Sarah Sewall and Steve Bowsher
The current confluence of wars and geopolitical tension is acute, but it cannot distract the United States from the ongoing war in technology innovation. Jostling to lead transformative, over-the-horizon technologies is the geopolitical battle of the century. U.S. policymakers and private sector leaders face an uphill climb if they want the United States to win.
This competition may well determine whether democracies or authoritarian governments lead the global system.
The United States should never mimic the Chinese Communist Party’s centralized market, which often directs and funds nominally private entities. An effective U.S. government role in promoting innovation can only be limited in scope while strategic in purpose — and targeted toward the most transformative technologies.
Yet, our policymakers have, so far, failed to offer a national vision for how to sustain U.S. technology leadership.
Government once led the United States into global technology dominance. U.S. defense investments in a nascent microelectronics field enabled U.S. companies to lead the information technology revolution of the last century. Government’s catalytic role receded, though, replaced by faith in the private sector to lead future innovation. However, investors and companies frequently pursue the technologies that promise more immediate financial rewards, stranding higher-risk but potentially transformative technologies that lack a ready market.
China’s continued innovation progress has generated bipartisan alarm, and Congress has begun jump-starting federal support for key technologies. However, recent legislation addresses a host of competing goals, from securing supply chains, to greening the economy, to diversifying the technology workforce. The bills tackle just a few technologies, and they prioritize domestic manufacturing of existing products over future innovation. Consider the billions of dollars in new tax credits to build semiconductor facilities at home. It can take close to a decade just to build a fabrication plant, and many of these facilities will produce the chips of yesterday — not the future.





















