AeA: U.S. still losing competitive advantage
By Suzanne Deffree, News Editor -- EDN, March 28, 2007
The AeA has once again warned that the United States is losing its competitive edge in technology.
The industry group today released its latest report, “We Are Still Losing the Competitive Advantage: Now Is the Time To Act,” a follow up to its 2005 report, “Losing the Competitive Advantage?,” which focused on how the United States is at risk of losing its preeminence in science, technology and innovation as countries across the globe became more competitive and as America neglected the factors that gave it this lead.
"We are releasing this new report today because over the past two years, while awareness of the problem has grown tremendously, action has not followed," said AeA President and CEO William T. Archey in a statement. "Now is the time for that action. In updating the data and analysis from our previous report, all indications are that the competitiveness challenges confronting the United States have only intensified."
While there has been some visible government awareness since AeA’s 2005, including President G.W. Bush’s 2006 State of the Union address where he committed to clean up the immigration policy and increase university R&D funds, the actions that followed have not been enough.
The AeA notes in its report that, among other factors, the U.S. R&D Tax Credit, which has supported so much R&D in the private sector, remains temporary, is subject to periodic expiration, and is ranked only the 17th most competitive credit in the world. AeA also notes that South Korea has passed the U.S. in engineering bachelors degrees awarded and has moved from 11th to 16th internationally in broadband diffusion.
"Two years ago, AeA called the United States the proverbial frog in the pot of water, oblivious to the slowly rising temperature of a world catching up to us. Today, the heat is still rising and we are still in the pot. There is hope that we are finally feeling the heat and are poised to do something about it. Hope, but not certainty," added Archey, calling on Democratic and Republican legislators, as well as the Bush Administration, to act with comprehensive legislation to advance American competitiveness in a global economy.
“This legislation would provide a crucial first step. But make no mistake, dealing with these challenges successfully is a long-term proposition," he said.
Among the AeA’s recommendations are that the U.S. government champion dramatic improvements in the educational system; support and increase R&D; enact high-skilled Visa reform; create a more business friendly environment in the U.S.; proactively engage in the global trade system; and promote broadband diffusion.
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You are suggesting that the US is losing (not "loosing") ground in the technology sector because we don''t use the metric system? Might have more to do with the fact that we continue to raise our minimum unskilled labor rates while highly skilled, well-educated individuals from dirt-poor countries are simply happy that they can afford to feed their family with more than just rice.
Dave - 2007-28-3 13:07:00 PDT -
It looks like the AeA, and much of United States industry, is missing many important factors as to why the United States continues to fall behind.
Just look at the use of the metric system worldwide. Countries that primarily use the metric system account for most of the market share for just about every industry examined. Countries that continue to use older, outdated systems - like the inch-pound system, are loosing market share at a rapid rate.
The United States is one of those few countries still using the old inch-pound system, so it follows that its share of the worldwide market would continue to decline dramatically.
The same thing is true when applied to companies, instead of countries. Companies that use inches and pounds (regardless of where they are located) continue to give up tremendous market share to companies that use metric. This is true even inside the United States.
The failure of the United States to use metric just one of several deficiencies that U.S. companies have chosen to perpetuate. These all point to perhaps the most disturbing deficiency in United States industry: the lack of ingenuity. There is truly a lack of ingenuity that pervades United States business. We would rather say we are the best, than do anything to make it happen. We have forgotten that what made us the best in prior centuries was in fact the ingenuity that we possessed. Those outside the U.S. would look to us as the leaders in technology, discoveries, innovation. That time has past. And we won't experience anything like it again unless we turn things upside down and investing a little time and effort into making ourselves the best again. To do this, we need to put long-term goals ahead of short-term pressures and profitability. And, among many other things, we need to drop this arcane preference for inches and pounds immediately. If we can even do just that, we might as well throw in the towel now.
David Amormino - 2007-28-3 12:26:00 PDT
