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Manufacturing lost jobs because manufacturing lost output, and it lost output because its ability to compete in global markets-some manipulated by egregious foreign mercantilist policies, others supported by better national competitiveness policies, like lower corporate tax rates-declined significantly. In 2010, 13 of the 19 U.S. manufacturing sectors (employing 55 percent of manufacturing...

Historically, the job growth that came from the explosion of capital formation for small companies used to be a source of strength for the U.S. economy. However, that is no longer the case. Since the recession, there has been a dramatic decline in our country's IPO activity. The decline in IPO activity can be linked to the sluggish job creation, making it important that we get the IPO market...

Workers switch jobs more frequently today and U.S. companies tend to invest for the short term. These factors help account for why U.S. companies invest about half what they used to for training today as a share of GDP compared to a decade ago. It is important for the United States to adjust training incentives to the realities of today's labor mobility. One idea would be to expand the R&D...

For the United States to match China's commitment to its strategic economic industries on a per-GDP basis, it would have to pass an American Recovery and Reinvestment Act ($787 billion) every year for the next five years and dedicate close to 100 percent of the funds to industry. Even if the U.S. could do such an investment, a top-down management of the economy is not the kind of model...

U.S. R&D expenditures account for about 31% of the worldwide total, down from 38% a decade earlier. The combined R&D expenditures of 10 Asian economies rose steadily to reach U.S. levels in 2009, driven mostly by China, now the second largest R&D performing nation.

This statistic reminds us that China and other countries are not merely the world's factories, churning out a...

Information and communications technology (ICT) constitutes one of the global economy's most important industries. In fact, global value-added by ICT industries more than doubled from $1.2 trillion in 1995 to $2.8 trillion in 2010, and today the ICT industry accounts for 6 percent of global GDP. ICT industries also account for a similar share of employment; for example, in 2010, ICT industries...

The understanding that the most important goal in economic development is attracting out-of-state business establishments is flawed. As such, less attention is given to helping existing firms grow and helping new firms start up. In the New Economy, entrepreneurship is much more important than firm attraction is to economic success. Consider the fact that the number of industrial manufacturing...

If we want to emerge more vigorously from the recent recession and loosing the race for global innovation and competitiveness, we need to commit to investing in the "four Ts" of innovation: trade, taxes, technology and talent. Investing in talent means more than simply spending more money. It requires rethinking how students learn and how to best nurture their talents and interests. As...

The general perception of the construction industry productivity is declining -0.6 % per year (+1.8% per year non-farm productivity increase; significant improvement in some work processes). There has been much debate over the root cause of this decline. It can almost certainly be attributed to underinvestment in construction R&D, a shift in output mix, and slow growth in capital/worker...

The implications of this fact are that high-growth firms, often found in high-tech industries such as advanced manufacturing, are critical job creators and core drivers of economic growth. Mom-and-pop businesses can flourish only when these high-growth firms flourish. The challenge for state and federal policymakers is to nurture the development of these cutting-edge firms, including by...