Competitiveness

Innovation, including the diffusion of information technology throughout the economy, is key to boosting productivity, which in turn is at the heart of increasing living standards.

Report Links U.S. Economic Stagnation to Decline in Private Sector Capital Investment

The Future of Cloud Services

October 8, 2013
A discussion of how cloud computing will evolve over the next 5-10 years and the implications this will have for consumers, businesses, and policy makers.

Increasingly organizations in the public and private sectors are moving their IT services to the cloud because it allows them to operate more efficiently, more securely, and with more flexibility. But cloud computing technologies continue to evolve rapidly, and these changes introduce new opportunities and challenges for users. Please join us for a panel discussion with a group of leading technology experts who will share their views on how cloud computing will evolve over the next 5-10 years, and the implications this will have for consumers, businesses, and policy makers.

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Shutting Down our Innovation Future

October 7, 2013
| Blogs & Op-eds

The shutdown of the federal government has earned deserved derision from all corners of American society, and the negative impacts of the debacle will be felt by millions even if it only lasts a short time. However, this is just one symptom of a broader illness affecting governmental budgeting that is sabotaging our economic future by severely inhibiting innovation, business development and long-term economic growth.

Restoring America's Lagging Investment in Capital Goods

October 4, 2013
| Reports

This report analyzes U.S. business investment the past three decades. Business investment in capital equipment, software and structures grew by 2.7 percent per year on average during the 1980s and 5.2 percent annually during the 1990s. However, from 2000 to 2011 it grew by just 0.5 percent. As a share of GDP, business investment has declined by over 3 percentage points since the 1980s. Moreover, investment that was once broadly distributed across industries is now much more concentrated in a few select domestic service sectors, while industries that once powered U.S. investment growth and global competitiveness have seen sharp declines. This decline in investment negatively affects U.S. productivity growth and competitiveness. The authors argue that “short-termism,” the growing focus on short-term profits over long-term planning by many firms, and the diminished global competiveness of the U.S. economy has contributed to declines in private capital investment. ITIF calls on Congress to establish an investment tax credit and on the Administration to create task force to investigate the causes of and solutions to market short-termism.

R&D Tax Incentives to Stimulate Competitiveness, Jobs and Growth

October 2, 2013
| Presentations

Ezell will moderate a discussion on the use of tax reforms to spur innovation. It will include an analysis of recent laws passed by the government of Belgium to create a tax code that provides stronger support for innovation, R&D and entrepreneurship.

Confronting Global Anti-Competitive Market Distortions

September 26, 2013

Recent years have seen a significant increase in the extent of anti-competitive market distortions (ACMDs), particularly in emerging economies such as Brazil, China, and India. These practices, such as forced technology transfer or local production as a condition of market access, IP theft, compulsory licensing of IP, restrictions on cross-border data flows, and standards manipulation, all distort trade and investment and damage the global economy. Read more »

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More Evidence that Immigration is Good for Innovation

September 26, 2013
| Blogs & Op-eds

Economic research has shown that high-skilled immigration is important for competitiveness: immigrants make up a significant portion of our STEM workforce and also start a large portion of new businesses.

What Really Is Competitiveness?

September 23, 2013
| Blogs & Op-eds

Competitiveness is an important concept for measuring economic health but many get the meaning wrong. The true definition of competitiveness is the ability of a region to export more in value added terms than it imports when including for “terms of trade” to reflect all government “discounts” and import barriers. 

Managing the Helium Reserve: Auctions are the Best Way to Allocate Scarce Resources

September 22, 2013
| Reports

Unless Congress acts soon, the Federal Helium Program will begin shutting down on October 1. If this happens a valuable federal resource will lie unutilized and 42 percent of current domestic supply will disappear at a time when the helium market is already experiencing shortages. Congress should reauthorize the program with two changes. First, the government should increasingly use auctions to maximize its revenue. Second, since the Reserve will soon be depleted, annual sales should decline gradually, giving the markets time to adjust.