Thomas Friedman has devoted yet another New York Times column to the need for the United States to do a better job encouraging innovation to maintain a competitive position in the world economy.  His column relies on industry testimony from Intel CEO Paul Otellini and highlights the need for RE-ENERGYSE and comprehensive investment in energy technology.

Speaking from experience, Otellini confirmed the idea that the U.S. is falling behind in higher education:

While America still has the quality work force, political stability and natural resources a company like Intel needs, said Otellini, the U.S. is badly lagging in developing the next generation of scientific talent and incentives to induce big multinationals to create lots more jobs here.

Intel can thrive today — not just survive, but thrive — and never hire another American. Asked if his company was being held back by weak science and math education in America’s K-12 schools, Otellini explained:“As a citizen, I hate it. As a global employer, I have the luxury of hiring the best engineers anywhere on earth. If I can’t get them out of M.I.T., I’ll get them out of Tsing Hua” — Beijing’s M.I.T.

Otellini goes on to cite a study measuring strides toward future innovation that ranks the U.S. dead last out of the 40 nations measured.

The measures he cites to improve this situation include tax credits for R&D and reduced corporate tax rates.  With gaping deficits in the government budgets, any cuts in taxes clearly raise complicated economic issues.  But if Intel can build the same plant in another country at a significantly lower cost, argues Otellini, America cannot afford to let their investments continue to go overseas.

“I’d like to see competitiveness and education take a higher role than they are today,” [Otellini] said. “Right now, they’re going to try to push this health care thing over the line, and, after that, deal with the next thing. God, I’d just like this [our competitiveness] to be the next thing. Something has to pay for” everything government is doing today.

Read the full piece here.