Federal government of the United States Essay Example for Free

Federal government of the United States Essay 2010 Carnegie Endowment for Inter case Peace. All rights reserved. The Carnegie Endowment does non take institutional positions on public policy issues the views represented here are the authors own and do not necessarily hypothesise the views of the Endowment, its staff, or its trustees.No part of this publication may be reproduced or transmitted in any form or by any room without permission in writing from the Carnegie Endowment. Please direct inquiries toAbout the AuthorNathaniel Ahrens is a visiting scholar in the Carnegie Energy and Climate Program, where his research center ones on climate, energy, and sustainable development issues in China. He is the president of Golden Road Ventures Ltd., a business development and strategic advisory firm that provides expertise and brave out for critical projects in China, including sustainable development, government procurement, agriculture, and media. Previously, Ahrens was senior p roduct manager and director of international sales for Intrinsic Technology, a Shanghai-based telecommunications software provider.He excessively founded Shanghai 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 innovation1 has become the greatest immediate source of economical friction between the United States and China. This trend is not grotesque to these two countries policy makers globally are actively trying to stimulate domestic innovation.The burgeoning markets for biotech and environmentrelated products and services and, potentially even more important, countries efforts to emerge from the global economic slowdown all reinforce this trend. Mindful of this global scene, China has made indigenous innovation star of the core elements of its attempt to make a morphological shift up the industr ial value chain.Recently, however, indigenous innovation 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 hard-on 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 treatment 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 interlocking has been escalating dangerously. In the run-up to the recent Strategic and Economic Dialogue, the U.S. business community ranked indigenous innovation in China as its number one policy concern, above even the currency issue. As of this writing, the key points of contention remain unresolved.Yet despite the loud cries of protest against it, the globa l trend toward native innovation is a healthy, positive development. Without innovation, countries cannot continually raise wages and living standards.2 Government procurement should play an important role in stimulating innovation, exclusively maintaining open markets and international linkages is critical.But instead of following 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 RD, bridging the finance 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 unique(predicate) recommendations for China will stimu late innovation through open markets and the effective use of government procurement