Trelysa Long

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.

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.

U.S. export controls on semiconductor sales to China reduce U.S. chipmakers’ revenues, lower their R&D investment capabilities, and reduce industry employment. As such, U.S. policymakers should keep semiconductor export controls to a minimum.

Asians earn bachelor’s degrees in STEM fields at much higher rates than other racial and ethnic groups, strengthening the United States’ innovation capacity, industrial base, and global competitiveness. Their academic success is an asset that should be rewarded, not penalized.

U.S. labor productivity growth has stagnated in recent years, while China’s labor productivity has steadily grown, regularly outpacing that of the United States. U.S. policymakers should develop a national productivity strategy based on sector-specific analyses to reverse this trajectory.

If the United States fails to keep pace with China in cultivating the next generation of researchers, it risks ceding ground in the very sectors that will define economic and geopolitical leadership in the 21st century.

Digital services are the key to unlocking growth for small- and medium-sized enterprises in today’s economy. They help firms overcome financial constraints, close skills gaps, and boost productivity. Policymakers should incentivize SMEs to capitalize on those opportunities.

Robots are the future. It is time for Congress and the administration to take a number of straightforward and affordable steps to boost U.S. robotics innovation and adoption.

When local data storage regulations are open or with pre-authorized safeguards, global exports are expected to rise by 3.6 percent and global gross domestic product (GDP) is expected to increase by 1.77 percent. When regulations are more stringent against different geopolitical blocs, global exports are expected to decline by 1.76 percent while GDP is expected to fall by 0.94 percent. Regulations that prohibit the flow of data also have a sizable impact with exports declining by 8.45 percent and GDP declining by 4.53 percent.

The manufacturing industry is vital to the United States' long-term growth and competitiveness against China. However, the U.S. manufacturing sector is shrinking as a share of the national economy.

The tax provision allowing firms to fully expense their R&D costs in the year of investment expired, decreasing the incentive to invest in this key driver of economic growth and competitiveness. Congress should pass the American Innovation and R&D Competitiveness Act of 2025 to restore the immediate deductibility of R&D expenses.

A recent working paper finds that management quality plays a pivotal role in determining whether firms expand, contract, acquire, or shut down.