'America will not succeed in the 21st century unless we do a far better job in educating our sons and daughters,' Obama said announcing the education grant programme created under the $787 billion economic stimulus plan.

'Rather than divvying it up and handing it out, we are letting states and districts compete for it. That's how we can incentivise excellence and spur reform and launch a race for the top in America's public schools,' he said.

'That race starts today,' said Obama portraying the drive to improve education as part of a broader push to promote economic growth in the face of the worst US financial crisis in decades.

The US that has always led the way in innovation is now being outpaced in math and science education, he noted.

(Arun Kumar can be contacted at arun.kumar@ians.in)