Innovation is key to economic growth. For the U.S. to stay strong, it needs to keep innovating. But how should it do this, and in which areas?
A new book by MIT faculty looks at six key areas. These are where technology can boost the economy and national security.
Six Key Technologies for Growth
The book, "Priority Technologies: Ensuring U.S. Security and Shared Prosperity," focuses on:
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- Biotechnology
- Critical minerals
- Drones
- Quantum computing
- Advanced manufacturing
These sectors rely on U.S. knowledge. However, the U.S. has either lost its lead in making these products or could fall behind.
Elisabeth Reynolds, an MIT expert and editor of the book, says there are chances for the U.S. to "leapfrog competitors." She notes these areas are central to U.S. economic and security policy.
MIT economist Simon Johnson, who wrote the book's foreword, believes these innovations can create more good jobs for Americans.
Rebuilding Domestic Production
The book grew from an MIT seminar started by Reynolds and Johnson in 2023.
Jesús A. del Alamo, an MIT professor, calls semiconductors "the oxygen of modern society." The U.S. invented this industry but moved much of its manufacturing overseas. This made the country vulnerable. For example, a chip shortage caused about one-third of inflation in 2021. The U.S. is now working to rebuild its ability to make advanced logic chips.
Reynolds says people thought the U.S. could lose manufacturing but keep its lead in innovation and design. This proved wrong, making the country vulnerable. She believes rebuilding semiconductor manufacturing in the U.S. has been a successful strategy.
In biotechnology, the U.S. leads in research. However, it lacks the manufacturing to bring new ideas to market quickly. J. Christopher Love, an MIT professor, suggests smaller, more flexible production facilities. These could help the U.S. "leapfrog" other countries in manufacturing.
Reynolds notes that the U.S. has great biotech innovation but a manufacturing bottleneck. Overcoming this with new technologies could reduce supply chain risks. It could also help capture more of a market expected to reach $4 trillion in 15 years.
A similar situation exists with drones. Many innovations came from the U.S., but manufacturing moved to China. Fiona Murray, an MIT professor, says the U.S. can rebuild its production. This will require stronger supply chains.
Elsa Olivetti, an MIT professor, suggests several ways to boost U.S. critical mineral production. These include better extraction, manufacturing, and recycling methods. This would help reduce shortages.
For quantum computing, William D. Oliver and Jonathan Ruane from MIT note its potential for drug discovery, materials science, and energy. The U.S. leads in private investment but lags China in public investment. They recommend more research support and stronger supply chains for components. They believe the country that leads in quantum computing will gain major advantages.
The Role of Universities and Government
The book highlights common themes for U.S. growth. The partnership between the federal government and U.S. universities is crucial. This partnership has driven innovation and given the U.S. a lead in many sectors.
The U.S. also needs to strengthen its domestic supply chains and manufacturing. Capital investment is needed for hardware-focused industrial growth.
Reynolds asks if expanding the industrial system and manufacturing can help drive the country's innovation ecosystem. She notes that MIT-led research has often aligned with national priorities.
The partnership between the U.S. government and universities began in the 1940s. Vannevar Bush, then MIT president, helped formalize it. Some estimates suggest government investment in non-defense research and development has accounted for up to 25% of U.S. economic growth since World War II.
Johnson emphasizes Bush's insight: "It wasn't about a stock of technology, it was about a flow of innovation." This idea is still relevant today.
Looking Ahead
Scholars and industry leaders have praised "Priority Technologies." They see it as important for U.S. security, economic strength, and well-being.
Reynolds and Johnson hope the book will reach many readers interested in the economy, innovation, and national security. Reynolds says the book lays out challenges and recommendations for the U.S. to succeed globally.
Johnson adds that the MIT scholars want to contribute to policy discussions. He says the message is clear: the U.S. has the knowledge and resources. It needs to focus on supporting innovation and increasing domestic production.
"These are the technologies needed to defend the country and its interests," Johnson says. "And we need to invest in these, and in everything we need to drive them forward."
Deep Dive & References
- Priority Technologies: Ensuring U.S. Security and Shared Prosperity - MIT Press, 2026
