When it comes to manufacturing, there is a strong link between research and production. Scientists want to be close to the shop floor when engineers test the fruits of their creativity and ingenuity. This research is key to the success of manufacturing and currently claims more than two-thirds of the R&D tax credit for manufacturing enterprises.
If Congress and the Administration want to help reignite innovation, production, and employment here in the U.S., however, they can take steps to extend and revise the research and development tax credit, which would reinvigorate innovation and benefit early stage commercial testing rather than sending it offshore.
The U.S. has been the envy of the world when it comes to innovation. Our leadership appears to be shrinking, however, and the National Science Board reports that several major Asian economies, led by China, now perform a larger share of global R&D than the U.S.
Equally troubling is that much of our research currently leaves the lab bench and travels overseas when it comes to actual production.
Read more about tax policies that can help manufacturers on IndustryWeek.
IndustryWeek is an NED companion site within Penton’s Manufacturing & Supply Chain Group.