Sequestration’s proposed cuts to federal R&D spending would result in a...
Sequestration’s proposed cuts to federal R&D spending would result in a reduction of GDP and job growth, said a report Thursday by the Information Technology and Innovation Foundation (ITIF) (http://xrl.us/bnqn7v). The report estimates that the projected $95 billion in cuts…
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to federal R&D projects could result in a GDP loss of up to $860 billion over the next nine years. “In the past, federally funded research provided the core technologies that enabled the creation of many of today’s top companies including Cisco, Genentech, and Google, among many others,” said ITIF economist Justin Hicks. But the steep cuts required by the sequester could result in job losses of 200,000 in 2013 alone, the report said. “Cutting federal support R&D, a key ‘fuel’ for the U.S. innovation economy engine, would not only lead to a relatively smaller U.S. economy and higher unemployment, it would reduce U.S. global competitiveness precisely at a time when the U.S. economy is struggling to stay in the race for global innovation advantage,” the report said. Congress can still act between now and Jan. 1 to avoid the cuts, but budget experts and industry observers aren’t optimistic (CD Sept 7 p3).