X-SciTech

U.S. Risks High-Tech Wreck

March 9, 2005 / 12:16 PM EST / AP

The U.S. risks losing its competitive edge without significant new investments in education, research and development and the spread of broadband technology, leaders of high-tech companies warned.

"The world is changing a little bit, and frankly there is a significant amount of concern that if we don't make some adjustments, follow the right public policies, do some things that are important, we could find ourselves very quickly losing the advantage we've had for so long," Rick White, president and chief executive of high-tech lobby TechNet, said Tuesday at a press conference.

The Palo Alto, Calif., group represents about 200 high-tech leaders, including: Microsoft, Intel Corp., Cisco Systems and Hewlett Packard. TechNet made its annual lobbying trip to Capitol Hill to meet with Cabinet members and congressional leaders.

White and other TechNet officials cited some troubling indications that the United States is falling behind in high-tech development:

Some 7 percent of U.S. households have the fastest kind of broadband access, compared with 30 percent in Korea, 20 percent in Japan and over 10 percent in France, TechNet leaders said. When slower connection speeds are counted, some 20 percent of U.S. households have broadband, according to a report issued last fall by the U.S. Department of Commerce.

U.S. investment in research and development has stayed flat for the past three decades, while growing dramatically among competitors such as Brazil, India, China and Israel.

Students in the United States are behind counterparts in other countries in math and science. Some Asian countries are graduating five times as many engineers.

The officials announced formation of a CEO Education Task Force to try to come up with solutions.

They also called on Congress to increase basic research funding and make permanent a research and development tax credit; promote broadband development, in part by minimizing regulations; enact a U.S.-Central America-Dominican Republic Free Trade Agreement; promote cybersecurity initiatives; and continue to take steps to reduce frivolous lawsuits.