{"id":126230,"date":"2012-12-14T17:23:27","date_gmt":"2012-12-14T22:23:27","guid":{"rendered":"\/gazette\/?p=126230"},"modified":"2019-04-16T17:56:00","modified_gmt":"2019-04-16T21:56:00","slug":"getting-down-to-business","status":"publish","type":"post","link":"https:\/\/news.harvard.edu\/gazette\/story\/2012\/12\/getting-down-to-business\/","title":{"rendered":"Getting down to business"},"content":{"rendered":"\n\t
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\u201cJobs are the outcome of a competitive economy," said Jan W. Rivkin (left), who, along with Michael E. Porter (center), is co-director of the HBS-led U.S. Competitiveness Project. \u201cOur problem is not so much what we\u2019ve done but what we haven\u2019t done,\u201d said Porter. <\/p>

Photos by Doug Gavel\/Harvard Kennedy School<\/p><\/figcaption><\/figure>\n\n\t

\n\t\t\t\n\t\t\tNation & World\t\t<\/a>\n\t\t\n\t\t

\n\t\tGetting down to business\t<\/h1>\n\n\t\n\t\t\t<\/div>\n\t\t\n\t
\n\t\t
\n\t\t\t
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\n\t\tKatie Koch\t<\/p>\n\t\t\t

\n\t\t\tHarvard Staff Writer\t\t<\/p>\n\t\t\t\t\t<\/address>\n\t\t<\/div>\n\n\t\t

\n\t\t\tFor D.C. freshmen, a crash course in U.S. competitiveness\t\t<\/h2>\n\t\t\n<\/header>\n\n\n\n
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When new members of Congress head to the capital next month, a stagnant economy and stubborn unemployment numbers will be top priorities. But as two Harvard Business School (HBS) professors warned a group of incoming congressional freshmen on Thursday, it would be a big mistake to separate those concerns from the broader and increasingly urgent issue of America\u2019s waning competitiveness in the global world of business.<\/p>\n

\u201cOur problem is not so much what we\u2019ve done but what we haven\u2019t done,\u201d Michael E. Porter, the Bishop William Lawrence University Professor, told the group of 47 gathered at Harvard Kennedy School<\/a> for a crash course in major policy issues. \u201cOther countries are very serious about driving improvements in competitiveness. \u2026 Part of our problem is that we\u2019re just not moving fast enough.\u201d<\/p>\n

The presentation by Porter and Jan W. Rivkin, co-directors of the HBS-led U.S. Competitiveness Project<\/a>, was one of more than a dozen organized by the Institute of Politics<\/a> (IOP) for the Bipartisan Program for Newly Elected Members of Congress, which for 40 years has shepherded 20 classes of freshmen through its boot camp for policymakers. This year, 37 Democrats and 10 Republicans descended on Harvard for the four-day program, their schedules packed with everything from foreign-policy discussions to workshops on building relationships in Washington to a Fenway Park outing.<\/p>\n

The talk, moderated by the IOP fellow and Fortune columnist Nina Easton, was also an opportunity for Porter and Rivkin to spread the word of the Competitiveness Project\u2019s findings beyond its usual audience of business leaders. HBS launched the initiative last year to promote research on American competitiveness and to raise awareness of the issue in the business, academic, and policymaking communities.<\/p>\n

Many of the project\u2019s findings were based on a global survey of 10,000 HBS alumni, published in Harvard Business Review<\/a> in March. Porter and Rivkin found that although the United States still maintains some crucial strengths in the eyes of business leaders \u2014 top-notch universities, a culture that fosters entrepreneurship and innovation \u2014 the country is no longer seen as the go-to location for companies looking to build up business.<\/p>\n

And contrary to popular belief, companies aren\u2019t always shipping jobs overseas to pursue cheap labor. The availability of skilled workers was often cited as a reason to relocate outside the United States.<\/p>\n

Porter was quick to stress that competitiveness means more than allowing business to prosper. To be competitive, companies must be able to compete in international markets while helping to maintain and raise Americans\u2019 living standards \u2014 not by lowering them.<\/p>\n

\u201cRepublicans are traditionally worried about the company part; Democrats are traditionally worried about the worker part,\u201d Porter said. \u201cBut those two things are inextricably tied.\u201d<\/p>\n

If lawmakers focus purely on job creation rather than the broader issue of competitiveness, \u201cyou tend to create jobs where it\u2019s easy to create jobs,\u201d said Rivkin, the Bruce V. Rauner\u00a0Professor of Business Administration. Infrastructure jobs and service-sector jobs in industries such as health care and retail aren\u2019t enough to keep the U.S. economy robust in the long term, he said. Research and development or manufacturing jobs, on the other hand, can help increase America\u2019s overall productivity and keep the country competitive in a global economy.<\/p>\n

\u201cJobs are the outcome of a competitive economy,\u201d Rivkin said. \u201cIf we try to solve the jobs problem separately we tend to do things that are not very sensible, rather than deal with the underlying fundamentals.\u201d<\/p>\n

So what should lawmakers do first? According to Porter and Rivkin, a sustainable federal budget would go a long way toward creating a perception of a stable environment for business. They also advised easing immigration restrictions on the highly skilled foreign workers \u2014 many trained at American universities \u2014 companies need. Simplifying America\u2019s notoriously byzantine corporate tax code and regulatory processes would also make the United States a more attractive place to do business, they added.<\/p>\n

