Economy

Why U.S. Firms Are Dying: Failure To Innovate

The challenge is systemic: while more than half the respondents (55%) say that their organizations treat intellectual property as a valuable resource, only one in seven (16%) believed their employers regarded its development as a mission-critical function. The lack of recognition for contributions to innovation is also striking: almost half (49%) believe they won’t receive any benefit or recognition for developing successful ideas.

Sustaining Innovation Tactics That Work In Any Industry

Getting customers to purchase next year’s product is a tried and true tactic for growing revenues. Apparel companies issue new looks. Automakers launch new models. Software publishers issue new versions. Almost every company depends, to some extent, on growth through product upgrades. Product upgrades should be slam dunks because they leverage built-in customer base, company process, and sales teams. That’s why it’s shocking that a documented 25-45 percent of sustaining innovation projects fail to meet their objectives. And in practice, I’ve seen numbers closer to 60-70 percent.

Protecting American intellectual property vital to economic growth

With both sides of the aisle focusing on bettering the middle class this new Legislative session, Congress should consider determining how to better protect the intellectual property of innovative Americans. America’s knowledge-based economy requires international treaties and enforcement of current laws to keep American IP safe and to encourage innovation.

Update on Patent Reform: “Innovation Act” Re-Introduced

Rep. Bob Goodlatte, chairman of the House Judiciary Committee, has re-introduced a bill – called the Innovation Act – aimed at reforming certain aspects of the U.S. patent system. This bill revives a similar bill that passed the House in 2014 but stalled in the Senate.

Study Shows that Patent Trolls Restrict Innovation and Cost Americans Billions

New research shows that "patent trolls” are harming the U.S. economy by interfering with market competition and impeding entrepreneurs and innovators, which results in higher prices for consumers and fewer of the products and features they demand.

Renaissance in American Manufacturing? Not So Fast

At the end of 2013, there were still 2 million fewer manufacturing jobs and 15,000 fewer manufacturing establishments than in 2007, the year before the Great Recession, and inflation-adjusted manufacturing output (value-added) was still 3.2% below 2007 levels. While the U.S. manufacturing sector has grown since 2010, resulting in 520,000 new jobs and 2.4% real value added growth, almost all of this growth has been cyclical in nature, driven by just a few industries that contracted sharply during the recession.

Efforts to Block Tesla Win ITIF’s Luddite of the Year

“The central challenge of our time is the need to rapidly increase living standards and quality of life for all of the world’s citizens,” says Robert Atkinson, President of ITIF. “Innovation and technological development are absolutely essential to achieving this goal, but over the last decade a vast array of organizations have stepped up their efforts thwart technological innovation. By highlighting the most egregious examples of these efforts we hope to better educate the public and policymakers on why Luddite opposition is profoundly mistaken.”

China's Rise to Global Economic Superpower

The International Monetary Fund (IMF), the most prestigious international financial institution in the world, has rated China's ranking to number one economic superpower in the world -- surpassing those of the United States based upon the purchasing power parity of GDP indicator (gross domestic product).

R&D Tax Credits Increase Resiliency of R&D-Intensive Firms

As the federal and state governments look for methods to support the creation and retention of well-paying science and tech (S&T) and manufacturing jobs, two recent reports have found that R&D tax credits play a vital role in helping keep domestic R&D-intensive firms resilient from economic downtowns and competition from emerging economics. These studies confirm the importance of R&D-intensive firms, which have taken advantage of R&D tax credits, are more likely to report a higher percentage of corporate liquidity; are less likely to cut capital expenditures and employment; and, downsize considerably less than the average firm.

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

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