These local incentives matter because smart, skilled labor is everywhere now. Intel can thrive today — not just survive, but thrive — and never hire another American. Asked if his company was being held back by weak science and math education in America's K-12 schools, Otellini explained:
"As a citizen, I hate it. As a global employer, I have the luxury of hiring the best engineers anywhere on earth. If I can't get them out of M.I.T., I'll get them out of Tsing Hua" — Beijing's M.I.T...
If the government just boosted the research and development tax credit by 5 percent and lowered corporate taxes, argued Otellini, and we "started one or two more projects in companies around the country that made them more productive and more competitive, the government's tax revenues are going to grow." With the generous research and development tax credits and lower corporate taxes they receive, Intel's chief competitors in South Korea basically have "zero cost of money," said Otellini. Intel can compete against that with superior technology, but many other U.S. firms can't.
Does the Obama team get it? Otellini compared the Obama administration to a "diode" — an electronic device that conducts electric current in only one direction. They are very good at listening to Silicon Valley, he said, but not so good at responding.