Special Competitive Studies Project Releases Innovation and Economy Memos from Fall Report


The Special Competitive Studies Project (SCSP) released today a “Memo to the President and Congress on Innovation Power for the Generative AI Flywheel” and a “Memo to the President and Congress on Building the Generative Economy,” two parts of its Fall report, “Generative AI: The Future of Innovation Power.” The full report will be released on September 12, 2023. 

The “Memo to the President and Congress on Innovation Power for the Generative Flywheel” discusses how the generative artificial intelligence (GenAI) era differs from previous technological revolutions as it changes the very nature of innovation. The memo argues that the first nation to master this step change will unlock a new form of soft and hard power – innovation power – by which military capabilities, economic prosperity, and cultural influence can be forged. The call to action is that the U.S. government needs to come together to organize, drive, and fuel the nation’s innovation ecosystem with tech-empowered institutions; audacious moonshots; and new resources to convert America’s  current technological edge into long-term advantage in the technology competition.  

“American innovation flourishes in the arena of competition, not the comfort of complacency. Unlike technologies that can be singularly mastered, GenAI is a general purpose technology and a catalyst for continual innovation. We must seize this transformative moment in AI and mold it into a defining competitive advantage. This memo – the first of a series of memos from SCSP – outlines a vision to do so,” said SCSP Senior Director for Platforms David Lin.

The “Memo to the President and Congress on Building the Generative Economy” explores how GenAI will have a transformative impact on the global economy and help to determine the outcome of strategic competition with the People’s Republic of China. The memo asserts that nations that harness the potential of GenAI will increase productivity, a key economic measure that underpins economic growth, higher standards of living, and the ability to finance all other national priorities. Unlocking these benefits requires boosting competitiveness across the fundamental building blocks that underpin AI leadership: compute, data, and people. Compute is the engine that powers GenAI training and inference. Data serves as the fuel, but competitiveness hinges on digital infrastructure to move it from place to place, as well as a trusted regulatory framework that can ensure responsible use. Ultimately, people are the most important element for GenAI leadership. The United States must continue to attract the world’s top AI talent while unlocking opportunities for Americans to benefit from the Age of AI.

“In ten or 20 years, we could look back on this moment as a pivotal juncture in the rivalry with the PRC for technology leadership. Beijing understands the economic and geopolitical significance of AI and has a long track record of executing well-resourced technology strategies. The United States has key advantages in the fundamentals of GenAI, but success is not guaranteed. We must cement our lead in this critical technology. Our memo proposes how,” said SCSP Senior Director for Economy Liza Tobin.

For more information about the release schedule for the “Generative AI: The Future of Innovation Power” executive summary, memos or full report, or to learn more about SCSP’s upcoming 2023 Global Emerging Technology Summit, please contact SCSP Senior Director of Communications and Public Affairs, Tara Rigler, at tmr@scsp.ai. For more information about SCSP, visit us on our website, and subscribe for regular newsletter and podcast updates here: 2-2-2.


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