Secretary's Speech

U.S. Secretary of Commerce Carlos M. Gutierrez
National Academies Convocation on
”Rising Above the Gathering Storm Two Years Later: Accelerating Progress toward a Brighter Economic Future”
Washington, D.C.

Thank you. It’s no secret America’s continued preeminence in the global economy is not guaranteed—in fact our position is being challenged.

How we respond to the changing world around us will impact our nation and our economy for decades to come. The “Gathering Storm” report articulated ways in which we must address our nation’s shortages of talented educators and scientists.

Commerce has an important role to play across a number of arenas when it comes to America’s future competitiveness.

NIST, the National Institute of Standards and Technology, a part of Commerce, is a premier federal center of science and one of the vehicles to increasing R&D as part of the American Competitiveness Initiative (ACI).

Though NIST has not received the full funding as requested by the President to support cutting-edge research, we are forging ahead.

NIST has created the Center for Nanoscale Science and Technology. Nanotechnology is just one area where the basic research funded by ACI has real world impacts.

Advances in manipulating matter on the tiniest of scales is spurring business creation around the world, showing tremendous potential for new health benefits, economic growth and productivity.

In medicine, nanotechnology has the potential to deliver drug therapy in a more targeted fashion with fewer sides affects and greater benefits to the patient. It also has significant implications for computers—potentially providing smaller and more powerful computer chips that will be able to power innovation in a host of disciplines.

The Administration has also set a goal to increase the number of scientists and engineers at NIST by 1,500, but this goal will only be met if the President’s proposal to double funding for basic research is implemented.

I cannot emphasize enough the importance of the ACI. Maintaining America’s technology leadership requires a commitment to basic science. The President has made this commitment, and it’s essential that Congress fulfill it.

One of the 20 actions outlined in the “Gathering Storm” report was to enhance intellectual property protection for the 21st century global economy.

In virtually every bilateral meeting we emphasize the importance of protecting intellectual property. Yet, while we work with our neighbors around the globe, we must also ensure that our intellectual property system at home remains the envy of the world.

Intellectual property is a key element in our nation’s economic expansion and has helped make American workers the most productive in the world.

Part of encouraging innovation is to offer protection for the advances, discoveries and innovations of our scientists and researchers. This has been a critical function of the Patent and Trademark Office for more than 200 years. Congress is engaged in a serious effort to reform our patent system—the first comprehensive effort in more than 50 years.

The Bush Administration strongly supports patent modernization legislation that enhances innovation by improving the quality of patent applications and fairly balancing the interests of innovators across all industries and technologies. Without such a balance, we risk creating disincentives for innovators and seriously hindering vital areas of innovation.

I believe that the Senate can strike this balance, and I urge Senators to continue their efforts to get a good bill to the President’s desk.

Openness is another essential element of American Competitiveness—being open to trade and to people.

Trade is playing an increasingly significant role in our economy with exports accounting for 12 percent of GDP last year. We are the world’s No. 1 exporter, with over $1.6 trillion in goods and services exported in 2007.

To continue our record export growth, America must maintain its posture as a leader in the global economy, committed to breaking down economic barriers and engaging with countries around the world.

We must pass pending free trade agreements with countries in our own hemisphere, such as Colombia and Panama—and with South Korea, a country in an increasingly competitive Asia.

And let me just say that on the Colombia FTA, the United States has no better ally in Latin America than Colombia. The country has fought back against narco-terrorists, Marxist guerrillas and violent drug cartels—we must not abandon an ally in their time of need. Congress needs to allow a vote on this important agreement—and bring it now.

Finally, we must be open to people. No discussion of America’s competitiveness is complete without discussing immigration.

The debate our nation has been waging over immigration is vitally important. But only a comprehensive system that addresses security and prosperity will be effective. Our country has a long history of making immigration work—we must not let that advantage fade in the 21st century.

Many of the countries competing against us today were not even participants in the global economy 20 years ago.

And it is worth noting that companies like Google, Dell, Cisco and eBay didn’t exist 30 years ago. But they were founded in America—a place where creativity and initiative are encouraged and rewarded.

Though we do have challenges lying ahead, I do believe we will succeed in the future because of our fundamental strengths, which are our freedom and liberty.

Fostering science and innovation, protecting intellectual property and being open to trade and immigration are just few ways that we are working to address the gathering storm. Thank you and I look forward to your questions.