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Skills and Innovation Strategies to Strengthen U.S. Manufacturing
Report

Skills and Innovation Strategies to Strengthen U.S. Manufacturing

Lessons from Germany

Brookings Institution, 2015 plus...

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Editorial Rating

8

Qualities

  • Innovative

Recommendation

The “valley of death” – the gap between basic research and the commercialization of new products – is a chasm too wide to cross for many US manufacturers, especially those in small and medium-sized businesses. Not so for Germany’s thriving manufacturing sector, which benefits from a top-down culture built on innovation. The Brookings Institution’s intriguing report shows how the United States can prepare for a manufacturing renaissance by nurturing innovation through government, industry and civic cooperation. getAbstract recommends this informative study to manufacturing executives, policy makers, educators and researchers.

Take-Aways

  • Despite a recent recovery, American manufacturing – which accounts for just 10% of US total employment and 12% of GDP – hasn’t realized its potential to create jobs.
  • In Germany, manufacturing employs 20% of the workforce and constitutes some 22% of GDP.
  • Innovation is critical to Germany’s success: German manufacturers conduct 86% of private-sector R&D and convert ideas into patents at a far higher rate than US firms.

About the Authors

Alan Berube is a senior fellow and deputy director of the Metropolitan Policy Program at Brookings Institution, where Joseph Parilla is a research analyst and Jesus Leal Trujillo is a research assistant.