Best Practices in State and Regional Innovation Initiatives Competing in the 21st Century (2013) / Chapter Skim
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5 The Federal Dimension
5 The Federal Dimension
Pages 85-108
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From page 85... ...
Much of this spending 1 Presentation by Andrew Reamer, Brookings Institution, "Stimulating Regional Economies," in National Research Council, Growing Innovation Clusters for American Prosperity: Summary of a Symposium, C Wessner, Rapporteur, Washington, DC: The National Academies Press, 2011.
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From page 86... ...
, and location. See National Institute of Standards and Technology, Federal Laboratory Technology Transfer Fiscal Year 2010, August 2012; Institute for Defense Analysis Science and Technology Policy Institute, Technology Transfer and Commercialization Landscape of the Federal Laboratories, June 2011.
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From page 87... ...
Eric Isaacs, "The Federal Laboratory Contribution," National Research Council, "Building the Illinois Innovation Economy: Summary of a Symposium," June 28-29, 2012. 5 Sandia initially collaborated with Goodyear on computational simulation technology that Goodyear needed to improve its tire design and production processes.
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From page 88... ...
Incentives will be provided to encourage collaborations with industry.8 and the government has actively fostered key sectors, but the idea of industrial policy remains controversial, reflecting a widespread aversion to government planning, free market beliefs, and a reluctance to "pick winners and losers" in industry or between states and regions.9 Federal promotion of innovation in industry has been carried forward under the guise of assistance to small business and through mission-related programs by federal departments that support research and often directly impact actors in the commercial arena.10 Federal regional economic development policies have "evolved in a wildly ad hoc, 8 Matthew Tirrell, "Building an Institute for Engineering Innovation at the University of Chicago and Argonne National Laboratory," in National Research Council, Building the Illinois Innovation Economy: Summary of a Symposium, C Wessner, Rapporteur, Washington, DC: The National Academies Press, 2013.
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From page 89... ...
Federal support for private sector technological development was curtailed.14 In early 2009, President Obama declared an intention to double the budget of the most important science agencies, as identified by former President Bush, over a 10-year period. The Obama stimulus package enacted in 2009 allocated an additional $7.6 billion to scientific research, and additional funds to directly support green technologies such as renewable power generation, bio-fuels, green buildings, and electric vehicles.15 The government provided financial support to promising companies across a spectrum of technologies, without perhaps sufficient attention to the growth of demand for their products.16 At the same time, the government actively intervened to support the banking sector and recapitalized the automobile industry.
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From page 90... ...
These centers involve thematic industry-university R&D in a broad range of fields, including bioengineering, earthquake engineering, advanced manufacturing technologies, and power electronic systems.18 Materials Research Science and Engineering Centers (MRSECs) These centers support research of a scope and complexity that would not be feasible under traditional funding of individual research projects.
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From page 91... ...
and other countries. NIH also awards grants to small businesses through the Small Business Innovation Research (SBIR)
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From page 92... ...
The MEP centers are operated by independent organizations rather than MEP itself, and are co-funded at an annual level of about $300 million with one-third supplied by the federal government and the remainder by state and industry sources. The MEP centers provide services and expertise to small and medium sized enterprises (SME)
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From page 93... ...
Small businesses are eligible to compete. A number of federal agencies operate "match" programs pursuant to which successful SBIR grantees are introduced to companies, venture capital funds, and other potential supporters.31 SBIR awards are valuable to recipient companies as a means of securing early stage funding for innovations, but entail other advantages as well.
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From page 94... ...
SBIR funded research must usually be largely or completely executed in the state providing the Phase Zero funding. Phase 0 programs are entirely state funded and have no direct connection to Federal programs (with the minor exception that in a few instances that funding matching SBIR awards include Texas, Kentucky, Connecticut, North Carolina, Montana and Michigan.
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From page 95... ...
Moreover, SBIR awards do not require grantees to surrender intellectual property, no royalties are paid, and they can obtain funding "without giving away the baby."37 The Economic Development Administration The Economic Development Administration is an agency in the Department of Commerce with a mandate to provide assistance to economically distressed regions to stimulate economic growth, innovation and competitiveness, and to preserve and create jobs. The EDA differentiates its "bottom up" programs from other federal economic development programs in that its grants are not formulaic but can "fund a range of customized investments developed specifically to meet the strategic priorities of applicant communities."38 The EDA offers a wide range of regional assistance.
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Of Commerce n/a Kentucky Kentucky Science and Engineering 4,000 Foundation Maine Maine Technology Institute 5,000 Mississippi MS-FAST 3,000 Missouri U Missouri 5,000 Missouri Leonard Wood Institute 2,500-75,000 Nebraska Nebraska Business Development 2,500 Center/U.
