Publications: Trelysa Long

A 1 percentage point increase in an industry’s exposure to H-1B workers raises the long-run income of college-educated native workers in non-STEM occupations by about a 1.21 percent increase. In Computer Systems Design, the industry most exposed to H-1B immigration, this translates into an approximately 15 percent increase in long-run income for native non-STEM workers.

Firms that increased their investment in artificial intelligence experienced significantly faster productivity growth from 2018 to 2024, roughly one additional percentage point of productivity growth per year.

Misleading interpretations of federal data have fueled claims that economic gains are increasingly flowing to shareholders. But when evaluating who benefits from economic growth, wages and salaries are only one component of national income.

Recent changes to science and immigration policy are making scientists reconsider building their careers in the United States. To preserve America’s competitive advantage, policymakers should ensure stable federal research funding, protect merit-based peer review, and modernize high-skill immigration policy.

The United States is becoming less productive in manufacturing, even as productivity rises across nontraded sectors. To maintain U.S. industrial leadership, policymakers should incentivize manufacturers to adopt productivity-enhancing technologies.

China is not only investing more in innovation but also becoming better at turning those investments into technologies with commercial potential. To maintain its technological leadership, the United States should strengthen its entire innovation pipeline, from research to commercialization.

Arbitrary funding cuts and increased political involvement in grantmaking will further weaken an already less productive U.S. science system. Policymakers should pursue reforms that enable researchers to generate more breakthroughs and strengthen U.S. competitiveness.

Both small and large firms are essential to America’s innovation system because they specialize in different forms of innovation. Congress should double the regular R&D tax credit to 40 percent and reduce the red tape associated with claiming it.

Manufacturing labor productivity growth is a key driver of the United States’ long-term economic performance and global competitiveness, but it has slowed sharply since 2005. Congress should provide a 25 percent tax credit to firms adopting productivity-enhancing technologies to help reverse this slowdown.

The United States risks falling further behind China in humanoid robotics unless policymakers adopt a national strategy to strengthen domestic production, accelerate adoption, and scale the industry.