Productivity, Science and Technology: Keys to U.S. Economic Growth

The roles of industry and government, especially the Federal Government, as partners in national science and technology endeavors have been changing as a result of the decline in the growth of productivity and lowered U.S. competitiveness in world trade. Other countries are sustaining higher rates of productivity growth because they have found ways to achieve close harmony among the institutions necessary to technology development--government, finance, and industry, and the universities. However, in the United States many perceive an almost adversary relationship among these elements. Tasks which the Federal Government can appropriately perform to help accelerate the rate of productivity growth include: assessing periodically the nature, extent, and location of productivity problems and the status of ongoing productivity programs for all sectors of the economy; acting as a facilitator in bringing various groups together in a non-adversary setting to discuss productivity problems affecting more than one group, organization, or industry; and operating a productivity clearinghouse to provide national and international productivity data and knowledge on what is known about various aspects of productivity. In addition, the government should seek ways to stabilize the economic outlook and the regulatory environment in order to counteract industry's reluctance to invest in innovative research and development.