Is US Technological Leadership at Risk?

A new NBER working paper confirms what we've been reading in the mainstream media:

The prospects for the American leadership in technology are grim. The number of American graduates in science and engineering is stagnating, while that of the European Union and of China is increasing. Their lifetime earnings are lower than those of other high-level occupations, and this discourages young Americans to choose science-related careers. At the same time, populous low-income countries, who are increasing the number of their scientists, are successfully competing with the United States in technically advanced sectors. This trend will create adjustment problems for US workers, beyond the current off-shoring of certain activities and the decline in the net export of technology.
Two widely held beliefs are that even in the age of globalization advanced countries will retain their supremacy in high-tech industries, and that there is a worldwide shortage of scientists and engineers. This original and rigorous paper points out that these statements are - or will soon be - wrong.