Jan 16th 2016

America’s reinvention is helping it leap further ahead of the world

by Vivek Wadhwa and Edward Alden

Vivek Wadhwa, pictured top right, is Academic, Researcher, Writer, Entrepreneur. Edward Alden is a senior fellow and director of the Renewing America initiative at the Council on Foreign Relations.

"When it comes to the scientific breakthroughs and commercial innovations that are building the economy of the future, the United States really is number one — and no competitor is in sight."

Pessimists believe that the United States has peaked as a superpower and is falling behind in education, research and development, and economic growth. They say the country’s best days are behind it.

Fortunately, they are wrong. Not only is the United States leading a technology revolution that will help solve the grand challenges of humanity — problems such as disease, hunger and shortages of energy and clean water — it is increasing its lead on the rest of the world. By combining its entrepreneurial strengths with its creativity, it is reinventing itself once again.

A new report from the Council on Foreign Relations, Keeping the Edge, is one in a series that analyzes where the United States stands in key dimensions of economic competitiveness. It concludes that on innovation, which drives rising living standards in the advanced economies, no other country is even close. For example:

–Of the top 20 universities in the world that produce the highest-impact scientific research, 16 are in the United States.

–Total U.S. research & development spending — most of it by companies — is higher as a share of the economy than at any other time since the early 1960s when the space program was starting. In absolute terms, no other country invests nearly as much in R&D as the United States, and in relative terms only Japan is close. And in a recent survey, the average U.S. corporation said it planned to boost research spending this year by nearly twice the rate of its international competitors.

–The share of the U.S. economy that comes from knowledge-intensive industries has risen sharply over the past decade, reaching nearly 40 percent; no other large economy has even hit 30 percent.

Most of this is a private-sector story. The United States has an entrepreneurial culture that rewards risk; a highly developed venture-capital industry; and a large market of consumers eager to embrace new commercial innovations. But one of the more interesting findings of the report is that — unlike on so many other policies, from immigration to tax reform — the U.S. government has mostly got it right on innovation.

The Small Business Innovation Research (SBIR) program was established by Congress in 1982, during the Reagan administration, and has been reauthorized multiple times with little controversy. The SBIR requires that all federal agencies with big R&D programs set aside 3 percent of their research budgets for small businesses.

The result is a $2.5 billion fund that helps to bridge the so-called “valley of death” that new start-ups face between good ideas and commercial products that are attractive to investors. Apple, Compaq, and Intel all received SBIR funds in the 1980s; today, some 6,500 small companies are beneficiaries. In surveys, 97 percent of those companies said that the grants had been vital to their later successes. Other countries have taken note, with Germany, the U.K., Israel and China all launching similar schemes.

U.S. policy in support of innovation has gotten some other things right as well. Washington relies mostly on direct subsidies, which generally favor new and smaller companies, rather than R&D tax breaks that primarily help established firms. The government has sponsored cheap but galvanizing competitions, such as the Defense Department’s 2004 “Grand Challenge,” offering a million-dollar prize for a driverless car that could navigate a desert course. No one took away the award, but it pushed forward research that is only now coming to fruition.

The U.S. university system, with its mixture of public and private support, autonomous administrations, and competition-based funding for research, is also uniquely successful at generating commercially relevant research breakthroughs. The system can be improved significantly, but it has fueled world-changing innovations. Other countries are trying to find the U.S. secret sauce, but without much success.

The report does highlight some red flags. Funding for public universities, such as the vaunted University of California system, for example, is under enormous pressure. So too is funding for basic scientific research. Massive research undertakings, such as the quarter-century-long Human Genome Project, which has paved the way for breakthrough drug therapies, are impossible without generous taxpayer support for basic science. Entrepreneurs can work hand in hand with universities in commercializing scientific breakthrough, but they can’t invest the time and money to create them.

Innovation also arises from the talents and ingenuity of those residing in this country, and immigrants have long brought a disproportionate share of that precious resource to the United States. The decade-long failure to reform immigration laws to welcome the best and brightest remains a deep, self-inflicted wound.

But amid so much of the hand-wringing in Washington, the report tells a remarkably positive story. When it comes to the scientific breakthroughs and commercial innovations that are building the economy of the future, the United States really is number one — and no competitor is in sight.

