National Competitiveness

Please join ITIF for an expert panel discussion on an important new report that outlines China’s goals and strategy, explains why this moment marks a historical turning point, and defines the nature and importance of national power industries. Panelists will discuss flaws in prevailing China policy frameworks and explore why the field of corporate strategy should guide the creation of a coherent National Power Industry Strategy.

Please join ITIF’s Aegis Project for a for an expert panel discussion as we discuss a new ITIF report on policy solutions to non-tariff attacks (NTAs), and explore the stakes for U.S. innovation, technology leadership, and global competitiveness.

In terms of purchasing power parity, U.S. per capita GDP has grown from 31 percent above the EU to 34 percent above it. About 72 percent of this gap can be attributed to differences in productivity, while just 28 percent is due to the difference in hours worked by Americans and Europeans.

A pro-worker agenda isn’t the same as a “national greatness” agenda. Workers are an interest group like any other: sometimes aligned with what’s best for the American Republic, and sometimes not.

Instead of treating manufacturing as a monolith to be revived, policymakers must focus on national power industries. These industries protect U.S. national defense and economic security, and are eroding at an alarming rate.

U.S. R&D is becoming increasingly concentrated in a handful of states just as China accelerates its lead in advanced industries. Federal and state policymakers must expand R&D tax incentives and targeted academic research funding to reverse this trend, spur nationwide innovation, and bolster U.S. competitiveness.

Unions are interest groups, and America’s challenges require every group to put the national interest ahead of narrow self-interest. Yes, including blue-collar workers.

The United States is investing less in R&D for industrial production than its OECD peers. Congress should increase investment in this area to better compete with China.

The federal government has imposed a $100,000 fee on companies seeking to sponsor H-1B visas for foreign workers in specialty occupations, which could undermine U.S. efforts to attract top STEM talent. Policymakers should establish a program that grants green cards to temporary visa holders with non-social science STEM degrees.

New OECD data show that foreign direct investment (FDI) continues to decline in advanced economies while rising in several major emerging markets, underscoring shifting global investment patterns over the past decade.