Patent boxes can jump-start U.S. innovation. The Netherlands corporate tax rate is less than half of the U.S. rate. Income from patented products and services is taxed at just five percent.

Eight countries have adopted patent boxes in recent years. The UK is slated to implement its own patent box next year. Under a patent box, corporate income attributable to patented products gets taxed a lower rate, sometimes a significantly lower rate. This policy goes beyond providing incentives for R&D and encourages commercialization of new products. It is among the tools more and more countries are using to stay competitive in today's innovation-driven global economy. The U.S. has the infrastructure to have perhaps the most effective patent box in the world. By tying together R&D, high-tech manufacturing, and commercialization of U.S. IP, a well-formulated patent box would establish a potent incentive for companies to develop and produce innovative products in the United States.