Resource Advantage


I keep trying to write an essay about out sourcing, resource advantage, and network hubs. I keep failing.

The point I want to make is that while resource advantage is important, feedback and power-laws are more important. Silicon valley is in a positive feed back loop with silicon valley. So while it’s important that india has a huge pool of talent and a significant cost advantage that is only lays the foundation for creating a feedback loop that creates a vibrant industry.

But it seems I keep comming back to one fact. The real important event, at least for my industry, is Korea.


It is more important to look for places where the positive reenforcement is spinning up. Resource advantages are a diversion. Plenty of smart people in the midwest. Plenty of cost advantages. But nobody really believes that Kansas city is about to threaten Boston of Silicon Valley.

So go read these notes about a talk on Korea given at WTF! Or article on the online gaming industry – when it was written Everquest had 70 thousand players, while one oneline game in Korea has 10 million! This is much more a threat to the competitive advantage of of the US computer industry than China or India.

One more thing. There hasn’t been a breakthru software product for a decade that didn’t depend on the network for it’s vitality.

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