\u201cBusiness leaders have pursued their own self-interest very narrowly and have been very effective\u201d in making the tax code more complicated, Rivkin said, acknowledging the paradox created by the slow buildup of tax loopholes for which corporations themselves lobbied.<\/p>\n

Competitiveness is a complex problem with deep roots, Rivkin and Porter said. But even signaling bipartisan agreement to tackle the issue would help restore Americans\u2019 faith in Congress. Business leaders in particular have little confidence in Washington: In the HBS survey, the American political system was ranked the worst factor in the U.S. business environment.<\/p>\n

\u201cI believe a little bit of progress would signal to so many people that we can make headway on these problems,\u201d Rivkin said.<\/p>\n

Echoing his partner, Porter urged the freshmen to help change the relationship between business and government leaders.<\/p>\n

\u201cIf we have those two sides at war, everybody loses,\u201d Porter said.<\/p>\n

It was a tall order, but at least one congressman came away heartened.<\/p>\n

\u201cWe\u2019ve heard a lot of doom and gloom over the last couple of days,\u201d said Tom Rice, a Republican from South Carolina. \u201cYou came in here with solutions, which is a wonderful prospect.\u201d<\/p>\n\r\n\r\n\n

Visit the Harvard Kennedy School<\/a> website to listen to podcasts of what other incoming freshman members of the 113th Congress have to say.
\n<\/a><\/em><\/p>\n\n\n<\/div>\n\n\t\t","protected":false},"excerpt":{"rendered":"

