By Scott Ronalds

The latest edition of The Economist has a special report on America’s competitiveness, titled Cheer Up. It examines the areas which are the “source of the most hand-wringing” among observers: innovation, energy, education, immigration, infrastructure and regulation. The six-part report argues that America’s growth prospects are brighter than they seem, despite the glaring and well publicized problems the nation faces – namely crippling debt and dysfunctional politics.

Much of the media coverage on the American economy tends to be negative. The Economist report attempts to look beyond the problems in Washington and provides a more balanced assessment, acknowledging both the challenges and opportunities that the U.S. faces. It’s a good read for investors with questions and concerns about our southern neighbour. Some interesting takeaways:

Innovation – The U.S. remains the world’s biggest spender on R&D (research and development), which as a share of GDP remains close to an all-time high.

Energy – New technologies, specifically hydraulic fracking and horizontal drilling, have led to a boom in the oil & gas industry, with key outcomes including new jobs, tax revenues and cheap energy (American factories pay a third of the German natural gas price and a quarter of the South Korean price).

Education – American schools are getting the biggest overhaul in living memory, with the emergence of charter schools, new pay structures and incentives for teachers and principals, and new curriculums.

Infrastructure – With federal and municipal funding squeezed, creative solutions are arising in the area of public-private partnerships to encourage investment in roads, bridges and tunnels.

The report is available in print and on The Economist’s website.