WASHINGTON – U.S. Senator Maggie Hassan (D-NH), Ranking Member of the Joint Economic Committee, this week helped lead a hearing about bolstering American innovation to maintain a competitive edge over China. In her remarks, Senator Hassan underscored the critical role that federal investments in research and development play in spurring innovation and strengthening the economy.

“We know that federal investments in research and innovation can drive economic growth and lead to breakthrough technologies that we end up using every day,” said Senator Hassan in her opening statement. “A recent analysis by the nonpartisan Congressional Budget Office found that federal R&D investments can actually lower the deficit over the long run through the increased economic growth that results from new technologies. The internet, GPS, and semiconductors all began with federal investment, which the private sector could then build upon.

At the hearing, Ruth Whittaker, the Director of Technology Policy at Third Way, testified about the impact that the federal research and development tax deduction will have on future U.S. technological innovation. Ranking Member Hassan has long been involved in bipartisan efforts to help U.S. companies fully deduct R&D investments in the year that they are made. Key provisions from this effort became law this summer, which will help U.S. entrepreneurs now and in the future.

You can watch Ranking Member Hassan’s opening statement here or below, and you can watch the full hearing here:

I join Chairman Schweikert in recognizing the importance of growing innovation here in the United States, especially as we work to outcompete China. This past August, I was pleased to host the chairman for a bipartisan roundtable on innovation in New Hampshire, where he met with some of our region’s tech leaders—an event that grew out of an exchange we had during a previous JEC hearing.

More broadly, we know that federal investments in research and innovation can drive economic growth and lead to breakthrough technologies that we end up using every day. A recent analysis by the nonpartisan Congressional Budget Office found that federal R&D investments can actually lower the deficit over the long run through the increased economic growth that results from these technologies.

The Internet, GPS, and semiconductors all began with federal investment that the private sector could then build upon. In recent years, to help spur private-sector innovation, I worked with colleagues on both sides of the aisle on legislation that allows U.S. companies to fully deduct R&D investments in the year they are made. This provision became law last summer, and I know this support for R&D will help American businesses continue to innovate.

I also look forward to our discussion today on how technologies like A.I. impact our economy and how we can support the education of young American scientists and entrepreneurs who will generate the ideas behind tomorrow’s breakthroughs. One of my focuses for today’s conversation will be how we can work together on a bipartisan basis to upskill our workforce, invest in our scientists, and drive American innovation.

Again, I’m grateful to the chairman for holding this hearing, and especially grateful to our witnesses for agreeing to testify today. I look forward to the discussion.

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