For Immediate Release
Office of the Press
Secretary
January 31, 2006
State of
the Union: American Competitiveness Initiative
In His State Of The Union Address, President Bush Announced The
American Competitiveness Initiative (ACI) To Encourage American
Innovation And Strengthen Our Nation's Ability To Compete In The Global Economy.
This ambitious strategy will increase Federal investment in critical
research, ensure that the United States continues to lead the world in
opportunity and innovation, and provide American children with a strong
foundation in math and science. The American
Competitiveness Initiative commits $5.9 billion in FY 2007, and more than
$136 billion over 10 years, to increase investments in research and development
(R&D), strengthen education, and encourage entrepreneurship and innovation.
America's Economic Strength And Global Leadership
Depend On Continued Technological Advances. Groundbreaking ideas
generated by innovative minds have paid enormous dividends – improving the lives
and livelihoods of generations of Americans. With more research in both the
public and private sectors, we will improve our quality of life – and ensure
that America will lead the world in opportunity and innovation for decades to
come. The President's comprehensive strategy to strengthen America's
competitiveness includes:
- Doubling the Federal commitment to the most critical basic research
programs in the physical sciences over the next 10 years;
- Encouraging the expansion of a favorable environment for additional
private-sector investment in innovation;
- Improving the quality of education to provide American children with a
strong foundation in math and science;
- Supporting universities that provide world-class education and research
opportunities;
- Providing job training that affords more workers and manufacturers the
opportunity to improve their skills and better compete in the 21st century;
- Attracting and retaining the best and brightest to enhance
entrepreneurship, competitiveness, and job creation in America by supporting
comprehensive immigration reform; and
- Fostering a business environment that encourages entrepreneurship and
protects intellectual property.
As The Global Economy Continues To Expand And Other Countries Become
More Technologically Advanced, The United States Will Face New Challenges.
To ensure our continued economic and technological leadership in the
world, the American Competitiveness Initiative builds on the
Administration's record of results with new investments, especially in the
physical sciences and engineering. Investments in these areas will generate
scientific and technological advances for decades to come and will help ensure
that future generations have an even brighter future.
Leading The World In Innovation
Federal Investment In R&D Has Proven Critical To Keeping
America's Economy Strong By Generating Knowledge And Tools Needed To Develop New
Technologies. The centerpiece of the American Competitiveness
Initiative is the President's strong commitment to double over 10 years
investment in key Federal agencies that support basic research programs in the
physical sciences and engineering – the National Science Foundation (NSF), the
Department of Energy's Office of Science (DoE SC), and the Department of
Commerce's National Institute of Standards and Technology (NIST).
- With about 5 percent of the world's population, the United States employs
nearly one-third of all scientists and engineers and accounts for one-third of
global R&D spending. As the global marketplace changes, we must focus on
maintaining our leadership role.
- The President's FY07 Budget includes $137 billion for Federal research and
development, an increase of more than 50 percent over 2001.
- The sum of the budgets of the National Science Foundation, the Department
of Energy's Office of Science, and the Department of Commerce's National
Institute of Standards and Technology will double over 10 years, a total
commitment of $50 billion of new funding.
- Past Federally funded research has helped to spawn vital technologies such
as personal computers, the Internet, medical imaging devices, balloon
catheters, hearing aids, laser eye surgery, air bags, global positioning
devices, and satellite telecommunications systems.
To Encourage Bolder Private-Sector Investment In
Technology, The President Continues To Support Making The
Research And Development (R&D) Tax Credit
Permanent. A permanent R&D tax credit would enable
companies to have certainty in their tax planning and therefore be bold in their
R&D investment strategy.
- Making the credit permanent, which is estimated to cost $86 billion over
ten years, will eliminate problems and uncertainty associated with its
temporary nature.
- As part of the American Competitiveness Initiative, the President
is also committed to working with Congress to modernize the credit to make it
even more effective and efficient at encouraging private sector innovation.
Education Is The Gateway To Opportunity And The Foundation Of A
Knowledge-Based, Innovation-Driven Economy. To prepare
our citizens to compete more effectively in the global marketplace, the
American Competitiveness Initiative proposes $380 million in new
Federal support to improve the quality of math, science, and technological
education in our K-12 schools and engage every child in rigorous courses that
teach important analytical, technical, and problem-solving skills. Building on
the successes of the No Child Left Behind Act, the American Competitiveness
Initiative will raise student achievement in math and science through
testing and accountability, providing grants for targeted interventions, and
developing curricula based on proven methods of instruction. The American
Competitiveness Initiative includes a number of new and expanded programs,
including:
- The Advanced Placement/International Baccalaureate (AP/IB)
Program to expand access of low-income students to AP/IB coursework by
training 70,000 additional teachers over five years to lead AP/IB math and
science courses.
- An Adjunct Teacher Corps to encourage up to 30,000 math and
science professionals over eight years to become adjunct high school teachers.
- Math Now for Elementary School Students and Math Now for Middle School
Students to promote promising and research-based practices in math
instruction, prepare students for more rigorous math courses, and diagnose and
remedy the deficiencies of students who lack math proficiency.
Education, Training, And Retraining Provide The Nation's Workforce
With Better Career Options, Opportunities For Advancement, And The Ability To
Compete In A Global Economy. As part of the American
Competitiveness Initiative, the President's FY07 Budget introduces Career
Advancement Accounts (CAA). CAAs will be self-managed accounts of up to $3,000
that workers and people looking for work can use to obtain training and other
employment services. The CAA initiative will offer training opportunities to
800,000 workers annually, more than tripling the number trained under the
current system, and give America's workers the resources they need to increase
their skills and compete for the jobs of the 21st century economy.
Enabling The World's Most Talented Individuals To Put Their Skills To
Work For America Will Increase Our Productivity, Improve Our International
Competitiveness, And Create Many High-Paying Jobs For Americans. The
President supports attracting and retaining the best and the brightest
high-skilled workers from around the world by reforming the Nation's immigration
system, while maintaining national security priorities. The President's
comprehensive plan for immigration reform meets the needs of a growing economy,
allows workers to provide for their families while respecting the law, and
enhances homeland security by relieving pressure on the borders.
Pro-Growth Economic Policies Work Hand-In-Hand With Investments In
Innovation. The American Competitiveness Initiative will help
the United States remain a world leader in science and technology. Just as
important, we must continue to pursue pro-growth economic policies and foster a
culture of entrepreneurship. The President's economic agenda, including reducing
taxes and overly burdensome regulations, will help create a business environment
where innovators and entrepreneurs are rewarded. The American
Competitiveness Initiative also supports an efficient system that leads the
world in the protection of intellectual property resulting from public and
private sector investments in research.
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