If we want a strong economy we need to do something about it. We need to reverse course and try another strategy. I suggest one based on innovation of entrepreneurs, rather than new federal spending on government jobs. Americans need to work together to revive our innovation-driven economy. Last year, CEA started the Innovation Movement, a coalition of citizens, now nearly 100,000 strong, who believe innovation and entrepreneurship are key to America's comeback.
Today we release "Innovation and the American Dream," a video that urges all Americans to get involved in making that vision a reality. Watch it, share it with your friends, show it to your children, send it to your congressional representatives - and, most importantly, join the movement.
With ingenuity, creativity and entrepreneurial spirit, Americans lead the post-industrial knowledge economy. Most of the greatest innovations this past decade, spanning from Google's search algorithm to Apple's iPhone to Facebook, were conceived and designed here. Our people have the ingredients for success; we only need Washington to get out of the way, stop bashing business and support an environment where entrepreneurs can compete and pursue their dreams.
Our nation is in a great transition, what theorist Richard Florida calls a"great reset." When economies slow, businesses buckle down and head to the labs. They move capital toward innovation. As Florida observes, electric power, modern telephony, and the street and cable car systems were all invented during tough economic times.
Today's post-industrial information economy has led to a 30-year economic and innovation boom, adding 20 million jobs to creative, professional and knowledge sectors. The U.S. Bureau of Labor Statistics projects these sectors could add another seven millions jobs over the next 10 years.
But those jobs are at risk today because of a business bashing government resulting in a paralyzed economy. The Innovation Movement suggests less animosity, lowered government spending and a policy environment that favors entrepreneurs.
We need lawmakers who:
Prioritize spending and cut the deficit. As Harvard business historian Niall Ferguson put it, "Call the United States what you like - superpower, hegemon or empire - but its ability to manage its finances is closely tied to its ability to remain the predominant global military power." No more bank bailouts, and forget about another Cash for Clunkers. We're staring at a federal deficit that eats 11.2 percent of the U.S. GDP, and it's time we cut it.
Embrace international trade and open markets. Congress has yet to pass three long-stalled trade agreements with Colombia, Panama and South Korea that would reduce tariffs for U.S. exporters. Global capital markets allocate money efficiently, and economic cooperation across nations enhances diplomacy and security. It's time to loosen the grip on nationalism and embrace global markets.
Modernize visas to allow talented immigrants to study and work in America. Throughout American history, immigrants have been key to our economic prosperity. Immigrants to our country founded more than half of all Silicon Valley start-ups created in the past decade, according to Duke University researcher Vivek Wadhwa. Half of all Silicon Valley engineers are foreign born, up from 10 percent in 1970, and about 40 percent of all U.S. patents go to immigrants. These immigrant-founded companies employed 450,000 workers and generated $52 billion in revenue in 2005.
Support a free-market economy where entrepreneurship can flourish. I agree with Richard Florida: "Entrepreneurship should become the fourth R, right alongside reading, writing, and arithmetic." Our lawmakers certainly could have benefited from its instruction in their own K-12 curricula. Legislators cannot view entrepreneurs as the economy's saving grace while shackling them with regulations, and discouraging capital formation and investment. It's time for lawmakers to shift course and approach policy from the view of those looking to start or expand a company.
As our new Innovation Movement video well states: "It's not too late for us to change course. If the innovative American people are free to choose our own ideas and pursue our opportunities, we can bring our economy back to life from the ground up." But we need Washington's help to champion policies that set innovation free.
Join me in fighting for innovation so that we may together celebrate another great American tradition - the Comeback.
Gary Shapiro, author of an upcoming book on this subject, is the president and CEO of the Consumer Electronics Association, which represents more than 2,000 U.S. technology companies. CEA sponsors the Innovation Movement, a grassroots organization of Americans who believe innovation will power future U.S. economic growth. To join the Innovation Movement, visit: http://innovation-movement.com/
Follow Gary Shapiro on Twitter: www.twitter.com/GaryShapiro
We need to reopen the closed GM plants that America owns and make things in the USA.
The profits will go directly into the US treasury !
Not only is our situation more complicated than that, but it is depressing that the solution offered to our immense problems is the same thing we heard at the beginning of the global economy during Reaguns tenure and later with Clinton- Embrace international trade and open markets and it will be a new era of prosperity- that Trojan horse is apparently still sitting in our town square but is painted all Red White and Blue.
