Here’s how we can make sure we are — and China is not.

I n the 20th century, America won the space race, decoded the human genome, and ushered in the internet age — not by accident, but through a strategic national commitment to research and development rooted in freedom, enterprise, and a clear sense of purpose.

We know full well that China is investing heavily in artificial intelligence, quantum computing, and advanced manufacturing. But with the One Big Beautiful Bill Act (OBBBA) now signed into law, America is reigniting that same spirit of innovation for a new era.

For too long, our innovation ecosystem has been strained, not only by red tape, but by politically driven science policy that prioritized special interest agendas over foundational research. The previous administration expanded the federal science portfolio far beyond its core mission, diverting resources toward advocacy groups and favored projects while neglecting the basic R&D that powers real breakthroughs. That’s what created the uncertainty we’ve seen in recent years: not a lack of funding, but a lack of focus and direction.

To retain America’s leadership in science and technology, we need bold, focused policies that empower the private sector. OBBBA delivers exactly that.

One of the most effective tools strengthened by this new law is the Research and Development (R&D) tax credit. Far from being a loophole, this credit is a proven engine of innovation, job creation, and domestic investment. Making it permanent and more accessible will unleash a wave of private-sector growth, especially among small businesses and startups working on emerging technologies.

We’re now seeing a renewed commitment to serious, strategic science policy under Michael Kratsios, the current director of the White House Office of Science and Technology Policy. In a recent speech, he reaffirmed the need to align America’s scientific enterprise with national priorities. That means advancing technologies like AI, quantum science, and next-generation manufacturing — not as abstract goals, but as tools to strengthen our security, prosperity, and global standing.

Kratsios describes this approach as a return to Gold Standard Science: a model that cuts bureaucracy, improves transparency, and puts results ahead of ideology. As he said, “Spending more money on the wrong things is far worse than spending less on the right things.” The goal isn’t just bigger budgets — it’s smarter, more strategic investments that deliver real value to the American people.

At the same time, pro-growth R&D policy must also address the challenges facing startups and small businesses, particularly those receiving federal research grants, like Small Business Innovation Research awards. Recent tax code changes have created unintended burdens, making it harder for these innovators to deduct research expenses in the year they are incurred. A permanent and well-designed R&D tax credit will work in tandem with broader reforms the Trump administration and this Congress are supporting to ensure our smallest innovators aren’t penalized for doing exactly what we ask of them: investing in the future.

While the federal government has played a historic role in supporting foundational technologies — from Apollo to the early internet — it makes a poor venture capitalist. Instead, it should focus on maintaining stable funding profiles and advancing basic research. Its role is especially critical in backing high-risk, high-reward initiatives that lack immediate commercial appeal. Thanks to our free market economy and OBBBA, industry can build on those early investments, translating them into real-world solutions that benefit all Americans.

This law marks a turning point. Instead of trying to pick winners, Washington should create the conditions that allow the best ideas to rise through a stable tax code, fewer bureaucratic hurdles, and clear incentives to build here at home.

With OBBBA now enacted, we are delivering on a strategy that puts science, strength, and sovereignty back at the center of our innovation agenda.

America can win the next great race, but only if we empower the builders.