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An increasing number of articles and books express concern about the competitiveness of the United States. While there is some cause for concern about the displacement of American jobs to offshore companies, we have experienced offshore displacement of U.S. manufacturing and other industrial processes in the past and survived. What we learned from this is that the U.S. industrial complex can retool to differentiate itself, becoming more productive and efficient, and driving further economic growth. The development of the Internet and the associated information technology and infrastructure (Google, eBay, etc.) are examples of this. In order to continue to differentiate American industry in the future, we must continue to cultivate and foster entrepreneurial innovation.

David Gergen wrote an article—“Great to Good?”—that discusses business author Jim Collins’ assertion that America is on the brink of going from great to good. I remember in the 1980s having a discussion with a high-level White House advisor to President Clinton and a member of the Council on Competitiveness who felt that employee ownership could not have any impact whatsoever on U.S. competitiveness. I disagreed at the time and still disagree with this viewpoint. The traditional American strengths of innovation and entrepreneurial vigor continue to provide significant advantages in the competition to develop and market new technologies. However, to be competitive over the long run, companies must reinforce these strengths with flexible organizational structures that give employees the freedom to make suggestions and have a real impact on day-to-day operations. Employee ownership is just one response to the challenge of improving American competitiveness, but one that creates the right environment for changes to flourish.

It is clear to me that American businesses must look internally to find better ways to compete in today’s marketplace. It is not realistic to believe that tomorrow’s public and private companies will immediately become majority owned and controlled by employees. Change is painfully slow. But I am a strong believer in the power of the masses (for an interesting perspective on this power, read The Wisdom of Crowds by James Surowiecki). I believe in grassroots movements for change. I believe that each person in each organization bears a responsibility that can affect the competitiveness of the country—and that they should do exactly that. The key is to keep pushing the envelope of innovation, and to refuse to accept the status quo.

To maintain our competitive and entrepreneurial leadership position among our global peers, American business leaders must assume responsibility with the support of our political leaders to foster innovation and commercial risk taking, which is the basis for our national economy. Many smaller and more entrepreneurial companies have the opportunity to lead the way for our nation. If we can maintain our focus on the education of our youth, the ethical and responsible corporate governance of industry, the empowerment of our workforce together with some form of equity sharing, and the development of the right technologies, we will continue the tradition of American commercial superiority and success.