An issue getting scant attention should be among the most pressing concerns for the US. Preserving our innovation and technological edge and leadership is imperative to our economic success and to our national security. Yet that leadership faces significant threats, which are being all but ignored in the national discussion.

Warning signs have been flashing red when it comes to technological innovation, particularly in the competition with the People’s Republic of China (PRC). America’s leadership in this crucial area is at greater risk than any time since President John F. Kennedy’s call to win the space race some six decades ago.

China is now more a peer competitor economically, militarily, and diplomatically than many believe, and technology is driving its advances. Naïve arrogance keeps too many Americans from seeing that the PRC has become a tech powerhouse and, in worrisome ways, a tech threat.

Red Flags Waving

Two recent developments are examples of red flags waving. According to the Organization for Economic Cooperation and Development, China recently overtook the US in research funding at universities and government entities. (The US still leads in overall R&D funding.) This is significant considering the increasing propensity of US business and industry to leverage R&D by university researchers. Those universities have the faculty expertise, facilities and talent to deliver discovery and innovation, yet that human and physical infrastructure is hindered by a lack of adequate funding.

The second red flag was China’s Chang’e-6 lunar mission, which successfully collected the first samples from the moon’s far side, a significant step forward for China’s space ambitions. It plans to send astronauts to the moon by 2030 and build a research base at the lunar south pole. The examples are two of many.

US Underfunding Research

Fortunately, the US has a vehicle to help ensure its technological edge. The CHIPS and Science Act, passed in 2022, aims to significantly boost US investment in research and development, particularly in semiconductors and other critical areas of innovation. However, the funding for research under this act has fallen short of what was authorized.

For Fiscal Year 2025, Congress authorized $28.8 billion in funding for research agencies (a significant increase over previous years). The actual funding requested is a lowballed $20.3 billion. Moreover, the broader context of federal budgeting shows significant challenges ahead. The fiscal constraints driving the scaled back request for science-related programs are real, but so is the danger of losing America’s innovative edge. 

The discrepancy between authorized and actual funding levels raises concerns about the US's ability to meet the ambitious goals of the CHIPS and Science Act, particularly in maintaining leadership in global innovation and technology development​.

China’s Focused Ambition

The PRC, conversely, has engaged in a decades-long push to bolster technology and build a foundation to make it a global technology superpower. It recently pledged a further 10% increase in research funding. A recent study by the Australian Strategic Policy Institute found China leading in 37 out of 44 crucial technologies based on the proportion each nation had of the most highly cited research reports. Dominant Chinese market shares in critical minerals, batteries, EVs, solar cells, telecommunications, and more lend credence to China’s technological advances.  The US maintains an edge in AI, quantum computing and semiconductor, but the gap is narrowing.

Alarmingly, China also has a credible path to gaining technological parity (and in some cases, superiority) in military applications. Yet too many believe all the US needs to do is to keep the PRC from stealing American technologies (a problem, but by no means the only one). They have not accepted that the US trails in key technologies and risks falling behind in others. Nor do they fully appreciate how harmful America losing its innovative edge would be to our prosperity and security, now and in the future.

No Silver Bullet

Preserving tech leadership involves a sometimes-dizzying array of variables: research expenditures, STEM talent, regulation, AI governance, supply chains, research collaboration, and more. There is no silver bullet that will maintain America’s edge in innovation. 

Yet the tech race remains America’s to lose. Our innovative culture is more willing to fail fast and learn faster. America still holds the most important high ground–chip design, AI, and quantum computing, among others. Despite these advantages, we must shake off today’s complacency and take this race seriously.

Call to Action

The red flags are clearly waving. Fully funding the CHIPS and Science Act would be a great start. Yet that must be accompanied by a serious, sustained and focused national discussion about technology and innovation. It’s beyond time to heed the warning signs.