Science and R&D

In an economy powered by innovation and technology, more proactive R&D policies are key to success.

Why Private Companies Won't Make Up for Cuts in Government Science Funding

Bloomberg Businessweek
ITIF calculates that the full weight of the research cuts could reduce U.S. gross domestic product by a minimum of $203 billion from now to 2021 and would result in 200,000 job losses this year alone.

The effect of sequestration on research will cost the U.S. economy's GDP about $200 billion by the year 2021.

Because of the key role federal R&D plays in driving U.S. innovation, productivity, and economic growth; we estimate that the projected decline in R&D will reduce GDP by between $203 billion and $860 billion over the nine year period, depending on the baseline used. At $203 billion, the loss is equivalent to taking away from U.S. consumers all the new motor vehicles purchase over six months, over two years of airline travel, or six years of attendance at professional sporting events.

R&D Faces Its Own Fiscal Cliff

MIT Technology Review
The sequester means across-the-board cuts to federal R&D and, barring a grand budget bargain, anemic research budgets in the years ahead.

'Sequester' Harm to Economy? Maybe for Longer Than You Think

The Christian Science Monitor
ITIF's report doesn't argue that federal deficits should be ignored. The sequester originated in federal law as a blunt tool, to ensure that if politicians couldn't agree on a substantial deficit-reduction plan, some spending cuts would be imposed automatically.

U.S. is Falling Further Behind in Research and Development Funding

February 28, 2013
| Blogs & Op-eds

Robust investment in R&D is critical to ensuring a nation’s leadership in science, technology, and innovation. The United States can no longer take its leadership position in any of these categories for granted. While many in Congress understandably do not want to impoverish the next generation of Americans by saddling them with unsustainable debt loads, if they try to address the debt by slashing productive investments in the future, they will end up impoverishing future generations of Americans just the same (and likely worse so). Therefore, Congress and the Administration should commit to restoring the R&D funds imperiled by the current sequestration and to more broadly maintain stable and robust funding for federal R&D, keeping the United States on a path to consistently meet the stated target of investing 3 percent of U.S. GDP in R&D annually.

The Coming R&D Crash

The Washington Post
ITIF projects that the United States will spend less on all types of R&D as a percentage of its economy in the coming decade than countries like Australia and South Korea.

Sequestration Cuts to R&D Could Reduce U.S. GDP by Over $200 Billion

WASHINGTON (February 26, 2013) - The Sequester, which is scheduled to take effect March 1st, will lead to cuts in defense, education, social services and other areas. However, the most devastating, long-term effects from sequestration will be in innovation, and these could ultimately reduce U.S. GDP by over $200 billion per year.
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