The United States has one of the highest effective corporate tax rates in the world, especially for manufacturers. If we want to improve competitiveness and job growth this has to change.
Countries Policies to Support Advanced Manufacturing
Stephen Ezell reviewed countries developing new industrial polices that target leadership in advanced manufacturing, investments in R&D, tech commercialization and advanced manufacturing capacity of SMEs to the National Institute of Standards and Technology's Visiting Committee on Advanced Technology.
Manufacturing Institutes: A Key to Revitalizing U.S. Manufacturing
The U.S. has developed a number of innovative technologies, from LED displays to solar cells, and then seen the large scale manufacturing of these products move overseas. The National Network for Manufacturing Innovation (NNMI) is a unique, government-university-industry partnership designed to address this issue by creating a conduit for innovative R&D to be transitioned to design and manufacture he in the United States, promoting competitiveness and job growth.
Industry Policy Should Not be Black and White
For the US to develop an effective national manufacturing strategy, manufacturers will have to move beyond their often knee jerk opposition to government and recognize the ways governments at all levels can promote business development and growth. Absent this maturation, we can only expect more of the same: each side talking past each other, building up resentments, and getting nowhere as our competitors are laughing all the way to the bank.
The Dangerous Decline in Investment in Equipment and Software
One of the most important, if little publicized, intermediate economic indicators is business investment in new equipment and software. This type of investment drives productivity and competitiveness, not just in manufacturing firms, but in the economy as a whole. It is therefore troubling, to say the least, that the trends in U.S. investment in capital equipment are down, not up.
An Alternative to Mercantilism: Manufacturing Extension Services in Latin American and Caribbean Countries
A growing number of Latin American nations are turning to "innovation mercantilist" practices to grow their economic sectors, including manufacturing. Yet, an alternative approach, enhancing innovation among manufacturers, particularly small and medium sized enterprises (SMEs), is actually much more effective in spurring sustainable growth. This report benchmarks SME manufacturing extension services in eight Latin American and Caribbean countries and highlights best practices in bolstering manufacturing productivity, innovation, and export potential. The report also provides a comprehensive impact analysis of manufacturing extension services in both developed and developing countries, finding that such programs have achieved significant impacts in bolstering competitiveness.