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Vivek Wadhwa is a Fellow at Arthur & Toni Rembe Rock Center for Corporate Governance, Stanford University; Director of Research at the Center for Entrepreneurship and Research Commercialization at the Pratt School of Engineering,  Duke University; and Distinguished Fellow at Singularity University. He is author of  “The Immigrant Exodus: Why America Is Losing the Global Race to Capture Entrepreneurial Talent”—which was named by The Economist as a Book of the Year of 2012, and ” Innovating Women: The Changing Face of Technology”—which documents the struggles and triumphs of women.  In 2012, the U.S. Government awarded Wadhwa distinguished recognition as an  “Outstanding American by Choice”— for his “commitment to this country and to the common civic values that unite us as Americans”. He was also named by Foreign Policy Magazine as Top 100 Global Thinker in 2012. In 2013, TIME Magazine listed him as one of The 40 Most Influential Minds in Tech.

Wadhwa oversees research at Singularity University, which educates a select group of leaders about the exponentially advancing technologies that are soon going to change our world.  These advances—in fields such as robotics, A.I., computing, synthetic biology, 3D printing, medicine, and nanomaterials—are making it possible for small teams to do what was once possible only for governments and large corporations to do: solve the grand challenges in education, water, food, shelter, health, and security.

In his roles at Stanford and  Duke, Wadhwa lectures in class on subjects such as entrepreneurship and public policy, helps prepare students for the real world, and leads groundbreaking research projects.  He is an advisor to several governments; mentors entrepreneurs; and is a regular columnist for The Washington Post, Wall Street Journal Accelerators, LinkedIn Influencers blog, Forbes, and the American Society of Engineering Education’s Prism magazine.  Prior to joining academia in 2005, Wadhwa founded two software companies.




  

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Apr 13th 2021
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Apr 8th 2021
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Apr 6th 2021
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Mar 30th 2021
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Mar 28th 2021
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Mar 26th 2021
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Mar 20th 2021

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Mar 20th 2021
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Mar 18th 2021
EXTRACT: "Several studies have recently compared the difference between antibodies produced straight after a coronavirus infection and those that can be detected six months later. The findings have been both impressive and reassuring. Although there are fewer coronavirus-specific antibodies detectable in the blood six months after infection, the antibodies that remain have undergone significant changes. …….. the “mature” antibodies were better at recognising the variants."
Mar 15th 2021
EXTRACT: "Like Shakespeare, Goya sees evil as something existing in itself – indeed, the horror of evil arises precisely from its excess. It overflows and refuses to be contained by or integrated into our categories of reason or comprehension. By its very nature, evil refuses to remain within prescribed bounds – to remain fixed, say, within an economy where evil is counterbalanced by good. Evil is always excess of evil." ....... "Nowhere is this more evident than in war. Goya offers us a profound and sustained meditation on the nature of war ........ The image of a Napoleonic soldier gazing indifferently on a man who has been summarily hanged, probably by his own belt, expresses the tragedy of war – its dehumanization of both war’s victims and victors."
Mar 14th 2021
EXTRACT: "A blockchain company has bought a piece of Banksy artwork and burnt it. But instead of destroying the value of the art, they claim to have made it more valuable, because it was sold as a piece of blockchain art. The company behind the stunt, called Injective Protocol, bought the screen print from a New York gallery. They then live-streamed its burning on the Twitter account BurntBanksy. But why would anyone buy a piece of art just to burn it? Understanding the answer requires us to delve into the tricky world of blockchain or “NFT” art."
Mar 14th 2021
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Mar 10th 2021
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Feb 24th 2021
EXTRACT: "The art historian George Kubler observed that scholars in the humanities “pretend to despise measurement because of its ‘scientific’ nature.” As if to illustrate his point Robert Storr, former dean of Yale’s School of Art, declared that artistic success is “completely unquantifiable.” In fact, however, artistic success can be quantified, in several ways. One of these is based on the analysis of texts produced by art scholars, and this measure can give us a systematic understanding of how changes in recent art have produced changes in the canon of art history."
Feb 24th 2021
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Feb 16th 2021
EXTRACT: ".... these men were completely unaware that they had put their lives in the hands of doctors who not only had no intention of healing them but were committed to observing them until the final autopsy – since it was believed that an autopsy alone could scientifically confirm the study’s findings. As one researcher wrote in a 1933 letter to a colleague, “As I see, we have no further interest in these patients until they die.” ...... The unquestionable ethical failure of Tuskegee is one with which we must grapple, and of which we must never lose sight, lest we allow such moral disasters to repeat themselves. "