Obama Repeats Support for Technology Investment, But Gives Few Specifics

President Obama repeated proposals this week that would boost investment in technology in order to bolster the economy and develop important new products but he did not unveil many details during a speech in Pittsburgh.

Speaking before an audience at Carnegie Mellon University, Obama said he backs making the federal research and experimentation tax credit permanent.

The tax credit helps businesses afford costs to develop new technology and new products. The national R&D Credit Coalition said the federal tax credit this year needed to be extended for the 14th time since originally enacted into law in 1981.

"We must invest in and embrace the innovation and technology of the future and not the past," Obama said on Wednesday. "That's why we've decided to devote more than 3 percent of our GDP to research and development - to spur the discovery of services and products and businesses that we have yet to imagine."

For instance, at one point, he gave the example of "educational software that's as effective and engaging as a personal tutor" and looked back to past research and development that led to "technological wonders like GPS."

The President added that investments in education and innovation will make America more competitive in the 21st century.

"There's no reason China should have the fastest trains or that rural Pennsylvania should be without high-speed Internet access. We've got to make those investments. From the first railroads to the Interstate Highway System, this nation has always been built to compete. So we're going to invest, and are investing right now, in new infrastructure - expanding broadband, health information technology, advanced manufacturing facilities, America's first high-speed rail network. We're also investing in the ideas and technologies that will lead to new jobs and entire new industries."

In the current economy, jobs and industries can relocate to other countries where there are skilled workers and an Internet connection - leading America to compete like never before, Obama said.

"From China to India to Europe, other nations have already realized this. They're putting a greater emphasis on math and science, and demanding more from their students. Some countries are building high-speed railroads and expanding broadband access. They're making serious investments in technology and clean energy because they want to win the competition for those jobs."

Carnegie Mellon is one of the world's major research universities. For instance, two Carnegie Mellon researchers are leading an initiative for an industry-wide, globally accepted measure for calculating the benefits and risks of cloud-computing services.

The researchers are seeking industry involvement via a consortium being formed with researchers from other educational institutions, end user organizations and technology providers, who have expertise in measuring and managing IT-enabled services. This initiative will develop a Service Measurement Index, SMI, which will be available for use by members of the Cloud Commons.