"EIA is thrilled by today's introduction of the National Innovation Act of 2005 (NIA), which includes so many measures that can help the U.S. remain an economic leader in the global high-tech economy. It is an ambitious piece of legislation that spans the policy spectrum, but with the commitment and support of policymakers from both sides of the aisle, we hope to see these important provisions quickly begin to take effect and fuel the U.S. innovation engine.

"The NIA addresses many of the concerns that EIA outlined nearly two years ago in our policy playbook, The Technology Industry at an Innovation Crossroads, and we are encouraged that such thoughtful legislators as Senators Ensign and Lieberman have put their stamp on positive proposals in areas that impact the U.S. high-tech industry. As a participant in the Council on Competitiveness' National Innovation Initiative, on which this bill is based, the Alliance provided input on several issues that the NIA intends to address, including prioritizing federal government support for research and development through increased funding, and a commitment to an improved education system that can graduate cadres of future technologists.

"In a time when budgetary concerns, trade tensions and the ongoing War on Terrorism consume policymakers' attention, we realize that making innovation and U.S. competitiveness policy topic #1 is no easy task. But it must occur. Two years ago, EIA called for the debate and dialogue necessary to create a national technology vision and strategy. The call for that vision and strategy is no less urgent today, and we commend Senators Ensign and Lieberman for their well thought-out response.

"The Senators share EIA's belief that the best hope for the U.S. to maintain its edge against rising global competition is by fostering and expanding our most prized intellectual asset: innovation. Over the past 30 years, innovation has given the U.S. and the rest of the world wave after wave of technological advancement and generated millions of high-skilled jobs. If we want to ensure that successive waves of innovation begin in the U.S., we must respond to the challenge presented by other nations' economic success and plan for the future.

"We are making progress. In 2004, Congress passed tax legislation that makes the U.S. a more attractive destination to locate or expand high-tech operations. New visa policies enable more U.S.-educated graduate students to stay and contribute to the advancement of science and technology here. Earlier this year, the President signed the Class Action Fairness Act, which is helping U.S. high-tech companies control the cost of doing business domestically by bringing some balance to our legal system. And as part of this year's tax reconciliation bill, both the House and Senate are working to expand and enhance the R&D tax credit that is so critical to fostering domestic innovation.

"But there is still much that can be done and should be done to ensure U.S. innovation primacy. We endorse the National Innovation Act and thank its authors for leading the way with their comprehensive legislation. We look forward to working with Congress and the Bush Administration to turn these proposals into workable, pragmatic policies."