Publications: Trelysa Long

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.

Labor unions have claimed that General Motors laid off more than 1,000 workers at its Factory Zero EV facility because it installed 50 AI-integrated manufacturing robots, but the layoffs were far more likely driven by weaker-than-expected EV demand and shifting production priorities. Policymakers should focus on helping workers adapt to automation through retraining rather than resisting productivity-enhancing technologies.

U.S. visa policies are limiting the flow of foreign expertise that is critical to strengthening American manufacturing, innovation, and scientific leadership. Congress should create a dedicated visa category with expedited processing for technical experts and researchers who advance U.S. industrial competitiveness.

Fears that AI will trigger widespread job losses are increasingly contradicted by new evidence showing that firms adopting AI intensively hire more workers—including entry-level employees—and expand employment across a wide range of occupations. Rather than slowing AI adoption, policymakers should accelerate it through a national AI strategy while pushing back against misleading narratives that undermine productivity, competitiveness, and economic growth.

The Trump administration has imposed tariffs on semiconductor imports on national security grounds under Section 232 of the Trade Expansion Act. These tariffs would raise ICT prices and thereby lower ICT consumption and capital stocks, which would reduce economic growth and lower Americans’ living standards.

Manufacturing start-ups, particularly in critical national economic power industries, are essential to the nation’s economic and security strength. Yet, U.S. manufacturing start-ups have declined over the last three decades.

Broad semiconductor tariffs may aim to strengthen U.S. national security, but could ultimately weaken U.S. technological leadership. Higher chip costs could raise consumer prices while slowing investment in the AI infrastructure that drives future growth.

Chinese industrial policy is reshaping global manufacturing and impacting every U.S. state. The result is growing risk to American industry, jobs, and national security.