Senate hearing addresses US competitiveness through innovation and regulatory reform
June 05, 2025 | Joint Economic Committee, Joint Committees, Congressional Hearings Compilation
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The Joint Economic Committee convened on June 5, 2025, to discuss critical barriers to supply chain modernization and enhancements in factor productivity. The meeting highlighted the urgent need for reforms in regulatory processes and investment strategies to bolster U.S. competitiveness, particularly in manufacturing and technology sectors.
Key discussions centered around the impact of the Bipartisan Science Act, which has spurred significant private sector investments in U.S. manufacturing. However, witnesses emphasized that overly complicated regulatory reviews and unnecessary requirements are hindering progress. Dr. Shivakumar pointed out that while regulations are essential for environmental protection, they must be streamlined to avoid delays that cost the semiconductor industry billions of dollars. He noted that the lengthy approval processes, particularly under outdated laws like NEPA, are not suited to the fast-paced demands of modern manufacturing.
The committee also addressed the disconnect between the U.S. research infrastructure and its manufacturing capabilities. Dr. Shivakumar stressed the importance of integrating research with manufacturing to maintain a competitive edge against countries like China and Japan, which prioritize manufacturing in their innovation strategies. He called for better alignment between educational institutions and industry needs to cultivate a skilled workforce.
Senators expressed concern over the current administration's approach to research funding, arguing that cuts to university funding and restrictions on international students could undermine U.S. innovation and competitiveness. The discussion underscored the historical context of U.S. manufacturing and research, noting that post-World War II investments in research infrastructure were crucial for economic growth.
The meeting concluded with a consensus on the need for public policy reforms that prioritize domestic production and reduce reliance on foreign supply chains, particularly in critical sectors like semiconductors and aerospace. The committee emphasized that without proactive measures, the U.S. risks falling behind in global competitiveness and innovation.
Key discussions centered around the impact of the Bipartisan Science Act, which has spurred significant private sector investments in U.S. manufacturing. However, witnesses emphasized that overly complicated regulatory reviews and unnecessary requirements are hindering progress. Dr. Shivakumar pointed out that while regulations are essential for environmental protection, they must be streamlined to avoid delays that cost the semiconductor industry billions of dollars. He noted that the lengthy approval processes, particularly under outdated laws like NEPA, are not suited to the fast-paced demands of modern manufacturing.
The committee also addressed the disconnect between the U.S. research infrastructure and its manufacturing capabilities. Dr. Shivakumar stressed the importance of integrating research with manufacturing to maintain a competitive edge against countries like China and Japan, which prioritize manufacturing in their innovation strategies. He called for better alignment between educational institutions and industry needs to cultivate a skilled workforce.
Senators expressed concern over the current administration's approach to research funding, arguing that cuts to university funding and restrictions on international students could undermine U.S. innovation and competitiveness. The discussion underscored the historical context of U.S. manufacturing and research, noting that post-World War II investments in research infrastructure were crucial for economic growth.
The meeting concluded with a consensus on the need for public policy reforms that prioritize domestic production and reduce reliance on foreign supply chains, particularly in critical sectors like semiconductors and aerospace. The committee emphasized that without proactive measures, the U.S. risks falling behind in global competitiveness and innovation.
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