With a mechanism for EQUAL trade, you may have a point, but it is mostly out of our hands now- the damage is done.
The emerging markets don’t really need us anymore now that we’ve educated their children, sold them our name brands, and sent them our jobs for the brands we have kept.
Even if we had an industrial policy, it is more about what has been set up overseas for R&D and infrastructure. Example: As of this year, China will file for more patents than the U.S.
Unless, like the foreign car manufacturers, they build factories here, we cannot replace the jobs that have been lost. It is ironic that U.S. global corporations have created 10 million jobs overseas in the last 10 years, and to be patriotic I will need to buy a Toyota.
"The story run up was great, so the let down was worse. The consumer electronics industry has left the nation, before Obama as President was a glint in our eyes. The desperation to reduce labor content to a negligible level seemed to be working, but no matter, it was taken from us anyway. My best guess as to why was to take advantage of building a cheaper manufacturing and research and development support structure, maybe even to stimulate the youth of foreign nations rather than our own. It's been like watching the crown jewels become the crown jewel thieves."
She said that very well indeed.
"Bartlett Manufacturing, formed in 1952, was one of only about 300 printed circuit board manufacturers
left in the United States. Bartlett has watched as the U.S. printed circuit board industry has shrunk from producing more than 30 percent of global output a decade ago, to less than 8 percent in 2008. Asia now accounts for more than 80 percent of global output of PCBs, up from 33 percent 10 years ago. Last year, total revenue for the U.S. PCB industry fell to $4 billion, down from $11 billion in 2000. "The industry has been crippled beyond repair," says Bartlett. "Our kids are going to be fluffing dogs and doing toenails while the Chinese are making leading-edge devices.""
" It doesn't take a genius to figure out that there only are a few pockets of R&D left in the United States. You need volume production to do general R&D, so therefore 90 percent of all electronics R&D is taking place in Asia."
I remember all the happy talk, not unlike the authors', about the new economy that would replace our previously lost industries.
Deja vu all over again.
In that same year, we also pumped out ONE HUNDRED AND SIXTY EIGHT BILLION DOLLARS WORTH OF VALUE ADD in "computer systems design and related services". In 1987, the figure was $27.7bn.
Just to round things out, "publishing industries (includes software)" pumped out $142.9bn in value-add and "information and data processing services" pumped out another $77.5bn.
You might be interested to know that those four sectors comprise around 4% of GDP.
What a great example of the state of our high-tech industry!
We want to keep attracting the best and brightest to the US - as we did prior to Sept. 11 2001.
Immigrants have much higher rate of entreprenuership, They created companies like Intel, eBay and Sun. If you get beyond the emotion, the data is clear that encouraging the right type of immigrants is in our national interest.
Mr. Shapiro is describing new, small start-ups which are far from cash-flush.
Just where do you think private sector jobs come from? Or, perhaps, you see no future in the private sector and are just waiting for government to nationalize all privately owned companies.
May I refer you to Cuba and Venezuela for a prevview of that scenario.
You are mad that the subsidies to outsource will end. I wouldn't count on many Americans buying your argument outside of Tea Party rallies.
How horribly out of touch you are Mr. Shapiro. May your vision for America never come to pass. How dare you champion more Free Trade deals and act like that will help anyone but Wall Street. It's like you are in a time warp. News flash: none of our trading partners have a "free market". They all protect,invest and bolster their manufacturing base and home grown industries. Subsidies are given in the U.S. to relocate jobs and industries to foreign countries. It's a laughably bad policy, that benefits few companies, mainly Wal Mart. So you're dishonest or don't know what you are talking about and would be best advised to stop complaining. You have NOTHING to complain about. These "entrepreneurs" refuse to invest in this country. Your recipe is to throw more money at policies that provide NO benefit to this country as a whole. It would be funny if people didn't actually take this nonsense seriously.
"It's time to loosen the grip on nationalism and embrace global markets."
What do you call the last 30 years? We are even willing to debase our currency now to keep on this losing course. Again, stop complaining. You have NOTHING to complain about.
Fair Trade not "Free Trade" is the new slogan of America. Better get used to it. I look forward to hearing more whining from the put upon "business community".