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Rivkin (left), who, along with Michael E. Porter (center), is co-director of the HBS-led U.S. Competitiveness Project. \u201cOur problem is not so much what we\u2019ve done but what we haven\u2019t done,\u201d said Porter. ","mediaId":126234,"mediaSize":"full","mediaType":"image","mediaUrl":"https:\/\/news.harvard.edu\/gazette\/wp-content\/uploads\/2012\/12\/congress_panel_605m.jpg","poster":"","title":"Getting down to business","subheading":"For D.C. freshmen, a crash course in U.S. competitiveness","centeredImage":true,"className":"is-style-full-width-text-below","mediaHeight":403,"mediaWidth":605,"backgroundFixed":false,"backgroundTone":"light","coloredBackground":false,"displayOverlay":true,"fadeInText":false,"isAmbient":false,"mediaLength":"","mediaPosition":"","posterText":"","titleAbove":false,"useUncroppedImage":false,"lock":[],"metadata":[]},"innerBlocks":[],"innerHTML":"<figure class=\"wp-block-image\"><img alt=\"\" height=\"403\" loading=\"eager\" src=\"https:\/\/news.harvard.edu\/gazette\/wp-content\/uploads\/2012\/12\/congress_panel_605m.jpg\" width=\"605\"\/><figcaption class=\"wp-element-caption\"><p class=\"wp-element-caption--caption\">\u201cJobs are the outcome of a competitive economy," said Jan W. Rivkin (left), who, along with Michael E. Porter (center), is co-director of the HBS-led U.S. Competitiveness Project. \u201cOur problem is not so much what we\u2019ve done but what we haven\u2019t done,\u201d said Porter. <\/p><p class=\"wp-element-caption--credit\">Photos by Doug Gavel\/Harvard Kennedy School<\/p><\/figcaption><\/figure>\n","innerContent":["<figure class=\"wp-block-image\"><img alt=\"\" height=\"403\" loading=\"eager\" src=\"https:\/\/news.harvard.edu\/gazette\/wp-content\/uploads\/2012\/12\/congress_panel_605m.jpg\" width=\"605\"\/><figcaption class=\"wp-element-caption\"><p class=\"wp-element-caption--caption\">\u201cJobs are the outcome of a competitive economy," said Jan W. Rivkin (left), who, along with Michael E. Porter (center), is co-director of the HBS-led U.S. Competitiveness Project. \u201cOur problem is not so much what we\u2019ve done but what we haven\u2019t done,\u201d said Porter. <\/p><p class=\"wp-element-caption--credit\">Photos by Doug Gavel\/Harvard Kennedy School<\/p><\/figcaption><\/figure>\n"],"rendered":"<header\n\tclass=\"wp-block-harvard-gazette-article-header alignfull article-header is-style-full-width-text-below centered-image\"\n\tstyle=\" \"\n>\n\t<figure class=\"wp-block-image\"><img alt=\"\" height=\"403\" loading=\"eager\" src=\"https:\/\/news.harvard.edu\/gazette\/wp-content\/uploads\/2012\/12\/congress_panel_605m.jpg\" width=\"605\"\/><figcaption class=\"wp-element-caption\"><p class=\"wp-element-caption--caption\">\u201cJobs are the outcome of a competitive economy," said Jan W. Rivkin (left), who, along with Michael E. Porter (center), is co-director of the HBS-led U.S. Competitiveness Project. \u201cOur problem is not so much what we\u2019ve done but what we haven\u2019t done,\u201d said Porter. <\/p><p class=\"wp-element-caption--credit\">Photos by Doug Gavel\/Harvard Kennedy School<\/p><\/figcaption><\/figure>\n\n\t<div class=\"article-header__content\">\n\t\t\t<a\n\t\t\tclass=\"article-header__category\"\n\t\t\thref=\"https:\/\/news.harvard.edu\/gazette\/section\/nation-world\/\"\n\t\t>\n\t\t\tNation & World\t\t<\/a>\n\t\t\n\t\t<h1 class=\"article-header__title wp-block-heading \">\n\t\tGetting down to business\t<\/h1>\n\n\t\n\t\t\t<\/div>\n\t\t\n\t<div class=\"article-header__meta\">\n\t\t<div class=\"wp-block-post-author\">\n\t\t\t<address class=\"wp-block-post-author__content\">\n\t\t\t\t\t<p class=\"author wp-block-post-author__name\">\n\t\tKatie Koch\t<\/p>\n\t\t\t<p class=\"wp-block-post-author__byline\">\n\t\t\tHarvard Staff Writer\t\t<\/p>\n\t\t\t\t\t<\/address>\n\t\t<\/div>\n\n\t\t<time class=\"article-header__date\" datetime=\"2012-12-14\">\n\t\t\tDecember 14, 2012\t\t<\/time>\n\n\t\t<span class=\"article-header__reading-time\">\n\t\t\t5 min read\t\t<\/span>\n\t<\/div>\n\n\t\n\t\t\t<h2 class=\"article-header__subheading wp-block-heading\">\n\t\t\tFor D.C. freshmen, a crash course in U.S. competitiveness\t\t<\/h2>\n\t\t\n<\/header>\n"},"2":{"blockName":"core\/group","attrs":{"templateLock":false,"metadata":{"name":"Article content"},"align":"wide","layout":{"type":"constrained","justifyContent":"center"},"tagName":"div","lock":[],"className":"","style":[],"backgroundColor":"","textColor":"","gradient":"","fontSize":"","fontFamily":"","borderColor":"","ariaLabel":"","anchor":""},"innerBlocks":[{"blockName":"core\/freeform","attrs":{"content":"","lock":[],"metadata":[]},"innerBlocks":[],"innerHTML":"\n\t\t<p>When new members of Congress head to the capital next month, a stagnant economy and stubborn unemployment numbers will be top priorities. But as two Harvard Business School (HBS) professors warned a group of incoming congressional freshmen on Thursday, it would be a big mistake to separate those concerns from the broader and increasingly urgent issue of America\u2019s waning competitiveness in the global world of business.<\/p>\n<p>\u201cOur problem is not so much what we\u2019ve done but what we haven\u2019t done,\u201d Michael E. Porter, the Bishop William Lawrence University Professor, told the group of 47 gathered at <a href=\"http:\/\/hks.harvard.edu\/\">Harvard Kennedy School<\/a> for a crash course in major policy issues. \u201cOther countries are very serious about driving improvements in competitiveness. \u2026 Part of our problem is that we\u2019re just not moving fast enough.