Innovation According to Brookings

December 2011 / January 2012 By: Tom Michael Volume 9 Number 6

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In the vast world of Washington, very few—if any—think tanks are doing as much high-profile and compelling work on the issue of technology and innovation as the Brookings Institution’s Center for Technology Innovation. Since launching in early 2010, the center has hosted seminars on subjects ranging from cybersecurity threats to cloud computing and the growing movement in online education to how high-tech drones are changing strategies in counterterrorism, and a  favorite of mine, why current U.S. immigration policy forces smart foreign students—many of whom are potential innovators—to leave the country.

Last month, the Brookings experts led by center director Darrell West were back at it. This time, they gathered several esteemed experts to discuss “Technology and the Innovation Economy.” The forum looked at new technology advances that will stimulate growth and future job creation. It was just one example of this public policy organization’s emphasis on driving innovation.
“Our work focuses on identifying and analyzing key developments to increase innovation; developing and publicizing best practices to relevant stakeholders; briefing policymakers about actions needed to improve innovation; and enhancing the public and media’s understanding of technology innovation,” the center’s web site states.
The center is especially interested in digital infrastructure, public sector innovation, new digital media and entertainment, policy regulation, digital medicine, virtual education and green technology.
West opened the recent Brookings forum by noting the clear link between technology innovation and economic prosperity. He said a World Bank study of 120 nations between 1980 and 2006 found that, for each 10 percentage point increase in broadband penetration, it added 1.3 percent to the gross domestic product of the typical nation.

West also cited a study that found Americans are less optimistic about their future than the Chinese. A two-year-old study by Newsweek and Intel found only 41 percent of Americans thought that our country was ahead of China on innovation while 81 percent of Chinese felt that the U.S. was ahead.
“So, even though we’re doing very well, people are worried about the future,” West said. “They think we’re losing our edge. They’re worried that other countries are catching up with us.”
A recent Brookings white paper suggested several policy prescriptions that would help solidify America’s shaky technological footing. One is making the research and development tax credit permanent, instead of forcing affected organizations to wait around for an annual congressional authorization.
“This basically tortures everyone in the process,” West said. “It creates uncertainty, which harms investment. There’s really no reason for that because there is a bipartisan consensus this is something we need to do and we just need to get that done.”

At the same symposium, Kevin Richards, senior vice president of federal government affairs for TechAmerica, echoed West’s concern about the R&D tax credit.
The on and off again nature of the credit doesn’t allow companies to do the long-term planning necessary to take full advantage of it,” he said. “A lot of our companies were not around when the tax reform happened in 1986, so imagine how much the economy has changed since 1986, from email to the iPad, to all the innovations that have come along.”
West also affirmed universities play a vital role in innovation. But he lamented “stumbling blocks in the path to commercialization of ideas generated on college campuses.”
We’ll have to stay tuned for Brookings’ more in-depth look at this subject. West said he wasn’t prepared to discuss it fully but promised that “we’ll be doing some additional work in the future on ways that universities can speed up the commercialization of knowledge.”

We will let you know what Brookings comes up with. Meanwhile, you can check out the institution’s website—complete with videos and transcripts of past symposiums—at http://www.brookings.edu/techinnovation.aspx

Tom Michael is Innovation’s Washington bureau chief.