As countries increasingly vie to both achieve the highest levels of innovation-based economic growth and attract, grow, and scale innovative enterprises and industries, a growing number have turned to “innovation mercantilist” policies that seek to grow nations’ innovation-based firms and industries through policies such as local production requirements, export subsidies, weak intellectual property (IP) protection, discrimination against foreign firms, economy-specific technical requirements, and data localization requirements.
The United States became the undisputed global leader in innovation following World War II. From transistors to personal computers, from the development of the Internet to the evolution of the smart phone, America was at the frontier of the world’s technological transformation. Multiple factors drove this advancement in the post-war era: consumer demand, Cold War competition, the relentless pursuit of advancement, and strong federal leadership.
Technological change has been reshaping human life and work for centuries. The mechanization that began with the Industrial Revolution enabled dramatic improvements in human health, well-being, and quality of life—not only in the developed countries of the West, but increasingly throughout the world. At the same time, economic and social disruptions often accompanied those changes, with painful and lasting results for workers, their families, and communities. Along the way, valuable skills, industries, and ways of life were lost.
Rapid changes in the nature of work, education, technology, workforce demographics, and international competition have led the National Science Board (NSB, Board) to conclude that our competitiveness, security, and research enterprise require this critical, but often overlooked segment of our STEM-capable workforce. Adding to the near-term urgency, a National Academies of Sciences, Engineering, and Medicine report predicts a shortfall of nearly 3.4 million skilled technical workers by 2022.1
China comes in second, and the European Union lags further behind. This order could change in coming years as China appears to be making more rapid progress than either the United States or the European Union. Nonetheless, when controlling for the size of the labor force in the three regions, the current U.S. lead becomes even larger, while China drops to third place, behind the European Union. This report also offers a range of policy recommendations to help each nation or region improve its AI capabilities.
Between 1940 and 2016, employment in manufacturing shifted across America from the Northeast to the Midwest and the Southeast. The industry lost ground in many places and is now the largest employer in only two states—Indiana and Wisconsin. In 1940, 23% of workers were employed in the manufacturing industry, and they were concentrated in 15 northeastern, mid-Atlantic, and Great Lakes states. As the economy shifted toward services at the beginning of the new millennium, the share of employment in manufacturing declined to less than 15%.
Now in its 12th edition, the GII is a global benchmark that helps policy makers better understand how to stimulate and measure innovative activity, a main driver of economic and social development. The GII 2019 ranks 129 economies based on 80 indicators, from traditional measurements like research and development investments and international patent and trademark applications to newer indicators including mobile-phone app creation and high-tech exports.
We are excited to share our fiscal 2019 annual report. The Economic Growth Institute is expanding its research, company engagement, and education initiatives, which are shared in this year's report. The Institute has provided innovative economic development programming and applied research for over 35 years. - Economic Growth Institute
Careers in engineering encompass a variety of occupations that spur the creation of new ideas, advance technology, and are essential to a globally competitive economy and national defense. Increasing the number of Americans studying and pursuing careers in engineering is essential to the preceding points. Shortages in meeting employment demands exist in the number of U.S.
The U.S. must continue to develop and support an innovation economy that, “collaborates with allies and partners, improves STEM education, draws on an advanced technical workforce, and invests in early-stage research and development,” according to the latest U.S. National Security Strategy (NSS).4 Further, the NSS asserts that the nation must continue to be the destination of choice for the “innovative and the inventive, the brilliant and the bold.”