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<\/figure>\n\n\n\nThe competitive status of U.S. manufacturing had been increasingly challenged by the state-of-the-art technologies being developed by established nations such as Japan, Germany, Korea, and Taiwan. China has acquired advanced manufacturing capability through R&D tax incentives, incentives for direct foreign investment, and theft of intellectual property. <\/p>\n\n\n\n
According to the 2018 annual survey<\/a> conducted by the Industrial\nResearch Institute (IRI), 59 percent of the companies responding said they plan\nto increase R&D spending in 2018; only 29 percent reported\nanticipating little or no change, and 13 percent are expecting a decrease in\ntotal R&D spending.\u201d Note: This is\nthe last year that the report is available for free, 2019 and 2010 reports now\ncost $51.)<\/p>\n\n\n\n \u201cThe State of U.S. Science and Engineering 2020\u201d report<\/a> by the National Science Board of\nthe National Science Foundation states, “Although the levels of federal\nR&D funding rose across performing sectors between 2000 and 2017, the share\nof total U.S. R&D funded by the federal government declined from 25% to\n22%…By type of R&D, the shares of federal government funding for basic\nresearch and experimental development declined since 2000 despite rising levels\nof funding. The federal government is a major funder of basic research, and\nbetween 2000 and 2017, the share of basic research funded by the federal\ngovernment declined from 58% to 42%. Federally funded applied research was an\nexception during this period, as both the level and share rose.”<\/p>\n\n\n\n America\u2019s manufacturing innovation process leads to investments in\nequipment and people, to productivity gains, the spreading of beneficial\ntechnology to other sectors, and to new and improved products and processes. It\nis an intricate process that begins with R&D for new goods and improvements\nin existing products. As products are improved in speed, accuracy, ease of use,\nand quality, new manufacturing processes are utilized to increase productivity.\nEducation and training of employees is required to reap the benefits of such\nimprovements in manufacturing processes. <\/p>\n\n\n\n Innovation is the hallmark of U.S. manufacturing, and\nit requires a certain mass of interconnected activities, which, like a snowball\nrolling downhill, grows in size as it proceeds toward end users. Substantial\nR&D is required to keep the ball rolling to ensure more successes than\nfailures. <\/p>\n\n\n\n