The rise of the Nerd Nations – India and China | Sandeep Krishnamurthy

Every CEO that I know is starting to think about the place of India and China in their business model either on the supply-side (i.e., cost-reduction through outsourcing) or demand-side (i.e., huge market of high paying customers). The two countries are Nerd Nations.

By Sandeep Krishnamurthy • September 7, 2010 2:51 pm

Every CEO that I know is starting to think about the place of India and China in their business model either on the supply-side (i.e., cost-reduction through outsourcing) or demand-side (i.e., huge market of high paying customers).

The two countries are Nerd Nations. And, they are winning. Things are possible in India and China that are laughably impossible in the US. Understanding this gap is crucial to our view of these nations.

Meet one of India’s top celebrities – Vishwanathan Anand, nerd supreme. He is the top chess player in the world. In India, he is a star. Quick. Name one current American chess grandmaster. Give up? (Bing searches don’t count.)

Other signals are obvious in these countries’ investment in higher education. Recently, the president of Yale University announced that Chinese universities might rival Ivy League schools within 25 years. The Indian Central Minister for Human Resource Development, Kapil Sibal, is talking about an ambitious plan to enhance India’s educational capacity. At the same time, what do we see in the West? Budget cuts slashing public educational capacity to the bone. Ultimately, as a society, if you don’t make investments in education, how can you succeed in a global knowledge economy?

Activities that used to be the exclusive purview of the West are now being conducted in India and China. If you want to witness the economic dynamism of China, visit the website for one of their premium events, The Expo. The rise of Asian entrepreneurship and its impact on the world will be significant.

Don’t get me wrong. I love America – I want to see us succeed. Also, there are many imperfections in India and China.

The bottom line for me is that I just don’t see the dynamism that a cursory glance of these economies reveal. We seem to be navel gazing while the Asian giants seem to simply execute.

I don’t see a plan to help us compete. Our region probably has a better chance than most, given its long history of trade with Asia. I hope this is a wake-up call for concerned citizens who want our country to rise to its potential.

Sandeep Krishnamurthy, Ph. D., is the Director of the Business program at UW Bothell. He oversees the undergraduate and MBA programs in Bothell and at the UW Bothell Eastside Leadership Center in Bellevue. He can be reached at SKrishnamurthy@uwb.edu or at 425-352-5229.