Keeping our competitive edge in the world economy requires focused policies that lay the groundwork for continued leadership in innovation, exploration, and ingenuity. America's economic strength and global leadership depend in large measure on our Nation's ability to generate and harness the latest in scientific and technological developments and to apply these developments to real world applications. These applications are fueled by: scientific research, which produces new ideas and new tools that can become the foundation for tomorrow's products, services, and ways of doing business; a strong education system that equips our workforce with the skills necessary to transform those ideas into goods and services that improve our lives and provide our Nation with the researchers of the future; and an environment that encourages entrepreneurship, risk taking, and innovative thinking. By giving citizens the tools necessary to realize their greatest potential, the "American Competitiveness Initiative" (ACI) will help ensure future generations have an even brighter future. The ACI commits $5.9 billion in FY 2007 to increase investments in research and development, strengthen education, and encourage entrepreneurship. Specifically, the ACI: (1) doubles, over 10 years, funding for innovation-enabling research at key Federal agencies that support high-leverage fields of physical science and engineering: the National Science Foundation, the Department of Energy's Office of Science, and the National Institute for Standards and Technology within the Department of Commerce; (2) modernizes the Research and Experimentation tax credit by making it permanent and working with Congress to update its provisions to encourage additional private sector investment in innovation; (3) strengthens K-12 math and science education by enhancing our understanding of how students learn and applying that knowledge to train highly qualified teachers, develop effective curricular materials, and improve student learning; (4) reforms the workforce training system to offer training opportunities to some 800,000 workers annually, more than tripling the number trained under the current system; and (5) increases our ability to compete for and retain the best and brightest high-skilled workers from around the world by supporting comprehensive immigration reform that meets the needs of a growing economy, allows honest workers to provide for their families while respecting the law, and enhances homeland security by relieving pressure on the borders. (Contains 3 charts and 1 table.)