Failure to broaden the research, development, design, and manufacturing of emerging technologies will leave the United States at a strategic disadvantage compared to other global powers. The investments specified in the U.S. Innovation and Competition Act have the capacity to create jobs, increase revenue, boost regional economies and distinguish the U.S. as the leader in industrial innovation.
On May 17, 2021, the U.S. Senate passed the United States Innovation and Competition Act (USICA). This bipartisan bill was created to bolster the United States’ competitive edge for developing frontier technologies, which include artificial intelligence, chip manufacturing, space exploration, and state-of-the-art regional innovation hubs.
The USICA outlines approximately $250 billion worth of investments dispersed over the next 5 years. This funding will support several organizations including NASA, the Department of Commerce, the National Science Foundation, and the Department of Energy. The White House publication recounts how The Endless Frontier Act, a component of this bill, aims to “empower us to discover, build, and enhance tomorrow’s most vital technologies — from artificial intelligence, to computer chips, to the lithium batteries used in smart devices and electric vehicles — right here in the United States.” Funding chip manufacturing and R&D investments are two key goals of the Endless Frontier Act. The bill allocates $2 million on chip manufacturing in the hopes of advancing “economic and national security interests,” particularly for the auto industry and defense organizations.
To explore the economic implications of this bill, REMI held “The New Competitive Advantage: Assessing the Impacts of the U.S. Innovation and Competition Act,” a recent webinar presentation that quantifies the economic implications of ground-breaking innovation AI, machine learning, and chip manufacturing using the REMI Tax-PI model. You can view a recording of this recent presentation by clicking here.
You can click here to read the full article from the White House.
A detailed breakdown of all funding allocated in the USICA can be viewed by clicking here.
The full United States Innovation and Competition Act can be viewed here.