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Rationales and Mechanisms for Revitalizing U.S. Manufacturing R&D Strategies

Those parts and derivatives that are of the highest value due to scarcity of supply and/or high demand are subject to counterfeiting. Because the ingredients are not commonly in trade, it is easier for counterfeiters to convince buyers that they are the genuine articles, as they are not often seen. In fact, the fake ingredients are much more common, so much so that they may even be recognized as being genuine by those less experienced in traditional Asian medicine. The examples below are the main parts and derivatives that tend to be counterfeited, including a short summary of the differences between the genuine. | Rationales and Mechanisms for Revitalizing U.S. Manufacturing R D Strategies Gregory Tassey Senior Economist National Institute of Standards and Technology tassey@nist.gov December 2009 The views expressed in this paper are the author s and do not represent those of NIST or the Department of Commerce The author is indebted to Albert Jones of NIST s Manufacturing Engineering Laboratory for very helpful comments on draft text. Also thanks go to Daryl Hatano of the Semiconductor Research Association for providing data and SIA analysis relating to semiconductor technology and to Taffy Kingscott of IBM for helpful insights into global manufacturing and service strategies. Abstract The race to economic superiority is increasingly occurring on a global scale. Competitors from different countries are employing new types of growth strategies in their attempts to win that race. The U.S. cannot therefore continue to rely on outdated economic growth strategies. This paper offers a detailed rationale for a viable domestic technology-based manufacturing sector and a new growth strategy to expand this. The bottom-line strategy has three main objectives 1 increase the amount of R D through a 50 percent increase in the average R D intensity of the domestic manufacturing sector 2 adjust the composition of R D by a reversal of the long-term decline in government funding of manufacturing-related research and 3 increase the efficiency of R D through the implementation of true research portfolio management and a dramatic increase in the number of science parks and regional technology clusters. Executive Summary Manufacturing still contributes a significant share of GDP performs a disproportionately large fraction of R D and produces a considerable number of high-paying jobs. Moreover its network effects run wide and deep with domestic companies from other industrial sectors participating in extended value chains. In particular the rapidly growing technology-based service sector depends