-growing arts industries. Between 2012 and 2014, average annual growth in real value added by the industry was 4.1 percent. By comparison, the overall arts economy grew by 1.4 percent and U.S. GDP average annual growth was 1.3 percent.

The NEA has supported industrial design for many years through research and funding. In 2013, the NEA published Valuing the Art of Industrial Design which highlights the number of working industrial designers and their earnings, the industries employing the greatest numbers of designers, and their geographic concentration in western and mid-western states. Through its funding programs over the last five years, the NEA has awarded more than 25 grants and more than $800,000 to support projects that focus on or utilize industrial design.

One of the most important factors within our discussion of globalization and interior design is education. Students, instructors and professionals need to have the resources and skills to research a culture and incorporate what they learn into their designs. Whether through a study abroad program or real-world projects with diverse communities here at home, colleges are providing ever more opportunities for students to learn from and work with members of different cultural groups.

Globalization refers to any activity that brings the people, cultures and economies of different countries closer together. In business, "globalization" refers to practices by which organizations become better connected to their customers around the world. This includes any aspect of operating in different national markets, from product design to marketing.

As mentioned, McDonald's operates over 30,000 restaurants in 100 countries. Its worldwide expansion is an example of globalization. By design, the corporation creates a menu adaptable to various local tastes and customs. This policy is an example of internationalization.

Anxiety about globalization also exists in advanced economies. How real is the perceivedthreat that competition from "low-wage economies" displaces workers fromhigh-wage jobs and decreases the demand for less skilled workers? Are the changes taking placein these economies and societies a direct result of globalization?

How successfully they are able to do this can often determine the success of a product in the market. Firms that leave industrial design to the end of the engineering lifecycle, or out completely will struggle to find success in consumer-driven markets.

Industrial designers face a number of challenges, as manufacturers face more competition and faster development cycles than ever before. Alongside this, consumers are becoming ever more discerning and global competition continues to rise. Design and engineering teams are increasingly geographically spread, and elements of the design and engineering processes are often outsourced.

As such, pressure is being put on industrial designers from every angle. They have to operate in a fragmented development environment, but still develop products faster, without compromising on style or materials. Even how something is packaged can have an impact on sales.

In order to deliver innovative designs that are functional, manufacturable and affordable, it is critical that industrial designers work with and satisfy the needs of all of the major stakeholders across the product lifecycle, including executive management, marketing, engineering and manufacturing. An industrial designer also has to be able to offer a lot of options and flexibility, working closely with the engineers to determine how to manage costs through the use of different manufacturing techniques, materials or functions.

NX delivers flexible, robust computer-aided industrial design and styling software that accelerates product engineering by providing fast concept design and modelling. This is the perfect culmination of form, fit and function working together and is the future of industrial design.

The blame for three decades of stagnant wages in most advanced countries is often laid at the doorstep of globalization, particularly competition from low-wage developing exporters. Globalization is clearly contributing to increased integration of labor markets and closing the wage gap between workers in advanced and developing economies, especially through the spread of technology. It also plays a part in increasing domestic income inequality. But erecting protectionist policies to stanch the forces of globalization is not the best response. Policymakers must instead focus on what can be done to help workers adjust to a changing world.

In 2022, Yadea persisted in technological innovation, and remains the sole company in the industry with over 1,350 patents, two national CNAS laboratories, six technology R&D centers, and one national industrial design technology center. The Company has achieved numerous scientific and technological achievements including the creation of the industry's first graphene battery.

In the second part of my speech, I will turn to a subject that has received less attention, but that is even more important -- namely, how do we design a competition policy that will promote economic growth. In many parts of the world, including much of Asia, and perhaps sometimes even in Japan, competition law is seen more in terms of fair trade than of consumer welfare. In these countries, competition law is used more to protect small competitors and maintain a fragmented market structure rather than to promote efficiency. This view of competition law was once also common in the United States, as recently as a quarter century ago. Pursuit of those types of antitrust policies contributed, we ultimately concluded, to the stagflation we experienced during the 1970s. This led us to adopt a new vision of competition, one that defines competition, not in terms of the number of competitors, but as a process that is designed to promote consumer welfare and economic progress by assuring that goods and services are produced and delivered in the most efficient manner possible. As one of our senior economists likes to say, "efficiency is the goal; competition is the process." We believe that this shift in antitrust policy helped stimulate the surge in productivity and innovation we have enjoyed in the United States over the last twenty years.

In the third part of my remarks, I will discuss how a competition policy that pursues consumer welfare as its only objective should be designed, and will offer a set of guiding principles for that purpose.

To avoid these pitfalls, the first thing we need to do is to agree on the objectives of competition law and on our definition of competition. As I said at the beginning of my talk, misguided competition policy, designed to maintain fragmented markets or protect small business, retards growth and undermines faith in free markets. In the United States, we believe that the sole objective of competition policy is consumer welfare. This means, to repeat one of my favorite sayings, that "efficiency is the goal, competition is the process." Consistent with this objective, we define competition not in terms of the number of firms in a market, but as "the process by which market forces operate freely to assure that society's resources are employed as efficiently as possible to maximize total economic welfare."(7) Applying this definition, we should not challenge conduct or agreements under the antitrust laws unless we are confident, weighing their potential anticompetitive effects against any potential efficiencies, that they will leave consumers substantially worse off by restricting output, raising prices, or retarding innovation.




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