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  1. NotARocketScientist
    February 14, 2006 @ 5:11 PM

    Magic pixie dust!
    Here’s my

    Magic pixie dust!

    Here’s my favorite quote:

    “The trade statistics are terrible at tracking cross-border flows of intellectual property. For example, when Intel sets up a chip fabrication plant in Ireland, that country reaps the benefit of Intel’s designs, and all of Intel’s accumulated wisdom about how to run a fab successfully. In effect, a massive amount of intellectual property has been exported to Ireland, without showing up in the trade statistics at all.

    “These massive and unobserved exports of intellectual property–“dark matter”–imply that the U.S. is actually running a much smaller current account deficit than the official data shows.”

    Um, wait… Isn’t this a little like saying that when Julius and Ethel Rosenberg gave the plans for building a nuclear bomb to the Soviets, it made us stronger because in exporting our intellectual property they created in an unaccounted for trade surplus?

    And to think — we executed them.

    Thanks for sharing, Rich.

  2. Anonymous
    February 15, 2006 @ 3:24 PM

    What really chaps my hide
    What really chaps my hide with this article is that the author talks as if this “knowledge economy” garbarge is something new. Like, so there was no creativity, or marketing, or training, or R&D, etc before? Give me a break. What happened is that there was all this knowledge stuff on the one hand and production etc on the other. When the later fell away all we were left with was the former so they are going to talk it up. Prozac indeed!

    • NotARocketScientist
      February 15, 2006 @ 3:58 PM

      I agree. It’s like when
      I agree. It’s like when they suddenly started quantifying “good will” and allowing S&Ls to include it on their balance sheets as a tangible asset — just before the S&L collapse.

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