Congress should create tax credits for SMEs and original equipment manufacturers (OEMs) to encourage investment in SME and supplier digitalization. 

To Do: Create Tax Credits for SME and Supplier Digitalization

The U.S. Small Business Administration should focus more on manufacturing and other traded-sector firms through its financing programs, including its 7(a) loan-guarantee program.

To Do: Focus SBA Loans on Traded-Sector Manufacturers

Congress should establish an advanced manufacturing scale-up capital program that provides project financing and associated assistance through grants, loans, loan guarantees, and other instruments.

To Do: Establish an Advanced Manufacturing Scale-Up Capital Program

Congress should quadruple the budget for the Energy Department’s Office of Manufacturing and Energy Supply Chains (MESC) to fund SME digital upgrading.

To Do: Quadruple the Budget for the Office of Manufacturing and Energy Supply Chains

Helping SME manufacturers adopt digital technologies will boost productivity, expand output, and allow them to simultaneously raise wages, compete in global markets, and be more flexible in their production processes.

Accelerating Digital Technology Adoption Among U.S. Small and Medium-Sized Manufacturers

The administration should direct the Manufacturing Extension Partnership (MEP) to provide assessment tools to help SME manufacturers identify and close gaps in their digital workflows.

To Do: Provide Assessment Tools to Help SME Manufacturers Digitize

Congress and the administration should align to increase the Manufacturing Extension Partnership’s annual funding to at least $200 million annually.

To Do: Increase Funding for the Manufacturing Extension Partnership

ITIF wrote a letter in support of the Scale-Up Manufacturing Investment Company Act. One of the biggest challenges in the U.S. innovation system is scaling and commercializing innovations, and this bill is a significant step forward in working to address this.

Letter in Support of Scale-Up Manufacturing Investment Company (SUMIC) Act

Congress and the administration should build out the Manufacturing USA network closer to the 45 institutes originally intended.

To Do: Provide Loans to SME Manufacturers to Help Finance Digitalization

Recommendation

Details

Editors’ Recommendations

Policy Recommendations to Stimulate U.S. Manufacturing Innovation

Related

To Do: Create Tax Credits for SME and Supplier Digitalization

To Do: Focus SBA Loans on Traded-Sector Manufacturers

To Do: Establish an Advanced Manufacturing Scale-Up Capital Program