Innovation Issue Areas Immigration of STEM Talent Small Business Innovation Research Education Foreign Trade Procurement Policy Research and Development Tax Policy Clusters and Cluster Development Manufacturing
Immigration of STEM TalentProblem SolutionForeign talent is receivingeducation in the U.S., which atthe masters/doctoral levelinvolves significant publicexpenditure, but are not livingand working in the U.S.Encourage Immigration of Scientific and Entrepreneurial Talento Visas for foreign graduates with advanced U.S. science and technology degreeso International agreements on skilled worker mobilityo Skilled entrepreneur visas leading to permanent-resident status and ultimatelycitizenship, for foreign entrepreneurs who have secured financing to start businesses inthe U.S.Current Legislation StartUp Visa Act of 2013 by Sen. Udall (D-CO)Establishes an employment-based, conditional immigrant StartUp visa for a sponsoredalien entrepreneur: (1) with required amounts of financial backing from a qualifyinginvestor, government entity, or venture capitalist; and (2) whose commercial activitieswill generate required levels of employment, revenue, or capital investment.Terminates the status of a sponsored entrepreneur if not later than three years afterthe date on which such permanent resident status was conferred: (1) the sponsoringventure capitalist or investor fails to meet investment requirements; or (2) theentrepreneur fails to meet job creation, capital investment, or revenue requirements.
Small Business InnovationResearch (SBIR)Problem SolutionInnovative small businessesare struggling to raise privateventure capital to developnew technologies due to thelack of uncertaintysurrounding theircommercial potential. Whennew ideas and promisingtechnologies are not fundedin the U.S., investorsoverseas may well fill thegap, thus capitalizing on U.S.investments in R&D.Reauthorize and Expand Proven Innovation Programs (National Institute of Standardsand Technology’s Technology Innovation Program, Start-up America, ARPA-E, DARPA,and Energy Efficiency and Renewable Energy)Provide Policy Support for Innovation Capitalo Increase policy makers’ understanding of the role and evolution of Innovation Capital inthe U.S.: a better understanding of the current trends, challenges, and opportunitiesinherent in early stage financing of innovation.o Develop complementary funds that co-invest with angel investorso Educate angels and entrepreneursExpand SBIR to National LaboratoriesExpand SBIR to Support Commercialization of University Research - Universities shouldbe encouraged to draw on the potential of competitive innovation award programs likeSBIR and Small Business Technology Transfer (STTR).
EducationProblem SolutionUniversities and communitycolleges need to helpinnovators with good ideasprove up concepts, createviable business plans, andmarket their technology toattract capital or customers.Sustain Support for University Researcho Stabilize University Fundingo Incentivize Private Donationso Increase Funding of TuitionReduce and Streamline Regulations - The expanding costs of compliance with federalregulations are making it increasingly expensive for universities to conduct research. Federalpolicymakers and regulators should review the costs and benefits of federal regulations,eliminating those that are redundant, ineffective, inappropriately applied to the highereducation sector, or impose costs that outweigh the benefits to society.Support Community CollegesStrengthen university links to the market – Universities should be encouraged to providestronger incentives to promote applied research, ease cooperation with industry, andencourage commercialization in the U.S. of research results.o Provide Federal Matching Seed Funds for capital to generate a proof of concept based onUniversity research and begin to explore commercial applicability.o Develop Additional Centers of Excellenceo Use Innovation Prizes
Foreign TradeProblem SolutionU.S. needs to strengthen its localmarkets to help gain a positiveforeign trade balance.Open foreign markets to business services - the U.S. should be pushing aggressivelyfor services trade liberalization, making common cause with the European Unionand other advanced economies to encourage the large, fast-growing developingeconomies to liberalize their service sectors through multilateral negotiations in theGeneral Agreement on Trade in Services and the Government ProcurementAgreement.Expand support for U.S. manufactured exports – The government and privatesector should work together to identify and seize new market opportunities andreduce barriers to U.S. exports for products of industries that use advancedmanufacturing including electronics, aerospace, and biotechnology.
Procurement PolicyProblem SolutionDefense procurement is animportant driver of innovation,providing initial markets forproducts for the military as well ascivilian sectors. Traditional defenseprocurement, however, operateswithin established and complexsets of regulatory and managerialpractices.Leverage government procurement to establish early markets: procurementprograms can enable domestic producers to move up the learning curve, push downthe cost curve, and enable them to compete successfully in the U.S. and globalmarkets.Leverage defense procurement: To shift from a culture of compliance to a cultureof results based on performance, cost, and schedule, the U.S. should establish“incentives and rewards for innovation in products and processes that result incontinuous performance improvements, at lower and lower costs.”o Develop a skilled acquisitions workforceo Incentivize better performanceo Encourage procurement from small businesses
Research and Development Tax PolicyProblem SolutionThere is a rise in globalcompetitiveness, the U.S.needs to reinforce thetraditional pillars of itseconomic strength andinnovation capacity.Raise Federal Support for R&DProvide a Competitive Tax Frameworko Benchmark Tax and Regulatory Policyo Examine the Tax Code - The U.S. should assess the impact of U.S.-based innovation andproduction of tax policies, and consider appropriate adjustments.o Pursue Prudent Deficit Reduction - Efforts should be made to ensure that changes in taxation aswell as reductions in spending to shrink the federal deficit are allocated with a full understandingof the potential consequences for future growth.o Make Research and Experimentation Tax Credit Permanent
Clusters and Cluster DevelopmentProblem SolutionMany promising innovation-clusterinitiatives have been launched [inthe U.S]. Unlike in other nations,however, many of these initiativesreceive little federal policy orfinancial support—and new federalinitiatives are often small.Foster cluster developmento Assess foreign clusters and draw policy lessons from these efforts that are helpingto shape the global competitive landscape.o Support the development of science and research parks - the U.S. should providecompetitively awarded federal support to state and regional efforts to develop andsustain modern research parks.
ManufacturingProblem SolutionIndividual companies often“cannot justify the investmentrequired to fully develop manyimportant new technologies or tocreate the full infrastructure tosupport advanced manufacturing.Expand support for manufacturing:o Provide incentives for manufacturingo Expand manufacturing support programs