Obama, McCain and encouraging innovation

October 17, 6:12 PMProgressive Politics ExaminerJay McDonough

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During that portion of his stump speech where he talks about wasteful federal spending, John McCain always brings up the example of Montana's use of federal funds to study grizzly bear DNA.  The punch line comes when the Senator wonders aloud whether it's for investigating paternity or criminal issues.  Pretty funny.  (At least it was the first ten times I heard the Senator tell the joke).

There was a time when a good size chunk of change went to federally funded scientific research.  For decades, the United States led the world in technological innovation and the country's science and engineering skills provided the U.S. great gains in productivity and wealth.  Signs of trouble emerged in 1995, when the trade balance of technology products shifted and the U.S. began importing more high technology products than exporting, and that trend has continued to the present.  In 2007, the trade gap between imported and exported high technology goods was $53B.  The New York Times had an interesting article yesterday on the issue.

“If we don’t have an innovation agenda, if we don’t invest in science research, if we don’t provide encouragement for our kids to pursue careers in math and science, I don’t see where our country can go economically in the future,” said John Edward Porter, a Republican former congressman who is the board chairman of Research!America, an advocacy group.

As you might expect, the the current economic problems and the rapidly increasing federal deficit are placing added pressures on applying federal monies to scientific research.  Add to that the resistance from anti-science Republicans, and the prospects for any real progress in the area seems unlikely. 

(In 2003) the National Academies issued its influential report “Rising Above the Gathering Storm.” The academies, the nation’s most eminent scientific and engineering organization, called for an urgent effort to strengthen American competitiveness.

The report said industries like chemical, semiconductor and automotive were growing in other countries while comparable American efforts atrophied. The patent office issued most of its information technology patents to foreigners. The United States ranked 17th among industrialized nations in high-school graduation rates, and the country had become “a net importer of high-technology products,” many from China.

In 2007, Congress passed, by an 88 to 8 margin, and President Bush signed the America Competes Act, written around the recommendations set forth in the "Gathering Storm" report.  For those keeping score, Barack Obama voted for the bill and John McCain abstained.  Congress has yet to finance the program, expected to cost $43B for the first three years.

While the teaching of science and the state of American innovation isn't up at the top of the candidates to-do lists, each has proposals for addressing the problem.  And there are quite a few similarities in approach: each acknowledges the importance of scientific research, each would make R&D tax credits permanent, both pledge to make it easier for foreign born scientists to come and work within the U.S.,and both recommend moving science advisors back into the White House sphere.

But there are some major differences as well between the two candidates approaches. 

Mr. Obama looks to encourage basic research with infusions of federal cash. Mr. McCain says easing regulatory and tax burdens will encourage private spending on research. (Experts say industry now tends to focus on near-term applications, while government finances more basic research that has greater breakthrough potential.)

Mr. Obama has proposed doubling federal financing for basic research in physics, life sciences, mathematics and engineering over 10 years. He has promised to review export rules he calls outdated and sees as having “unduly hampered the competitiveness of the domestic aerospace industry.”

The McCain campaign has said he will encourage corporate research by reducing the capital gains and corporate taxes and promoting “conditions favorable to investment.” In response to a survey by Science Debate 2008, a private group that tried to arrange a debate on science issues, he cited “burdensome regulations” as inhibiting innovation in the United States and said he would work to remove them.

In preparing the article, the Times asked the Information Technology and Innovation Foundation to put a price tag on the two candidate's plans.  The Foundation estimates the Obama plan would cost $85.6B and the McCain plan $78.8B.

This is exactly the kind of stuff that falls through the crack.  Other problems seem so much bigger and so much more urgent.  There's a strong case to be made the current economic problems will be addressed and solved - it may take a few painful years - but things will be fixed and order restored.  Losing the technology leadership position in the world, on the other hand, has some very large, very long lasting implications on future generations of American's quality of life.