Tech groups welcome president's priorities, want action on others

Tech Groups largely welcomed President Obama's focus during his State of the Union address Tuesday night on the need to promote U.S. innovation by improving education and investing in research and development, but they also noted that the United States must support other key priorities such as free trade and tax policies that will help American firms remain competitive.

"We heartily agree with the president that if we are to win the future, our nation's focus must be on accelerating entrepreneurship, innovation, global competitiveness and job creation," TechAmerica CEO and President Phil Bond said. "Much remains to be done to keep America at the cutting-edge, however. Pro-innovation tax reform, free trade, improved education, immigration reform, broadband deployment, a permanent R&D credit and securing cyberspace are all critical for honing our competitive edge in the 21st century economy."

In particular, he pointed to the need to overhaul the nation's tax code, noting that if "nothing changes by this spring, the U.S. will tax corporations at a higher rate than any other nation."

Consumer Electronics Association President and CEO Gary Shapiro argued that the "spotlight on innovation must include trade agreements, as we need overseas markets for U.S. businesses to grow and create American jobs. The Korea, Panama and Colombia Free Trade Agreements will bolster U.S. exports of goods and services and CEA continues to urge swift passage of these" agreements.

Several groups also praised the president's focus on the need to better educate children in science, technology engineering and math (STEM).

Compete America, a coalition that includes tech groups and companies like Google, Hewlett-Packard and Microsoft, said it supports this goal but also is pushing for legislation that would allow foreign-born students who obtain STEM degrees in the United States to obtain green cards. "It makes no sense to educate foreign-born students in our U.S. universities and colleges and then send them abroad to compete against us," the group said.

It was a goal Obama appeared to embrace when he said, "And let's stop expelling talented, responsible young people who can staff our research labs, start new businesses, and further enrich this nation."

TechNet President and CEO Rey Ramsey acknowledged the tough budget realties facing the nation, but echoed Obama when he said investing in these priorities is key to economic growth.

"Certainly, today's budgetary environments are a challenge - and many worthy programs will have to tighten their belts," he said. "But we cannot abandon our responsibilities to the next generation. We must continue to carefully and intelligently invest in those areas that will help drive today's economic recovery and tomorrow's economic prowess."

House Science, Space and Technology Chairman Ralph Hall, R-Texas, said investments in R&D must be balanced with the need to cut the deficit. "While appropriate investments in science and technology are important, they must be made prudently within the confines of a disciplined budget," he said in a statement. "

And House Energy and Commerce Chairman Fred Upton, R-Mich., said in response to the president's speech that, "Government cannot force the people to innovate, but if we can get government out of the way, American ingenuity will emerge every time. We are home to the world's best ideas and brightest minds."

Nonetheless, Information Technology Industry Council President and CEO Dean Garfield urged bipartisan cooperation on the goals his group and others say are necessary to help U.S firms better compete with foreign companies.

"I hope Republicans and Democrats will join together and outline a deadline-driven plan that includes the majority of what we heard tonight (e.g. - corporate tax reform, innovation and strategic investment, STEM education, expanded trade, broadband deployment and R&D)," Garfield said. "The longer we wait, the harder it will be to rise to the challenge and achieve consensus before the 2012 election. China and India aren't waiting, so neither should we."