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wages。 It's also the attitude of workers who take pride and are willing to do what
is necessary to succeed�察�even if it means outsourcing parts production or working
on weekends or altering vacation schedules´ things that would almost certainly
trigger months of acrimony and negotiation in Western Europe。 'The people back home�察�
they haven't got any idea how much they need to change if they want to preserve what
they have��' said Jose Ugarte ��a Basque who heads the appliance manufacturing
operations of Mondragon�察�the giant Spanish industrial cooperative�А� 'The danger to
them is enormous。 They don't realize how fast this is happening 。 。 。' It's not the
dream of riches that animates the people of Wroclaw so much as the determination to
work hard�察�sacrifice what needs to be sacrificed and change what needs to be changed
to close the gap with the West。 It is that pride and determination�察�says Wroclaw's
mayor�察�Rafal Dutkiewicz�察�that explain why they are such a threat to the 'leisure´time
society' on the other side of the curtain。;
I heard a similar refrain in a discussion with consular officials who oversee the
granting of visas at the U。S。 embassy in Beijing。 As one of them put it to me�察 �I
do think Americans are oblivious to the huge changes。 Every American who comes over
to visit me ��in China�А�is just blown away 。 。 。 Your average kid in the U。S。 is growing
up in a wealthy country with many opportunities�察�and many are the kids of advantaged
educated people and have a sense of entitlement。 Well�察�the hard reality for that kid
is that fifteen years from now Wu is going to be his boss and Zhou is going to be
the doctor in town。 The competition is coming�察�and many of the kids are going to move
into their twenties clueless about these rising forces。;
When I asked Bill Gates about the supposed American education advantage´an education
that stresses creativity�察�not rote learning´he was utterly dismissive。 In his view�察�
those who think that the more rote learning systems of China and Japan can't turn
out innovators who can compete with Americans are sadly mistaken。 Said Gates�察 �I have
never met the guy who doesn't know how to multiply who created software 。 。 。 Who
has the most creative video games in the world�拭�Japan� �I never met
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these 'rote people'。 。 。 Some of my best software developers are Japanese。 You need
to understand things in order to invent beyond them。;
One cannot stress enough�此�Young Chinese�察�Indians�察�and Poles are not racing us to the
bottom。 They are racing us to the top。 They do not want to work for us�察�they don't
even want to be us。 They want to dominate us´in the sense that they want to be creating
the companies of the future that people all over the world will admire and clamor
to work for。 They are in no way content with where they have come so far。 I was talking
to a Chinese´American who works for Microsoft and has accompanied Bill Gates on visits
to China。 He said Gates is recognized everywhere he goes in China。 Young people there
hang from the rafters and scalp tickets just to hear him speak。 Same with Jerry Yang�察�
the founder of Yahoo� �
In China today�察�Bill Gates is Britney Spears。 In America today�察�Britney Spears is
Britney Spears´and that is our problem。
Dirty Little Secret #3�此�The Education Gap
All of this helps to explain the third dirty little secret�此�A lot of the jobs that
are starting to go abroad today are very high´end research jobs�察�because not only
is the talent abroad cheaper�察�but a lot of it is as educated as American workers
or even more so。 In China�察�where there are 1。3 billion people and the universities
are just starting to crack the top ranks�察�the competition for top spots is ferocious。
The math/science salmon that swims upstream in China and gets itself admitted to a
top Chinese university or hired by a foreign company is one smart fish。 The folks
at Microsoft have a saying about their research center in Beijing�察�which�察�for
scientists and engineers�察�is one of the most sought´after places to work in all of
China。 ;Remember�察�in China when you are one in a million´there are 1��300 other people
just like you。;
The brainpower that rises to the Microsoft research center in Beijing is already one
in a million。
Consider the annual worldwide IntelInternational Science and Engineering Fair。 About
forty countries participate by nominating talent through local affiliate affairs。
In 2004�察�the Intel Fair attracted around sixty´five thousand American kids�察�according
to Intel。 How about in China�拭�I asked Wee Theng Tan�察�the president of Intel China�察�
during a visit to Beijing。 In China�察�he told me�察�there is a national affiliate science
fair�察�which acts as a feeder system to select kids for the global Intel fair。 ;Almost
every single province has students going to one of these affiliate fairs�察─�said Tan。
;We have as many as six million kids competing�察�although not all are competing for
the top levels 。 。 。 ��But�А�you know how seriously they take it。 Those selected to
go to the international ��Intel�А�fair are immediately exempted from college entrance
exams; and basically get their choice of any top university in China。 In the 2004
Intel Science Fair�察�China came home with thirty´five awards�察�more than any other
country in Asia�察�including one of the top three global awards。
Microsoft has three research centers in the world�此�in Cambridge�察�England�察�in Redmond�察�
Washington�察�its headquarters�察�and in Beijing。 Bill Gates told me that within just
a couple of years of its opening in 1998�察�Microsoft Research Asia�察�as the center in
