Innovation Economics' Role in Keeping the U.S. Competitive
Sep 25, 2008
BusinessWeek's chief economist Michael Mandel wrote a cover story for the September 22nd issue of the magazine titled "Can America Invent Its Way Back?" that looks at the role of 'innovation economics' in keeping the U.S. competitive.
If this is the first time you're hearing about innovation economics, chances are it won't be the last. As Mandel writes, "some of the brightest minds in [economics]...are paying a lot more attention" to how innovation can spur economic development and national competitiveness by creating new products and jobs.
Mandel describes innovation economics as a 'movement' and acknowledges that it isn't a quick fix to the current economic crisis in the financial and housing markets. But, long-term, he believes that aligning the U.S. economy around innovation is the only way that America can compete with countries like China and India.
He points out that it's not just about spending more money on education and research and development, areas where the U.S. leads many other countries.
So how could innovation economics be put to use by Congress and the next Administration?
The Information Technology and Innovation Foundation (ITIF) released a report on that topic in conjunction with an innovation economics conference it held in D.C. earlier today. ITIF president Robert Atkinson, who's also featured in the BusinessWeek article, outlined eight recommendations:
- Expanding the R&D tax credit
- Creating a National Innovation Foundation
- Allowing foreign students that receive a graduate degree to get a green card
- Reforming the patent system
- Allowing companies to expense new investments in IT in the first year
- Establishing a national Chief Information Officer
- Implementing a national broadband policy
- Implementing an innovation-based trade policy
ITIF even developed a handy 'test' that you can take online to determine what your economic profile is.
Tags:
Competitiveness, Congress, economy, innovation, innovation economics, ITIF, Michael Mandel, Robert Atkinson
