If the US is a powerhouse in advanced technologies why does it run a deficit in these areas?
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M$2 Answers
Take intel for example. Some of their most impressive chips were designed in Israel. Israel not only has 5 different intel facilities it was also the first development center outside the US. Most people think that the US is behind the advanced technologies that intel develops when in reality it is a worldwide effort. At the end of the day many US based companies don't actually develop or manufacture their products in the US and so we end up with a technology deficit.
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M$Making good Technology is not the same as making a profit. Just because a new idea is technically better it doesn't mean it will be profitable to the company. Many companies sink a ton of money into R&D; only to find that better business decisions would make them more money.
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M$