Beijing is known�察�had become the most productive research arm in the Microsoft system
;in terms of the quality of the ideas that they are turning out。 It is mind´blowing。;
Kai´Fu Li is the Microsoft executive who was assigned by Gates to open the Microsoft
research center in Beijing。 My first question to him was�察 �How did you go about
recruiting the staff�拭─�Li said his team went to universities all over China and simply
administered math�察�IQ�察�and programming tests to Ph。D。´level students or scientists。
;In the first year�察�we gave about 2��000 tests all around�察─�he said。 From the 2��000�察�
they winnowed the group down to 400 with more tests�察�then 150�察 �and then we hired
20。; They were given two´year contracts and told that at the end of two years�察�
depending on the quality of their work�察�they would either be given a longer´term
contract or granted a postdoctoral degree by Microsoft Research Asia。 Yes�察�you read
that right。 The Chinese government gave Microsoft the right to grant postdocs。 Of
the original twenty who were hired�察�twelve survived the cut。 The next year�察�nearly
four thousand people were tested。 After that�察�said Li�察 �we stopped
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doing the test。 By that time we became known as the number one place to work�察�where
all the smart computer and math people wanted to work 。 。 。 We got to know all the
students and professors。 The professors would send their best people there�察�knowing
that if the people did not work out�察�it would be their credibility ��on the line�А�
Now we have the top professors at the top schools recommending their top students。
A lot of students want to go to Stanford or MIT�察�but they want to spend two years
at Microsoft first�察�as interns�察�so they can get a nice recommendation letter that
says these are MIT quality。; Today Microsoft has more than two hundred researchers
in its China lab and some four hundred students who come in and out on projects and
become recruiting material for Microsoft。
;They view this as a once´in´a´lifetime income opportunity/' said Li of the team at
Microsoft Research Asia。 ;They saw their parents going through the Cultural
Revolution。 The best they could do was become a professor�察�do a little project on
the side because a professor's pay is horrible�察�and maybe get one paper published。
Now they have this place where all they do is research�察�with great computers and lots
of resources。 They have administrators´we hire people to do the dirty work。 They just
could not believe it。 They voluntarily work fifteen to eighteen hours a day and come
in on weekends。 They work through holidays�察�because their dream is to get to
Microsoft。; Li�察�who had worked for other American high´tech firms before coming to
Microsoft�察�said that until starting Microsoft Research Asia�察�he had never seen a
research lab with the enthusiasm of a start´up company。
;If you go in at two a。m。 it is full�察�and at eight a。m。 it is full�察─�he said。
Microsoft is a stronger American company for being able to attract all this talent�察�
said Li。 ;Now we have two hundred more brilliant people building ��intellectual
property�А�and patents。 These two hundred people are not replacing people in Redmond。
They are doing new research in areas applicable worldwide。;
Microsoft Research Asia has already developed a worldwide reputation for producing
cutting´edge papers for the most important scientific journals and conferences。 ;This
is the culture that built the Great Wall�察─�he added�察 �because it is a dedicated and
direction´following culture。;
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Chinese people�察�explained Li�察�have both a superiority and an inferiority complex at
the same time�察�which helps explain why they are racing America to the top�察�not the
bottom。 There is a deep and widely shared view that China was once great�察�that it
succeeded in the past but now is far behind and must catch up again。 ;So there is
a patriotic desire�察─�he said。 ;If our lab can do as well as the Redmond lab�察�that
could be really exciting。;
That sort of inspired leadership in science and engineering education is now totally
missing in the United States。
Said Intel chairman Craig Barrett�察 �U。S。 technological leadership�察�innovation�察�and
jobs of tomorrow require a commitment to basic research funding today。; According
to a 2004 study by the Task Force on the Future of American Innovation�察�an
industry´academic coalition�察�basic research performed at leading U。S。
universities´research in chemistry�察�physics�察�nanotechnology�察�genomics�察�and
semiconductor manufacturing´has created four thousand spin´off companies that hired
1。1 million employees and have annual world sales of 232 billion。 But to keep moving
ahead�察�the study said�察�there must be a 10 to 12 percent increase each year for the
next five to seven years in the budgets of key research´funding agencies�此�the National
Institute for Science and Technology�察�the National Science Foundation�察�the Department
of Energy's Office of Science�察�and the Department of Defense research accounts。
Unfortunately�察�federal funding for research in physical and mathematical sciences
and engineering�察�as a share of GDP�察�actually declined by 37 percent between 1970 and
2004�察�the task force found。 At a time when we need to be doubling our investments
in basic research to overcome the ambition and education gaps�察�we are actually cutting
that funding。
In the wake of the Bush administration and the Republican Congress's decision to cut
the National Science Foundation funding for 2005�察�Republican congressman Vern Ehlers
of Missouri�察�a voice in the wilderness�察�made the following stat