Arlington, Va. (June 21, 2022) – Today, the Aerospace Industries Association (AIA) President and CEO Eric Fanning released the following statement as leaders of the House and Senate negotiate the Bipartisan Innovation and Competition Legislation:
“The Bipartisan Innovation and Competition Legislation is essential to encouraging innovation, supporting national security, and ensuring America remains competitive. House and Senate leadership’s discussion of this legislation comes at a critical time when America’s competitive edge is the most essential it has ever been, but the headwinds against us are also the strongest. We urge Congressional leadership use this opportunity to work to find common ground and come to a swift agreement.
“This legislation is a critical opportunity to help strengthen domestic manufacturing and the workforce by leveraging private investments with public investments and reversing course on a major tax law that disincentivizes critical American research and development (R&D). Today, 71 percent of U.S. R&D spending originates in the private sector and nearly 70 percent of that is spending is used for salary and wages. Meanwhile, the Chinese government is doubling down on incentives for innovation. In 2020, China set a record high of R&D spending totaling $378 billion. This surge in spending and tax law change has huge implications for the future of our workforce, economy, national defense, and global leadership.
“The final conference agreement also must address the global semiconductor chip shortage, which affects many industries and our national security. Strategic investments in our domestic semiconductor manufacturing base will support American jobs and strengthen our global leadership in chip technology for years to come.”