\u201d<\/p>\n<p>The presentation by Porter and Jan W. Rivkin, co-directors of the HBS-led <a href=\"http:\/\/www.hbs.edu\/competitiveness\/\">U.S. Competitiveness Project<\/a>, was one of more than a dozen organized by the <a href=\"http:\/\/www.iop.harvard.edu\/\">Institute of Politics<\/a> (IOP) for the Bipartisan Program for Newly Elected Members of Congress, which for 40 years has shepherded 20 classes of freshmen through its boot camp for policymakers. This year, 37 Democrats and 10 Republicans descended on Harvard for the four-day program, their schedules packed with everything from foreign-policy discussions to workshops on building relationships in Washington to a Fenway Park outing.<\/p>\n<p>The talk, moderated by the IOP fellow and Fortune columnist Nina Easton, was also an opportunity for Porter and Rivkin to spread the word of the Competitiveness Project\u2019s findings beyond its usual audience of business leaders. HBS launched the initiative last year to promote research on American competitiveness and to raise awareness of the issue in the business, academic, and policymaking communities.<\/p>\n<p>Many of the project\u2019s findings were based on a global survey of 10,000 HBS alumni, published in <a href=\"http:\/\/www.hbr.org\/\">Harvard Business Review<\/a> in March. Porter and Rivkin found that although the United States still maintains some crucial strengths in the eyes of business leaders \u2014 top-notch universities, a culture that fosters entrepreneurship and innovation \u2014 the country is no longer seen as the go-to location for companies looking to build up business.<\/p>\n<p>And contrary to popular belief, companies aren\u2019t always shipping jobs overseas to pursue cheap labor. The availability of skilled workers was often cited as a reason to relocate outside the United States.<\/p>\n<p>Porter was quick to stress that competitiveness means more than allowing business to prosper. To be competitive, companies must be able to compete in international markets while helping to maintain and raise Americans\u2019 living standards \u2014 not by lowering them.<\/p>\n<p>\u201cRepublicans are traditionally worried about the company part; Democrats are traditionally worried about the worker part,\u201d Porter said. \u201cBut those two things are inextricably tied.\u201d<\/p>\n<p>If lawmakers focus purely on job creation rather than the broader issue of competitiveness, \u201cyou tend to create jobs where it\u2019s easy to create jobs,\u201d said Rivkin, the Bruce V. Rauner\u00a0Professor of Business Administration. Infrastructure jobs and service-sector jobs in industries such as health care and retail aren\u2019t enough to keep the U.S. economy robust in the long term, he said. Research and development or manufacturing jobs, on the other hand, can help increase America\u2019s overall productivity and keep the country competitive in a global economy.<\/p>\n<p>\u201cJobs are the outcome of a competitive economy,\u201d Rivkin said. \u201cIf we try to solve the jobs problem separately we tend to do things that are not very sensible, rather than deal with the underlying fundamentals.\u201d<\/p>\n<p>So what should lawmakers do first? According to Porter and Rivkin, a sustainable federal budget would go a long way toward creating a perception of a stable environment for business. They also advised easing immigration restrictions on the highly skilled foreign workers \u2014 many trained at American universities \u2014 companies need. Simplifying America\u2019s notoriously byzantine corporate tax code and regulatory processes would also make the United States a more attractive place to do business, they added.<\/p>\n<p>\u201cBusiness leaders have pursued their own self-interest very narrowly and have been very effective\u201d in making the tax code more complicated, Rivkin said, acknowledging the paradox created by the slow buildup of tax loopholes for which corporations themselves lobbied.<\/p>\n<p>Competitiveness is a complex problem with deep roots, Rivkin and Porter said. But even signaling bipartisan agreement to tackle the issue would help restore Americans\u2019 faith in Congress. Business leaders in particular have little confidence in Washington: In the HBS survey, the American political system was ranked the worst factor in the U.S. business environment.<\/p>\n<p>\u201cI believe a little bit of progress would signal to so many people that we can make headway on these problems,\u201d Rivkin said.<\/p>\n<p>Echoing his partner, Porter urged the freshmen to help change the relationship between business and government leaders.<\/p>\n<p>\u201cIf we have those two sides at war, everybody loses,\u201d Porter said.<\/p>\n<p>It was a tall order, but at least one congressman came away heartened.<\/p>\n<p>\u201cWe\u2019ve heard a lot of doom and gloom over the last couple of days,\u201d said Tom Rice, a Republican from South Carolina. \u201cYou came in here with solutions, which is a wonderful prospect.\u201d<\/p>\n","innerContent":["\n\t\t<p>When new members of Congress head to the capital next month, a stagnant economy and stubborn unemployment numbers will be top priorities. But as two Harvard Business School (HBS) professors warned a group of incoming congressional freshmen on Thursday, it would be a big mistake to separate those concerns from the broader and increasingly urgent issue of America\u2019s waning competitiveness in the global world of business.<\/p>\n<p>\u201cOur problem is not so much what we\u2019ve done but what we haven\u2019t done,\u201d Michael E. Porter, the Bishop William Lawrence University Professor, told the group of 47 gathered at <a href=\"http:\/\/hks.harvard.edu\/\">Harvard Kennedy School<\/a> for a crash course in major policy issues. \u201cOther countries are very serious about driving improvements in competitiveness. \u2026 Part of our problem is that we\u2019re just not moving fast enough.\u201d<\/p>\n<p>The presentation by Porter and Jan W. Rivkin, co-directors of the HBS-led <a href=\"http:\/\/www.hbs.edu\/competitiveness\/\">U.S. Competitiveness Project<\/a>, was one of more than a dozen organized by the <a href=\"http:\/\/www.iop.harvard.edu\/\">Institute of Politics<\/a> (IOP) for the Bipartisan Program for Newly Elected Members of Congress, which for 40 years has shepherded 20 classes of freshmen through its boot camp for policymakers. This year, 37 Democrats and 10 Republicans descended on Harvard for the four-day program, their schedules packed with everything from foreign-policy discussions to workshops on building relationships in Washington to a Fenway Park outing.