Obama: 'This is our generation's Sputnik moment'

President Obama said the U.S. has lost its advantage in science and technology and must boost investments in those areas to remain the world's most properous economy during his State of the Union address Tuesday evening.

"This is our generation's Sputnik moment," Obama said in one of the most-quoted lines of the night, after noting China is now home to the world's fastest computer. "We need to out-innovate, out-educate and out-build the rest of the world."

Despite the setbacks Obama said the U.S. remains on top of the world economically because of the country's ability to encourage innovation among the public.

"In American innovation doesn't just change our lives, it is how we make our living," he said.

"What America does better than anyone else is spark the creativity and imagination of our people. We're the nation that put cars in driveways and computers in offices. The nation of Edison and the Wright brothers; of Google and Facebook."

Obama emphasized the nation's economy has fundamentally changed and the manufacturing jobs that used to provide a middle-class lifestyle without requiring higher education are unlikely to return.

"The rules have changed. In a single generation, revolutions in technology have transformed the way we live, work and do business. Steel mills that once needed 1000 workers can now do the same work with 100," Obama said.

He noted that rival nations like China and India have invested heavily in educating children with a focus on math and science and said America must match their efforts to stem a decline in student performance in those subjects.

One way Obama said the government can drive innovation is by funding basic research, which leads to breakthroughs that create new industries. He said his next budget will include significant boosts in basic research funding for biomedical research, information technology, and clean energy technology.

“We heartily agree with the President that if we are to win the future, our nation’s focus must be on accelerating entrepreneurship, innovation, global competitiveness and job creation," said TechAmerican president Phil Bond in an e-mailed response.

"Much remains to be done to keep America at the cutting-edge, however. Pro-innovation tax reform, free trade, improved education, immigration reform, broadband deployment, a permanent R&D credit and securing cyberspace are all critical for honing our competitive edge in the 21st century economy."

Obama also lamented the fact that many foreign students who earn advanced degrees in science and engineering at U.S. universities are forced to leave the country after graduation as part of his call for Congress to tackle comprehensive immigration reform.

"As soon as they earned advanced degrees we send them back home to compete with us," Obama said. "Let's stop expelling talented young people who could be further enriching this nation."

Finally, during the portion of his speech discussing the need for rebuilding the nation's infrastructure Obama compared high-speed Internet access to high-speed rail and said the U.S. must improve both to compete.

"Our infrastructure used to be the best, but our lead has slipped. South Korean homes now have greater Internet access than we do," Obama said.