New Indian Prime Minister Narendra Modi and his BJP party won election in part on campaign pledges to improve the environment for doing business in India, in part by improving India's intellectual property environment. Yet foreign developers of innovative life sciences products continue to face challenges securing intellectual property rights in India, including with regard to compulsory licenses, patent denials, and patent revocations. Meanwhile, India has fallen to 134th in the World Bank's Doing Business Index and to 76th (from 62nd in 2011) in INSEAD's Global Innovation Index. This is a reflection of Indian policies in recent years that have focused more on advantaging domestic producers at the expense of foreign competitors as opposed to boosting the innovation capacity of India’s own entrepreneurs, businesses, and industries. While it's still early in Modi's tenure, and there are some positive signs of prog ress, if India is to become a robust 21st-century economy it must renounce the tried-and-failed innovation mercantilist policies of the past and instead embrace core tenets of free and competitive markets, open and non-discriminatory trade, protections for innovators' intellectual property, and openness to flows of goods, technology, capital, and people.
Unsubstantiated Attacks on the Ex-Im Bank Fail to Take Flight
Bent on decrying ‘crony capitalism,’ the Wall Street Journal is misusing a new S&P report to discredit the Ex-Im Bank. The report’s actual finding, however, is that without Ex-Im financing support, Boeing would see a finance gap of $7 billion to $9 billion. The report demonstrates that the Ex-Im Bank is fulfilling its mandate to provide financing that enables American Exports where demand exist but credit institutions are unwilling or unable to finance deals.
The Decline of America’s National Innovation System
The United States used to have the world’s strongest National innovation System but today lags behind many of our international competitors, hampering economic and job growth. To rebuild our innovation infrastructure, the United States must strengthen trade, tax, and regulatory institutions, implement policies to encourage research, human capital development, and the flow of
The U.S. Government Isn't Friendly Enough To Big Business
There is an increasing hue and cry in Washington against “crony capitalism” and “industrial policy”—the notion that the federal government unfairly supports certain large corporations and industries. But what we really should be concerned about is America’s “size- based” industrial policy, which actually favors small businesses to the detriment of the economy as a whole.
What is a National Innovation System and Why Does it Matter?
In the conventional view, innovation is something that just takes place idiosyncratically in “Silicon Valley garages” and research and development (R&D) laboratories. But in fact, a broad national innovation system (NIS), backed by specific government policies and significant federal investment are essential to the development of a successful innovation ecosystem.
No, Immigrants are Not Stealing Our Jobs
The notion that immigrants are taking our jobs, similar to the robots are taking jobs theory, is completely false. Blaming immigrants for a weak U.S. economy only diverts attention from the real issue: designing and implementing a robust national competitiveness strategy.
Foreign Export Credit Competition Continues to Intensify as U.S. Competitiveness Wanes
Amidst continuing debate regarding the role of the U.S. Export-Import Bank, the 2014 Report to the U.S. Congress on Export Credit Competition provides fresh evidence that foreign export credit competition continues to intensify even as U.S. competitiveness at providing export credit assistance continues to weaken compared to leading competitor nations. As a share of GDP, competitors such as China and Germany are investing five to seven times more in export credit assistance than the United States, while Korea invests fourteen times more. Meanwhile, over the past six years, China has invested twice as much in export credit as the United States in current dollars, and almost four times as much as a share of GDP. Moreover, the majority of foreign export credit competition is now occurring outside of guidelines promulgated by the Organization for Economic Cooperation and Development (OECD) to regulate fair competition in the use of export credit a mong nations in a way that ensures that global export competition is based on free-market principles and mutually agreed-upon standards. Such data reaffirms the important and much-needed role the U.S. Export-Import Bank plays in providing export credit assistance to help finance the exports of U.S. products and services.