<\/p>\n<p>The talk, moderated by the IOP fellow and Fortune columnist Nina Easton, was also an opportunity for Porter and Rivkin to spread the word of the Competitiveness Project\u2019s findings beyond its usual audience of business leaders. HBS launched the initiative last year to promote research on American competitiveness and to raise awareness of the issue in the business, academic, and policymaking communities.<\/p>\n<p>Many of the project\u2019s findings were based on a global survey of 10,000 HBS alumni, published in <a href=\"http:\/\/www.hbr.org\/\">Harvard Business Review<\/a> in March. Porter and Rivkin found that although the United States still maintains some crucial strengths in the eyes of business leaders \u2014 top-notch universities, a culture that fosters entrepreneurship and innovation \u2014 the country is no longer seen as the go-to location for companies looking to build up business.<\/p>\n<p>And contrary to popular belief, companies aren\u2019t always shipping jobs overseas to pursue cheap labor. The availability of skilled workers was often cited as a reason to relocate outside the United States.<\/p>\n<p>Porter was quick to stress that competitiveness means more than allowing business to prosper. To be competitive, companies must be able to compete in international markets while helping to maintain and raise Americans\u2019 living standards \u2014 not by lowering them.<\/p>\n<p>\u201cRepublicans are traditionally worried about the company part; Democrats are traditionally worried about the worker part,\u201d Porter said. \u201cBut those two things are inextricably tied.\u201d<\/p>\n<p>If lawmakers focus purely on job creation rather than the broader issue of competitiveness, \u201cyou tend to create jobs where it\u2019s easy to create jobs,\u201d said Rivkin, the Bruce V. Rauner\u00a0Professor of Business Administration. Infrastructure jobs and service-sector jobs in industries such as health care and retail aren\u2019t enough to keep the U.S. economy robust in the long term, he said. Research and development or manufacturing jobs, on the other hand, can help increase America\u2019s overall productivity and keep the country competitive in a global economy.<\/p>\n<p>\u201cJobs are the outcome of a competitive economy,\u201d Rivkin said. \u201cIf we try to solve the jobs problem separately we tend to do things that are not very sensible, rather than deal with the underlying fundamentals.\u201d<\/p>\n<p>So what should lawmakers do first? According to Porter and Rivkin, a sustainable federal budget would go a long way toward creating a perception of a stable environment for business. They also advised easing immigration restrictions on the highly skilled foreign workers \u2014 many trained at American universities \u2014 companies need. Simplifying America\u2019s notoriously byzantine corporate tax code and regulatory processes would also make the United States a more attractive place to do business, they added.<\/p>\n<p>\u201cBusiness leaders have pursued their own self-interest very narrowly and have been very effective\u201d in making the tax code more complicated, Rivkin said, acknowledging the paradox created by the slow buildup of tax loopholes for which corporations themselves lobbied.<\/p>\n<p>Competitiveness is a complex problem with deep roots, Rivkin and Porter said. But even signaling bipartisan agreement to tackle the issue would help restore Americans\u2019 faith in Congress. Business leaders in particular have little confidence in Washington: In the HBS survey, the American political system was ranked the worst factor in the U.S. business environment.<\/p>\n<p>\u201cI believe a little bit of progress would signal to so many people that we can make headway on these problems,\u201d Rivkin said.<\/p>\n<p>Echoing his partner, Porter urged the freshmen to help change the relationship between business and government leaders.<\/p>\n<p>\u201cIf we have those two sides at war, everybody loses,\u201d Porter said.<\/p>\n<p>It was a tall order, but at least one congressman came away heartened.<\/p>\n<p>\u201cWe\u2019ve heard a lot of doom and gloom over the last couple of days,\u201d said Tom Rice, a Republican from South Carolina. \u201cYou came in here with solutions, which is a wonderful prospect.\u201d<\/p>\n"],"rendered":"\n\t\t<p>When new members of Congress head to the capital next month, a stagnant economy and stubborn unemployment numbers will be top priorities. But as two Harvard Business School (HBS) professors warned a group of incoming congressional freshmen on Thursday, it would be a big mistake to separate those concerns from the broader and increasingly urgent issue of America\u2019s waning competitiveness in the global world of business.<\/p>\n<p>\u201cOur problem is not so much what we\u2019ve done but what we haven\u2019t done,\u201d Michael E. Porter, the Bishop William Lawrence University Professor, told the group of 47 gathered at <a href=\"http:\/\/hks.harvard.edu\/\">Harvard Kennedy School<\/a> for a crash course in major policy issues. \u201cOther countries are very serious about driving improvements in competitiveness. \u2026 Part of our problem is that we\u2019re just not moving fast enough.\u201d<\/p>\n<p>The presentation by Porter and Jan W. Rivkin, co-directors of the HBS-led <a href=\"http:\/\/www.hbs.edu\/competitiveness\/\">U.S. Competitiveness Project<\/a>, was one of more than a dozen organized by the <a href=\"http:\/\/www.iop.harvard.edu\/\">Institute of Politics<\/a> (IOP) for the Bipartisan Program for Newly Elected Members of Congress, which for 40 years has shepherded 20 classes of freshmen through its boot camp for policymakers. This year, 37 Democrats and 10 Republicans descended on Harvard for the four-day program, their schedules packed with everything from foreign-policy discussions to workshops on building relationships in Washington to a Fenway Park outing.