The report also notes the increasing use of non-compete agreements, "which provide another constraint on the mobility of highly-skilled workers."
Government-funded R&D, which focuses mostly on basic research, is in decline. Private-sector R&D, by contrast, predominantly focuses on later-stage product development.
Federal R&D is important to the success of the private sector, long-term job creation and productivity, the report argues.
"From Google Earth and global positioning systems to microwave ovens, and from vaccinations to photovoltaic cells, discoveries and products enabled by U.S. Federal investments in innovation have touched lives across the globe in ways that are likely to be understated in official growth and productivity statistics," the report says. "Investments in R&D are therefore important to the health of the American economy as well as to general welfare."
Sign up for CIO Asia eNewsletters.