Federal government of the United States Essay

2010 Carnegie endowment for International Peace. All rights reserved. The Carnegie Endowment does not make up institutional positions on public policy issues the views be here are the authors own and do not necessarily reflect the views of the Endowment, its staff, or its trustees.No part of this publication whitethorn be reproduced or transmitted in any form or by any means without permission in writing from the Carnegie Endowment. am part direct inquiries toAbout the AuthorNathaniel Ahrens is a visiting scholar in the Carnegie Energy and Climate Program, where his research focuses on climate, energy, and sustainable victimization issues in chinaware. He is the president of Golden Road Ventures Ltd., a business development and strategic advisory firm that provides expertise and support for critical projects in China, including sustainable development, regimen procurement, agriculture, and media. Previously, Ahrens was senior product manager and director of world-wide sales for Intrinsic Technology, a kidnap-based telecommunications software provider.He also founded impress Pack Ltd., a luxury-brand packaging company based in Shanghai and Paris. Ahrens is a member of the National Committee on U.S.China Relations, the Asia Society, and serves as an honorary ambassador for the State of Maine.Indigenous institution1 has become the greatest fast source of economic friction between the united States and China. This issue is not unique to these two countries policy makers sphericly are actively toilsome to stimulate domestic innovation.The burgeoning markets for biotech and environmentrelated products and services and, potentially even more than important, countries efforts to pop from the global economic slowdown all reinforce this trend. Mindful of this global scene, China has made indigenous innovation unmatchable of the core elements of its onset to make a structural shift up the industrial grade chain.Recently, however, indigenous innovatio n has been tarred with a protectionist brush. In both China and the United States, there have been increasing calls for buy-local stipulations and the erection of tariffs and non-tariff barriers to trade. In China, these measures primarily take the shape of government local content mandates and through the preferential discussion given to products officially classified as national indigenous innovation products (NIIP) in the government procurement process. In the United States, they have taken the form of buy-local provisions and efforts to shut out foreign companies.The conflict has been escalating dangerously. In the run-up to the recent Strategic and Economic Dialogue, the U.S. business community stratified indigenous innovation in China as its number one policy concern, above even the currency issue. As of this writing, the key points of contender remain unresolved.Yet despite the loud cries of protest against it, the global trend toward homegrown innovation is a healthy, po sitive development. Without innovation, countries cannot continually raise honorarium and living standards.2 judicature procurement should play an important role in stimulating innovation, but maintaining open markets and international linkages is critical.But instead of pursuance its current approach of short-term product substitution and picking winners by protecting them from competition, China should focus on proven, market-friendly ways of stimulating innovation. Government procurements primary roles should be market signaling, de-risking R&D, bridging the pay gap, and stimulating demand.The United States would also benefit by refocusing its government procurement policies along the lines indicated in the key findings of this paper, especially concentrating on facilitating more open markets and elevating the importance of sustainable procurement. The following set of specific recommendations for China will stimulate innovation through open markets and the effective use of g overnment procurement