Intel CEO Paul Otellini Keynotes at TPI Aspen Forum

I had the opportunity this week to attend the Technology Policy Institute’s 2010 Aspen Forum, which brought together policymakers and thought leaders to discuss the top technology policy issues facing our country.

Intel’s CEO, Paul Otellini, had the opportunity to deliver the keynote address to the Forum earlier this week.  We’ve posted his prepared remarks here, as we think that he delivered some key messages about the role of innovation and technology in our country’s economy.

For example, he discussed how Intel, along with 40 of America’s leading corporations and VC firms, formed the $3.5 billion “Invest in America Alliance” in February, an effort that is designed to support the nation’s next innovators,thinkers, scientists, builders and entrepreneurs.  He also noted how 75% of Intel’s sales come from outside the US, but 75% of our manufacturing and R&D spending continues to be concentrated in this country.  Paul also spoke about some of the policies he feels is needed to continue American investment and innovation, such as the R&D tax credit and reform of the H1-B visa program.

Promoting American innovation is one of the top policy issues for Intel. We look forward to your thoughts on this topic. 

 

One Response to Intel CEO Paul Otellini Keynotes at TPI Aspen Forum

  1. Thomas Potter says:

    I can empathize and agree with many of Mr. Otellini’s recommendations, particularly those related to tax credits for R&D and immigration reforms.
    I would need more information to assess the validity of his claim regarding the $1 billion differential in chip plant economics here rather than some other unspecified place. Assuming that place is China, it would be particularly interesting to know how, in his comparison, he values political stability risk and technology transfer cost, for example.
    I would need more information to be convinced that tax rate reductions are required to keep the U.S. competitive. The overall tax burden in the U.S. is low relative to other large economies, China and India excepted, even though the U.S. bears a very large burden of maintaining a military capacity exceeding the rest of the world’s combined.
    It is true that statutory corporate tax rates are higher than those for most countries, but effective total corporate tax rates in the U.S. are lower than in most countries. Given other investment advantages for the U.S., it is not clear why further reductions in the corporate tax rate are needed to stay competitive.
    The argument for reduced capital gains taxes has considerable merit in that capital investment, in conjunction with other important factors, generally increases economic activity and productivity, creates jobs and enhances material quality of life. Capital investment is most effective, however, in a stable political and social environment, with well-developed infrastructure. Most government activities (even military activities, for example) help provide this environment, and thus enhance the value of capital investment in the U.S. It would seem to many to warrant some diversion of capital (it might even be called investment) to optimize the overall effectiveness of investment of capital.
    Some of Mr. Otellini’s recommendations imply both increased government efficiencies or increased spending (increased research investment, improved education, etc.), and reduced taxation. This implies cuts or substantial modification of other government programs on top of those that will undoubtedly be required for deficit reduction. It would be helpful to know what Mr. Otellini would propose to achieve his whole basket of recommendations in an economically sustainable way.
    Regarding Mr. Otellini’s criticism of the Keynesian attempt at economic stabilization, he may be right, but I consider his level of confidence much higher than warranted by any reasonably thorough consideration of history all the way back to the experience of the depression and beyond. For what it’s worth, I postponed my most recent computer purchases (both Intel btw) until well after the stimulus bill was passed.