America's Growing Innovation Gap (2015)

AbstractInnovation is defined as introduction of something new: a new idea, method, or device; it is development of new products, services, or processes. America has always had an economy that is reliant on innovation to allow for prosperity. However, over past few years, innovation in our nation has seemingly been on decline: educational struggles, a lack of technological advancements, and a decline in medical innovation all point to a disturbing trend. It seems that today a television or radio cannot be turned on without some statement being made about America's steady slide away from innovation.A recent study ranked U.S. sixth among top 40 industrialized nations in innovative competitiveness, but 40th out of 40 in the rate of change in innovation capacity over past decade. The ranking, published last year by Information Technology and Innovation Foundation, measured what countries are doing-in higher education, investment in research and development, corporate tax rates and more-to become more innovative in future. The U.S. ranked dead last.24 In past, our country promoted, encouraged and even applauded innovation from everyone. Sadly, in recent years, people of America have begun to remove themselves from idea of innovation as a driving force for growth. But some groups are pushing back and they have big ideas to tackle growing innovation gap.Keywords: Innovation, growth, gap, USA.IntroductionEducation: The Key Innovation Factor: President Obama, in his latest State of Union address, began laying foundation for an in-depth plan to close innovation gap and revive sleeping industries that United States once displayed prominently. In his outline, President highlighted three foundations on which American innovation can be restored: investment in building blocks of American innovation, promotion of competitive markets that spur productive entrepreneurship and catalyzing breakthroughs for national priorities. President Obama once said, Cutting deficit by cutting our investments in innovation and education is like lightening an overloaded airplane by removing its engineThe President may see what people of America do not, that innovation is only way to move forward in today's ever changing society and times. America's economy used to see innovation as a way to progress towards a better future of technology and opportunities for advancement of our nation as a whole. However, despite America's long and enviable track record of successful innovation, there are disturbing indications that we are now starting to lose our edge in this critical area as well-at precisely time innovation has emerged as absolute key to global competitiveness. According to a report issued in July 2011 by Information Technology and Innovation Foundation (ITIF), over past decade United States dropped from first to fourth in innovative competitiveness among world's top industrialized nations. In terms of progress and rate of change, news is significantly worse. Of 44 nations and regions surveyed by ITIF, United States ranks 43rd in terms of progress over last decade, ahead of just one country: Italy.Why, then, in recent years, is gap between Americans and innovation they are producing growing exponentially? Why are other countries like China, Japan and Germany, seemingly pushing past United States of America and making innovation gap seem even larger? China and India, two nations which have always been in shadow of United States, have now begun to become shadow that is covering America's innovation. According to Bloomberg Business Week, Shanghai, China has become a leadmg innovative city in form of industrial parks, subways, housing, airports and riverfront development because of these advancements, China has managed to triple per capita income in a smgle generation and slowly ease three-hundred million individuals out of poverty'. …