Discuss this Gallery 2

on Feb 10, 2014

Manufacturing is responsible for 70% of the R&D investment. Most innovation occurs as the result of incremental improvements in product or processes or the re-application of exisiting technology for new purposes.

Innovation and production go and in hand. neither can exist in any meaningful way without the other. When productive capacity is outsourced, the real time communication between plant and engineering is lost, and so too then is the innovative capacity severely diminished. Look for example at the electronic industry - high tech by any definition. The US has given up on that industry that we once held a commanding lead in, and ceeded that to the developing world. None of the new computer, TV, telecomm production is occuring here, with some small exceptions being repackaging or final assembly of foreign made component operations. Similar things are occuring in appliances, auto parts, aerospace, medical devices etc.

Little wonder developing countries aggressively pursue strong manufacturing policies and are in growth mode -both in jobs and technology, while the US steadily declines in these areas due to lack of such strategies

on Feb 11, 2014

Indeed, we are foolish in the extreme. It takes funding for 'way out' ideas that have a hard time being supported by private enterprise, which do more innovation than creation. Failure by the govt program will not put it out of business like it may a private company. It can afford the risks of creation (bringing the unknown into the known or reality), which are far more than innovation (change from the known)

My Aha! from this great article and the pdf (22 Examples) is that the government, in essence, the people of the United States are not getting the financial return they should be getting from their support of R&D. There should be a means developed where something like a royalty is paid to the government so that R&D becomes self-funding and thus does not need to feed at the tax trough filled by the taxpayers. (or borrowing). (And I realize the private company pays taxes but...so does any company who is not benefiting from the government R&D). The royalty should be structured so that it reaps some rewards from those who invent stuff once the known is available. And it should go on for a number of years. How it should be structured is out of my experience but plenty of people have that expertise.

A royalty would solve the financing problem. No more begging from Congress.

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