Although the U$.$S$.$ benefits from both foreign and domestic innovation, it benefits more, the memo argues, from

domestic innovation, since it takes time for U$.$S$.$ firms to adapt foreign innovations, and such innovations are usually imperfectly suited to the U$.$S$.$ economy.

foreign innovation since the U$.$S$.$ doesn't incur the costs of the research and development required to innovate.

domestic innovation, since countries compete fiercely, and domestic innovation gives U$.$S$.$ firms a leg$-$up over foreign competitors. foreign innovation, as that enables the U$.$S$.$ to exploit a second$-$mover advantage.