Bill Clinton observed in 1992 that the government is “spending more on the present and the past, and building less for the future.” Unfortunately, over the past two decades the problem has only become worse.
Recently political dysfunction in has led to a media barrage of reports on the fiscal cliff, the debt ceiling, and the sequester. However, these short-term politically centered events distract us from the real challenges.
In order for the US to remain attractive to businesses, the federal government must shift the government’s spending mix more for the future by making targeted investments in physical and informational infrastructure, education and training, and scientific research. Innovation such as new technologies, products, processes, and the industries they create, is and always has been the engine that drives economic growth in the United States.
Other key areas where policy barriers inhibit innovation are:
- Federal research and development. Efforts are not optimized to make the most of basic and applied research happening in universities in communities across the country.
- The U.S. workforce development system. The current system does not adequately connect students and workers to the needs of innovation-intensive industries on the cutting edge of the global economy.
- The U.S. immigration system. Immigration reform could help ensure that talented foreign-born workers with bright ideas can start business and help contribute to innovation and job creation here.
- The current tax policy. Comprehensive tax reform is critical to unlocking the capital markets and unleashing private investment in our small- and medium-sized companies.
Across the spectrum —from education and workforce readiness, to research and development, to manufacturing, to infrastructure—we need to shore up our nation’s competitive position. We cannot be complacent, as other countries are investing heavily in these drivers of economic growth and prosperity. Federal policies and investments must be forward looking in order to keep our economy growing and thriving.
Looking forward to lively discussions on these subjects at three upcoming events:
- SELECTUSA 2013 Investment Summit: Why Select the USA: Perspectives on Investing and Operating in the United States
- The Academy of Science Advanced Manufacturing workshop
- The Council on Competitiveness annual forum and dinner
–Katherine