Investment in new-capital machinery, equipment and software is the primary means through which innovation spreads throughout the economy. As these innovations diffuse through industries, they raise productivity, lower costs of production and improve the competitiveness of the American economy as a whole. However business investment in the U.S. has fallen significantly in the last decade, exacerbating the economic stagnation we face.
Innovation & Economic Growth: Rationales for a National Innovation Strategy
Atkinson gave the keynote address at Tecnomamangement 2013, a technology and innovation conference sponsored by the Mexican Institute of Finance Executives and the Mexican Association of Computer Professionals. He discussed the specific policies necessary to implement a national innovation strategy and expand economic growth through innovation.
Effective Innovation Policies and Institutions Continue to Help Drive Success of Nordic Economies
Denmark, Finland, and Sweden are three of the world's most competitive and innovative economies, as speakers commented at an ITIF event on Nordic Innovation: What Can America Learn from the Scandinavian Innovation Ecosystem. The recent success of the Nordic economies is a result of several factors that the United States can learn from, including: a strong bipartisan consensus regarding the importance of federal investment in education, scientific research, and innovation; well-organized national innovation systems that benefit from formally articulated national innovation strategies (Finland’s, Sweden’s, Denmark’s) and well-funded national innovation agencies; and fundamental reforms undertaken in these economies over the past two decades that have made their tax structures more globally competitive, markets more competition-based, federal budgets better balanced, and workers greater skilled.
Shutting Down our Innovation Future
The shutdown of the federal government has earned deserved derision from all corners of American society, and the negative impacts of the debacle will be felt by millions even if it only lasts a short time. However, this is just one symptom of a broader illness affecting governmental budgeting that is sabotaging our economic future by severely inhibiting innovation, business development and long-term economic growth.