By Jennifer Martinez - 10/17/12 03:30 AM EDT
But Romney also stressed that it's essential to "make America the most attractive place for entrepreneurs, for people who want to expand their business."
Obama, however, warned that some manufacturing jobs will not come back to the U.S.
"There are some jobs that are not going to come back. Because they are low wage, low skill jobs. I want high wage, high skill jobs," he said.
To boost job creation, Obama argued that it's important for the U.S. to maintain investments in science and research, and ensure there are enough skilled engineers in the nation.
"That's why we have to invest in advanced manufacturing. That's why we've got to make sure that we've got the best science and research in the world," he said.
The president also argued that tax cuts "for folks who don't need them" would add to the deficit, and in turn, hurt investments in research in science "that will create the next app, create the next new innovation that will sell products around the world."
"We will lose that race," he added. "If we're not training engineers to make sure they're equipped here in this country, then companies won't come here."
To that end, Romney shot back, "Government does not create jobs."