U.S. losing edge in particle physics research - How it will impact your retirement

May 13, 2006

The National Research Council warned that the U.S. may lose its 50 year leadership in basic particle research by 2010. Other nations, particularly in Europe and Japan, are increasing their investment and their expertise.

Particle physics, which leads to very detailed knowledge of the basic constituents of matter, relies on research facilities: the accelerator and the collider. The European Center for Nuclear Research (CERN) will open a huge linear collider named Large Hadron Collider in 2007. It will be the center of attention for particle physicists worldwide over the next 15 years, because of its unique ability to address questions about the structure of matter and the evolution and composition of the universe.

Meanwhile, the world's largest accelerator in the United States is expected to shut down in 2010. To retain its leadership position, the U.S. needs to increase its particle physics research budget by at least 2 - 3% per year.

What it Means:
The U.S. may lose its reputation as a high tech mecca, leading to a brain drain as other countries’ programs attract the best and the brightest. This will also lead to lower profits for U.S. companies, as technological innovation is a key ingredient to retain a competitive business environment.

Action Steps:
Probably nothing right now, as this will be a slow decline over the very long term. However, at your next financial review, ask your finanical advisor to look at mutual funds that contain a good proportion of European and Japanese high tech companies.

Source: National Research Council