Group: U.S. losing competitive edge


WASHINGTON (AP) -- Leaders of high-tech companies said the United States
risks losing its competitive edge without significant new investments in
education, research and development and the spread of broadband technology.

"The world is changing a little bit, and frankly there is a significant
amount of concern that if we don't make some adjustments, follow the
right public policies, do some things that are important, we could find
ourselves very quickly losing the advantage we've had for so long," Rick
White, president and chief executive of high-tech lobby TechNet, said at
a press conference.

The Palo Alto, California, group represents about 200 high-tech leaders,
including Microsoft, Intel Corp., Cisco Systems and Hewlett Packard.
TechNet made its annual lobbying trip to Capitol Hill this week to meet
with Cabinet members and congressional leaders.

White and other TechNet officials cited some troubling indications that
the United States is falling behind in high-tech development:

* Some 7 percent of U.S. households have the fastest kind of
broadband access, compared with 30 percent in Korea, 20 percent in Japan
and over 10 percent in France, TechNet leaders said. Overall, 20 percent
of U.S. households have some kind of high-speed connection, according to
a report issued last fall by the Commerce Department.

* U.S. investment in research and development has stayed flat for
the last three decades, while it has grown significantly in competitors
such as Brazil, India, China and Israel.

* Students in the United States are behind their counterparts in
other countries in math and science, and some Asian countries are
graduating five times as many engineers.

The officials announced formation of a CEO Education Task Force
to try to come up with solutions.

They also called on Congress to increase basic research funding
and make permanent a research and development tax credit; promote
broadband development, in part by minimizing regulations; enact a
U.S.-Central America-Dominican Republic Free Trade Agreement; promote
cyber-security initiatives; and continue to take steps to reduce
frivolous lawsuits.

TechNet leaders also pledged to continue their opposition to a
proposed Financial Accounting Standards Board rule that would require
companies to deduct the value of employee stock options from their profits.

Requiring some big companies to expense the popular employee
incentives could dramatically reduce their profits.



Find this article at:
http://www.cnn.com/2005/TECH/03/10/h....ap/index.html