(NewsUSA)
- The U.S. economy remains dynamic and robust, but continued focus on advanced manufacturing is needed to cement U.S. leadership in industries of the future, according to experts at the Special Competitive Studies Project (SCSP), a nonprofit and nonpartisan initiative with a goal of making recommendations to strengthen America's long-term competitiveness in artificial intelligence (AI).
As China seeks to position advanced industries as the main growth engine of its economy, U.S. leadership in AI, and increased investment in cloud infrastructure and enterprise-scale AI could help accelerate innovation in technology, SCSP experts wrote in a recent online article.
Currently, the U.S. is falling behind China in production capacity for advanced industries including semiconductors and clean energy. These areas are crucial to America’s economic competitiveness and national security, and the U.S. production of the world’s high-tech goods has fallen from more than 40% to 18% since 1980.
To maximize U.S. advantages and remain competitive in advanced industries on a global scale, the SCSP experts propose a three-pronged strategy with focus on production, markets, and people.
Begin with production. Invest in manufacturing-innovation programs and promote the adoption of advanced technologies by small and medium-size manufacturers. The U.S. should also create incentives for investment in “smart factories” that capitalize on ways to accelerate innovation with increased flexibility and lower cost.
Secure the markets. Develop a trade policy that secures supply chains for products such as Internet of Things modules, networking components and industrial robots, and reduces reliance on China for production.
Promote and support the workforce. A comprehensive techno-industrial strategy requires investments in human capital. Advanced industries in the U.S. continue to face crippling workforce shortages. Strategies to overcome these shortages include ensuring AI capability in all school classrooms by 2030, lowering immigration barriers for highly-skilled workers, and creating national workforce frameworks for advanced manufacturing.
Although the U.S. economy is on a strong footing, China’s shift toward advanced industries sets the stage for a potential economic and strategy advantage. However, the U.S. can leverage its own existing advantages by proactively driving investments in advanced manufacturing, pursuing a strategic trade policy, and strengthening its workforce, according to SCSP.
Read SCSP's Vision for Competitiveness: Mid-Decade Opportunities for Strategic Victory and visit scsp.ai to learn more.
