A new report from the Committee for Economic Development (CED) warns that the U.S. may be losing its edge when it comes to innovation.
In short: the nation that once led global breakthroughs could be falling behind.
In the 1960s, federal research and development (R&D) made up almost 12 percent of the federal budget. Today it’s closer to 3 percent.
That decline comes at the same time other countries (like China, South Korea and Germany) are ramping up their spending on R&D.
The U.S. is shifting toward private companies doing more “applied” research (things that bring near-term returns) while the government’s support for basic (long-term) research is shrinking.
A Wake-Up Call for American Exceptionalism
From a conservative viewpoint, this matters because innovation is tied to national strength, economic freedom and the idea of American exceptionalism. When the U.S. leads in science, defense, technology and business, it strengthens our standing in the world.
The CED report puts it this way:
“The United States’ innovation advantage, once taken for granted, is eroding. Without renewed focus and investment, we risk becoming dependent on others for critical technologies.”
That quote nails the concern: if America stops being the one doing the breakthroughs, we become the one buying them from someone else.
The good news? The solution isn’t simply “spend more government money.”
The report emphasizes smarter spending: public-private partnerships, focusing on where America really needs to lead, and cutting waste and duplication.
That aligns a little more closely with conservative values of private sector strength, accountability, and strategic government support rather than big bureaucracies.
How the Innovation Engine Started to Stall
Imagine America is playing in a relay race of car manufacturers.
Long ago, we built the engine, the gears, the whole car from scratch. We made the whole machine.
Then other teams come along, they build their own engines, improve their cars.
We start focusing on putting fancy rims or paint jobs (applied tech) rather than the engine itself (basic research).
Over time, those teams pass us on the basics. Suddenly we’re buying engines from them.
When we reduce basic research, we may lose the ability to make our own engines.
And the private sector can’t fully pick up that job alone, because private firms often focus on what pays off quickly, not the long-term game.
How Nevada Fits In
This matters for Nevada too.
The Nevada Governor’s Office of Economic Development (GOED) is working hard to build an innovation ecosystem here: start-ups, university research, high-tech manufacturing.
For example: the Nevada Tech Hub project centered on lithium batteries and electric-vehicle materials is based out of Northern Nevada, and it aims to bring tens of thousands of jobs.
In Las Vegas and Reno, there are already signs of growth: more R&D job listings, and companies moving in to get in on the action.
So when the national report says “we’re slipping,” for Nevada the message is: this is a moment to lean in – make sure we capture the growth, don’t get left behind.
How to Get America Back on Track
The CED report calls for several concrete steps:
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Better oversight of federal research spending, to make sure taxpayer dollars are used well.
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More public-private partnerships, so government and industry team up rather than duplicating work.
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Stronger talent pipelines — more STEM education, visas for skilled workers, etc.
Critics will point out that bigger federal investment could mean more government bureaucracy, slower progress, or wasting money on pet projects.
Some worry that calls to “invest more” could be taken as justification for big new federal spending and expansion of government.
That’s a valid concern.
The key is that any increase in investment must come with discipline, accountability and a clear focus on strategic areas – not just throwing more money at the problem and hoping for the best.
Keep America Inventing
America’s innovation engine is sputtering a bit.
The U.S. enjoyed decades of leadership built on strong federal backing of basic research combined with a thriving private sector.
Now the federal share is much smaller, and global competitors are gaining speed.
For Nevada families and businesses, this is an opportunity and a warning.
If we support research, encourage private industry, and build our talent Nevada can gain jobs and economic strength.
If we sit back and assume our advantage will keep us safe, we could end up watching others pull ahead.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
