The Importance of Intellectual Property in the U.S.

Most experts and policymakers are aware of the critical role innovation plays in the U.S. economy.  It underpins our competitive advantages and is the source of continued economic growth and prosperity.  As America seeks to regain its competitive edge in the wake of the Great Recession, innovation remains a major point of discussion in policy circles.  A key factor that has enabled America’s strong innovation environment is intellectual property and its standards.  A solid intellectual property (IP) regime, and the rights it guarantees, provides innovation incentives and protections, creating a climate the rewards risk-taking, creative thinking, and ceaseless advancement.  It’s safe to say that intellectual property is important to the U.S. economy, but just how important?

The U.S. Department of Commerce just released a joint report from the Economics and Statistics Administration and the U.S. Patent and Trademark Office that goes a long way in answering that question.  The report cites that IP has both direct and indirect benefits for almost every industry, and these benefits flow upstream and downstream in the production chains.  IP is used “everywhere in the economy” and the rights granted to holders of IP “support innovation and creativity in virtually every industry.”  While all industries rely on some form of IP, the report identifies 75 industries as “IP-intensive,” approximately one quarter of all domestic industries.  They account for almost 20% of all U.S. employment and tend to pay average weekly wages at a 42% premium.  In addition, every two IP-intensive jobs support another one indirectly, thereby raising attributable employment to almost 30% of total employment. These industries account for over $5 trillion in value-added to U.S. GDP and contribute to over 60% of total goods exports and roughly 20% of all services exports.

The data above clearly support the vital importance of intellectual property to American innovation and the economy at large.  This understanding makes it critical that the United States continue to protect intellectual property at home, and especially abroad.  It is a primary source of U.S. exports and the root of its competitive advantage in trade.  The continued protection of American ideas and intellectual capital promotes “innovative, open, and competitive markets, and helps to ensure that the U.S. private sector remains America’s innovation engine.”

Posted by Brian Gowen

Sources: The U.S. Department of Commerce

Photo credit USPTO@Alexandria courtesy of flickr user cytech

Robots in the Military

The U.S. military has become increasingly dependent on robots in the last 10 years, stemming from operations in Iraq and Afghanistan. In fact, in 2004, the U.S. Army only had 162 robots; now it boasts 7,000. The robots are used for a variety of purposes including, “scout for booby traps and roadside bombs” and “lift heavy objects. There are robots that can be “tossed through a window to check out a room” before soldiers enter the premises. Unmanned vehicles such as drones have become regular features of battle.

However, with the wars in Iraq and Afghanistan winding down, there is some concern that funding for robotics programs linked to military endeavors will be eliminated. On the other hand, leaner military budgets might actually increase the acquisition of robots since there is a “heightened emphasis to do more with less,” says a senior equity analyst at BB&T Capital Markets. In the grand scheme of the things the United States would prefer to have fewer boots on the ground in any military operation, therefore safeguarding the lives of American soldiers.

Major robotics companies like iRobot Corp. and QinetiQ are often supported by regular Defense Department budgets, so their programs shouldn’t be affected by the winding down of wartime operations abroad. Military robotics are taking the place of older specialized (read: special-ops) equipment like night-vision goggles which are now widely available to troops. The unmanned aspect of military procedures is an attractive outcome of the increased research and development spending in advanced technology sectors. Additional outcomes include decreased wartime spending and decreased casualties because of the ability of robots to multiply the military force of an operation without increasing troop numbers.

Posted by: Devon Thorsell

Source: The Wall Street Journal

Photo credit Talon robot courtesy of flickr user QinetiQ group

TOMORROW- You are Invited and Live Webcast-The Start-up Act: Building America’s Entrepreneurial Future

The Program on America and the Global Economy Presents:

 The Start-up Act: Building America’s Entrepreneurial Future

 Tuesday, April 24, 2012

Joseph and Claire Flom Auditorium, 6^th Floor, Woodrow Wilson Center

________________________________________________________________________        

 8:30 a.m.

Registration and Continental Breakfast

 9:00-9:45 a.m.

Keynote Address:

Senator Jerry Moran, Kansas

Senator Mark Warner, Virginia

 9:45 a.m.-12:00 p.m.

