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Abstract:Current conditions suggest a resurgence of U.S. advanced manufacturing capabilities since 1990, but several potentially serious challenges remain, including financial pressures to reduce long-term research and development, barriers to technology deployment among smaller manufacturing firms, inadequacies in the current educational system, and declines or slower growth in productivity and wages. Because these problems detract from U.S. companies' ability to sustain global competitiveness, and because advanced industrial capabilities are an indispensable component of U.S. national wealth and power, government should assume an active role to achieve the following policies: Closer interaction between industry and educational institutions, strong support for government and industry partnerships that promote shared research and help develop new technologies, and economic initiatives that promote stable growth and capital investment in the manufacturing sector.
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