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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...

Rather than "crowding out" private investment in medical research, as some skeptics of government support contend, public and private medical research are in fact complementary. Basic, early-stage research expands the science knowledge base, laying the foundation for later-stage research and innovation in the future. This is dynamic nature of innovation. Government's role is especially useful...

The premise that technology is great for productivity but not so great for employment has been debated for years. But a study by Rubin Worldwide found impressive job growth among companies that lead in the adoption of technology. The 300 firms studied from 2006-2011 (discussed in a recent IPB post by Howard...

Last week, the U.S. International Trade Commission released a report that once again confirmed what most people know - China's mercantilist economic practices continue to inflict significant damage on the U.S. economy. The report quantifies the substantially deleterious effects of Chinese IPR infringement and indigenous innovation policies that largely block U.S. firms from China's enormous...

The controversial idea that the Internet, while important, has not fundamentally altered the global economy or produced very much economic growth has generated a lot of debate this year. The McKinsey Global Institute provides additional evidence to counter this idea. In addition to the GDP and job growth, the report also finds that the Internet is associated with a 10 percent increase in...

Financing is a key element in global trade competition, but global competition in export credit financing has become increasingly formidable with foreign competitors enjoying substantial and aggressive support from their countries' export credit agencies. In 2008, China, India, Brazil, Italy, France, Canada, and Germany all extended greater new medium- and long-term export credit assistance,...

Scientists and researchers have been key drivers of innovation over the last decade. However, many nations have invested more heavily in high-skilled researchers than the United States. Indeed, while there are now 30 percent more researchers globally than in 1999, most of these additional scientists and researchers have not come from the United States. In a study of 44 developing and...

This only continues the disturbing trend of federal under-investment in R&D. From 1987 to 2008, federal R&D investment grew at just 0.3 percent per year in constant dollars, much lower than its average annual growth of 4.9 percent from 1953 to 1987, and ten times lower than the rate of GDP growth over that period. In fact, to restore federal support for research as a share of GDP to...