 Panel Discussion:

Paula Collins, Vice President, Government Relations, Texas Instruments Incorporated

Toby Smith, Vice President for Policy, Association of American Universities

Audrey Singer, Senior Fellow, The Brookings Institution

 Moderated by: Kent Hughes, Director, Program on America and the Global Economy

 ________________________________________________________________________

Senators Warner and Moran will discuss key components of their Start-up Act, which they authored and introduced.  A panel discussion will follow with an examination of the prospects of accelerating the commercialization of university research, increasing opportunities for immigrants with advanced STEM (science, technology, engineering, and Mathematics) degrees and adding a STEM category for immigrant investors seeking permanent residence.

 ________________________________________________________________________

Please RSVP acceptances only to page@wilsoncenter.org

Watch the live webcast here.

Directions to the Wilson Center: www.wilsoncenter.org/directions

The End of an Era

In case you missed it Tuesday morning, the space shuttle Discovery streaked through the skies above downtown Washington, D.C. on its farewell tour before it will come to rest at Smithsonian’s Steven F. Udvar-Hazy Center in Virginia.  Thousands gathered along the National Mall and on rooftops scattered throughout the city to catch a glimpse of the shuttle as it piggy-backed on a Boeing 747 up from Cape Canaveral.  People cheered as the shuttle soared overhead, and for many, especially those who have grown up in the midst of the awe and wonder of the American space program, the flight symbolically marks the end of an era.  In 2011, NASA decided to end the low-orbit shuttle program in favor of focusing on farther destinations, and Discovery was the first of the three retired shuttles to head to a museum.

Many people decried the decision as a sign that America’s science and technology dominance was waning and that the nation’s innovative capacity was not what it used to be.  Others felt that if it didn’t already, the termination of the program would lead to innovative decline as the research was cut and motivation was gone.  It remains to be seen whether there will be negative effects from the termination of the low-orbit program, such as fewer knowledge spillovers from research or a lack of students and young people interested in science and space because the possibility of space travel is remote.

However, a few private entrepreneurs and their companies are waiting in the wings to pick up the slack and capitalize on NASA’s withdrawal from the “space market.”  Companies like Space Exploration Technologies Corp, also known as SpaceX, and will begin carrying cargo to the International Space Station, and the first commercial cargo flight is expected within weeks.  Commercial passenger craft are unlikely to be ready for another 3 to 5 years.  Nonetheless, low-earth orbit could become a whole new market for luxury travel and leisure, just the way commercial airline flights were in its early days.  Despite the fact the end of the NASA shuttle tugs at the heartstrings of many Americans, this is certainly not the end of space flight for the United States.  Fittingly, America’s spirited entrepreneurs seem ready to fill the gaps and continue to push innovation forward into the future.

Posted by Brian Gowen

Sources: The Wall Street Journal

Photo credit The space shuttle Discovery flies over Washington, D.C. courtesy of flickr user Official US Navy Imagery

Live Webcast April 24–The Start-up Act: Building America’s Entrepreneurial Future

 The Program on America and the Global Economy Presents:

 The Start-up Act: Building America’s Entrepreneurial Future

 Tuesday, April 24, 2012

Joseph and Claire Flom Auditorium, 6^th Floor, Woodrow Wilson Center

________________________________________________________________________        

 8:30 a.m.

Registration and Continental Breakfast

9:00-9:45 a.m.

Keynote Address:

Senator Jerry Moran, Kansas

Senator Mark Warner, Virginia

 9:45 a.m.-12:00 p.m.

 Panel Discussion:

Paula Collins, Vice President, Government Relations, Texas Instruments Incorporated

Toby Smith, Vice President for Policy, Association of American Universities

Audrey Singer, Senior Fellow, The Brookings Institution

 Moderated by: Kent Hughes, Director, Program on America and the Global Economy

 ________________________________________________________________________

Senators Warner and Moran will discuss key components of their Start-up Act, which they authored and introduced.  A panel discussion will follow with an examination of the prospects of accelerating the commercialization of university research, increasing opportunities for immigrants with advanced STEM (science, technology, engineering, and Mathematics) degrees and adding a STEM category for immigrant investors seeking permanent residence.

 ________________________________________________________________________

Please RSVP acceptances only to page@wilsoncenter.org

Watch the live webcast here.

