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Services Innovation Policy in the United States

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Stephen Ezell presented ITIF's work on competitiveness, innovation, and productivity as well as evidence from our various reports on countries innovation rankings at the 2012 EPISIS Conference.

Stephen Ezell presented ITIF's work on competitiveness, innovation, and productivity as well as evidence from our various reports on countries innovation rankings at the 2012 EPISIS Conference.

Published in: Technology, Business

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  • 1. June 5, 2012Services Innovation Policy in theUnited StatesEPISIS ConferenceStephen Ezell, Senior AnalystInformation Technologyand Innovation Foundation
  • 2. The Atlantic Century II  The Study: compares the innovation-based competiveness of 44 Asian, European, and American nations and regions.  16 indicators: including corporate and government R&D, scientists and engineers, new firms, corp. tax, productivity growth and others. http://www.itif.org/files/2011-atlantic-century.pdf
  • 3. 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 Singapore Finland Sweden U.S. Innovation S. Korea UK Canada Denmark NAFTA Netherlands Japan Australia Belgium France Ireland Germany Austria EU-15 EU-25 Czech Rep. Estonia Hungary Spain Slovenia Portugal Slovakia EU-10 Latvia Russian Italy Malaysia Lithuania Chile China Cyprus Poland Greece Brazil Turkey Overall Score for Global Competitiveness and Mexico South Africa Argentina India Indonesia3
  • 4. 0.0 5.0 10.0 15.0 20.0 China 25.0 S. Korea Cyprus Slovenia Estonia Czech Rep. Latvia Singapore EU-10 Portugal Hungary Lithuania India Austria Chile Greece Japan Slovakia Finland Denmark Australia Indonesia Ireland UK Brazil Mexico Poland Overall Change Score (1999-2011) EU-25 Netherlands Turkey Spain Argentina Russia Canada Malaysia EU-15 France Germany Sweden Belgium NAFTA South Africa U.S. Italy4
  • 5. Summary – What the United States Doesn’t Have U.S. lacks a national service innovation policy. No institutional/policy focus on supporting private sector services innovation (as opposed to ag./mfg.). 5
  • 6. Summary – What the United States Does Have A new National Innovation Strategy… Which does have indirect policies to support innovation in some key services sectors:  Government  Education  Health care  Wireless/ICT SSME and SRII. 6
  • 7. A Strategy for American Innovation 7
  • 8. Spurring Innovation in Certain Key Services Sectors1. Health Care  NSF’s Service Enterprise Systems (SES) research  Community Health Data Initiative (CHDI)  Promotion of Electronic Health Records (EHRs)2. Education  ARPA-Ed  National Education Technology Plan (NTEP)3. Information/Communications Technology (ICT)  National Broadband Policy (2009)  National Wireless Initiative (2012) 8
  • 9. Spurring Innovation in Government4. Government  Interagency innovation task force  Crowdsourcing/Prizes  Open Data/Big Data  Tying funding to performance and innovation 9
  • 10. 3 Steps to Improve U.S. Service Innovation Policy1. Institutionalize services science research through NSF and collaborative-industry university partnerships.2. Embrace the self-service economy, including addressing inhibiting regulations.3. Develop a U.S. services sector competitiveness strategy. 10
  • 11. A U.S. Services Sector Competitiveness Strategy1. Factor Inputs/Framework Conditions (“4 Ts”) 11
  • 12. A U.S. Services Sector Competitiveness Strategy1. Factor Inputs/Framework Conditions2. Sector Studies/Policies/Regulations  Hotels  Construction  Logistics  Health care  Government  Education  Wholesale/Retail Trade 12
  • 13. A U.S. Services Sector Competitiveness Strategy1. Factor Inputs/Framework Conditions2. Sector Studies/Policies/Regulations3. Functions (e.g., processing information; processing money; moving people; etc.) 13
  • 14. A U.S. Services Sector Competitiveness Strategy1. Factor Inputs/Framework Conditions2. Sector Studies/Policies/Regulations3. Functions4. Tool Development (e.g., self-service systems, cloud, automation, voice recognition, expert systems [e.g., IBM’s Watson], flexible displays, analytics, etc.) 14
  • 15. A U.S. Services Sector Competitiveness Strategy1. Factor Inputs/Framework Conditions2. Sector Studies/Policies/Regulations3. Functions4. Tool Development5. Platform Enablement (e.g., smart grid; health IT; broadband; 4G wireless; mobile payments; electronic IDs; GPS; ITS) 15
  • 16. A U.S. Services Sector Competitiveness Strategy1. Factor Inputs/Framework Conditions2. Sector Studies/Policies/Regulations3. Functions4. Tool Development5. Platform Development6. Firms’/Organizations’ Adoption (e.g., incentives/ penalties for adoption, tax incentives for R&D and capital equipment, etc.) 16
  • 17. Thank you! sezell@itif.orgFollow ITIF: Facebook: facebook.com/innovationpolicy Blog: www.innovationfiles.org YouTube: www.youtube.com/techpolicy Website: www.itif.org Twitter: @itifdc 17