How Will G7 Economies Retain Their Lead?

With manufacturing moving away to cheaper areas, how will the UK retain its place as the world's fifth largest economy in GDP terms? Does the GDP really matter these days or is cash generation to meet government debts more important? GDP level might fall in relative terms, but overall cash generation could still be higher. Reducing government debt is what counts these days. Cash revenue is generated where the key value addition happens. So it depends on where the parent company (or the generator of the key value add) is domiciled? Nokia's handsets might be manufactured in China, but that is only part of the value chain. Where does the real value addition occur? The answer is where the main 'intellectual property' is generated and added. Although manufactured in China, the design and engineering is happening elsewhere. Somewhat similar to the more familiar - 'every dollar transacted anywhere in the world adds to the US coffers'. It is the design, innovation and engineering that controls the value and revenue chain. The UK can win only if they can continue to sit on top of the production and delivery value chain and create the environment and infrastructure for continuous innovation and generation of intellectual property. They must have the environment that attracts and retains top class talent. So it has to be innovation in design, in management processes, in the conversion of concepts to reality where the G7 need to focus. Manufacturing will ultimately be replaced by robots but IP generation by way of innovation through research & development will not be. So the investment must be in the later and lead maintained there. There lies the superiority over the nations that is turning their work forces into robots which ultimately would replaced by machines unless they themselves change.