It is not possible to fall back on the idea that developed countries can retain added-value service businesses while the rest of the world produces low-cost goods.
They have also decided to upgrade local skills and hang on to intellectual property. Countries such as the UK have allowed foreign investments to take priority over the encouragement of locally produced global brands and manufacturing capability.
There are only three ways to create wealth: "you dig it up, grow it, or convert it to add value. Anything else is merely moving it about". A nation needs good education and differentiating skills to convert value.
The UK must encourage more of the young to take up engineering and science in greater numbers: don't forget there are many more such students emerging in the world economy. China and India together are producing five million graduates every year, with over 600,000 in the science and engineering disciplines alone.
Science is key to how we add value and create wealth
Sir John Rose, chief executive of Rolls Royce
Daily Telegraph, 21 May 2006
Review by Morice Mendoza