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"When I reflect on the state of American competitiveness, my feeling of pride is mixed with deep anxiety," Gates said.

"Too often, it seems we are content to live off the investments of previous generations, and failing to live up to our obligation to make the investments needed to make sure the US remains competitive in the future."

Gates recommended changes to the education system, a relaxation in immigration rules for tech workers, and an increase in investments in research.

"We a face a critical shortage of scientific talent," Gates said in a reference to the immigration issues.

"There is only one way to solve that crisis today: open our doors to highly talented scientists and engineers who want to live, work and pay taxes here."

The number of so-called H-1B visas issued to skilled workers is currently capped at 65,000 a year. The annual batch typically runs out within a few weeks.

This denies foreign students at US colleges the opportunity to seek employment at the end of the school year.

Gates suggested that the cap should be lifted altogether, arguing that tech workers create additional jobs in supporting roles and increase tax revenues that would otherwise be made elsewhere.

Labour unions have always maintained that the H-1B visa programme provides companies with a way to import cheap labour from abroad while putting local people out of work.