The report examines 22 cases of successful U.S. innovation in which the development of key foundational technologies stemmed at least in part from federal investment in research and development (R&D). The cases cover technologies developed across a wide range of fields over the past half century, from information and communications technology, energy, and healthcare to transportation, agriculture, and mathematics. The report explains how federal support for R&D is critically important to today’s innovation system, including because of its investment in research and in technologies too far from market for the private sector to invest in, and because federal investment in R&D complements and spurs additional private sector R&D investment. It concludes by arguing that if the United States wishes to regain the world lead in terms of innovation (as a share of its economy) it will need to expand, not contract, federal support for R&D, which means reversing the sequestration cuts to federal R&D scheduled to return in FY 2015.
Science and R&D
Manufacturing Institutes: A Key to Revitalizing U.S. Manufacturing
The U.S. has developed a number of innovative technologies, from LED displays to solar cells, and then seen the large scale manufacturing of these products move overseas. The National Network for Manufacturing Innovation (NNMI) is a unique, government-university-industry partnership designed to address this issue by creating a conduit for innovative R&D to be transitioned to design and manufacture he in the United States, promoting competitiveness and job growth.
Critique of OECD R&D Tax Credit Report
A recent report by the OECD misses the forest for the trees, providing cautionary advice about R&D credits for policymakers while downplaying their effectiveness and ignoring important rationale behind them. While smart policy design is always welcome, most of the OECD’s worries are overstated or simply nonsensical. The R&D credit continues to provide a critical incentive for American innovation and should be expanded considerably.