Eric Schmidt warns that the U.S. is falling behind in the tech race with China and offers solutions.
- Former Google CEO Eric Schmidt recommended policy changes to help the U.S. keep up with China’s technology.
- In his recommendations, Schmidt suggested further private investment, more tax credits to train employees, and increased regulatory oversight.
- Schmidt says that the U.S. is falling behind on several important technologies including wireless 5G and artificial intelligence.
Why it’s news
Through the Competitive Studies Project that Schmidt funds, Schmidt offers solutions for both the private sector and the government.
The report encourages the government to incentivize private interest in microelectronic products by funding research. He also encourages increased security around tech and increased regulation to monitor investment that pours into China.
The Competitive Studies Project is inspired by Nelson Rockefeller’s similar initiative during the Cold War. Schmidt began the project last year.
Schmidt is also working alongside tech billionaire Peter Thiel in funding America’s Frontier Fund—an effort to raise $1 billion to focus on deep tech industries.
The report also calls for the government to establish a bank that would lower risk of private investment in deep tech and change visa requirements that would help alleviate low labor in the microelectronics sector.
“The U.S. has some immense economic advantages, but there are some warning lights flashing. The U.S. needs an America-style industrial strategy that leverages competition in our dynamic private sector and has carefully targeted incentives in sectors where we need to lead,” says project senior director Liza Tobin.