YaleGlobal. April 13, 2012.
Jobs remain a central concern for the US voters and the 2012 presidential campaign. Candidates of opposing parties, and even insiders of the Obama administration, debate whether government intervention, including subsidies for particular industries, helps or hurts companies. Here, the author argues that the US needs to join other economic powerhouses, including China, Japan and Germany, in developing an industrial policy to compete in global markets. China assembles high-tech equipment for firms based in the West, but the intricate components – digital signal processors, chips, optics – come from Japan, Germany and the United States. Manufacturing accounts for two thirds of all research and development, the author notes. [Note: contains copyrighted material].