India simply cannot usher in a new, innovative economy that will expand and sustain itself for years to come if it continues to revert back to these same tried-and-failed mercantilist practices.
ICT Innovation Policy in China: A Review
China is not only a producer of manufactured goods, but it is increasingly a nexus for technological innovation as a growing share of home grown, high-tech companies compete in the global marketplace. The Chinese government sees information and communications technology (ICT) both as a key catalyst for China’s transition from a manufacturing to a knowledge-based economy and as a positive influence in boosting across the board productivity and overall quality of life in China. That is why a decade ago China designated “informatization,” the adoption and enhancement of ICT in every aspect of the economy and society, as a central facet of the nation’s economic modernization strategy.
This report reviews the long-term, mid-term and industry-specific ICT policies China is utilizing to implement informatization and improve its overall international economic competitiveness. This includes the frameworks to enhance innovation and development in the “Internet of Things,” cloud computing and data innovation.
The report concludes by noting that while Chinese policy is moving in the right direction, the nation still has a long way to go to match the ICT policy framework of the United States or Europe. This would include creating policies to attract, rather than compel, ICT foreign direct investment, while reforming existing regulations and requirements to ensure domestic and foreign firms are operating on a level playing field.
A Vote Against the Ex-Im Bank is a Vote Against U.S. Manufacturers
Congress is set to vote on reauthorization of the Export-Import bank this year, its current authorization expires on September 30. Unfortunately, the agency, which provides financing and insurance for foreign purchasers of U.S. exports, has come under fire from “populists” on the left and right who argue the bank is an example of “crony capitalism.” However, given the positive impact the agency has on American exports and traded sector industries a vote against the bank is a vote against U.S. jobs.
Foreign Export Credit Competition Continues to Intensify as U.S. Competitiveness Wanes
Amidst continuing debate regarding the role of the U.S. Export-Import Bank, the 2014 Report to the U.S. Congress on Export Credit Competition provides fresh evidence that foreign export credit competition continues to intensify even as U.S. competitiveness at providing export credit assistance continues to weaken compared to leading competitor nations. As a share of GDP, competitors such as China and Germany are investing five to seven times more in export credit assistance than the United States, while Korea invests fourteen times more. Meanwhile, over the past six years, China has invested twice as much in export credit as the United States in current dollars, and almost four times as much as a share of GDP. Moreover, the majority of foreign export credit competition is now occurring outside of guidelines promulgated by the Organization for Economic Cooperation and Development (OECD) to regulate fair competition in the use of export credit a mong nations in a way that ensures that global export competition is based on free-market principles and mutually agreed-upon standards. Such data reaffirms the important and much-needed role the U.S. Export-Import Bank plays in providing export credit assistance to help finance the exports of U.S. products and services.
Modi Should Foster Innovation Climate to Transform India
To address India’s stagnant economic growth and promote a globally competitive environment, new Indian Prime Minister Narendra Modi should reject innovation mercantilist policies and focus on an across-the-board productivity growth strategy based on innovation. This includes overhauling the country's IP laws and embracing opportunities to expand free trade.