Kovacevich: Michigan is leading on self-driving, but the nation is falling behind

U.S. Rep. Debbie Dingell, D-Ann Arbor, gave the Committee on Energy and Commerce a much-needed wake-up call at a recent hearing on U.S. competitiveness when she spoke on the pressing need to accelerate our autonomous vehicle (AV) industry or risk "falling behind the rest of the world."

The risk is serious–despite our nation’s head start, the Chinese AV industry is the fastest growing in the world and quickly closing the gap. In order for the U.S. to stand a fighting chance, Congress needs to take Dingell's words seriously and make AVs a priority to keep America at the industry’s cutting edge.

Right now, the U.S. is still struggling to shift its domestic AV industry out of neutral. At the national level, outdated federal regulations and production caps have held back private sector investment and deployment. Locally, a lack of AV infrastructure and Not-In-My-Backyard policymaking has similarly held back progress.

Meanwhile, Chinese national policy and local lawmakers have laid a strong groundwork for AVs, providing enthusiastic political support for expediting road tests and improving existing technology. As a result, the Chinese AV industry is growing exponentially, with the country expected to be responsible for half of the entire $237 billion industry by 2025.

While the U.S. stalls out–and at times, rolls backwards–the global AV industry continues to hit the gas, growing at an annual rate of 41%, with China as a leading contributor to that growth. The U.S. ranks higher in AV preparedness than China, but without state-backed support and infrastructure, we're at risk of getting left behind for good.

Fortunately, we can look right here in Michigan for inspiration for our national strategy.

Michigan has invested millions of dollars and kickstarted several initiatives to support AV technology in their Michigan Connected and Automated Vehicles (CAV) Program in 2021. Part of those ongoing efforts includes advocating for the CAV Corridor, which would dedicate a 25 mile stretch of Interstate 94 to test how AVs and traditional vehicles could share the road.

Michigan is taking the lead on current testing, too–the Mcity Test Facility at the University of Michigan's North Campus, funded by the Michigan Department of Transportation, is the first ever purpose-built testing ground for AVs under controlled and realistic environments, and is the home of groundbreaking work in getting self-driving cars on the streets.

Michigan's priorities on providing ample realistic testing zones, robust policy support, and informed regulatory infrastructure are the perfect recipe for developing advanced AVs here in the U.S. that can improve roadway safety–and it's exactly what worked for China. To stay competitive internationally, the U.S. needs to follow Michigan’s lead.

Congress has stepped in to support emerging tech before with the Inflation Reduction Act (IRA) and the CHIPS Act of 2022, which allocated over $350 billiontowards electric vehicle R&D and over $50 billion towards American semiconductor R&D and commercialization.

Both of these policies have made a significant difference in attracting investors, establishing stable local supply chains, and providing jobs here while securing our spot as a competitor in the global tech field, directly challenging China's previous dominance in EVs and semiconductors.

We can and should do the same with AVs.

Michigan has shown us that our AV industry already has so much potential. Now, by following Michigan's example and advancing the AV industry nationwide, Congress can help combat growing roadway fatalities, expand mobility for non-drivers, and build an economy and tech presence to be reckoned with.

As Rep. Dingell aptly put it in her testimony, "China gets what's at stake." The rest of our lawmakers should too.

Adam Kovacevich is the founder of Chamber of Progress, a tech industry coalition.