COUNTERING OFFSHORE OUTSOURCING

Dr. Russell Lefevre IEEE-USA Vice President Technology Policy

r.lefevre@ieee.org

Deborah Rudolph IEEE-USA Technology Policy Staff

d.rudolph@ieee.org

PARTICIPANTS

• Council on Competitiveness• Senator Joe Lieberman• House Science Committee• Catherine Mann• Lou Dobbs• Future of American Innovation• IEEE-USA Committee-Ron Hira, John Meredith,

George McClure, Russell Lefevre

• IEEE-USA

Council on Competitiveness National Innovation Initiative

• Innovation Opportunities and Challenges– Global Trading System– Attract the best and brightest minds– “We compete and collaborate in a world in

which the power of networked communications, the extended manufacturing enterprise and access to low-wage talent has enabled the outsourcing of both low and high-skilled jobs

– Post Cold-war Security Environment

NNI 2

• Build a National Innovation Education Strategy• Catalyze the Next Generation of American Innovators• Empower Workers to Succeed in the Global Economy• Revitalize Frontier and Multidisciplinary Research• Energize the Entrepreneurial Economy• Reinforce Risk-Taking and Long Term Investment• Create National Consensus for Innovation Growth

Strategies• Create a 21st Century Intellectual Property Regime• Strengthen America’s Manufacturing Capacity• Build 21st Century Innovation Infrastructures-the health

care test bed

NNI 3

• Empower Workers to Succeed in the Global Economy– Stimulate workforce flexibility and skills

through lifelong learning opportunities– Accelerate portability of healthcare and

pension benefits– Align federal and state skills needs more

tightly to training resources– Expand assistance to those dislocated by

technology and trade

NNI 4

• Revitalize Frontier and Multidisciplinary Research– Stimulate high-risk research through “Innovation Acceleration”

grants that reallocate 3 % of agency R&E Budgets– Restore DoDs historic commitment to basic research by

directing 20% of the S&T budget to long-term research– Intensify support for physical sciences and engineering to

achieve a robust national R&D portfolio– Enact a permanent, restructured R&E tax credit and extend the

credit to research conducted in university-industry consortia

NNI 5

• Strengthen America’s Manufacturing Capacity– Create centers for production excellence including

shared facilities and consortia– Foster development of industry-led standards for

interoperable manufacturing and logistics– Create Innovation Extension Centers to enable SMEs

to become first-tier manufacturing partners– Expand industry-led roadmaps for R&D priorities

Lieberman 2005 Agenda

• Reintroduce S. 2747-Commission on the Future of the US Economy

• Legislation in Defense Authorization Bill to rebuild defense manufacturing base

• Build bipartisan support for NII

• Release White Paper regarding scientist/engineer visa problems

Lieberman 1

• Offshore Outsourcing White Paper-May 2004– Extend Compensation Benefits to Displaced Services

Workers– Notify Workers for Time to Prepare– Corporate Sponsored Insurance for Wage Loss– Proactive vs. reactive training– Agile and rapid retraining– Reform and Enforce Guest Visa Regulations– Increase federal investment in R&D– Encourage corporate investment in R&D

Lieberman 1 (continued)

– Innovation in Services– Invest in broadband infrastructure– Create environment to reward risks– Bridge institutional gaps in education and industry– Enable retired scientists’ participation in education– Improve college readiness through k-16 partnerships– Establish and enforce effective trade policies

– Greater access to world markets– Link US markets to foreign market

liberalization

Lieberman 1 (continued)

– Bring WTO cases when trade violations occur– End unfair currency practices in international

trade– Defend our IP rights– Workers’ rights in trade agreements– Remedy DHS problems of duty collection– Restore fiscal sanity

Lieberman 2

• Future of the US Economy Commission S.2747• White Papers

– Data Dearth– Broadband: Technology and Productivity Strategy– Make America Stronger: Restoration of US

Manufacturing – Global Migration of US Semiconductor Industry

OPTIONS

Workshop on Outsourcing

Re-Employment Strategies Workshop

Innovation Forum

IEEE-USA PLANS

• Participate in House Science Committee Workshop

• Develop reemployment strategies through Professional Activities

• Plan Joint Workshop with NII

HOUSE SCIENCE COMMITTEE

• House Science Committee Initiative– Briefing to House Science Committee

members and staff re factors contributing to the transfer of engineering work to low cost offshore locations and impact on unemployment, economy, and competitiveness

– Briefing persons: Ron Hira, David McCurdy, President (EIA), Reps from NSB, and PCAST

– Schedule: mid-April

Innovation Forum

• Joint Workshop with National Innovation Initiative (NII)– Target audience-Congressional staff, IEEE-

USA Grassroots, ASME, ASCE– Message-Support NII recommendations that

align with our agenda– Schedule: October 2005 (or 2006)– Speakers: NII speakers, (Lieberman),

Alphonse, Hira, others TBD

Discussion

FUTURE OF AMERICAN INNOVATION

The Knowledge Economy: Is the United States Losing Its Competitive Edge

• High Tech Industry Exports-US Losing Its Share

• Federal Investment in Physical Sciences in Decline

• Patent Applications-Others Gaining on US

• US S&E Article Share Declining

Catherine MannSenior Fellow, Inst. For International Economics

• Global Outsourcing & High Tech Jobs-March 2004

– Domestic Strategy: Match workers to changing jobs• Adjustment to new careers• Entry and up-skilling within career• Use tax incentives

– Global strategy: Negotiate two-way trade• Open markets abroad• Macro policies abroad

LOU DOBBS

• “Exporting America” Copyright 2004– Prohibit outsourcing of government contracts

to foreign labor– Review “Free Trade” agreements– Reexamine our relationship with World Trade

Organization– Outsourced jobs should meet privacy

standards– “Right to Know” for call center employees– Tax incentives to keep jobs at home

Lieberman 1

• Bonvillian “Economic Competitiveness”– R&D Funding-Niche Investments?– Talent– Organization of Science and Technology– Innovation Infrastructure– Manufacturing and Services

Support

• Council on Competitiveness– Debbie Van Opstal-Senior VP– Chad Evens-VP for Innovation

• Lieberman’s Office– Bill Bonvillian

• Athena Alliance• House Science Committee

– Mike Quear