Sen. Marco Rubio (R- FL) released a new report on the need for American innovation to bolster the U.S. economy.
The report, called “Made in China 2025 and the Future of American Industry,” cites the importance of combatting Chinese efforts to dominate global innovation and manufacturing. It also discussed the importance of government programs like the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) toward fostering U.S. innovation.
The National Small Business Association (NSBA) and the Small Business Technology Council (SBTC) commended Rubio, chair of the Senate Small Business and Entrepreneurship Committee, for drafting the report.
“SBTC has warned Congress over the past few years that the U.S. is rapidly losing its technological edge to China, and that more funding in small business R&D is required to counteract the enormous amount of money China is spending on its own innovative economy,” SBTC Executive Director Jere Glover said. “I am proud to stand with Chairman Rubio as we seek solutions to this growing imbalance.”
The report cites a plan issued by China in 2015 that targets 10 industrial sectors where China is looking to increase its global share.
“U.S. policy should respond to the practical and political economy challenges of the ‘Made in China 2025’ plan … It also means prioritizing new economic development, including encouraging physical investment and discouraging un-productive arbitrage through the tax code, and utilizing development assistance like the Small Business Investment Company and Small Business Investment Research programs,” Rubio wrote in the report.
SBTC and NSBA believe that any effort to counteract China’s plans to dominate global innovation should begin with dramatically increasing the size and scope of the SBIR/STTR program.
“Small business is the nexus of American innovation, and programs like SBIR and STTR are of critical importance—not only in the U.S. marketplace but around the world,” NSBA President and CEO Todd McCracken said. “I am grateful for Chair Rubio’s dedication to the small businesses that are being most harmed by unfair trade policies.”