Manufacturing Needs the Right Policies to Drive Competitiveness

U.S. Dominance in Product Innovation Begins to Slip

The manufacturing sector has long been a source of U.S. strength in disruptive, breakthrough innovation. The resulting new and improved products and technologies have shaped existing industries and been instrumental in the formation of new markets.

But as developing countries with export-oriented growth strategies have started embracing innovation as a path to competitiveness in high-technology product markets, U.S. dominance in disruptive product innovation has been challenged. During 2013, U.S. inventors were awarded 48% of all U.S. utility patent grants, well below the 60% seen in 1980.

Amid a modest recovery from a deep downturn and an increasingly competitive global business environment, the U.S. must continue to focus on innovation investment and output. The U.S. needs to develop science and engineering strength within the workforce and put into place the necessary level of public support for inventive activity.