This is a press release from American Competitiveness Alliance (ACAlliance)
Incoming Dean of Dartmouth's Tuck School of Business Outlines Policies Needed to Reach 2025 Projection
WASHINGTON, March 31, 2015 (PRNewswire) |
The U.S. is on the brink of a new IT revolution that could produce $5 trillion in economic gains by enabling companies to drive innovation, jobs and income growth, and opportunity from a new wave of technologies requires updated immigration and visa policies, concludes a new report released today by the American Competitiveness Alliance
The new paper — "IT Services, Immigration, and American Economic Strength"
by Professor Matthew J. Slaughter, incoming Dean of the Tuck School of Business at Dartmouth—identifies the policy challenges facing the U.S. labor market as it expands its high-value knowledge and technology-based economy. It advances the requirements for a suite of recommended actions that Congress can take to address the shortage of specialized STEM workers at U.S. companies and further harness the IT sector as a driver of American innovation and growth.
"Today a new wave of IT innovation is building around social, mobile, analytical, and cloud technologies," said Slaughter, incoming Dean of the Dartmouth Business School. "This next IT revolution could create economic value worth 10% to 30% of U.S. GDP—manifested in new jobs, new goods and services, and rising incomes—if America has sufficient access to global talent."
The report, drawing on both employment and economic data, finds that IT services companies are increasingly critical to America's economic future.
Professor Slaughter's research also illustrates how current U.S. immigration policies, many hatched years ago in the PC and early internet era, unduly constrain American companies' ability to hire immigrants with specialized new technology skills from the global pool of talent and deploy them in support of American innovation and competitiveness.
Professor Slaughter also finds that proposals presented during the last Congress could have caused substantial harm to U.S. economic growth, including fewer jobs created, higher employer and consumer costs, reduced quality of service, and decreased innovation.
Slaughter also notes the strong and positive impact that skilled immigrants have had in supporting new job creation and rising wages in America by helping drive American innovation.
This week's 2015 H-1B visa lottery will serve as yet another reminder that the U.S. needs access to a larger pool of the world's professional STEM workers. On April 1, the U.S. Citizenship and Immigration Services (USCIS) will begin accepting H-1B petitions for fiscal year 2016. The current annual cap for H-1B visas is set at 65,000, with an additional 20,000 reserved for foreign nationals graduating with a U.S. master's degree or higher. In 2014, there were 172,500 applications for H-1Bs, surpassing the quota within days of the first application-filing date. An improving economy and an increasing demand for qualified workers to supplement America's current skilled worker shortage suggest a similar story for 2015.
"The United States today continues to confront a competitiveness challenge of recruiting and securing talent for jobs. Too many of the world's smartest workers are going to competing markets," said Rosario Marin, former U.S. Treasurer and Co-Chair of the ACAlliance. "Professor Slaughter's work highlights the potential for America to support the creation of millions of high-quality, high-paying jobs right here in America. Doing so will require sound U.S. policies based on a sound understanding of how innovative U.S. companies succeed in today's complex global economy."
Professor Slaughter's paper joins volumes of research highlighting America's serious STEM skills deficit. While advancing STEM education programs is essential for long-term success, Slaughter's paper outlines policy recommendations that will enable companies across the U.S. economy to better harness IT for innovation, efficiency, and growth today.
"Nearly every aspect of America's economy today is supported by some sort of IT system that improves efficiencies, quality, or growth, but our public policies are out of date," said Slaughter. "Our elected officials can and should advance modern, constructive policies that support the dynamic companies that drive innovation, jobs, and opportunity—companies like America's IT-services providers. By taking action now, Congress can ensure access to the kind of global talent that could create tremendous economic value for the United States."
Matthew J. Slaughter is the Signal Companies' Professor of Management and associate dean for faculty at the Tuck School of Business at Dartmouth. He was named the school's 10th dean in January, a role he will assume on July 1, 2015. A scholar of international economics and an expert in globalization, Slaughter is the founding Faculty Director of the Center for Global Business and Government. He is also currently a Research Associate at the National Bureau of Economic Research; an adjunct Senior Fellow at the Council on Foreign Relations; a member of the advisory committee of the Export-Import Bank of the United States; and a member of the academic advisory board of the International Tax Policy Forum.
From 2005 to 2007, Professor Slaughter served as a Member on the Council of Economic Advisers in the Executive Office of the President. In this Senate-confirmed position he held the international portfolio, advising the President, the Cabinet, and many others on issues including international trade and investment, currency and energy markets, and the competitiveness of the U.S. economy.
About the American Competitiveness Alliance
The American Competitiveness Alliance (ACAlliance) is a coalition of organizations dedicated to a modern immigration policy that ensures America's global competitiveness by attracting and keeping talent and know-how here in the United States.
Led by Co-Chairs former Governor Bill Richardson and former Treasurer of the United States Rosario Marin, the ACAlliance works to educate and inform stakeholders of the positive impact immigration reform can have on our economy, while cautioning against proposals that would do our economy harm. Visit us online at www.acalliance.org
or follow us on Twitter: @AC_Alliance