BlueSky writes "A new report paints a troubling picture of the state of physics research in the US, which the authors believe has dire consequences for the competitiveness of the US. 'The report identifies six key questions that will represent the grand challenges that materials science will face over the coming decade, the ones most likely to produce the next revolution. But it also raises fears that those challenges will be met by researchers outside of the US. It highlights the fact that government funding has not kept up with the rising costs of research at the same time that the corporate-funded research lab system has collapsed. As a result, US scientific productivity has stagnated at a time when funding and output are booming overseas.'"