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Divyansh Kaushik, Senior Fellow | https://fas.org/expert/divyansh-kaushik/

OPINION: Strategic Innovation—America's Path to Winning the Tech Competition with China

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In an era where technological prowess dictates global leadership, the United States confronts a pivotal challenge: maintaining dominance in critical technologies such as artificial intelligence (AI) and biotechnology. These fields are more than showcases of national ingenuity; they are the backbone of our future economic and military superiority, and the key to scientific innovation. To preserve our competitive edge, America must implement a comprehensive strategy that encompasses bolstering R&D investment, modernizing pivotal legislation, and cultivating a dynamic talent pipeline.

Investment in research and development is the cornerstone of innovation. The Department of Energy’s 17 national laboratories have long been at the forefront of technological advancements—from nuclear security to renewable energy. Yet, against the backdrop of China’s escalating tech ambitions, characterized by an annual R&D expenditure surge to approximately $378 billion, the U.S. must not only sustain but also significantly increase funding for these labs. Their work in areas such as quantum computing and AI is critical to pushing the boundaries of current capabilities and exploring new technological frontiers. Achieving their full potential, however, requires consistent and strategic financial support.

We must also reconsider how we scale up emerging technology industries in critical times. The Defense Production Act, central to America’s industrial strategy since the 1950s, needs an urgent update to meet the demands of contemporary tech-driven conflicts. Recently, substantial budget cuts have jeopardized the Department of Defense’s bio-manufacturing initiatives—a sector where the U.S. cannot afford to fall behind. A modernized and well-funded DPA could expedite the scaling of biotech manufacturing, integrate advanced AI technologies into defense logistics, and streamline processes that currently slow our response to national emergencies. 

Proposed reforms should include streamlined processes for the rapid construction and scaling of production facilities, targeted financial incentives for sectors vital to national security, and the establishment of protocols that facilitate quicker governmental responses during crises. Additionally, adopting a more flexible approach to funding and contracting can hasten the development and deployment of innovative technologies, ensuring that the U.S. remains at the technological vanguard.

Moreover, the battle for global tech supremacy isn't solely about ideas and infrastructure—it's profoundly about people. The historical influx of global talent has significantly bolstered America's scientific leadership. As we strive to fortify our position globally, it is crucial that policymakers enhance support for immigrant scientists who have contributed to our technological dominance, and those who will in the future. Grudgingly accepting the world’s best and brightest is insufficient; the United States must actively recruit them and provide clear, legal pathways for their integration into our workforce.

Currently, the U.S. is a beacon for the world's top thinkers, attracted by leading educational institutions and a dynamic tech sector. Notably, international students account for about 40% of STEM PhDs and over 60% of Computer Science PhDs in the U.S., playing crucial roles in advancing our national tech agenda. However, our outdated immigration system, characterized by a lengthy and cumbersome green card process that hasn’t been updated since before the internet was invented, increasingly pushes these talented individuals to more welcoming countries. Streamlining visa processes and reforming green card protocols are vital measures to keep the U.S. competitive on the global stage.

Simultaneously, nurturing domestic talent is imperative. With the number of China’s STEM graduates vastly exceeding those in America, the U.S. must improve its educational systems to develop homegrown talent equipped to drive future innovations. This requires not only revising educational curricula but also expanding access to technology education across all American communities, thus closing the existing talent gap.

This integrated approach is not merely about maintaining a competitive edge—it is a crucial element of our national security strategy for the 21st century. The stakes are high, and the time for decisive action is now.

Divyansh Kaushik is a Senior Fellow at American Policy Ventures and an expert in artificial intelligence and national security.

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