Strong IP Protections are the Key to Growing U.S. Manufacturing

Leaders across the political spectrum want America to be the global leader in advanced manufacturing—both to strengthen national security through more resilient supply chains and to grow the economy through high-wage jobs that replace ones lost to previous factory closures.

Revitalizing American manufacturing won’t be easy. But it’s possible if our leaders look to the biotech sector—one of the global industries that we still unquestionably dominate—and follow its blueprint for success.

A key lesson from biotech? Patents and other IP protections are essential. They don’t merely drive the R&D investment that leads to new inventions like drugs and medical devices. They also incentivize investments in new manufacturing facilities and encourage the creation of new manufacturing processes and technology platforms that more efficiently turn lab and whiteboard discoveries into tangible, real-world products.

It’s these advanced manufacturing techniques that will allow America to outcompete other countries in a variety of industries, even if those nations offer cheaper labor. In short, maintaining and strengthening IP protections will ensure that the products of the future aren’t merely designed in America, but also made in America.

The Biotech Example

Consider how, in the biotech industry, manufacturers have embraced “continuous bioprocessing,” where the production of certain advanced drug ingredients runs nonstop—a major change from the traditional process, in which ingredients were manufactured in separate batches.

This breakthrough—made possible by patented bioreactors and automation systems—significantly reduces downtime, space requirements and costs. One study found that adopting continuous processing increased outputs—measured in units per hour—by more than eight times, with no increase in overhead costs.

Or take blockchain, which is transforming pharmaceutical supply chains. Manufacturers are investing in the development of patented blockchain technologies to track and verify the movement of pharmaceuticals in real-time. For instance, smart contracts—self-executing agreements built into blockchain networks—automatically track temperature and transit times during shipping through sensors attached to pharmaceutical packaging. This ensures quality control, reduces spoilage, and prevents counterfeit drugs from entering the market. Blockchain technology can also streamline recalls and facilitate regulatory compliance.

A range of artificial intelligence (AI) tools are also reshaping pharmaceutical logistics. AI-driven inventory management systems, protected by patents, allow manufacturers to better predict demand by analyzing historical data and market trends. This reduces waste and helps prevent drug shortages, ensuring critical medicines reach patients when and where they are needed most.

Similarly, patented digital twin technologies allow manufacturers to simulate real-world operations to refine new processes, improve quality control, and ultimately reduce manufacturing costs.

Without strong IP protections, inventors would not make the long, costly investments required to develop new advanced manufacturing tools and techniques like these. It’s no coincidence that the United States—the world leader in biotech—also ranks first in the 2024 International IP Index compiled by the U.S. Chamber of Commerce.

Strengthening IP Rights is a National Priority

Maintaining the United States’ position as a global leader requires vigilance. Other nations, particularly China, are determined to close the gap. If we’re to retain our edge—not just in designing and researching groundbreaking technologies, but in increasing U.S. advanced manufacturing—strong and enforceable IP protections must remain a national priority.

That starts with proactively addressing IP theft, forced technology transfer and unfair trade practices by foreign governments. The new administration seems to understand this. Earlier this month, the U.S. Trade Representative criticized a World Trade Organization waiver that allowed other countries to void patent protections on American-made vaccines.

Defending existing protections isn’t enough, though—we must strengthen them. Congress should pass the bipartisan Patent Eligibility Restoration Act (PERA) to clarify that key technologies, such as AI algorithms and medical diagnostics, are presumptively eligible for patent protection. Recent Supreme Court rulings have created uncertainty about whether those innovations can be patented. This ambiguity puts U.S. companies at a disadvantage compared to competitors in China and Europe, which explicitly protect such innovations.

Broader Leadership is Within Reach

America can once again lead the world in advanced manufacturing across many fields, not just biotech. A future in which highly skilled workers and new advanced manufacturing technologies combine to efficiently produce high-quality goods in state-of-the-art facilities is within reach.

But it will only be possible if American companies can safeguard both their inventions and the methods used to manufacture them. That means protecting IP rights within our borders—and fighting for them abroad, too.

Image Source: Deposit PHotos
Author: maxkabakov
Image ID: 22591901