Is the US losing its COMPETITIVE EDGE?

GET THE FACTS BEHIND THE NEWS A recent study by the Information Technology and Innovatioon Foundation, a nonpartisan reserch group,showed that the US economy's competitive position has rapidly declined the last 10 years

The report covered 40 countries and used 16 indcators to judge innovation and competitiveness. The report adjusted for the size of the economy and population of coutries The report ranked the US 6th for innovation and competitiveness. The report considered such areas as scientific researchers and spending on research, venture capital investment, and educational achievment. The report placed the American Economy last in advancement for the last 10 years

This report paralles the finding Of Prof. Michael Porter of Harvard a noted expert in competitiveness and very active in the OECD. The OECD, Organization for Economic Cooperation and Development, an international non-gov’t and non-profit group dedicated to furthering growth and competitiveness completed Nov 08, 2009 a study of 144 nations for eleven categories from Institutions to Business Sophistication

Thirdly the National Academies considered the nation's leadiing science advisory group by many has also found that the US lead in science and technology was declining while other nations were advancing. China, Finland, Singapore, and Taiwan have policies that are designed to spur innovation thru an inerdisciplanary approach that includes abroad spectrum of different fields.

President Obama has said that future prosperity will depend on the United States becoming an “innovation economy.” The economic recovery package includes spending for areas favored by innovation policy advocates. Areas such as higher research and development spending. and funds for high-technology fields like electronic health records. However the US does not have a coordinated innovation program.

Many see these studies as a awake up call.

More results, the United States ranked sixth in venture capital investment (Sweden was first); fifth in corporate research and development spending (Japan led); and fourth in science and technology researchers (again, Sweden was first). Singapore ws the most innovative and competitive. Singapore started a national innovation strategy years ago. Singapore investing heavily and recruited leading scientists and technologists from around the world.

The study specifically recommendeds federal incentives for American companies to innovate at home, these range from research tax incentives to work force development tax credits. Public investments and regulatory incentives can accelerate the use of information technology in health care, energy systems, transportation, government and education.