Acting Deputy Secretary of Commerce Rebecca Blank Remarks at Consumer Electronics Show, Las Vegas, Nevada It's great to see all of you.
I frequently talk with groups about American innovation. And no matter how many Democrats or how many Republicans are in the room, there is common agreement that our ability to innovate as a nation will determine what kind of economy—and even what kind of country—our children and grandchildren will inherit. It will decide whether the United States will offer the same economic opportunities for future generations that it did for our parents and grandparents.
There has been an ongoing and often deeply divisive debate in Washington over how this economic future might develop. On one side, you've got a group for whom federal fiscal austerity is the Rosetta Stone of every tough policy question America faces.
I understand their concerns, and I agree that we need more fiscal discipline in the Federal budget. But any approach where we cut the budget across the board has two big problems.
In the short-run, it could threaten a still-fragile economy that is finally starting to show some real strength—adding 200,000 jobs last month. Over the past year, budget cuts at the state and local level have been dragging down economic growth; sharp near-term declines in federal spending will only exacerbate this problem And in the long-run, across-the-board cuts in federal spending ignore the very strategies that helped make America the pre-eminent economic power of the 20th century. It threatens our ability to invest in key priorities, particularly those things that foster innovation and economic growth.
Instead, we need to be smart about budget cuts. There are some things that the Federal government does that are deeply important to our long-term economic future, and we can't threaten those. I'm going to focus on three of these areas that are crucial to innovation: Investment in basic research; a strong educational system; and a modern infrastructure.
Innovation is crucial to the economy. And while private citizens and private businesses are the primary source of new ideas—from concept to commercialization—the government plays a key role in this effort. The returns in new jobs and new technologies have traditionally far exceeded the money invested on the front end by the federal government Basic research and development activities are under-provided by businesses, and governments around the world recognize the need for public support of this type of work at universities and research institutes.
Historically, so have American policy makers—Republicans and Democrats. The U.S. has a proud tradition of supporting the work of federal and university labs. And this support has helped change our world. For proof, check out some of the technologies on display right here at CES—from flat-panel displays to semiconductors to wireless ultrasound for rural healthcare. They were deeply reliant, at an early stage, on research funded by wisely spent tax dollars.
To further that formula for success, President Obama signed into law last year the America COMPETES Reauthorization Act. This bipartisan bill called on the federal government to invest in our nation's long-term future through science education and through increased funding for basic research and development.
What's more, this administration has focused on a series of initiatives in these areas, including:
Source: U.S. Department of Commerce
