A core component of President Obama’s agenda to grow the middle class is to make the U.S. a magnet for the location of high-quality jobs – especially those that support manufacturing and innovation.
The President has already taken significant steps to support America’s manufacturers, including by announcing nearly $250 million in funding to support four new manufacturing innovation institutes, aggressive new efforts to enforce trade agreements and open new markets, new investments in community colleges to help workers get the high-demand advanced manufacturing credentials needed by our manufacturers, and launching the first-ever federal effort to bring job-creating foreign investment to the U.S.
And going forward, the President will continue to push a comprehensive agenda to support a manufacturing renaissance that includes supporting a network of up to 45 manufacturing innovation institutes with a one-time $3 billion investment, making the U.S. more cost competitive by reforming our business tax code including a rate no higher than 25% for manufacturing, expanding and making permanent the R&D tax credit, continuing to ensure that trading partners like China are playing by the rules, and pushing new efforts to train workers for the jobs of today and tomorrow.
Our emphasis on manufacturing is due to the unique role that the sector plays in creating positive “spillover” benefits to our broader economy, particularly in its connection to our ability to innovate. Manufacturing punches above its weight; despite representing 12 percent of GDP, manufacturing accounts for roughly 70 percent of private sector research and development, 60 percent of all US R&D employees, over 90 percent of patents issued, and the majority of all U.S. exports. The benefits from a stronger manufacturing sector go far beyond factory jobs and include the production capabilities needed in design and innovation for many technologies, the high-skill talent that enable our services industries, and the dense web of suppliers that employ millions outside of the manufacturing sector.
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