<\/p>\n<p>The talk, moderated by the IOP fellow and Fortune columnist Nina Easton, was also an opportunity for Porter and Rivkin to spread the word of the Competitiveness Project\u2019s findings beyond its usual audience of business leaders. HBS launched the initiative last year to promote research on American competitiveness and to raise awareness of the issue in the business, academic, and policymaking communities.<\/p>\n<p>Many of the project\u2019s findings were based on a global survey of 10,000 HBS alumni, published in <a href=\"http:\/\/www.hbr.org\/\">Harvard Business Review<\/a> in March. Porter and Rivkin found that although the United States still maintains some crucial strengths in the eyes of business leaders \u2014 top-notch universities, a culture that fosters entrepreneurship and innovation \u2014 the country is no longer seen as the go-to location for companies looking to build up business.<\/p>\n<p>And contrary to popular belief, companies aren\u2019t always shipping jobs overseas to pursue cheap labor. The availability of skilled workers was often cited as a reason to relocate outside the United States.<\/p>\n<p>Porter was quick to stress that competitiveness means more than allowing business to prosper. To be competitive, companies must be able to compete in international markets while helping to maintain and raise Americans\u2019 living standards \u2014 not by lowering them.<\/p>\n<p>\u201cRepublicans are traditionally worried about the company part; Democrats are traditionally worried about the worker part,\u201d Porter said. \u201cBut those two things are inextricably tied.\u201d<\/p>\n<p>If lawmakers focus purely on job creation rather than the broader issue of competitiveness, \u201cyou tend to create jobs where it\u2019s easy to create jobs,\u201d said Rivkin, the Bruce V. Rauner\u00a0Professor of Business Administration. Infrastructure jobs and service-sector jobs in industries such as health care and retail aren\u2019t enough to keep the U.S. economy robust in the long term, he said. Research and development or manufacturing jobs, on the other hand, can help increase America\u2019s overall productivity and keep the country competitive in a global economy.<\/p>\n<p>\u201cJobs are the outcome of a competitive economy,\u201d Rivkin said. \u201cIf we try to solve the jobs problem separately we tend to do things that are not very sensible, rather than deal with the underlying fundamentals.\u201d<\/p>\n<p>So what should lawmakers do first? According to Porter and Rivkin, a sustainable federal budget would go a long way toward creating a perception of a stable environment for business. They also advised easing immigration restrictions on the highly skilled foreign workers \u2014 many trained at American universities \u2014 companies need. Simplifying America\u2019s notoriously byzantine corporate tax code and regulatory processes would also make the United States a more attractive place to do business, they added.<\/p>\n<p>\u201cBusiness leaders have pursued their own self-interest very narrowly and have been very effective\u201d in making the tax code more complicated, Rivkin said, acknowledging the paradox created by the slow buildup of tax loopholes for which corporations themselves lobbied.<\/p>\n<p>Competitiveness is a complex problem with deep roots, Rivkin and Porter said. But even signaling bipartisan agreement to tackle the issue would help restore Americans\u2019 faith in Congress. Business leaders in particular have little confidence in Washington: In the HBS survey, the American political system was ranked the worst factor in the U.S. business environment.<\/p>\n<p>\u201cI believe a little bit of progress would signal to so many people that we can make headway on these problems,\u201d Rivkin said.<\/p>\n<p>Echoing his partner, Porter urged the freshmen to help change the relationship between business and government leaders.<\/p>\n<p>\u201cIf we have those two sides at war, everybody loses,\u201d Porter said.<\/p>\n<p>It was a tall order, but at least one congressman came away heartened.<\/p>\n<p>\u201cWe\u2019ve heard a lot of doom and gloom over the last couple of days,\u201d said Tom Rice, a Republican from South Carolina. \u201cYou came in here with solutions, which is a wonderful prospect.\u201d<\/p>\n"},{"blockName":"core\/freeform","attrs":{"content":"","lock":[],"metadata":[]},"innerBlocks":[],"innerHTML":"\n<p><em>Visit the <a href=\"https:\/\/www.hks.harvard.edu\">Harvard Kennedy School<\/a> website to listen to podcasts of what other incoming freshman members of the 113th Congress have to say.<a href=\"http:\/\/www.hks.harvard.edu\/news-events\/news\/articles\/new-congress-members-2012\"><br \/>\n<\/a><\/em><\/p>\n","innerContent":["\n<p><em>Visit the <a href=\"https:\/\/www.hks.harvard.edu\">Harvard Kennedy School<\/a> website to listen to podcasts of what other incoming freshman members of the 113th Congress have to say.<a href=\"http:\/\/www.hks.harvard.edu\/news-events\/news\/articles\/new-congress-members-2012\"><br \/>\n<\/a><\/em><\/p>\n"],"rendered":"\n<p><em>Visit the <a href=\"https:\/\/www.hks.harvard.edu\">Harvard Kennedy School<\/a> website to listen to podcasts of what other incoming freshman members of the 113th Congress have to say.