4 ms·
You can innovate in service industries, but service industries contract when an economy contracts, whereas manufacturing and industry expands. e.g. Who cares i
by david927 17y ago
You can innovate in service industries, but service industries contract when an economy contracts, whereas manufacturing and industry expands.
e.g. Who cares if my Barista can be faster and more efficient? I just want coffee for less.
The problem with innovation is that it's leaky. There's no national border to it. America is a tremendously innovative country, but there's nothing stopping that innovation from finding its way to countries where they'll produce that same innovative product for less. (e.g. Look at the iPad and forthcoming Adam from India.)
Economies are equalizing. Nothing, including innovation, will stem that tide.
- hga 17y agoWell, more like "service industries necessarily contract when an economy contracts (unless they help others deal with the government)", "whereas manufacturing and industry may expand." E.g. your solution to "coffee for less" may be making your own, which will involve some equipment purchases on your part, but on the other hand the coffee shops you and people like you used to frequent won't be buying more equipment (in fact, new entrants/shops will likely be buying used but serviceable stuff from failed shops). Getting outside of the service field, lots of people including my father have decided to drive their current vehicles much longer than they'd previously planned. Auto companies are seeing much less demand due to that sort of thing (uncertainty on the part of my father, others just don't have the money) and are buying less capital equipment, tooling, etc.