This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
The Global Innovation Imperative The Challenge of Sustaining U.S. Leadership
Aerospace States Association Fall General Meeting Fort Worth, Texas October 9, 2012
Charles W. Wessner, Ph.D. Director, Technology, Innovation, and Entrepreneurship
Current Global Mega-Challenges • Fostering Economic Growth through Innovation
– Driving domestic Growth and Employment
• Developing New Sources of Energy – Commercializing renewable alternatives to oil – Increasing the capacity to fuel growing global demand for
electricity
• Addressing Climate Change – Growing a Green Economy; A major Growth opportunity
• Delivering Global Health – Transforming large investments in research to affordable
and personalized treatment and care
• Improving Security – Through all of the above
• Addressing these Global Challenges requires Innovation
The Global Innovation Imperative
• The capacity to innovate and capture the benefits of innovation is fast becoming the most important determinant of a nation’s ability to compete globally—
• A nation’s innovative capacity is tightly linked with its potential for economic growth, high-value job creation, and national security.
• Because governments around the world recognize this, they are providing significant support in five key areas…
• Singapore (population: 4.5 million) goal is to be Asia's preeminent financial and high-tech hub. – Positioning itself as the key to Asia’s markets, talent, and
intellectual properties – Seeking to be a ‘plug-and-play’ platform for research
companies for global and domestic R&D activities.
• Government investing $12.8 billion under the Research, Innovation and Enterprise 2015 plan
• A*STAR is Singapore’s lead innovation agency – Over $5 Billion in funding to develop human capital, R&D,
and innovation. – Oversees 14 biomedical sciences and physical sciences
and engineering research and commercialization institutes – Fostering clusters with Biopolis and Fusionopolis labs
• Given the particular importance of federal R&D expenditures for basic research, the long-run implication of declining federal investment as a share of total R&D is slower technological progress and potentially slower growth.
The Major Risks to the U.S.
• Complacency about our competitive position
• Focus on current consumption rather than investment for the future
– A lack of investment in R&D on the scale of our fathers and our competitors
• Limited attention to the composition of the economy, including trade and investment policy
• Failure to focus on the commercialization of research and on manufacturing
– But what, apart from the roads, the sewers, the medicine, the Forum, the theater, education, public order, irrigation, the fresh-water system and public baths... what have the Romans ever done for us?
(and the wine, don’t forget the wine…)
• Listening to some Americans critical of the government’s role brings to mind the Jewish patriot criticism of the Romans in the Monty Python film “Life of Brian”. “
• Small Companies are Key Players in Bringing New Technologies to Market
– Audretsch & Acs
• Innovative American Small Businesses – Increase Market Competition – Generate Taxable Wealth – Create Welfare-Enhancing Technologies – Over time, innovative small businesses (like
Microsoft, Intel and Google) transform the composition of the economy
Key Role of Immigrant Entrepreneurs
• Immigrants have played a key role in starting new high technology businesses in the U.S.
– Many market transforming companies have been founded by immigrants.
• But there is new evidence of a “historically unprecedented halt in high-growth, immigrant-founded start-ups.”
– Vivek Wadhwa, “The Immigrant Exodus” (October, 2012)
• Current immigration rules mean that some of the most educated and talented entrepreneurial immigrants see no choice but to take their innovative ideas elsewhere.
• Manufacturing job loss reflects actual output decline, not just productivity increases.
• Output productivity growth in U.S. manufacturing sectors may well be overstated – Off-shoring can lead to overstated measures of output and
productivity growth for the U.S. manufacturing sector
– Productivity measures reflect the gains in efficiency associated with lower-cost imported inputs (Source BEA, 2012)
• U.S. manufacturing decline is neither “inevitable” nor “normal,” demonstrated by the fact that manufacturing is growing in many nations, including advanced nations with high costs, high taxes & high regulations.(ITIF, 2012)
• A New Global Economy: The rapid transformation of the global innovation landscape presents opportunities and tremendous challenges for the United States.
• Others are working harder, making investments, staying focused, and using the global trading system to their advantage
• Current U.S. efforts are insufficient to grow & sustain globally competitive U.S. industries & a prosperous and secure future.
New National Academies Report
• Rising to the Challenge: U.S. Innovation Policy for the Global Economy – Documents the rapid transformation of the global
innovation landscape
– Identifies major challenges as well as important opportunities for the United States in this new world
– Sets out what the U.S. must do to retain its leadership in science and technology
What we need to do is to work out a deal to make needed spending cuts and generate new revenue to put government back to work for us
60
Recognize the Challenge of Global
Competition for our Security, our Standard
of Living, and our Children’s Future
• Governments around the world are assertively implementing policies and programs to win the global competition for new (and old) industries and the jobs and growth they bring.
• There is a growing convergence of capabilities across the globe to connect research to industries.