<a href=\"http:\/\/www.hks.harvard.edu\/news-events\/news\/articles\/new-congress-members-2012\"><br \/>\n<\/a><\/em><\/p>\n"}],"innerHTML":"\n<div class=\"wp-block-group alignwide\">\n\n\r\n\r\n\n\n<\/div>\n","innerContent":["\n<div class=\"wp-block-group alignwide\">\n\n","\r\n\r\n","\n\n<\/div>\n"],"rendered":"\n<div class=\"wp-block-group alignwide has-global-padding is-content-justification-center is-layout-constrained wp-block-group-is-layout-constrained\">\n\n\n\t\t<p>When new members of Congress head to the capital next month, a stagnant economy and stubborn unemployment numbers will be top priorities. But as two Harvard Business School (HBS) professors warned a group of incoming congressional freshmen on Thursday, it would be a big mistake to separate those concerns from the broader and increasingly urgent issue of America\u2019s waning competitiveness in the global world of business.<\/p>\n<p>\u201cOur problem is not so much what we\u2019ve done but what we haven\u2019t done,\u201d Michael E. Porter, the Bishop William Lawrence University Professor, told the group of 47 gathered at <a href=\"http:\/\/hks.harvard.edu\/\">Harvard Kennedy School<\/a> for a crash course in major policy issues. \u201cOther countries are very serious about driving improvements in competitiveness. \u2026 Part of our problem is that we\u2019re just not moving fast enough.\u201d<\/p>\n<p>The presentation by Porter and Jan W. Rivkin, co-directors of the HBS-led <a href=\"http:\/\/www.hbs.edu\/competitiveness\/\">U.S. Competitiveness Project<\/a>, was one of more than a dozen organized by the <a href=\"http:\/\/www.iop.harvard.edu\/\">Institute of Politics<\/a> (IOP) for the Bipartisan Program for Newly Elected Members of Congress, which for 40 years has shepherded 20 classes of freshmen through its boot camp for policymakers. This year, 37 Democrats and 10 Republicans descended on Harvard for the four-day program, their schedules packed with everything from foreign-policy discussions to workshops on building relationships in Washington to a Fenway Park outing.<\/p>\n<p>The talk, moderated by the IOP fellow and Fortune columnist Nina Easton, was also an opportunity for Porter and Rivkin to spread the word of the Competitiveness Project\u2019s findings beyond its usual audience of business leaders. HBS launched the initiative last year to promote research on American competitiveness and to raise awareness of the issue in the business, academic, and policymaking communities.<\/p>\n<p>Many of the project\u2019s findings were based on a global survey of 10,000 HBS alumni, published in <a href=\"http:\/\/www.hbr.org\/\">Harvard Business Review<\/a> in March. Porter and Rivkin found that although the United States still maintains some crucial strengths in the eyes of business leaders \u2014 top-notch universities, a culture that fosters entrepreneurship and innovation \u2014 the country is no longer seen as the go-to location for companies looking to build up business.<\/p>\n<p>And contrary to popular belief, companies aren\u2019t always shipping jobs overseas to pursue cheap labor. The availability of skilled workers was often cited as a reason to relocate outside the United States.<\/p>\n<p>Porter was quick to stress that competitiveness means more than allowing business to prosper. To be competitive, companies must be able to compete in international markets while helping to maintain and raise Americans\u2019 living standards \u2014 not by lowering them.<\/p>\n<p>\u201cRepublicans are traditionally worried about the company part; Democrats are traditionally worried about the worker part,\u201d Porter said. \u201cBut those two things are inextricably tied.\u201d<\/p>\n<p>If lawmakers focus purely on job creation rather than the broader issue of competitiveness, \u201cyou tend to create jobs where it\u2019s easy to create jobs,\u201d said Rivkin, the Bruce V. Rauner\u00a0Professor of Business Administration. Infrastructure jobs and service-sector jobs in industries such as health care and retail aren\u2019t enough to keep the U.S. economy robust in the long term, he said. Research and development or manufacturing jobs, on the other hand, can help increase America\u2019s overall productivity and keep the country competitive in a global economy.<\/p>\n<p>\u201cJobs are the outcome of a competitive economy,\u201d Rivkin said. \u201cIf we try to solve the jobs problem separately we tend to do things that are not very sensible, rather than deal with the underlying fundamentals.\u201d<\/p>\n<p>So what should lawmakers do first? According to Porter and Rivkin, a sustainable federal budget would go a long way toward creating a perception of a stable environment for business. They also advised easing immigration restrictions on the highly skilled foreign workers \u2014 many trained at American universities \u2014 companies need. Simplifying America\u2019s notoriously byzantine corporate tax code and regulatory processes would also make the United States a more attractive place to do business, they added.<\/p>\n<p>\u201cBusiness leaders have pursued their own self-interest very narrowly and have been very effective\u201d in making the tax code more complicated, Rivkin said, acknowledging the paradox created by the slow buildup of tax loopholes for which corporations themselves lobbied.<\/p>\n<p>Competitiveness is a complex problem with deep roots, Rivkin and Porter said. But even signaling bipartisan agreement to tackle the issue would help restore Americans\u2019 faith in Congress. Business leaders in particular have little confidence in Washington: In the HBS survey, the American political system was ranked the worst factor in the U.S. business environment.<\/p>\n<p>\u201cI believe a little bit of progress would signal to so many people that we can make headway on these problems,\u201d Rivkin said.<\/p>\n<p>Echoing his partner, Porter urged the freshmen to help change the relationship between business and government leaders.<\/p>\n<p>\u201cIf we have those two sides at war, everybody loses,\u201d Porter said.<\/p>\n<p>It was a tall order, but at least one congressman came away heartened.<\/p>\n<p>\u201cWe\u2019ve heard a lot of doom and gloom over the last couple of days,\u201d said Tom Rice, a Republican from South Carolina. \u201cYou came in here with solutions, which is a wonderful prospect.