Congress

The WTO should prosecute a proactive trade policy that fights foreign mercantilist actions, including currency manipulation, closed markets, high tariffs, and forced offsets for market access.

When a country like China is committed to winning in key innovation-based industry and is willing and able to engage in a wide array of mercantilist practices, some of which violate various global trading agreements, no matter how good the innovation policies of places are, they will not lead to innovation activity. Only if the federal government takes aggressive and sustained action to combat innovation mercantilism will sub-national places stand a fighting chance. Helping places win the race for global innovation advantage will require action directed abroad to dramatically reduce unfair and protectionist foreign trade practices.

Congress should increase funding for and focus on trade enforcement at USTR and customs/border protection agencies.

In order to achieve economic recovery and an essential boost in the U.S. manufacturing sector, Congress should increase funding for and focus on trade enforcement at USTR and customs/border protection agencies—including with regard to IP theft, forced technology transfer, currency manipulation, counterfeiting, dumping, etc.—while heightening focus on countries, such as China, which continue to implement egregious mercantilist practices.

Congress should simplify the corporate tax code while expanding provisions that incentivize investments in R&D, workforce training, and capital equipment and machinery.

Congress should simplify the corporate tax code while expanding provisions that incentivize investments in R&D, workforce training, and capital equipment and machinery. In particular, Congress should transform the Alternative Simplified Credit for R&D into an American Investment Tax Credit that allows expenditures in excess of 50 percent of base calculation on R&D, workforce training, and capital expenditures to qualify for a tax credit of 20 percent. However, Congress should make companies’ ability to receive the full 20 percent credit contingent on some portion of resulting production occurring in the United States. In addition, Congress should expand the collaborative R&D tax credit to cover more sectors beyond energy.

Congress should demonstrate to other nations that combatting online infringement, including by blocking illegal sites, will neither “break the Internet” nor harm free speech.

Policymakers should understand that no bill that targets foreign infringing sites would be acceptable to ideologically-driven advocates, including those who populate Internet standards bodies, regardless of their claims that they also want to reduce piracy. However, other critics have raised reasonable questions about aspects of the legislation, particularly of SOPA. While the countermeasures proposed in PIPA/SOPA that make it more difficult to distribute, locate, and earn revenue from foreign infringing websites should be adopted, policymakers should also listen to the legitimate concerns of stakeholders who make good-faith efforts to improve the legislation, rather than kill it. In particular, policymakers should ensure that the enforcement mechanisms in PIPA/SOPA are targeted, fair, and effective.

In lieu of international carbon targets, countries should agree to meet gradually increasing government clean energy RD&D investment intensity (RD&D/GDP) targets.

As an alternative to carbon targets, let’s create government clean energy RD&D (research, development, and demonstration)investment intensity targets that countries can sign up for in lieu of agreeing to cap carbon emissions. In doing so, world leaders would effectively boost investments in the front-end of clean energy innovation—an area of significant concern and underfunding—thus spurring the development of the very technologies all countries, rich and poor, need to drastically reduce emissions without ongoing expensive subsidies.

Congress should take a more nuanced approach to budget cutting that addresses the budget deficit while simultaneously reducing the investment and trade deficits.

Instead of focusing solely on the budget deficit, Congress should take a more nuanced approach to budget cutting that addresses the budget deficit while simultaneously reducing the investment and trade deficits. The only way to do this is to increase targeted investments that spur innovation, productivity, and competitiveness while cutting budgets elsewhere. Increasing these productive public investments will close the investment deficit, boost U.S. competitiveness and exports, and generate higher economic growth, which is the single best way to close the budget deficit. The CBO estimates that an increase of just 0.1 percent in the GDP growth rate could reduce the budget deficit by as much as $310 billion cumulatively over the next decade. For example, an increase in the real rate of GDP growth from the CBO projection of 2.8 percent over the next decade to 4 percent—the U.S. growth rate from 1993 to 2000—would, all else equal, cut the cumulative budget deficit in half, or by $6.8 trillion, over the next decade.

Congress should create a Data Policy Office within the Department of Commerce to focus on data policies that foster economic activity.

Congress should create a Data Policy Office within the Department of Commerce to focus on data policies that foster economic activity, including policies that increase data sharing, reduce barriers to global information flows, and protect consumer privacy. For example, the Data Policy Office could evaluate the impact of data regulations on competition and innovation, fund research on important issues like data anonymization, and work with other nations to improve international frameworks for sharing data across borders.

Congress should establish a patent box regime modeled after those of other nations, allowing companies in the U.S. to pay a rate of 17.5 percent on corporate income from patented products.

One of the most interesting developments in the race for global competitiveness are what as known as patent boxes. If a patent box is designed in a way that links the incentive to the conduct of R&D and/or production of the patented product in the United States it would go even further in spurring the creation and location of more innovation-based jobs in the United States. Second, a patent box would lower the effective corporate tax rate for knowledge-based firms located in the United States, making it easier for them to compete against other firms in nations providing robust innovation incentives.

The Federal Government should build an e-ID framework that supports both current and emerging technologies to establish a technology-neutral e-ID framework.

The Federal Government should build an e-ID framework that supports both current and emerging technologies to establish a technology-neutral e-ID framework that allows both public and private sector identity providers to issue e-IDs using the technology of their choice.

Congress should grant permissive incentive auction authority to the FCC to allow for decisions between bands of spectrum, how to set the reserve price (if any), and how to divide the proceeds between the legacy user and the Treasury.

Congress should grant permissive incentive auction authority to the FCC. Permissive auction authority would allow the FCC to decide which bands of spectrum to offer up, how to set the reserve price (if any),and how to divide the proceeds between the legacy user and the Treasury. Permissive authority will allow the FCC to fine-tune successive auctions (those that follow the one-time TV incentive auction)as necessary in order to obtain the desired result, and obviate the need to go back to Congress time and time again before auctioning additional bands. If the FCC abuses this authority in the future, it’s within the power of Congress to revoke it.