Compared to China, U.S. investment is vastly inadequate. The U.S. put in place a network of manufacturing research institutes (e.g., Manufacturing USA). But the Chinese copied this model but funded it at an order of magnitude more. China's R&D tax credit is 2.7 times more generous than the U.S. credit. U.S. federal funding on R&D as a share of GDP is today lower than prior to Sputnik.
