The White House should create an Office of Innovation Review in OMB (i.e., an Office of Information and Regulatory Affairs for Innovation).
All too often federal agencies propose regulations with little consideration given to their effect on innovation. To remedy this, Congress should create within the Office of Management and Budget (OMB) an Office of Innovation Review (OIR) that would have the specific mission of being the “innovation champion” within these processes. OIR would have authority to push agencies to either affirmatively promote innovation or achieve a particular regulatory objective in a manner least damaging to innovation. It would be authorized both to propose new agency action and to respond to existing agency action. OIR would add an important new voice to the regulatory conversation. First, there would now be an entity speaking clearly and forthrightly on the centrality of innovation. Second, and more importantly, OIR would have more than just a voice; it would be able to remand agency actions that harm innovation. It would also propose regulation that benefits innovation as part of its mission. But OIR would not be designed to thwart federal regulation; as a matter of fact, in some cases, the existence of OIR might lead to increased federal regulation (e.g., more Environmental Protection Agency regulations might pass muster under cost-benefit analysis if innovation-related effects were calculated).