Both small and large firms are essential to America’s innovation system because they specialize in different forms of innovation. Congress should double the regular R&D tax credit to 40 percent and reduce the red tape associated with claiming it.

Manufacturing labor productivity growth is a key driver of the United States’ long-term economic performance and global competitiveness, but it has slowed sharply since 2005. Congress should provide a 25 percent tax credit to firms adopting productivity-enhancing technologies to help reverse this slowdown.

German exports to China as a share of GDP have declined by more than 40 percent since 2021, while the German labor force has seen a decline of more than 400,000 jobs linked to exports to China.

The United States is the global power in space, but insufficient spaceport infrastructure threatens the growth of the American space industry. Congress, NASA, and Space Force must address the problem before it undermines U.S. leadership.

South Korea's discriminatory treatment of American tech firms exposes a critical gap in the U.S.-Korea relationship. The two countries should negotiate a dedicated mechanism for resolving bilateral digital trade disputes.

The United States risks falling further behind China in humanoid robotics unless policymakers adopt a national strategy to strengthen domestic production, accelerate adoption, and scale the industry.

The digital economy includes firms and individuals that sell digital services or products, operate physical infrastructure foundational to the digital economy, or manufacture hardware or software that supports digital infrastructure. It was valued at $4.9 trillion in 2024, and it supported 28.4 million jobs.

New U.S. foreign direct investment rose nearly 50 percent in 2025 after three years of decline. Policymakers should build on this momentum by prioritizing policies that attract more greenfield investment and strengthen American competitiveness.

As employers increasingly seek workers who can apply AI alongside domain expertise, universities should integrate AI across disciplines—not just standalone AI or computer science programs—to prepare graduates for the modern workforce.

Labor unions have claimed that General Motors laid off more than 1,000 workers at its Factory Zero EV facility because it installed 50 AI-integrated manufacturing robots, but the layoffs were far more likely driven by weaker-than-expected EV demand and shifting production priorities. Policymakers should focus on helping workers adapt to automation through retraining rather than resisting productivity-enhancing technologies.