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From page 97... ...
Patent and Trademark Office, DoE, NSF, EPA, the Economic Development Administration, and the Department of Agriculture. Recipient organizations are the Iowa Innovation i6 Green Project in Ames; the Louisiana Tech Proof of Concept Center in Ruston; the Washington State Clean Energy Partnership Project; the iGreen New England Partnership; the Ignite Innovation (12)
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From page 98... ...
Roughly two-thirds of its basic research funding is allocated to university-based R&D; with respect to applied research, 65 percent goes to companies, 30 percent to naval laboratories, and 23 percent to universities.49 THE FEDERAL ROLE IN REGIONAL DEVELOPMENT AND MANUFACTURING While many federal policies and programs have indirectly helped foster the evolution of innovation clusters, until recently the federal government has not explicitly sought to promote the development of specific industries in particular regions. In recent years a number of policy organizations have begun 46 |
From page 99... ...
In addition to investing in what it takes to build one job, we are investing in people who can create multiple jobs."54 In 2010, DOE announced that in conjunction with the SBA, the National Institute of Standards and Technology and the EDA, it would award a grant of $129 million to a 50 Center for American Progress, "The Geography of Innovation: The Federal government and the Growth of Innovation Clusters, 2009; Bruce Katz and Mark Muro "The New ‘Cluster Movement': How Regional Innovation Clusters Can Foster the New Economy," The Brookings Institution, September 21, 2010. 51 Tampa Bay Times, "Cluster Spending Exceeds Obama's Goal," April 27, 2012.
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From page 100... ...
regions.60 In February 2013, Brookings scholar Mark Muro, whose previous work on innovation clusters has criticized the relative lack of federal involvement, commented on these new programs and drew the "inescapable conclusion:" Proliferating under the radar, the Obama administration's "small bore" regional initiatives in economic development are beginning to add up to something meaningful. As of now some 74 cluster initiatives and region-focused innovation efforts are underway, helping to catalyze more linked effort and creative economic development in the nation's regional centers of innovation.
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From page 101... ...
The first center, the National Additive Manufacturing Institute, was established in August 2012 and will be located in Youngstown, Ohio.66 61 Mark Muro, "Regional Innovation Clusters Begin to Add Up," The Brookings Institution, February 27, 2013. 62 PCAST, Report to the President on Ensuring American Leadership in Advanced Manufacturing, June 2011, p.
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From page 102... ...
No other country in the world enacted comparable legislation until after World War II, and the great economic historian Alfred Chandler has observed that the Sherman Act and the values that it represented probably marked the most important noneconomic cultural difference between the United States and Germany, Britain, and indeed the rest of the world insofar as it affected the long-term evolution of the modern industrial enterprise.68 The Sherman Act made industries' attempts to achieve market power through cartels or "trusts" subject to criminal and civil liability, triggering a wave of horizontal mergers in the decade after 1895 in an attempt by various industry sectors to maintain market power, e.g. the ability to control prices and limit competition.69 But another consequence of antitrust vulnerability was a new emphasis on industrial research and the use of patents to secure legal monopolies that provided the basis for the exercise of market power with lesser antitrust implications.70 In effect industrial innovation became the only legal avenue to monopoly rents for U.S.
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" in The Paranoid Style in American Politics and Other Essays, New York: Vintage Books Houghton-Mifflin. 77 Robert Bork characterized the emphasis of contemporary antitrust doctrine on deconcentration of economic power and protection of small business as superficially attractive, but basically an expression of social and political attitudes comprised of a "jumble of half-digested notions and
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From page 104... ...
Patent applications and patent issues soared in the years following the creation of the CAFC…" F.M. Scherer, "The Political Economy of Patent Policy Reform in the United States", Journal on Telecommunications and High Technology Law 7:180, 2008.
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M Scherer, "The Political Economy of Patent Policy Reform in the United States", Journal on Telecommunications and High Technology Law, 7:180, 2008.
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Association of University Technology Managers Licensing Activity Study, 2007, cited in Naomi Hausman, "University Innovation and Local Economic Growth and Entrepreneurship," (Harvard Center for Economic Studies, CES-12-10, June, 2012)
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From page 107... ...
She pointed out that Chinese procurement policies "are blocking our companies from the ability to sell to their government." Presentation by Senator Debbie Stabenow, in National Research Council, Building the U.S. Battery Industry for Electric Drive Vehicles: Progress, Challenges, and Opportunities -- Summary of a Symposium, op.
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From page 108... ...
A panoply of federal programs is now being directed toward the fostering of local innovation clusters, support for innovative start-ups, enhancement of U.S. manufacturing competitiveness, and the creation of public-private innovation partnerships.
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