The 5 Warning Signs in “US Manufacturing Innovation at Risk”

By February 2, 2006Taking It for Granted

Blog-Icon-MI.jpgOur latest report on manufacturing was released yesterday: US Manufacturing Innovation at Risk. We promised to be back to highlight Dr. Popkin’s five warning signs that he says are flashing red that America’s innovation process is at risk. For the full report, click on the report above; if you are in a hurry, here’s the cliff notes:

1. the growth in manufacturing output since the last recession is running at half the pace averaged in other recoveries of the past 50 years;
2. manufacturing capacity is barely growing;
3. the US share of global trade has shrunk from 13 percent to 10 percent. Germany has displaced the United States as the world’s largest exporter and we now run a trade deficit even in advanced technology products;
4. new workers are discouraged from entering manufacturing and there is a shortage of skilled workers to replace older employees as they retire; and
5. US growth in R&D has been anemic in real terms since the turn of the century.