national innovation system: issues for federal policynational innovation system: issues for federal...
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National Innovation System:Issues for Federal Policy
Lori A. Perine
President & CEO
Interpretech, LLC
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“The National Innovation System”n Production of Knowledge
– Research and Development
– Scientists and Engineers
– Research facilities
– Other research infrastructure
n Application of Knowledge– Problem Solving, New Products, Services, Efficient
Processes
– Gov’t, entrepreneurs, business managers, financialinstitutions
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Fundamental Policy Objectives:Development and Deployment of NewTechnologies and Applications
n Facilitate competition
n Capture social and economic benefits obtainedfrom new technologies and applications
n Attain national goals, e.g. defense and homelandsecurity, human health, environmental quality
n Ensure availability of systems to meet variedrequirements, needs and objectives
n Facilitate adaptation and evolution of society andeconomy
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Where Federal Policy Can Play anEnabling Role Within the NationalInnovation Systemn Awards and Leadership
Groups
n Capital Markets
n Government Data
n Harmonization of Policies
n Intellectual Property
n Partnerships, Antitrust
n Peer Review
n Procurement
n Public-PrivatePartnerships for Standards
n S&T Priorities
n Talent Pool
n Trade Policy
n Using the Internet
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Questions for Policymakers
1. What current policy mechanismsconstitute “best practices” in facilitatinginnovation?
2. Which mechanisms are “broken” andneed to be fixed or eliminated?
3. What new approaches and innovationsare needed in policy and programs?
4. Where is new research or knowledge isneeded?
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Key Areas for Policy Consideration
• Workforce
• Data and Information
• Coordination/Harmonization
• Intellectual Property
• Market Forces
• Infrastructure and Infratechnologies
• Socioeconomics and Ethics
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Workforce
n Improving education and training
n Strengthening incentives, awards for S&Tcareers
n Expanding options for access to S&Teducation
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Workforce
n Strengthening the domestic labor market
n Promoting cooperative research (nationaland international)
n Balancing national security and economiccompetitiveness in immigration policies forS&T workers
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Data and Information
n Facilitating access
n Harmonizing existing data bases
n Improving timeliness and efficiency ofcollection and dissemination
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Data and Information
n Improving relevance of data collected
n Developing new measures and datacategories
n Improving public awareness andunderstanding of the innovation system
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Harmonization/Coordination(cont)• Facilitating partnerships and cooperative
research
• Encouraging formation of “clusters” ofexcellence (regional and international)
• Promoting trade policies that encourageinnovation
• Promoting adaptive regulatory regimes
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Harmonization/Coordination(cont)
n Addressing institutional coordination issues
n Improving interagency collaborations
n Improving multidisciplinary collaboration
n Encouraging accountability for R&Dspending
n Revising procurement policies
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Intellectual Property
• Reforming the patent system- Reducing costs of intellectual property
protection
- Improving core competencies of patentexaminers
- Improving efficiency of the process
- Improving quality of patents
- Eliminating abuses
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Intellectual Property (cont)
• Encouraging harmonization of internationalintellectual property protections
• Promoting technology transfer
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Market Forces
• Strengthening capital markets
• Developing alternative funding mechanisms
• Providing for multi-year federal funding
• Developing fiscal incentives (including taxincentives, procurement policies)
• Establishing national R&D priorities
• Quantifying return on R&D investments
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Market Forces (cont.)
n Defining the public versus the private rolein R&D
n Promoting technology transfer (throughjoint ventures, coalitions)
n Working for trade policies that strengthenmarkets
n Strengthening financial structure of S&Torganizations
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Infrastructure andInfratechnology
• Developing metrics for priority setting,project selection, performance evaluation
• Developing systems for testing technologies
• Promoting standards development
• Using consensus process for standards
• Improving use of peer review
• Investing in infrastructure R&D
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Socioeconomics and Ethics
• Understanding the conditions for change
• Encouraging entrepreneurial spirit
• Understanding externalities (e.g., oppositionto GMOs, labor impacts)
• Removing cultural barriers
• Considering ethical implications of newtechnologies
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Socioeconomics and Ethics (cont)
• Protecting privacy
• Improving security
• Improving economic measures
• Defining public policy goals, via democraticprocess
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Special Considerations
n Smaller government
n Wartime/homeland defense priorities
n Needs if small businesses
n Increasingly diverse missions and motivesof universities (education and business)
n Diverse missions of government
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Common Themes
n Leadership is needed to define national R&Dgoals.– Shift from short-term to long-term perspective.
– Diversify investments.
– Coordinate government programs (past coordinationefforts have not worked well).
– Provide rationale for R&D investments to the public,Congress.
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Common Themes
n The “innovation system” is poorly understood.
n International markets need to be understood, moreaccessible.
n K-12 education needs to be improved tostrengthen the domestic labor pool.
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Common Themes
n Barriers to achieving full potential for theInternet need to be removed:– organizational and technical inertia
– interoperability
– privacy, security
– access
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Common Themes
n The intellectual property system needs to bestudied, updated, streamlined.
n Barriers to conducting interdisciplinary researchneed to be eliminated.
n More refined policies on data access and securityare needed.
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Slides for DevelopingEntrepreneurial Capacity
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Policy Considerations
n Shared Risks and Rewards– Education, communication, transportation
infrastructure
– Bankruptcy laws
– Availability of favorable tax treatment
– Culture that celebrates entrepreneur success &accepts entrepreneur “failure”
n Fostering and Protecting Innovation– Intellectual Property Laws
– Investment in R&D and tech transfer
– Regional support of “spin-offs”
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Policy Considerations (cont)
n Expertise– Investments in education & training
– Regional policy to support networks ofsuppliers
n Planning and Strategy– Reduced regulatory burdens
– Flexibility and adaptiveness ininstruments/conditions for capital and labor
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Policy Considerations (cont)
n Capital– Availability of non-institutional equity capital
(credit cards, second mortgages)
– Incentives to re-invest earnings
– Securities regulations
– Availability of seed capital and angel networks
– Fostering venture capital investment• securities regulation, accounting standards, and
initial public offering market regulations
• anti-trust policy favoring venture-backed companies