OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
- ISSN: 18151973 (online)
- https://doi.org/10.1787/18151973
Strengthening Innovation in the United States
The US innovation system has many strengths, including world class research universities and firms that
thrive in innovation-intensive sectors. However, fissures have begun to appear, notably in the areas of human
capital development, the patent system and manufacturing activity, while public investments in R&D and
research universities are at risk of being curtailed by budget cuts. Revitalizing the dynamism of innovation has
become a priority for US policymakers. To this end, it is important that federal and state governments sustain
financial support for knowledge creation. The US workforce’s skills will need to be upgraded, especially in
STEM fields, and measures taken to provide more favourable framework conditions for developing advanced
manufacturing in the United States. While the recent patent reform is a big step in the right direction, patent
reform needs to be taken further by ensuring that the legal standards for granting injunctive relief and damages
awards for patent infringement reflect realistic business practices and the relative contributions of patented
components of complex technologies.
Keywords: patents, advanced manufacturing, cluster, R&E tax credit, STEM, innovation, R&D, immigration Visa, MFP growth, entrepreneurship, complex technologies, green innovation, tertiary education attainment, knowledge spillovers
JEL:
I2: Health, Education, and Welfare / Education and Research Institutions;
O3: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights
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