https://www.nytimes.com/2018/04/09/world/australia/adelaide-tech-innovation.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentCollection=business®ion=stream&module=stream_unit&version=latest&contentPlacement=6&pgtype=sectionfront
Monday, April 9, 2018
Elon Musk Likes it Here. Will Other Tech Innovators Follow?
This article is interesting because it talks about ideas that the Australian government has and has been using in order to attract companies to Adelaide. This is a city in South Australia that used to have a lot of industries and factories, but in the last decades, a lot of companies have been shutting down their companies and moving to a different place. One of the ideas that they have in order to get more companies to move there, is to get more workers that would charge less, which is why they have decided to give out many visas for foreign workers that decide to go work in Adelaide. With this, they are trying to make labor cheaper and encourage companies to open factories there. Another decision that the government had in order to attract more companies is to hire Steve Wozniak, the co-founder of apple, in order for him to give ideas to attract more people and companies to Adelaide. It will be interesting to see if this will work, or if the Australian government is spending a lot of resources trying to get this city back to its prime and at the end, it will not end up working.
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I am curious if this plan ends up being successful. I also wonder how long time residents of Adelaide feel as I assume many are unemployed since industry left, will these foreign workers drive out the current residents, will the current Adelaide residents agree to work for such low wages as well?
It is interesting to see how the government contributes its role in reallocating resources in practical.
I hope the government of Australia is successful in executing such a plan because there are so many other factors that affect the location of these businesses. These can range from Corporate taxes to Return on Investments. It would be interesting to note government incentives materialize towards profitable business-tech firms.
Certain aspects of Musk's operations certainly cannot exist out of the United States, such as SpaceX, as this would be a national security issue. I would not discount, however, the possibility of Musk increasing the factors of production outside of the United States as Tesla recently missed production milestones.
For what Elon Musk has done for this city, I'm surprised that it has his name in the headline. The only thing that Elon Musk did for Adelaide was "He introduced a new rocket at a space conference here last September, following up in November by building the world’s biggest battery". I think this is important to understand because its not like hes moving all of his company's production to Australia.
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