HEADING FOR A FALL?

SCIENCE AND TECHNOLOGY

THE HIGH-TECH bedrock on which the U.S. economy is based remains firm, but increased foreign competition and changing demographics could eventually cause America's science and technology global leadership to crumble. That's the gist of Science and Engineering (S&E) Indicators 2004, a National Science Board (NSB) biennial report. "For many years we have benefited from minimal competition in the global S&E labor market, but attractive and competitive alternatives are now expanding around the world," warns Warren M. Washington, NSB chairman. The paradox is that America's economic success demands more engineers and scientists than the country is producing. To a great extent, the United States has relied on foreign-born workers to fill those jobs. As of 2000, 17 percent of bachelor's degree holders, 29 percent of master's degree holders, and 38 percent of Ph.D.'s employed in U.S. high-tech jobs were not born in the United States. But since 2001 there's been a decline in the issuing of high-skill-related visas: in part because of higher State Department refusal rates but also because of competition from other countries. Another worrying indicator: Although America-based writers produce the largest share of scientific journal articles, their output has been flat since 1992, while the number of articles from authors based in developing countries is rising.

On that sobering note, here's some good news from the report. Federal funding for academic research and development, adjusted for inflation, has grown by 66 percent since 1990. Corporate R&D spending peaked at $180 billion in 2000, but despite an economic slowdown, R&D spending didn't drop by much. It was at $177 billion in 2002, or two thirds of the total amount spent: $276 billion. A surge in R&D spending by U.S. service-sector industries helped keep corporate numbers high. Between 1997 and 2000, the service sector's share of industrial R&D spending jumped from around 20 percent to about 35 percent. And that's certainly providing a great service to the American economy. -TG

Copyright American Society for Engineering Education Sep 2004
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