Lenovo's Motorola Buy: Government IT Impact - InformationWeek

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Lenovo's Motorola Buy: Government IT Impact
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WKash
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WKash,
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2/4/2014 | 12:29:48 PM
Re: Patent protection - and innovation
What's worrisome about the Lenovo deal is what it says about the erosion of America's core expertise and ability to make innovative products.  For the past two decades, we've seen the hollowing out of American manufacturing as financiers kept engineering, design and marketing work here in the US, and farmed out production to China and elsewhere. It was a rationale business model that shareholders rewarded, even as it meant discarding a generation of talented American employees.

But as more companies like Motorola and their intellectual capital are sold to Chinese investors, and as China moves from hardware to software, it's hard to ignore what a slippery slope lies ahead for US industries. Firms like Tesla show the US can still lead the way in innovation. But for companies like Motorola -- once a symbol of US engineering innovation -- to end up in Chinese hands suggests that the engine of innovation in the US economy is beginning to sputter. 

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WKash
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WKash,
User Rank: Author
1/31/2014 | 5:54:22 PM
Patent protection
Google's sale of Motorola is really a testament to the declining value of hardware manufacturing in America and sadly, the rising importance of patent assets as protection to ward off corporate marauders.  


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