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RAMI Legislation Poised to Revitalize American Manufacturing

This Friday morning, July 25, the House Committee on Space, Science, and Technology will hold a full Committee markup of H.R. 2996, the Revitalize American Manufacturing and Innovation (RAMI) Act of 2013. This is the House’s companion legislation to Senate Bill 1468, which passed out of the Senate Commerce, Science, and Transportation Committee by voice vote in May.

The legislation would provide authorization, using existing funding of up to $300 million, for the Secretary of Commerce to establish up to 15 Institutes of Manufacturing Innovation (IMIs), public-private partnerships that would focus on developing advanced manufacturing product and process technologies, facilitating their commercialization, and developing workforce skills around advanced manufacturing technologies. As ITIF writes in Why America Needs a National Network for Manufacturing Innovation (NNMI) and How It Should Work, these Institutes would play a pivotal role in enhancing U.S. industrial competitiveness by supporting development of technologies that will enable U.S. manufacturers to compete in the global marketplace. The additional IMIs would join four already chartered focusing on additive manufacturing, next-generation power electronics, digital manufacturing and design innovation, and lightweight and modern metals manufacturing, all of … Read the rest

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It’s Not Too Late for India’s New Beginning

In mid-May, the world cheered as India elected its new Prime Minister, Narendra Modi. Many believed his election foreshadowed a new beginning for India, as Modi and his BJP party ran on a pro-growth, business-friendly platform in an attempt to improve the environment for doing business and open the country up to greater foreign direct investment, further transforming the country into a robust, 21st-century economy. Sworn in at the end of June, Prime Minister Modi has been in office for a little over a month and, while still in its early stages, his desired tone and policies are beginning to take hold.

As ITIF wrote in The Indian Economy at a Crossroads, Modi’s election heralded a potential turn away from India’s recently growing embrace of “innovation mercantilist” policies, such as local content requirements for manufacturers and arbitrary patent denials and revocations, which were one of many factors contributing to Indian economic growth sinking to decade-low levels in 2013. For example, Modi’s campaign platform included specific provisions regarding intellectual property reforms, demonstrating that he understood that fostering an innovative environment in India would be the key … Read the rest

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Debunking the myth of a STEM surplus

A new data release by the Census Bureau which claims that only 26 percent of STEM workers end up in STEM fields has seemingly strengthened arguments that America does not face a STEM-worker shortage. The surprising statistic has generated coverage from major news sources (including the USA Today and the Washington Post) which have pounced on the new data as evidence that there is no need to encourage students to study science, technology, engineering, and math. The data, however, is highly misleading and skews the reality of demand for and scarcity of a highly skilled math and engineering workforce.

First, let’s start with the definition of STEM graduates. To the Census Bureau, that means not just individuals with a degree in computers, math, statistics, engineering, biology, or the physical sciences (what the average person thinks of when they STEM)  but also psychology and social sciences like economics and anthropology.

While psychology and social sciences graduates do technically study science in the respect that academic research in these fields attempt to rigorously and empirically tests hypotheses using the scientific method, these fields are a far cry from what readers imagine … Read the rest

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Unsubstantiated attacks on the Ex-Im Bank fail to take flight

A recent review by the Wall Street Journal of a Standard & Poor’s (S&P) credit analysis of Boeing in relation to the U.S. Export-Import (Ex-Im) Bank appears to have missed the point. The article sums up the report with the quote, “We don’t believe that the expiration of Ex-Im’s authorization in September would hurt Boeing’s credit quality or ability to make planned deliveries in 2014 and 2015.” However, this ignores the fact that this statement relates only to planes already in production being prepared for delivery. S&P goes on to conclude that alternative financing sources would not be able to match the demand for Boeing airplanes, and that Boeing would lose out on new orders of aircraft. In addition, it states that the effect of an Ex-Im Bank dissolution on Boeing’s credit quality would be significant, especially in sales to emerging markets or to start-up and financially weak airlines. Judging by 2014 data, Boeing’s new financing needs would total between $7 billion and $9 billion if it lost the support of the Ex-Im Bank.

This ‘misunderstanding’ seems to stem from a desire to portray the Ex-Im Bank—which has been quietly … Read the rest

Image taken by Bob Mical.

How FITARA can help federal agencies with their IT problem

In 2004, the Department of Veterans Affairs was forced to scrap a multimillion-dollar computer system that was designed to streamline the agency’s costs. Ironically, the project cost taxpayers $265 million, and is one of many examples of federal IT projects which go massively over budget and under deliver. Part of the reason for these failures is the last time we made significant changes to how our government acquired its own IT was the Clinger-Cohen Act of 1996. This law was enacted the year before Google.com was registered as a domain name, back when Windows 95 was the new big thing. Almost two decades later, while innovation has continued to press forward, our government’s ability to efficiently acquire new IT has lagged miserably behind.

Luckily, a few lawmakers are trying to remedy that. In March 2013, Congressmen Darrell Issa (R-CA) and Gerry Connelly (D-VA) introduced H.R. 1232, the Federal Information Technology Acquisition Reform Act (FITARA), to overhaul the federal government’s approach to acquiring IT. The bill seeks to designate clear responsibility and authority over federal IT investment, enhance the government’s ability to get good IT, strengthen the federal IT … Read the rest