The Obama Administration has requested public comment as it begins a process to author a second Strategy for American Innovation. ITIF commends the Administration as it begins to undertake this effort. ITIF's response to the RFI notes that a successful strategy for American innovation must promote both technological-based and non-technological-based (i.e., institutional and organizational) innovation throughout all layers of an economy, including the private sector, government agencies, and non-profit organizations. In other words, the strategy should not only address innovation in government; rather, its chief aim should be to fundamentally change private sector activity and behaviors to spur greater levels of innovation.
The Myth of 'Crony Capitalism'
Psychologists have identified a disorder they term dichotomous thinking (DT) where " .... someone is only able to see the extremes of a situation, and is unable to see the 'gray areas' or complexities of the situation." It's easy to think that many in Washington have chronic DT syndrome. Case in point is the talk decrying anything government does to help business as "crony capitalism."
Will The Next Silicon Valley Be Located in the United States?
As the world's largest R&D cluster, Silicon Valley brings untold economic benefits to the United States. The valley is also a prime example of how R&D in specific industries tends to stay tightly concentrated in a single region. Public support for R&D can help improve the odds that the next Silicon Valley is located in the United States.
Reshoring Optimism, But Not Much Else
While many news sources have reported that manufacturing jobs are returning to the United States, manufacturing employment and firm number data show that reshoring is a myth. To attract jobs back, the United States will need to concentrate on boosting R&D, improviWhile many news sources have reported that manufacturing jobs are returning to the United States, manufacturing employment and firm number data show that reshoring is a myth. To attract jobs back, the United States will need to concentrate on boosting R&D, improving productivity, and implementing corporate tax reforms.
The Roots of Right-Wing Anti-corporate Populism
There is a rising tide of right wing, anti-corporate populism – with designs on preventing all government support for business – that could greatly hinder American economic policy and hamper future U.S. competitiveness.
Time for a Grand Bargain on Corporate Tax Reform
The recent debate over corporate inversions (U.S. companies reincorporating themselves in nations with lower tax rates) threatens to derail progress on comprehensive tax reform even further. The administration and some in Congress seem set on treating the symptom rather than the disease. This is unfortunate because broader reform is both necessary and doable.