Strengthening our National Innovation System

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Strengthening ourNational Innovation System

• Gary R. Bachula
• Technology Administration
• U.S. Department of Commerce

2
National Innovation System

• The Production of Knowledge
• The Application of Knowledge

3
Production of Knowledge

• Research Development
• Scientists and Engineers
• Universities
• Government Labs
• Private Labs
• Supporting Infrastructure
• Labs Equipment
• Institutions
• Policies
• Funding Sources

4
Production of Knowledge

• Issues
• Public Funding of RD
• Private Funding of RD
• Balance of RD Portfolios
• RD Infrastructure
• Science, Math Engineering Education
• Policy Climate for the Conduct of RD

5
RD Policy Climate

• Intellectual Property Rights
• Anti-Trust
• Tax Incentives (RE Tax Credit, Capital Gains)
• Regulatory Issues
• Standards

• International, National,State, Local Policies
• Performance Measurements
• Risk-Sharing, Partnerships
• Accounting Practices

6
Application of Knowledge

• Problem Solving, New Products, Services,
  Efficient Processes
• Knowledge Producers
• Government Agencies
• Entrepreneurs
• Venture Capitalists
• Business Managers
• Financial Institutions

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Application of Knowledge
Issues

• Barriers to Deployment
• IPR
• Tax
• Anti-Trust
• Regulatory
• Standards
• Skills Workforce Issues

• Seed, venture, mezzanine capital
• Valley of Death
• Bridging the gap between research
  commercialization
• Partnerships
• Federal, state, local

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Barriers to Innovation

• Early Stage Knowledge Production
• Resources for Fundamental Science
• Infrastructure for Fundamental Science
• Laboratories Equipment
• Information Infrastructure
• Number, Quality Skills of ST Workforce

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Barriers to Innovation

• Next-Stage Applied Research Technology
  Development
• Resources for the Valley of Death
• Private Sector Seed Capital
• Risk-Sharing, Uncertainty -- the need for
  partnerships, collaborations, consortia
• Tax, regulatory, IPR, standards barriers
• Market barriers

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Barriers to Innovation

• Technology Commercialization
• Venture Capital
• Tax, regulatory, IPR, standards, anti-trust
• Complex Systems

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Barriers to Innovation
Technology Application (Deployment, Diffusion)

• Market barriers
• Regulatory barriers
• Resources
• Externalities
• Standards
• Technical barriers

• Infrastructure
• Complex systems
• Multiple policy levels international,
  national,state, local
• Knowledge diffusion

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Barriers to Innovation

• Complex v. Simple Innovations
• Each sector has different issues
• No one size fits all policy solutions

13
A Final Thought.

• Can government policy keep up with
• The Speed of Innovation?