\u201d<\/p>\n\r\n\r\n\n<p><em>Visit the <a href=\"https:\/\/www.hks.harvard.edu\">Harvard Kennedy School<\/a> website to listen to podcasts of what other incoming freshman members of the 113th Congress have to say.<a href=\"http:\/\/www.hks.harvard.edu\/news-events\/news\/articles\/new-congress-members-2012\"><br \/>\n<\/a><\/em><\/p>\n\n\n<\/div>\n"}},"jetpack-related-posts":[{"id":138809,"url":"https:\/\/news.harvard.edu\/gazette\/story\/2013\/05\/toward-a-more-competitive-u-s\/","url_meta":{"origin":126230,"position":0},"title":"Toward a more competitive U.S.","author":"harvardgazette","date":"May 17, 2013","format":false,"excerpt":"At an event at Harvard Business School (HBS) that was three parts analysis and one part rally, participants tried to chart a new path forward for the sluggish U.S. economy \u2014 a move that may require a new definition of \u201ccompetitiveness.\u201d","rel":"","context":"In "Nation & World"","block_context":{"text":"Nation & 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World","link":"https:\/\/news.harvard.edu\/gazette\/section\/nation-world\/"},"img":{"alt_text":"","src":"https:\/\/news.harvard.edu\/wp-content\/uploads\/2012\/11\/alum_ks.jpg?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/news.harvard.edu\/wp-content\/uploads\/2012\/11\/alum_ks.jpg?resize=350%2C200 1x, https:\/\/news.harvard.edu\/wp-content\/uploads\/2012\/11\/alum_ks.jpg?resize=525%2C300 1.5x"},"classes":[]},{"id":317155,"url":"https:\/\/news.harvard.edu\/gazette\/story\/2020\/12\/institute-of-politics-23rd-bipartisan-program-announced\/","url_meta":{"origin":126230,"position":2},"title":"Now in session","author":"Lian Parsons","date":"December 3, 2020","format":false,"excerpt":"Incoming lawmakers will be briefed on several national challenges and engage in conversation with Harvard\u2019s faculty and other policy experts during four meetings in December.","rel":"","context":"In "Campus & Community"","block_context":{"text":"Campus & Community","link":"https:\/\/news.harvard.edu\/gazette\/section\/campus-community\/"},"img":{"alt_text":"Group photo.","src":"https:\/\/news.harvard.edu\/wp-content\/uploads\/2020\/12\/class-of-2018.jpg?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/news.harvard.edu\/wp-content\/uploads\/2020\/12\/class-of-2018.jpg?resize=350%2C200 1x, https:\/\/news.harvard.edu\/wp-content\/uploads\/2020\/12\/class-of-2018.jpg?resize=525%2C300 1.5x, https:\/\/news.harvard.edu\/wp-content\/uploads\/2020\/12\/class-of-2018.jpg?resize=700%2C400 2x"},"classes":[]},{"id":399203,"url":"https:\/\/news.harvard.edu\/gazette\/story\/2024\/12\/what-to-expect-when-youre-elected\/","url_meta":{"origin":126230,"position":3},"title":"What to expect when you\u2019re elected","author":"Christina Pazzanese","date":"December 18, 2024","format":false,"excerpt":"Bipartisan group of lawmakers gets to know Washington by way of the IOP","rel":"","context":"In "Nation & World"","block_context":{"text":"Nation & World","link":"https:\/\/news.harvard.edu\/gazette\/section\/nation-world\/"},"img":{"alt_text":"Professor Jonathan Zittrain speaks to a packed room of newly elected members of Congress and observers during his panel discussion, \u201cImplications of Artificial Intelligence.\u201d","src":"https:\/\/news.harvard.edu\/wp-content\/uploads\/2024\/12\/1-12.10.24-NEMC193.jpg?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/news.harvard.edu\/wp-content\/uploads\/2024\/12\/1-12.10.24-NEMC193.jpg?resize=350%2C200 1x, https:\/\/news.harvard.edu\/wp-content\/uploads\/2024\/12\/1-12.10.24-NEMC193.jpg?resize=525%2C300 1.5x, https:\/\/news.harvard.edu\/wp-content\/uploads\/2024\/12\/1-12.10.24-NEMC193.jpg?resize=700%2C400 2x"},"classes":[]},{"id":153120,"url":"https:\/\/news.harvard.edu\/gazette\/story\/2014\/02\/bad-bridges-to-nowhere\/","url_meta":{"origin":126230,"position":4},"title":"Bad bridges to nowhere","author":"harvardgazette","date":"February 27, 2014","format":false,"excerpt":"Harvard Business School brings together top leaders in academia, government, and business to consider and address the nation\u2019s transportation and infrastructure shortcomings, which have led to a lag in global competitiveness.","rel":"","context":"In "Nation & World"","block_context":{"text":"Nation & World","link":"https:\/\/news.harvard.edu\/gazette\/section\/nation-world\/"},"img":{"alt_text":"","src":"https:\/\/news.harvard.edu\/wp-content\/uploads\/2014\/02\/hbs_dean.jpg?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/news.harvard.edu\/wp-content\/uploads\/2014\/02\/hbs_dean.jpg?resize=350%2C200 1x, https:\/\/news.harvard.edu\/wp-content\/uploads\/2014\/02\/hbs_dean.jpg?resize=525%2C300 1.5x"},"classes":[]},{"id":295120,"url":"https:\/\/news.harvard.edu\/gazette\/story\/2020\/02\/business-leaders-see-u-s-unprepared-for-economic-downturn\/","url_meta":{"origin":126230,"position":5},"title":"Business leaders see U.S. unprepared for economic downturn","author":"Lian Parsons","date":"February 14, 2020","format":false,"excerpt":"New research from HBS faculty on the state of U.S. competitiveness finds that the business community may hold the key to dismantling a dysfunctional political system that threatens the nation\u2019s economic outlook.","rel":"","context":"In "Work & Economy"","block_context":{"text":"Work & Economy","link":"https:\/\/news.harvard.edu\/gazette\/section\/business-economy\/"},"img":{"alt_text":"Illustration of stock market and Capitol.","src":"https:\/\/news.harvard.edu\/wp-content\/uploads\/2020\/01\/squanderedcollage.jpg?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/news.harvard.edu\/wp-content\/uploads\/2020\/01\/squanderedcollage.jpg?resize=350%2C200 1x, https:\/\/news.harvard.edu\/wp-content\/uploads\/2020\/01\/squanderedcollage.jpg?resize=525%2C300 1.5x, https:\/\/news.harvard.edu\/wp-content\/uploads\/2020\/01\/squanderedcollage.jpg?resize=700%2C400 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