Innovation Policy on a Budget: Driving Innovation in a Time of Fiscal Constraint

31 Pages Posted: 9 Dec 2010

See all articles by Robert D. Atkinson

Robert D. Atkinson

Information Technology and Innovation Foundation

Daniel Castro

Information Technology and Innovation Foundation

Scott M. Andes

Information Technology and Innovation Foundation

Stephen J. Ezell

Information Technology and Innovation Foundation

Darrene Hackler

affiliation not provided to SSRN

Richard Bennett

Information Technology and Innovation Foundation

Date Written: September 24, 2010

Abstract

Innovation – the improvement of existing or the creation of entirely new products, processes, services, and business or organizational models – drives long-run economic growth and quality of life improvements. As such, spurring innovation should be the centerpiece of national economic policies.

To date, much of the focus of innovation policy has been on government investments in science, technology and education, either directly or indirectly through incentives such as the R&D tax credit. We believe that even in a time of fiscal constraint the U.S. federal government should increase, not cut, these key public investments. However, we recognize the political reality that substantial increases in public investment for innovation are problematic at this time. Nonetheless, the government is not powerless to drive innovation without its fiscal policy tool. To the contrary, it can take a wide array of actions to spur innovation that require little or no additional public expenditure. This report lays out a menu of such actions.

Keywords: innovation, public policy, economics, economic growth, budget

Suggested Citation

Atkinson, Robert D. and Castro, Daniel and Andes, Scott M. and Ezell, Stephen J. and Hackler, Darrene and Bennett, Richard, Innovation Policy on a Budget: Driving Innovation in a Time of Fiscal Constraint (September 24, 2010). Available at SSRN: https://ssrn.com/abstract=1722870 or http://dx.doi.org/10.2139/ssrn.1722870

Robert D. Atkinson (Contact Author)

Information Technology and Innovation Foundation ( email )

1101 K Street N.W.
Suite 610
Washington, DC 20005
United States

Daniel Castro

Information Technology and Innovation Foundation ( email )

1101 K Street NW
Suite 610
Washington, DC 20005
United States

Scott M. Andes

Information Technology and Innovation Foundation ( email )

1101 K Street N.W.
Suite 610
Washington, DC 20005
United States

Stephen J. Ezell

Information Technology and Innovation Foundation ( email )

1101 K Street N.W.
Suite 610
Washington, DC 20005
United States

Darrene Hackler

affiliation not provided to SSRN

Richard Bennett

Information Technology and Innovation Foundation ( email )

1101 K Street N.W.
Suite 610
Washington, DC 20005
United States

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