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As trade deficits have exploded and millions of manufacturing jobs moved overseas and were replaced by often lower-paying service jobs, Americans have taken solace in the idea that we were simply moving up the value chain and making more sophisticated products. Making these products required more advanced skill and these jobs paid well. The deficit in advanced technology products, however,...

Eight countries have adopted patent boxes in recent years. The UK is slated to implement its own patent box next year. Under a patent box, corporate income attributable to patented products gets taxed a lower rate, sometimes a significantly lower rate. This policy goes beyond providing incentives for R&D and encourages commercialization of new products. It is among the tools more and more...

The National Defense Education Act, created in 1958 in direct response to the Soviet Union's launch of Sputnik, established graduate fellowships for students on the doctoral track in the sciences. While the particular program is no longer in effect, it and similar programs are widely credited with putting more talent in the pipeline and augmenting U.S. science policy. Today, we are...

With identity theft costing Americans billions of dollars per year in losses, more should be done to protect identity online. One important step towards this goal is for the United States to establish a national electronic identification (e-ID) system. An e-ID system would allow consumers to replace their current set of usernames and passwords with a more secure credential that provides multi-...

Online advertising is the foundation of the Internet economy, itself a vital component of the global economy. Advertising is responsible for the wealth of free and low-cost content and services available to consumers online including e-mail, news, television, movies, music and games. Policymakers should be cautious of imposing regulations that impact the principal funding mechanism of the...

The Hollings Manufacturing Extension Partnership (MEP) is a public-private partnership that assists small and medium sized U.S. manufacturers by placing innovations developed through research at federal laboratories, educational institutions, and corporations directly in the hands of U.S. manufacturers. Not only does MEP facilitate technology transfer to and uptake by SMEs, it helps SMEs learn...

Entrepreneurship is a vital ingredient in economic dynamism. New firms are often first to adopt new business models and innovations in products and services. This, in turn, creates more jobs and economic growth. The United States has long long been an entrepreneurial leader with a talented work force, a high tolerance for risk, access to capital and a relatively low level of regulation. But...

Government funding for research played a key role in the technological breakthroughs that helped U.S. industry become global technology leaders World War II. Indeed, federal support of research grew 4.9% per year in inflation adjusted terms from 1953-1987. But with the decline of the Cold War and efforts at budget austerity, the federal government has abandoned its responsibilities to help...

Some economists argue that the decline in manufacturing is not a big deal because the future of the U.S. economy rests with services. They contend the decline in manufacturing does not constitute a deleterious threat to the U.S. economy. But a competitive manufacturing sector remains essential for U.S. prosperity. A principal reason is that manufacturing accounts for 57 percent of U.S. exports...

For years, political pundits and neo-classical economist have counseled that China's rapid growth as a manufacturer was nothing to be alarmed about. The assumption was that China might make toys and underwear but the U.S. would remain strong on high tech products. Time to revise that assumption! The exact nature of China's growth and what it means for U.S. economic security is the subject of...