A Few Minutes with Moyshe Silk

Silk is well positioned to comment on the United States Innovation and Competition Act of 2021, which passed the Senate last week and goes next to the House of Representatives. The Senate vote marked a rare moment of agreement between Republicans and Democrats in Washington. Both parties have begun to realize that China poses a real challenge to the US when it comes to new technology, research and development, 5G, and cybersecurity. There is a growing fear the US could fall behind its number one competitor.

The Senate bill allocates $250 billion to try to tackle the challenge. The funding would include:

• $52 billion to subsidize semiconductor manufacturing; it is hoped this will address the global shortage of chips, which is disrupting crucial portions of America’s supply chain. Some $10 billion of this is designated for research and development.
• $29 billion for the “Endless Frontier” program, which creates a new directorate of technology and innovation within the National Science Foundation to conduct research on artificial intelligence, robotics, and biotech.
• $9.57 billion over the next five years for university technology centers and innovation institutes to conduct multidisciplinary, collaborative research relevant to the key technology focus areas.
• $1.5 billion over five years “to counter the malign influence of the Chinese Communist Party globally.” There are an additional several billion dollars aimed to enhance cooperation between the US and countries in the Indo-Pacific.

Another section of the bill, titled “Build America, Buy America,” imposes a requirement that all federal infrastructure programs must purchase iron and steel products and construction materials that are 100 percent made in the US.

But will all this be enough for America to regain its edge over its chief adversary? That’s a question for our expert.