High Technology Manufacturing and U.S. Competitiveness by Charles Kelley

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S. Competitiveness – Determine if the overall magnitude of federal R&D funding is at a level appropriate for a nation that desires to remain the most technologically advanced. – Reexamine the allocation of federal R&D funding in terms of both the types of organizations that are performing R&D and the disciplines that are being funded. – Strengthen high school science programs so that more students will become interested in the sciences, and encourage high school students to go into S&E programs at the college level.

1998, p. 12). Of these, arguments favoring preferential targeting of high-tech industries tend to focus on their alleged growth and employment externalities, which are generated through the intentional and unintentional transfer of technology to other industries and activities. As discussed below, such beneficial transfers are often assumed to be a positive function of geographic proximity. In other words, those industries and activities that lie closest to R&D centers are the ones most likely to benefit from any spillovers generated.

Cohen and Zysman (1987, p. 8). The authors also point out that agriculture, and many supposedly low-tech manufacturing industries, rely far more on R&D than simple statistics suggest. S. S. industry (OTA, 1988, 1990, 1991; Kuttner, 1991; Tyson, 1992; Thurow, 1994). S. S. government policies. We label this the “deindustrialization-due-to-globalization” hypothesis. Although the distinction is not always clearly made, the deindustrialization-due-toglobalization hypothesis suggests that American firms and workers are being squeezed internationally from two different directions.

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