2021-06-16-ITIF-Why_the_United_States_Needs_a_National_Advanced_Industry_and_Technology_Agency_29页_1mb

Analysis Summary: Need for a National Advanced Industry and Technology Agency

Context: The U.S. faces a fundamental shift in its economic and technological landscape due to China's rise. While standard competitiveness policies (R&D, STEM, digital infrastructure) are necessary, they are deemed insufficient to effectively counter China.

Key Argument: A dedicated National Advanced Industry and Technology Agency (NAITA) is essential to formulate and implement targeted industry and technology policies comparable to those of other major global nations.

Proposed Structure:

• NAITA Mandate: To manage policies ensuring long-term U.S. leadership in advanced industries, focusing explicitly on commercial competitiveness and technological innovation support.
• Five Divisions:
  1. Data and Analysis: Improve understanding of sector competitiveness and supply chain vulnerabilities.
  2. Advanced Industries: Fund programs like CHIPS Act, cooperative R&D, industry-specific labs, and standards-setting support.
  3. Emerging Technologies: Coordinate and fund R&D in AI, quantum computing, cybersecurity, biotech, etc.
  4. Innovation Systems: Support systemic innovation across domains like construction, healthcare, etc.
  5. Cross-Agency & Cross-Government Coordination: Ensure inter-agency alignment and collaborate internationally.

Size and Budget: NAITA should be substantial (budget size comparable to NSF, ~$8.5 billion), employing thousands of staff, with significant flexibility for hiring/fire, and potentially drawing talent from academia and industry for limited periods.

Funding Mechanism: One suggested funding source is reversing favorable tax treatment for dividends.

Conclusion: Responding to China's challenge requires a strategic shift, moving beyond traditional free-market ideology. Establishing NAITA is presented as critical, not just for competitiveness, but for national security and aligning the U.S. government more effectively with national needs, away from outdated science-only agencies.

Core Need: A federal agency solely focused on supporting the development and commercialization of advanced technologies and industries to maintain U.S. global leadership.