As we approach the 10th anniversary of the global financial crisis, the world economy is showing encouraging signs of recovery, with GDP growth accelerating to 3.5 percent in 2017. Despite this positive development, leaders are facing major predicaments when it comes to economic policy. Uneven distribution of the benefits of economic progress, generational divides, rising income inequality in advanced economies, and increasing environmental degradation have heightened the sense that the economic policies of past years have not served citizens or society well.
The President signed into law the bipartisan American Innovation and Competiveness Act (AICA) (S. 3084). AICA represents a bicameral, bipartisan agreement that includes nine House Science Committee bills that passed the full House over the last two years, including H.R. 1806, the America COMPETES Reauthorization Act of 2015.
Industrial innovation has slowed down in the United States mainly because of imports from China, according to a recent study. The findings of the study support President-elect Donald Trump’s negative stance on free trade and globalization. But can Trump’s tougher trade policies alone help bring innovation back to the United States?
“There’s a home-field advantage,” said Arthur Dong, a professor at Georgetown’s McDonough School of Business. “Whether it’s state function of government policy or a less formal policy, foreign companies are at a great disadvantage.” That’s in line with Beijing’s desire to cultivate so-called national champions, large domestic companies hoped to one day become China’s most recognizable multi-national brands.