- The report argues that the United States retains major techno-economic advantages, including its innovation ecosystem, productive workforce, capital markets, dollar centrality, and allied networks, but that these strengths are showing signs of strain.
- SCSP proposes a techno-industrial strategy built around five pillars: production, pipes, people, project, and pushback, intended to boost technology diffusion, fill security gaps, and strengthen democratic advantage.
- The production chapter identifies vulnerabilities in rare earth elements, permanent magnets, advanced batteries, and microelectronics, and recommends stockpiling, onshoring, friendshoring, moonshots, and investment mechanisms to reduce dependence on China.
- The digital infrastructure chapter calls for a national strategy spanning broadband, fiber, 5G and 6G, satellite connectivity, computing resources, data governance, cybersecurity, and energy needs for digital systems.
- The workforce chapter argues that education partnerships, apprenticeships, STEM investment, skilled immigration reforms, research-security safeguards, and worker-training tax credits are needed to sustain U.S. technology leadership and broaden benefits from automation.
The report is the Economy Panel Interim Panel Report, described as the third of six interim reports from SCSP’s broader work on national competitiveness. It frames the United States’ economic competition with the People’s Republic of China as a technology-centered contest and argues that U.S. advantages in innovation, labor productivity, capital markets, the dollar, and allies are under pressure from slowing productivity growth, manufacturing erosion, talent gaps, digital infrastructure shortfalls, supply chain vulnerabilities, and PRC industrial policy. The report organizes its proposed techno-industrial strategy around five pillars: production, pipes, people, project, and pushback. Its sector analysis covers critical minerals and magnets, advanced batteries, microelectronics, broadband and advanced wireless networks, satellite connectivity, computing and data resources, workforce development, immigration, research security, automation, digital finance, payment infrastructure, trade finance, investment screening, export controls, market-access restrictions, and sanctions planning. The report’s policy relevance lies in its call for public-private initiatives that accelerate technology diffusion, rebuild strategic production capacity, modernize digital and financial infrastructure, expand technical talent, coordinate with allies and partners, and restrict PRC access to U.S. capital, technology, markets, and data when national security or economic resilience is at stake.
America faces a generational competition with the People’s Republic of China, and technology is at the center.
SCSP
- Accelerate stockpiling efforts for rare earth minerals and permanent magnets. Stockpiling can buy time for the United States in the event of a war, national emergency, or other disruption.
- Drive localization and friendshoring of advanced battery supply chains. The United States should work with its allies and partners to bring mines and processing facilities online.
- Create a National Strategy for Digital Infrastructure. America needs a comprehensive framework rationalizing programs to provide high-quality broadband connectivity while planning for future upgrades.
- Invest in education and apprenticeship programs to upgrade America’s tech workforce. Apprenticeships can train and reskill a new generation of workers in fields critical to U.S. competitiveness.
Published by the Special Competitive Studies Project. Co-publishers and external authors, where they exist, are credited in the byline above.