For years now, outsourcing U.S. manufacturing overseas has been a common practice. Asia leads the way in producing most consumer goods—from electronics to housewares and everything in between—at a far lower cost than would be possible in the United States. Although this has resulted in a painful transition period for countless U.S. workers, by and large U.S. companies have embraced the ability to produce their products at significantly reduced tooling, parts, and labor costs.

Yet while U.S. firms have given up manufacturing and production to overseas vendors, the tacit assumption has been that we would remain the headquarters for research, strategy, concept development, and engineering. Unfortunately, we are seeing the beginning of a new phase of outsourcing, one that could transform the playing field all over again. Having already gained the lion’s share of manufacturing work, countries like China and India are now focusing on building their capabilities in the innovation and design phases of product development. While some may dismiss the seriousness of this trend, we’d be naive to believe that the United States has a monopoly on a creative workforce.

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