The major economic role for government is to ensure that institutions support and foster innovation.
Fiscal discipline is important, but funding for policies to spur innovation and competitiveness (including corporate tax expenditures) should not “be on the chopping block”; rather, they should be expanded.
Globalization can be an unalloyed good for the United States, but only if other nations generally play by the rules and America steps up its innovation game.
Mercantilist nations, like China, only hurt themselves.
America’s role in the global economy is to be a tough competitor that looks after its own economic interests first and joins with other like-minded nations committed to enforcing the global rules of fairly growing an innovation economy.
Innovation is a product of intentional human action that can and should be encouraged by policy.
The best tax code is one that includes specific incentives for spurring innovation and competitiveness.
While government needs to support “factor conditions” (e.g., basic scientific research and education), that alone is not enough to ensure a nation a pioneering position in innovation activity. More proactive innovation policies are needed.
Government can and should “pick winners” in the sense of identifying general industries and broad technology areas of national economic importance and playing a catalytic role in marshaling public and private resources to meet clear opportunities and challenges.