Rising to the Challenge U.S. Innovation Policy for the Global Economy (2012) / Chapter Skim
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Chapter 4 Recommendations
Chapter 4 Recommendations
Pages 163-200
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From page 163... ...
Turner notes that the 1979 President's Industrial Innovation Initiatives, the result of an 18-month Domestic Policy Review, "reflected a strong belief in the free enterprise system and an equally strong belief in the federal government's responsibility to nurture an environment in which industry, universities, and government can function smoothly together." Key bi-partisan legislation of that era includes the Bayh-Dole Act, the expansion of the SBIR program, and the clarification of anti-trust policies to encourage collaborative pre-competitive research by the semiconductor industry. Turner notes the importance on building on previous successes but also the need to articulate a new vision around which policymakers can coalesce.
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3. Capture greater value from its public investments in research: The United States should improve its ability to capture greater value from its public investments in research.
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Pursue prudent deficit reduction d. Make the Research and Experimentation tax credit permanent
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Adopt specific policy measures to capture greater economic value from America's public investments in research a. Strengthen university links to the market i.
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Support the development of science and research parks j. Leverage government procurement to establish early markets i.
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For example, the Office of Naval Research, in cooperation with its Global component, have launched a series of outreach activities designed to explore best practices in innovation policy and identify cooperative projects. The National Academies Board on Science, Technology, and Economic Policy is launching an Innovation Forum, with the support of ONR, to provide an on-going institutional mechanism to benchmark national innovation policies and to provide a mechanism for regular policy discussions and learning.
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Steady, sustainable, predictable increases over the long term are needed for universities to plan their own investments in research, and would make federal and state research expenditures more effective and efficient.8 6 See related Finding 2 in Chapter 3. 7 For a transcript of address by President Obama at the annual meeting of the National Academy of Sciences on April 28, 2009, see http://www.issues.org/25.4/obama.html.
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11 iii. Incentivize Private Donations:12 Consider expanding federal tax credits for companies that fund university research in order to stimulate additional funding for universities.13 In addition, R&D so that the nation will have a stream of new knowledge and educated people to power our future, helping us meet national goals and ensure prosperity and security." 9 See discussion in Chapter 2 section "U.S.
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The report calls for the creation of a "R&D tax credit that incentivizes business to develop partnerships with universities (and others as warranted) for research that results in new U.S.-located economic activities." For an analysis of the impact of financial shocks to a university's resource base, see Jeffrey R
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should expand successful innovation programs, as it recently has with the SBIR program, restore funding for NIST's revamped Technology Innovation Program with its current focus on manufacturing, 20 and consider new programs such as the recently announced Start-up America.21 These early-stage funding programs support the development of new products and help promising small technology companies bring new ideas and products to the market, in part by creating productive use of federal research funding." Access at www.cogr.edu/viewDoc.cfm?
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Bonvillian, "The Connected Science Model for Innovation: The DARPA Model," in National Research Council, 21st Century Innovation Systems for Japan and the United States, Lessons from a Decade of Change, Report of a Symposium, Sadao Nagaoka et al., eds., Washington, DC: The National Academies Press, 2009. For a review of the Energy Efficiency and Renewable Energy program, see National Research Council, Energy Research at DOE: Was It Worth It?
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• Develop complementary funds that Co-invest with angel investors: Although angel investors play an important role in funding innovation at the seed and early stages of a technology's development, the size and reach of these investments remains limited.28 Recent initiatives that provide capital as part of co-investments with angel investors on a matching basis, often with the angel leading the deal, can increase the amount of innovation funding available and should be assessed and expanded where models prove successful.29 These complementary 26 In economics, a perfect market is defined by several simplifying conditions, including perfect market information. The real world is characterized by pervasive information asymmetries.
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Through their flexibility and proximity to employers and the opportunities they offer, community colleges can and should play an important role in developing industry-relevant skills and training for dislocated on angel investment, see OECD, Financing High Growth Firms, The Role of Angel Investors, Paris: OECD, 2011, page 96. 30 Freear and Jeff E
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33 Skills for America's Future is an industry led initiative that seeks to "dramatically improve industry partnerships with community colleges and build a nation-wide network to maximize workforce development strategies, job training programs, and job placements." As a part of this effort, the Manufacturing Institute, the affiliated non-profit of the National Association of Manufacturers (NAM) , has announced an effort "to help provide 500,000 community college students with industry-recognized credentials that will help them get secure jobs in the manufacturing sector." White House Press Release, June 8, 2011, "President Obama and Skills for America's Future Partners Announce Initiatives Critical to Improving Manufacturing Workforce." 34 For a review of the need for lifelong learning in the globally competitive economy of the 21st Century, see National Academy of Engineering, Lifelong Learning Imperative in Engineering, Summary of a Workshop, D
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Support for Manufacturing." See Harold F Rosen, "Strengthening Trade Adjustment Assistance," Policy Brief 08-02, Peterson Institute for International Economics, 2008.
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Other advanced nations compete for skilled workers. For a Canadian perspective, see Industry Canada, "International Mobility of Highly Skilled Workers: A Synthesis of Key Findings and Policy Implications." Ottawa, April 2008.
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Strong and steady public investments are necessary to sustain traditional U.S. 46 See related Finding 3 in Chapter 3.
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Specifically, the research and experimentation (R&E) tax credit is designed to stimulate company R&D over time by reducing after-tax costs.50 To capture the benefits that the R&E credit is seen to provide the U.S., many nations have since followed suit with their own, often more competitive tax credits for research and experimentation.51 According to the OECD (2009)
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Expand Broadband Penetration: Internet access is an important tool for the development and dissemination of knowledge and is closely linked with economic growth.61 The U.S. lags other advanced nations in broadband penetration, ranking 15th out of 30 countries in broadband penetration rates.62 While recognizing the 56 See Related Finding 3 in Chapter 3.
