Engineers and Scientists in U.S. Manufacturing Trade

Using a data set of 72 manufacturing industries, this paper investigates the link between trade and skills by looking at the employment of engineers and scientists in manufacturing and the export success of the products they make. Major results are that the world buys U.S. manufactures that use engineering and scientific skill intensively in their production. The U.S. also imports these types of goods, though to a lesser degree. In addition, engineering and science content of U.S. manufacturing trade is becoming more important. Industries are using more engineers and scientists, out there also has been increased demand for engineering- and science-based goods, more so for exports than imports. Policies recommended include skill upgrading of the population through increased training of the less skilled and no new restrictions on the immigration of skilled foreigners.