Trelysa Long

The higher education sector remains the leader in R&D investments for basic research. If the U.S. wants to stay ahead of China, it must invest more, not less, in basic and applied research to build the foundational knowledge needed for innovation.

China is rapidly overtaking the U.S. in production across many advanced industries. If the United States wants to remain competitive and keep its market share in these industries, it must act now to incentivize R&D investment.

Policymakers should make it easier for foreign AI researchers with master’s degrees and beyond to work in the United States.

Policymakers should not attempt to reallocate innovative resources from large to small firms. Instead, Congress should pass the Tax Relief for American Families and Workers Act of 2024 and expand the R&D tax credit. These measures will incentivize firms of all sizes to continue investing in productivity-enhancing and socially valuable R&D.

As the Trump administration seeks to rebalance America’s trade relationships, it should focus the most attention on countries where U.S. industries face the worst trade distortions and imbalances, and where the greatest gains can be achieved for the U.S. economy. China, India, and the European Union top that list.

The new administration and policymakers should target the U.S.-China trade deficit by increasing exports of advanced industry products and reducing imports of these products from Chinese firms.

Pakistan's frequent Internet shutdowns, justified by the government as measures to address political unrest, have significantly harmed the nation's economy, with estimated losses ranging from $892 million to $1.6 billion in 2024. To preserve economic activity and social value, policymakers should explore alternative approaches to addressing security concerns without restricting Internet access.

The growth of business R&D spending from 2018 to 2022 was quite uneven, with nonmanufacturing industries’ growth rate far exceeding that of manufacturing industries. For the United States to successfully compete with China, most industries need to be strong in innovation, which requires robust R&D increases. Congress must pass pro-innovation tax reforms.

A recent study found that the number of H-1B visa holders is highly correlated with the number of issued patents in a state.

With the CHIPS and Science Act, Congress intended to concentrate resources in a select few places to help them become self-sustaining, globally competitive advanced-technology regions. Unfortunately, four separate agencies established regional tech hub programs, disbursing awards across 48 states. Going forward, Congress needs to decide on one approach or the other.

It is time for Congress to restore the immediate expensing of R&D expenditures by passing the Tax Relief for American Families and Workers Act of 2024.

President-elect Trump believes the era of U.S.-led globalization has been harmful to America. One way he intends to change course is by imposing tariffs on nations that take advantage of U.S. goodwill and leadership. At greatest risk will be nations with low military budgets, high trade balances, policy barriers to reciprocal trade, and soft positions on China.