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66 National Foreign Trade Council, "Promoting Cross-Border Data Flows: Priorities for the Business Community," November 3, 2011. 67 Report of the Trilateral Committee on Transborder Data Flows: North American Leaders Summit, January 2010 at http://web.ita.doc.gov/ITI/itiHome.nsf/0657865ce57c168185256cdb007a1f3a/c444e0e6174952b585 2575d1007eaec2/$FILE/Report%20of%20the%20Trilateral%20Committee.pdf.
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businesses and 68 National Foreign Trade Council, Id. 69 See the related Findings in the report of the National Academy of Sciences, et al., America's Energy Future, Technology and Transformation, Washington, DC: The National Academies Press, 2009.
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The United States needs to adopt specific policy measures to capture greater economic value from its public investments in research.77 The America COMPETES Act calls for greater investment in innovation through research and development and Congress should appropriate the funding authorized in the legislation.78 A similarly comprehensive effort needs to be made to exploit the results of the nation's investments in science, technology, and education into more innovative products, business, industries, and well-paying jobs.
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Centers considered to be a success, such as the Deshphande Center at MIT, are managed by professionals, independent of the university.80 ii. Develop University Incubators: University incubators, which seek to support entrepreneurs as they move their ideas from the laboratory to the marketplace, are a growing phenomenon.81 In many cases, services provided by university business incubators, including laboratories, equipment, and student employees help nurture new technology based firms.82 Some universities have experimented with incubators that provide shared office and infrastructure (e.g., wet labs)
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Positive examples of Centers of Excellence include the Semiconductor industry' four Focus Centers; the National Cancer Institute's designated Cancer Centers; the four Nano-electronics research centers; and the Army funded Federal Display Center at Arizona State University. These centers need to be assured of sustained and sufficient funding, 83 For a recent survey of incubator managers regarding best practices, see David A
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Recent initiatives, such as those by the Gates Foundation, could provide a template for a new approach to financing innovative startups.90 87 In this regard, a committee of the National Academies has previously recommended that the Microelectronics Advanced Research Corporation's Focus Centers, in which government and industry jointly support university researchers, be fully funded and, ideally, expanded. See Recommendation b on page 89 of National Research Council, Securing the Future, Regional and National Programs to Support the Semiconductor Industry, op.
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Expand use of Research Parks: The National Laboratories should continue to develop and grow research parks where feasible. The Sandia Science and Technology Park Initiative demonstrates that appropriately structured public-private partnerships can reinforce the mission of the National Laboratories as well as contribute to regional economic development.91 ii.
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96 The President's Council of Advisors on Science and Technology, "Report to the President on Ensuring American Leadership in Advanced Manufacturing," Washington, DC: The White House, June 2011. The recommendations of this report build on an earlier report submitted to President George W
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needs to support the competitiveness of its advanced manufacturing sector by making federal incentive programs permanent and broadening the time horizons of tools such as manufacturing tax credits and loan guarantees so that companies can confidently invest for the long term.98 Regulatory and tax incentives should be considered and expanded where appropriate to drive downstream demand.99 ii. Expand Manufacturing Support Programs: Consideration should also be given to the creation or expansion of programs that directly support manufacturing.100 These programs, in strategies." The Journal of Technology Transfer, Volume 35, Number 3, 283-333 (2010)
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For example, the $457 million Sunshot Initiative of the Department of Energy "is a collaborative national initiative to make solar energy cost competitive with other forms of energy by the end of the decade. Reducing the installed cost of solar energy systems by about 75% will drive widespread, large-scale adoption of this renewable energy technology and restore U.S.
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exports for products of industries that use advanced manufacturing including electronics, aerospace, and biotechnology.107 In this regard, resources for export financing should be re-examined to be sure that export financing is fully competitive with foreign export credits.108 In addition the Department of Commerce should substantially expand the U.S. and Foreign Commercial Service in 104 See Chapter 4 of this report for a description of the Fraunhofer Gesellschaft.
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See Department of Commerce Press Release, "Commerce Secretary John Bryson Lays Out Vision for Department of Commerce." December 15, 2011. 110 For a review of recent federal and state efforts, see National Research Council, Growing Innovation Clusters for American Prosperity, C
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34:455–473. For a contemporary review of the role that Defense procurement can play in advancing new energy technologies, see Ryan Fitzpatrick, Josh Freed, and Mieke Eoyang, "Fighting for Innovation: How DoD Can Advance Clean Energy Technology...
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Bakker (2011) "Public procurement and the diffusion of innovations: exploring the role of institutions and institutional coordination." International Journal of Public Sector Management, 24 (5)
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7. Capitalize on the globalization of research and innovation: The United States should capitalize on the globalization of research and innovation to cooperate with other nations to advance innovations that address shared global challenges in energy, environment, health, and security.120 a.
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Facilitating this global collaboration could have a considerable impact on knowledge creation and has been promoted, for example, by the EU Framework requirements."128 Conclusion Innovation -- from invention through to commercialization -- has a vital role to play in maintaining America's position of in the world economy and in addressing the major challenges facing the world today in areas such as energy, climate, health and economic development. There is no single measure, nor even a small number of policy measures that can assure success in preserving cooperative activity in a variety of areas including developing clean coal energy technologies, environmental remediation, and cancer research.
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198 RISING TO THE CHALLENGE and enhancing the magnificent record that this country has in innovation. Scientists in industry and government are now accustomed to developing what they call "roadmaps" to identify the challenges that need to be addressed and to bringing forward the next generations of innovative products.
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