US President backs investment in innovation, despite domestic spending freeze

In his State of the Union Address on Tuesday evening, US President Barack Obama called for sweeping bipartisan investment in innovation, education and infrastructure to maintain the country's competitive edge, while at the same time proposing an annual domestic spending freeze for the next five years, which he said would reduce the USA’s deficit by more than $400 billion over the next decade.

"We need to out-innovate, out-educate, and out-build the rest of the world," said Pres Obama, adding "that's how we'll win the future."

He laid out his vision in a three-step effort that includes investment in spurring innovation, reform and investment in education and rebuilding out-dated infrastructure. In innovation, Pres Obama said maintaining leadership in research and technology is crucial to the country.