As Congress wrestles over its 2012 budget and hopes for success of the congressional supercommittee fade each day, it is easy to allow short-term problems to distract us from long-term priorities. The United States needs to think big again and make the critical policy changes and investments that will secure America’s future for decades to come.
Competitiveness through innovation is the key to achieving robust, sustainable growth and creating high-paying jobs in the United States. America has a proud history of producing game-changing entrepreneurs, from Henry Ford to Steve Jobs. It has been the world’s most innovative economy, but despite having the world’s best universities and greatest innovation hub — in Silicon Valley — we are at risk of losing our position.
{mosads}The new challenges we face from global competitors are stronger than ever before. For example, China has launched an aggressive program to foster “indigenous innovation.” Chinese companies are taking a leading position in the renewable-energy industry, and Comac, a Chinese commercial aircraft manufacturer, is developing a passenger plane that could challenge Western dominance in the aerospace industry. The United States has always thrived on competition, and this time is no different — but we need to position ourselves for success.
I believe there are three critical areas that offer significant returns on investment in the long haul: investing in vocational training and science, technology, engineering and mathematics (STEM) education; attracting and retaining highly skilled talent from other countries; and reviving key large-scale federal research and development projects. These initiatives are not just cost-effective — they are also widely supported by the business community and have received strong support from members of both parties in the past.
STEM education is critical for the next generation of Americans to compete. We also need better vocational training to help our workforce keep up with the pace of technology. In advanced manufacturing, today’s jobs don’t require brute strength — they require the ability to operate complex machinery. Alcoa has partnered with a number of communities to address vocational training shortages, creating programs that train welders in Hampton, Va., and skilled machinists in California. We’ve done the same thing for STEM education by sponsoring programs for disadvantaged youths in Pennsylvania and elsewhere. Alcoa isn’t alone, as many other companies are supporting similar initiatives. The federal government needs to leverage these existing activities to create effective public-private partnerships nationwide.
Second, the United States needs to encourage highly skilled individuals from other countries to put their skills to work in the United States. America’s university system attracts more foreign students than any other country, and these men and women are often some of the best and brightest students from their homelands. Incredibly, many leave the United States after completing their education, not because they want to, but because of a cumbersome and outdated visa process that makes it difficult for them to pursue internships, let alone full-time jobs. An easy — and free — fix would be to allow foreign students who obtain a degree in STEM fields at U.S. universities to qualify automatically for a green card that lets them pursue internships and employment in this country. The United States needs more scientists, engineers and technical experts. Keeping these talented people in this country will help create additional jobs here and provide more opportunities for all Americans.
Third, companies can innovate in a lot of fields, but there are some breakthrough areas where a coordinated approach is needed. Washington needs to think big again when it comes to research and development. This is especially pertinent in the energy sector, where CO2 sequestration and advanced renewable-energy concepts are too risky, and some too big, for the private sector to take on alone, but could spark the development of entire industries in this country. Programs like ARPA-E, which explores clean-energy projects, are a great start, but we need a “space race” level of commitment to solve our long-term energy problems.
America faces enormous challenges. Fortunately, we know the solutions. The proposals above not only serve as a solid foundation for America’s future prosperity, but as cost-effective ways to deal with some of our most vexing challenges. This country has faced hardships before, and has risen to the challenge before. Let’s do it again.
Kleinfeld is chairman and CEO of Alcoa.