The U.S. Is Still Losing the Competitive Advantage
New AeA Report Calls for Immediate Action to Maintain
American Competitiveness

Washington, DC (March 28, 2007) — Today AeA released its latest report, We Are Still Losing the Competitive Advantage: Now Is the Time To Act. The report serves as the natural sequel to the AeA report of two years ago: Losing the Competitive Advantage? That report focused on how the United States is at risk of squandering its preeminence in science, technology, and innovation as countries across the globe became more competitive and as America neglected the factors that gave it this lead. This new and expanded edition of that report reinforces the conclusion that America is losing its competitive advantage and the time to confront those issues is now.

"We are releasing this new report today because over the past two years, while awareness of the problem has grown tremendously, action has not followed," said AeA President and CEO, William T. Archey. "Now is the time for that action. In updating the data and analysis from our previous report, all indications are that the competitiveness challenges confronting the United States have only intensified."

"When AeA issued its first report on American competitiveness over two years ago it sent
shockwaves through the halls of Congress, corporate boardrooms, and university classrooms
across America," said Rep. Anna G. Eshoo (D-California). "The data in this new report confirms
that the U.S. can no longer take for granted its dominance in global technology and innovation.
This is an urgent call for action by Congress and we must heed the call."

"As Congresswoman Eshoo’s comments confirm, policymakers in Washington and business
leaders around the country now understand the nature of the problem and the need to act on it,"
added Archey. "And the consensus is bipartisan. House Speaker Nancy Pelosi is actively
promoting the Democratic Innovation Agenda. And President Bush has outlined the American
Competitiveness Initiative. In fact, the President and the Speaker seem very much on the same
page regarding competitiveness. Their plans differ only in the details, not in the direction."

"Two years ago, AeA called the United States the proverbial frog in the pot of water, oblivious to
the slowly rising temperature of a world catching up to us. Today, the heat is still rising and we
are still in the pot. There is hope that we are finally feeling the heat and are poised to do
something about it. Hope, but not certainty. AeA hopes that this report helps provide the urgency for doing something now.”

“We call on Democratic and Republican legislators, as well as the Bush Administration, to act in the 110th Congress on what was essentially agreed on but did not pass in the 109th:
comprehensive legislation to advance American competitiveness in a global economy. This
legislation would provide a crucial first step. But make no mistake; dealing with these challenges successfully is a long-term proposition."

Recommendations for timely action can be found on pages 6-7 of the report. Page 4 shows a
timeline of what has happened in the last two years to move the competitiveness debate forward. Pages 2 and 28 offer testimonials from executives in the high-tech industry, illustrating the challenges they confront everyday in an increasingly competitive global marketplace. The
updated data and analysis section can be found on pages 8-26 of the report.

To download the report, please go to: www.aeanet.org/competitiveness.

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About AeA
AeA, the nation’s largest technology trade association with 2,500 member companies representing all segments of the high-tech industry, is dedicated solely to helping our members’ top line and bottom line. We do this in partnership with our small, medium, and large member companies by lobbying governments at the state, federal, and international levels, providing access to capital and business opportunities, and offering select business services and networking programs. For more information, please visit http://www.aeanet.org.

This page was last updated on 03/27/07.