Americans Say Innovation is Key to Our Prosperity and Express Concern About Our Future Innovation Leadership, Reveals New National Poll.

ARLINGTON, Va. -- Americans believe that innovation leadership is important, but they are concerned about American innovation in a more competitive international environment, according to a new survey released today by the Consumer Electronics Association (CEA)([R]). Forty-three percent said remaining the innovation leaders of the world is most important to our future success. This compares to military leadership (14 percent), economy size (23 percent) and having the dollar continue to be the world's de facto currency (11 percent).

The economic survey, conducted by Zogby International, found that Americans are concerned about the impact of innovation on our debt (92 percent), educational system (73 percent) and policymakers grasp of the importance of innovation (only 17 percent think U.S. policymakers have the best grasp compared to other countries). The survey was released today as CEA announced a new national grassroots "Innovation Movement" to focus U.S. policies on advancing innovation with the goal of ensuring continued U.S. global economic leadership.

While Americans clearly see innovation as vital, they are unsure if the U.S. is keeping pace with increased competition from new global economic powers, and they are foremost concerned that the rising national debt will impair the ability of the U.S. to remain an economic leader:

* Only one in five Americans (21 percent) believe the U.S. is creating the best environment for innovation. Nearly half chose Japan or China.

* More than one in three Americans (36 percent) believe that the U.S. will lose its innovative advantage and take a backseat to China.

* Seventy-three percent of Americans do not believe that the U.S. educational system is best equipped to develop innovative leaders.

* Ninety-two percent of Americans said that the U.S. national debt, currently at $11 trillion, will affect our nation's long-term ability to remain an economic leader. The debt is projected to reach $20 trillion by 2015.

"Innovation is in our DNA--it's part of our culture. The American public is concerned that our country is losing the innovative and entrepreneurial recipe that drives U.S. economic growth and prosperity," said Gary Shapiro, president and CEO of CEA. "That is why we need a grassroots movement to make innovation the center of national policy debates. Whether it is health care, energy, taxes or even how our companies are organized, we must ensure that U.S. policies promote innovation that generates American jobs."

As Congress debates legislation to end workers' right to a secret ballot when deciding whether to unionize, Americans are also concerned about the role unions may play in hindering innovation. According to the survey, 57 percent of Americans believe the union movement has hindered innovation, and 60 percent said innovation was less likely to occur if a company was unionized.

The survey also provided insight into why innovation has been such an important part of the American culture:

* Thirty-five percent of Americans said the U.S. economy has been so innovative over the last century because innovators can reap rewards. Fifteen percent said it was due to having the most innovative workforce, while 13 percent said it was due to a culture that allows failure.

* Seventy-three percent of Americans say it's the entrepreneurs who create and build companies who are driving innovation. Large companies that invest in research and development garnered 15 percent, while five percent believe it's the policymakers who make spending and tax decisions who drive innovation.

* Americans point to the U.S. remaining an innovation leader, more than anything else, as most important to the country's future success. Forty-three percent said "remaining an innovation leader" was most important, while 23 percent said the "largest economy" and 14 percent said, "remaining the military leader."

The CEA Innovation Movement (http://innovation-movement.com) includes a checklist to evaluate proposed legislation, looking at whether the proposal does the following:

* Create American jobs?

* Spur new technology?

* Encourage the best and the brightest to come to the U.S. and stay here?

* Reward innovation and investment?

* Promote exports?

* Foster productivity and energy efficiency?

"The fundamental question behind this checklist is whether the U.S. will be the destination of choice when it comes to the creation of jobs and investment," said Shapiro. "For six decades, America has attracted the best and brightest immigrants and been the top destination for financial capital investment from around the world. And with that talent and capital, we have flourished to create the most dynamic companies in the world. Our policies must spur businesses to want to create jobs here, invest in our communities and bet that America is where they can prosper."

About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the $172 billion U.S. consumer electronics industry. More than 2,000 companies enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion and the fostering of business and strategic relationships. CEA also sponsors and manages the International CES - Where Entertainment, Technology and Business Converge. All profits from CES are reinvested into CEA's industry services. Find CEA online at www.CE.org.

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