Economy

Boost R&D by easing repatriation rules

A compromise that lets companies repatriate funds at a low tax rate, provided they spent at least half of these funds on research and development, would accomplish the mutual goals of freeing up foreign earnings and boosting research, while not contributing to the federal debt-to-GDP ratio.

Obama Mentions Tech, Cybersecurity in 2015 State of the Union

Dipping his toe briefly into the topic of technology, the president called for continued innovation, whether it’s to build new body prosthesis here on Earth or to continue pushing into the solar system, “not just to visit, but to stay.” Economics was the president’s main focus, and among his proposals was a call to close “tax loopholes” that encourage companies to invest abroad.

Young Adults Then and Now

 

 

Tags: Millennial, economy, jobs, education, youth, census, charts

Just how big is the Cuban market for US tech?

On Thursday, the U.S. Departments of Treasury and Commerce issued orders that should make it easier for U.S. tech companies to enter the tricky Cuban market. As to how big that opportunity will be and how long it will take to develop remain big questions. The moves come about a month after President Obama signaled his intention to  open up Cuban-U.S. relations.

White House Releases Report on Community-Based Broadband Solutions, Touting Municipal Competition for Gigabit Networks

Affordable, reliable access to high speed broadband is critical to U.S. economic growth and competitiveness. Upgrading to higher-speed broadband lets consumers use the Internet in new ways, increases the productivity of American individuals and businesses, and drives innovation throughout the digital ecosystem.

After 13 Years Of Losing Factories, U.S. Starts To Gain Them

The number of factories in the United States is starting to grow after more than a decade of decline. After reaching an all-time low in 2013 since the Bureau of Labor Statistics started counting the number of factories in 2001, the number of manufacturing facilities started to increase in the first half of 2014, reaching 338,304 factories, up 1.4 percent from the low reached in 2013 of 333,565.

The number of factories in the United States declined by 59,248 from 2001 (when there were 397,552 factories) to 2014, a 17.5 percent drop. Since reaching a nadir in 2012, there has been little growth in the number of very large factories that employ more than 1,000 workers, according to “establishment data” for the manufacturing sector gathered by the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages division.

There were only 911 large manufacturing plants in the United States in 2014, up by one from 2013 and down by two in 2012 when there were 913. The number of large factories is down by 38 percent since 2001, a drop of 568, from 1,479 to 911. Factories with between 500 and 999 employees have been growing modestly since bottoming out in 2010 at 1,800. In 2014, there were 2,025 factories of that size in the United States, up 2.8 percent from 1,967 in 2013 and 1,913 in 2012. Since 2001, the number of factories with between 500 and 999 employees has fallen from 3,198 to 2,025, a decline of 37 percent (1,173 lost factories).

Factories with between 100 and 249 employees have also been growing at a modest rate since reaching a nadir in 2010, when there were 15,696 such factories. In 2014, that number had increased by 1,149 to 16,845, an increase of 7 percent. From 2013 to 2014, the number of plants of this size increased by 220, or 1.3 percent. Since 2001, when there were 22,490 plants with between 100 and 249 workers, the total number is down by 33.5 percent.

The next category of plants — with between 50 and 99 employees — has grown from a low of 21,540 in 2010 to 22,327 in 2014, a growth of 787 factories (3.5 percent growth). Since 2001, when there were 28,633 factories of this size, the decline has been 6,306 factories, or 22 percent. Factories with between 20 and 49 employees rose to 47,380 in 2014, up from 46,946 in 2013 and from a low of 46,313 in 2011. The number is still down 19 percent from a high of 58,942 in 2001.

The number of factories with between five and nine employees continues to decline. In 2014, there were 55,380 factories of this size, the lowest level since 2001, and down from 55,617 in 2013. The number of factories of this size has fallen every year since 2001, save for in 2007 when there was no change, and is down by 12,130 or 18 percent since 2001. The number of micro-factories, with fewer than five employees, grew by 1.7 percent between 2003 and 2014 — from 135,133 in 2013 (the lowest level since 2001), to 137,475 (or a gain in the year of 2,342 plants). Since 2001, the country has lost 11,207 of plants employing less than five people, down 7.5 percent.

Source: manufacturingnews.com

American Entrepreneurship: Dead or Alive?

The U.S. now ranks not first, not second, not third, but 12th among developed nations in terms of business startup activity. Countries such as Hungary, Denmark, Finland, New Zealand, Sweden, Israel and Italy all have higher startup rates than America does. We are behind in starting new firms per capita, and this is our single most serious economic problem.

The Myth of America’s Manufacturing Renaissance: The Real State of U.S. Manufacturing

Higher foreign labor costs, cheap oil and gas here at home and automation are combining to make America the new global manufacturing hub: at least according the now dominant narrative. Indeed, the term “manufacturing renaissance” is used to describe this new state of affairs. However, as a new ITIF report shows, the data do not support such a rosy scenario.

How the Patent System will Cripple the American Economy

Kaiyuan is a Chinese word that refers to openness in the Western style intellectual property framework. However, when this word is used, it explicitly means that its IP is not ‘open’. That is, the information is recognised as protected by law and not to be shared. However, as evidenced by all the counterfeit merchandise, many Chinese corporations have little regard for IP rights. The way they see it, information should be shared and built upon by others.

Why the SBIR Program Is Worth Funding

The SBIR program overcomes the failure of private markets to fund innovation when the benefit to society exceeds the benefits to the private firms undertaking it.   By overcoming this market failure, the SBIR program makes all of us better off, facilitating the allocation of resources to the development of new materials, medical technologies, software, and the like.

The Worst Innovation Mercantilist Policies of 2014

Innovation is a central driver of growth. As a result, an increasing number of countries are seeking to become innovation leaders. Unfortunately, the methods that many choose are grounded in “innovation mercantilism”: a strategy that sees technology-based exports as the key to success while relying on distortive and protectionist tactics to achieve that goal. These practices do not just damage other economies; they damage the entire global innovation system, leading to less innovation and productivity.

A Government Program Every American Startup Should Know About

Each year SBIR and its sister program for non-profits, the STTR program, invest in American entrepreneurs to stimulate technological innovation and address national needs in areas such as health, education, and national defense. Providing over $2 billion in competitive awards each year, SBIR/STTR are the largest source of early-stage capital for innovative small companies in the United States.

Ahead of Barack Obama visit: India, US to start discussion on defense technology, production from Monday

India and the United States will discuss defense technology transfer and joint defense production in Delhi from Monday, in the first major political-military dialogue in the run-up to US President Barack Obama's visit to India as chief guest at Republic Day next month.

Survey Shows Innovation Budgets Increasing in 2015

Newly released data from a recent national survey shows companies are fearlessly leveraging Open Innovation (OI) to develop groundbreaking products, accelerate business results and lead their industries. This means organizations are achieving innovation goals by drawing from resources and solutions outside their own walls, while reducing risks through proven OI methodologies.

Congress Must Act and Pass Advanced Manufacturing Bill During Lame Duck

In the last decade, the United States’ share of the global manufacturing sector has dropped as well. Countries such as South Korea, China, Japan and Germany have a larger share of the advanced manufacturing sector than the United States, and each of these countries has a positive trade balance in advanced manufacturing products. In contrast, the United States had an $81 billion trade deficit in 2010.

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