The USA definitely needs to make it easier for sharp foreign-born people to immigrate and work here. The public school system needs to be overhauled to provide

The USA definitely needs to make it easier for sharp foreign-born people to immigrate and work here. The public school system needs to be overhauled to provide better science and engineering education. However, these have been valid arguments for years - even before the 9/11 attacks and the rise of R&D in China and India. I always wonder when the Economist leaves out basic economics. The locations in the USA where engineering, R&D and startup innovation are concentrated are also the most expensive places to live. 25 years ago, a research scientist or engineer could make $60K and buy a house in Livermore for $120K. Now, that same house is $1.2M but the salary for a research scientist is still $60K. The immigrant researchers and engineers who originally populated silicon valley now encourage their children to be doctors, lawyers, or increasingly to go into finance (Economics is now #1 major for Smart People). This can be fixed one of two ways: pay engineers and researchers more, or build R&D centers in less expensive areas. Corporations are choosing the second option. Unfortunately (for americans), the less expensive areas they are moving R&D are located overseas.