Making Value for America Embracing the Future of Manufacturing, Technology, and Work (2015) / Chapter Skim
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Appendix: The Big Picture
Appendix: The Big Picture
Pages 115-132
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From page 115... ...
US POSITION IN GLOBAL INNOVATION AND VALUE CREATION Although it is difficult to get a good, direct measure of the level of innovation and value creation in a country, there are a number of indirect measures and indicators, which suggest that while the United States remains among the world's leaders in activities along the value chain, other countries are advancing rapidly. The following sections review evidence from several perspectives: US performance in the production of manufactured goods and high-tech services, invention, and the country's attractiveness to innovative companies.
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From page 116... ...
Every two years the US National Science Board publishes a report on Science and Engineering Indicators that includes value added across industries. The most recent report indicates that the United States' global share of value added in several important industry categories has significantly declined since the early 2000s (NSB 2014)
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From page 117... ...
Because it is expensive to apply for patents, inventions patented in all three of these markets are likely to be the most important innovations, economically speaking. From 1999 through 2008 inventors from the each of the three markets accounted for about 30 percent of the total number of triadic patent applications, although their percentages dropped slightly (e.g., from about 32 percent to about 30 percent for the United States)
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From page 118... ...
. Notes: EU = European Union.
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From page 119... ...
The number of US-based companies in the top ten has slowly but steadily declined from four in 2010 and five in 1985.1 Innovativeness rankings published by Forbes magazine took a completely different tack: they are based on investors' judgments about companies' abilities to create value. This approach draws on work by Hal Gregerson of the international graduate business school INSEAD and Jeff Dyer at Brigham Young University (Gregerson and Dyer 2013)
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From page 120... ...
The European Union accounted for 27 percent, and Asia -- China, India, Japan, South Korea, Malaysia, Singapore, and Thailand -- represented 24 percent. Thus the United States, European Union, and Asia were doing almost 90 percent of the world's research and development (NSB 2012)
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From page 121... ...
Country Year United States 2012 Continent Year 2013 Americas 2012 2014 2013 China 2012 2014 2013 Asia 2012 2014 2013 Japan 2012 2014 2013 Europe 2012 2014 2013 Germany 2012 2014 2013 Rest of World 2012 2014 2013 India 2012 2014 2013 5% 10% 15% 20% 25% 30% 35% 40% Share 2014 5% 10% 15% 20% 25% 30% Share FIGURE A-2 Share of total global research and development spending (actual and estimated)
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From page 122... ...
For several decades the United States has consistently spent 2.4–2.8 percent of its GDP on research and development. Over the past decade it generally stayed above 2.6 percent, and in the past few years it remained close to 2.8 percent.
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From page 123... ...
Data for the United States reflect international standards for calculating gross expenditures on R&D, which differ slightly from the National Science Foundation's protocol for tallying US total R&D expenditures. Data for Japan since 1996 may not be consistent with earlier data because of changes in methodology.
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From page 124... ...
The fraction of US university degrees in science or engineering -- at 32 percent -- pales in comparison to Japan's nearly 60 percent and China's 50 percent. Ranking of US K–12 Education Another significant factor affecting the ability of the United States to attract businesses is its K–12 education system.
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From page 125... ...
. Note: Natural sciences include physical, biological, environmental, agricultural, and computer sciences, and mathematics.
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From page 126... ...
. In 1992 the National Center for Education Statistics released International
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From page 127... ...
In contrast, because the United States emphasizes universal primary and secondary education, the US scores may present a somewhat more representative average across the population.2 What Is the Condition of US Infrastructure Needed for Value Creation? In 2014 the World Economic Forum (WEF)
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From page 128... ...
1] : "it took roughly 6 months for employment to recover to its prerecession level after each post war recession through the 1980s, but it took 15 months after the 1990–91 recession and 39 months after the 2001 recession." Whether or not the decay of employment growth over the past two decades is a direct result of a relative weakening of the United States' ability to create value, the fact remains that the only way to create economic growth is to innovate -- either by developing a novel product, service, or process that adds value or by putting innovations into widespread practice to improve productivity (Schumpeter 1934)
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From page 129... ...
Fundamental changes in the US economy appear to be looming that underscore the importance for the United States to create new opportunities for innovation, for novel products and services that will generate employment growth. US ECONOMIC GROWTH AND EMPLOYMENT GDP growth per employed person in the United States has slowed.
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From page 130... ...
China includes Hong Kong. Brazil's growth in 2000–2005 was −0.1 percent.
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From page 131... ...
2012. The Competitiveness and Innovative Capacity of the United States.
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From page 132... ...
Geneva: World Economic Forum. WIPO [World Intellectual Property Organization]
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