How Washington Really Works: Innovation Policy with Alec Stapp

Jun 27, 2025

Alec Stapp, Co-CEO of the Institute for Progress, a think tank focused on innovation policy, shares fascinating insights on how America leads in the global AI competition while addressing the bipartisan immigration deal that 75% of Americans favor. He explains why cutting R&D spending won't affect the national debt and unveils his 'X Labs' proposal to revolutionize government science funding. Stapp also discusses the impact of battery storage on renewable energy and offers a candid view of U.S.-China relations from his travels.

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INSIGHT

U.S. Leadership in AI

The U.S. leads globally in AI technology with most top companies and chip production here.
Maintaining careful export controls is key to preserving its AI dominance and supporting democratic values.

ADVICE

Public-Private Innovation Partnerships

Foster close public-private partnerships for technology development, especially in early high-risk innovation stages.
Government funding complements private sector efforts to overcome market failures in long-term basic research.

INSIGHT

Misguided National Debt Focus

Cutting R&D funds won't solve national debt since most budget growth is in entitlements and defense.
Resources for basic research yield higher social returns compared to increasing elderly entitlements.

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Alec Stapp is the Co-CEO of the Institute for Progress, a non-partisan innovation policy think tank in Washington D.C. works to accelerate and shape the direction of scientific, technological, and industrial progress. Headquartered in Washington D.C., IFP works with policymakers across the political spectrum to make it easier to build the future in the United States.

What you'll learn:

Why cutting R&D spending won't meaningfully reduce the national debt (it's less than 3% of federal budget)
How the U.S. is winning the global AI competition and what could derail our lead
The bipartisan immigration deal that 75% of Americans support but politicians won't pursue
Why solar + battery storage is changing the renewable energy equation for Republicans
The lawsuit that could revolutionize small nuclear reactor regulation
How Alec's "X Labs" proposal could transform government-funded science
Why naval shipbuilding reform represents billions in potential savings
The real story behind U.S.-China relations from someone who's traveled extensively in both countries
How progress studies differs from progressive politics in Washington
Why energy abundance is key to everything from AI to transportation costs

In this episode, we cover:

(00:00) Introduction to Alec Stapp and Institute for Progress

(02:02) Progress studies vs. progressive politics clarification

(05:08) What America is doing right in AI competition

(08:05) Immigration policy disappointments and opportunities

(10:02) Why government science funding matters for innovation

(13:52) The federal budget reality: entitlements vs. R&D spending

(16:20) National debt concerns and productivity growth solutions

(18:00) AI's economic disruption and the care economy transition

(23:16) Building stronger institutions for technological change

(25:47) Fertility rates, immigration, and America's competitive advantage

(29:13) U.S.-China relations and cultural similarities

(33:09) Solar energy, battery storage, and Republican energy policy

(39:06) Nuclear power's regulatory challenges and state-level solutions

(42:03) The Techno-Industrial Policy Playbook overview

(47:04) X Labs: Reforming how we fund scientific breakthroughs

(49:11) Naval shipbuilding procurement reform opportunities