America’s Missing Productivity Strategy: An R&D Approach to Workforce Development

August 2025, Paper: "At a time of rising geopolitical competition and massive investment in emerging technologies like artificial intelligence (AI), boosting U.S. productivity has reemerged as an urgent priority. Yet federally-funded workforce development—one of the key levers for long-run productivity growth—remains mostly relegated to reactive anti-poverty policy rather than a forward-looking economic strategy. As the U.S. charts a long-term path towards technological leadership and supply chain resilience, the country faces a generational opportunity to build a national talent investment strategy that meets the potential of the AI economy. Drawing on the workforce needs for emerging technology jobs, this paper proposes an alternative model for public investment in workforce development: treating human capital like research and development (R&D). Such a model would prioritize critical sectors with good-paying jobs that do not require a four-year degree and that are essential to deploying new technologies. Applying an R&D lens would also help close the “valley of death” between promising pilots and scaled solutions, while striking a better balance between experimentation and evidence. If embraced, this vision could not only enhance national competitiveness, but also expand opportunity for Americans historically left out of the innovation economy."