The Information Technology and Innovation Foundation (ITIF) has released a report urging the next U.S. administration to adopt a comprehensive techno-economic policy agenda aimed at restoring the nation's global leadership in advanced industries, amid growing competition from China.
The report outlines 82 actionable recommendations across various domains including budget and tax policy, foreign policy, trade expansion, regulatory and antitrust policy, digital policy, R&D, technology and manufacturing policy, clean energy innovation, and government organization.
"America is at a critical juncture. We’re in a techno-economic power struggle with China, and we’re facing significant challenges in productivity growth, advanced technology manufacturing, and innovation across all economic sectors," said ITIF President Robert D. Atkinson. "While both major party candidates express a desire to strengthen America’s economy, the reality is that neither ‘middle-out’ ‘Bidenomics’ nor inward-facing ‘America First’ economics will be sufficient. To surpass China’s continued development in advanced industries and reassert global leadership, it is imperative that the next administration prioritize innovation, productivity, and competitiveness as core elements of U.S. economic policy."
As an initial step towards this agenda, ITIF recommends the creation of a National Competitiveness Council (NCC) within the White House. This council would function similarly to the National Security Council and National Economic Council.
"Creating a National Competitiveness Council is a pivotal first step," said Atkinson. "Without it, there is no nerve center for this agenda. The new NCC would be responsible for formulating and coordinating advanced-industry competitiveness policy across the federal enterprise. The NCC should be staffed not by economists but rather by ‘productionists’—analysts who have a deep understanding of firm, industry, and technology dynamics."
The report emphasizes that the NCC should oversee an analysis of U.S. advanced-industry capabilities relative to China. It would assess Chinese policies designed to erode U.S. leadership in these sectors and identify key areas necessary for maintaining U.S. dominance in fields such as semiconductors, biopharmaceuticals, aerospace, autonomous systems, and artificial intelligence.
"Recent policy initiatives that the administration and Congress have taken, such as the CHIPS and Science Act are steps in the right direction but they are not enough to meet the urgency of the challenges America faces today," added Atkinson. "America is running out of time. Once lost, a firm’s—or a nation’s—technology advantage is almost impossible to regain unless it is willing to spend enormous sums of money as China is doing. If the federal government does not act boldly within the next few years it may permanently lose the ability to effectively compete in a range of critically important advanced industries."
Contact: Sydney Mack at [email protected]
