Two new tax proposals sponsored by the Coalition of Small Business Innovators promise to help small, research-intensive companies cross the “Valley of Death” by attracting investors even when they are still far from profitability. The first proposal would amend Section 382 of the Tax Code to permit passive investors to take advantage of the net operating losses and research tax credits of small research companies in which they invest. The second change would make it easier for small companies to carry net operating losses forward even as they conduct new rounds of financing. An independent study by Ernst & Young estimates that this change would increase investment in these companies by $9.2 billion, allowing them to create 47,000 jobs.
Blogs & Op-eds
Beyond Free Trade vs. Protectionism
For far too long, a battle of wills between neoclassical free-traders and neo-Keynesian protectionists has impeded progress on trade policy. To break the cycle, policymakers should embrace a new understanding of trade and globalization grounded in "Innovation Economics."
What Creates Jobs? Welcoming STEM Workers
What creates jobs? Welcoming high-skilled STEM workers in technology fields creates on average 4.3 local, service sector jobs through the multiplier effect. This finding should inform U.S. immigration policy and lead to increased flows of high-skilled workers into the country.
Time for America to Throw in the Competitiveness Towel
If Congress fails to reauthorize the U.S. Export-Import Bank it puts America at a competitive disadvantage. The Ex-Im bank plays a critical role in helping U.S. companies export products so that U.S. workers can keep global market share in high-wage industries.
Roundup® a Carcinogen? Never Mind the Science…
The International Agency for Research on Cancer (IARC) has departed from the scientific consensus to declare glyphosate, the active ingredient in Roundup®, to be a class 2A “probable human carcinogen”. This contradicts a strong and long standing consensus supported by a vast array of data. The IARC statement is not the result of a thorough, considered and critical review of all the relevant data.
Canada’s False Patent Promise
The global standard for obtaining a patent is simply that an invention must be new, useful, and non-obvious. But not so in Canada. Bucking World Trade Organization rules, it has imposed an innovation-killing policy that says new drugs are only useful if they deliver exactly the result an applicant promised when applying for a patent.
ITIF Argues for a Pro-Growth Digital Agenda
In an essay for the journal Democracy, Rob Atkinson and Doug Brake outline the policies to guide a much-needed update of U.S. communications laws. They argue we should continue to rely on dynamic, facilities-based competition, preserving incentives to invest and innovate in networks. Also important are strong programs to spur adoption and close the digital divide. By focusing on light-touch, facilities-based competition and getting everyone online—and not getting bogged down by red-herrings like net neutrality—we can drive broad economic growth throughout the 21st century that will benefit all Americans.
Increase H-1B Visas as Part of the DHS Appropriations Bill
Although funding for the Department of Homeland Security has been settled (with Republicans once again learning the folly of taking a hopeless position), the need for bipartisan solutions to immigration reform remains, ITIF's Joe Kennedy writes in The Hill. A good first step would be for the new Republican majorities in Congress to pass a bill expanding the number of H-1B visas, allowing more skilled people to come to U.S. shores.
Mandatory “GMO” Labeling Proposals Are Failing Despite Unprecedented Efforts and Expenditure
Campaigners opposed to agricultural innovation pushed for mandatory GM labeling laws in more than 30 State legislatures last year. Only one passed, and that was immediately challenged in court. This expensive and dismal record of success shows that support for GM labels is far weaker than proponents claim. Voters may have noticed they already have multiple ways to choose non GM food if they wish, and they seem to be tiring of fear based campaigns.