June, 2011

Key Elements for a National Manufacturing Strategy

Presentation at NIST VCADr. Robert D. Atkinson, Pr
Today’s Presentation

32

 Why We Need a National Manufacturi

1

 The State of U.S. Manufacturing

 Outlines of a Strategy
U.S. Manufacturing: The Agriculture Sto
U.S. Manufacturing: Or the Rust Belt St
Most Manufacturing Lost Output

15 of 19 

manufacturing 

sectors shrank

Total manufacturing

Food, beverage and tobacco productsElectrical equipment and appliancesChemical productsMachineryPrintingWood productsMotor vehiclesFabricated metal productsPaper ProductsPrimary MetalsNonmetallic mineral productsPlastics and rubber productsApparel and leatherTextilesFurniture

Percentage Change in Real Value Added, 2000-20
Real Manufacturing Value-Added As S
Capital Stock For Many Manufacturing Sec
Falling Behind Growth in Total PrivatAssets
Today’s Presentation

32

 Why We Need a National Manufacturi

1

 The State of U.S. Manufacturing

 Outlines of a Strategy


Why We Need a Manufacturing Strateg1. Other countries have manufacturing st
 Per-GDP, Canada invests almost 10x as much in its 

Assistance Program (IRAP) than the U.S. does thro

 + IRAP received extra $100M in 2009-2010 as part o

 Per-GDP, Finland invests 10 times as much as the U

principal innovation-support programs.

 5.5% of the total Korean federal budget is allocated 

competitiveness of SMEs”* (all sectors)

 Germany’s Fraunhofer Institutes invest €1.66B ($2.4

applied industrial R&D.

 Japan’s Kohetsushi centers invest 30 times more th

GDP basis.

And Are Investing More in Innovation

*Source: Professor Brian H. Lee, Kwangwoon University, Korea
German Fraunhofer Institutes

Undertakes applied research of direct utility to private inClustered approach with pilot production centers to close 

research and products 
Japan’s Kohsetsushi Centers


Why We Need a Manufacturing Strateg2. Systemic market failures affect manufa


What Should Washington Do?
Today’s Presentation

32

 Why We Need a National Manufacturi

1

 The State of U.S. Manufacturing

 Outlines of a Strategy
Getting the 4 T’s Right

Flickr: marzzelo

Flickr: Alan Miles NYC

Tech TaleTrade Tax
Reform U.S. Model for Technology D

Technology and Manufacturing Readi



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Universities, 

Federal Labs



Applied Research & Development Institutes
Reform U.S. Model for Technology D

 Expand Industry-University Partnership proERC and IUCRC. Create a collaborative R&D tax credit for inuniversity and fed lab research



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Universities, 

Federal Labs
Reform U.S. Model for Technology D

 Expand funding for Sector-based Industrial Res

 DARPA’s Focus Center Program NIST’s Advanced Manufacturing Technolog

 Fund state industrial sector R&D and commerci



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Applied Research & Development Institutes
Reform U.S. Model for Technology D

 Expand the R&D Tax Credit

 Increase ASC to 20 percent

 Make clear that process R&D qualifies

 Make permanent first year expensing of equ



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The Logic Chain of Action: From Current Conditions to Government Action
The Logic Chain of Action: From Acceptance of the P

Comprehensive National Innovation and Competitiven
Robert Atkinson

ratkinson@itif.org

Facebook: facebook.com/inBlog: www.innovationpolicyYouTube: www.youtube.comWebsite: www.itif.orgTwitter: @robatkinsonitif

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