Directions to the Wilson Center: www.wilsoncenter.org/directions

You are Invited–The Start-up Act: Building America’s Entrepreneurial Future

The Program on America and the Global Economy Presents:

 The Start-up Act: Building America’s

Entrepreneurial Future

 Tuesday, April 24, 2012

Joseph and Claire Flom Auditorium, 6^th Floor, Woodrow Wilson Center

________________________________________________________________________        

 8:30 a.m.

Registration and Continental Breakfast

 9:00-9:45 a.m.

Keynote Address:

Senator Jerry Moran, Kansas

Senator Mark Warner, Virginia

  9:45 a.m.-12:00 p.m.

 Panel Discussion:

Paula Collins, Vice President, Government Relations, Texas Instruments Incorporated

Toby Smith, Vice President for Policy, Association of American Universities

Audrey Singer, Senior Fellow, The Brookings Institution (invited)

 Moderated by: Kent Hughes, Director, Program on America and the Global Economy

 ________________________________________________________________________

Senators Warner and Moran will discuss key components of their Start-up Act, which they authored and introduced.  A panel discussion will follow with an examination of the prospects of accelerating the commercialization of university research, increasing opportunities for immigrants with advanced STEM (science, technology, engineering, and Mathematics) degrees and adding a STEM category for immigrant investors seeking permanent residence.

________________________________________________________________________

Please RSVP acceptances only to page@wilsoncenter.org

For more information on this event click here.

Directions to the Wilson Center: www.wilsoncenter.org/directions

Save the Date: April 24– Start-Up Act Event with Senators Warner and Moran

Hold the Morning of April 24: As Senators Moran and Warner will discuss key aspects of their Start-Up Act.  Their presentation will be followed by a high-powered panel focused on key aspects of the Act.

This event will take place in the Joseph and Claire Flom Auditorium at the Woodrow Wilson Center.

Stayed tuned to the blog and the PAGE website for additional details.

Crowdsourcing at the Department of Defense

In an effort to control costs and cut down on time, the United States military is experimenting with new ways to brainstorm and design military equipment.  Led by the Defense Advanced Research Projects Agency, better known as DARPA, the Defense Department’s advanced research group, the Pentagon is seeking to cut down on production time by about 90%.  What’s DARPA’s big idea to do this? Crowdsourcing and prize competitions. 

Prize competitions and incentivized programs have been around for a long time, but crowdsourcing is a relatively new phenomenon, powered by advancing telecommunications technology and social media.  Essentially, it allows an unlimited number of people the ability to come together, regardless of location, to solve any problem.  Examples of this have been seen in other industries and many companies heavy in product development, Proctor & Gamble for instance, have turned to crowdsourcing as a means of innovation.  Government agencies have also turned to this model of problem solving.  “Crowd” technologies have expanded beyond commercial products to investing, known as crowdfunding.  This enables companies to raise capital through numerous smaller investors as opposed to the channels of Wall Street and high finance.  Crowdfunding recently scored a big win with the recent passage of the JOBS Act, which allowed for easier access to capital for smaller firms.

The Pentagon has now jumped on the bandwagon, using a software initiative called Vehicleforge.mil, which is essentially a Web portal where inventors and researchers can submit their design ideas to be shared and tested.  DARPA has already begun working with universities and the private sector to jumpstart this new innovation initiative, where contestants are working on developing an amphibious assault vehicle for the Marines.

This technology has the potential to drastically change the manufacturing and innovation industries because it allows for many minds to be brought together to solve problems or create and test new ideas.  As a research manager at General Electric, one of the programs partners, explains, “This is about changing the paradigm so you can rapidly design and manufacture complex systems of all kinds.”  The software used to only be employed by large companies, but now crowdsourcing has opened this up to anyone with the means and skills to contribute.  This is likely to create better, more innovative products much more quickly because the accessible pool of talent has grown exponentially.  These methods are likely to significantly alter the innovation and manufacturing landscape well into the future.  A DAPRA program manager summed it up well. “The goal…is to ‘democratize the design process.’”

Posted by Brian Gowen

Sources: The New York Times, DARPA

Photo Credit: Crowdsourcing courtesy of flickr user adesigna

Improving the Environment for Entrepreneurship

Complementing a PAGE event last September, a recent event at the Brookings Institution entitled Improving the Environment for Entrepreneurship  sought to highlight the role of entrepreneurship and start-up businesses in improving the American economy, creating high-value jobs, and sharpening the country’s competitive edge within a Darwinian economic climate.

Steve Case, co-founder of AOL, delivered the keynote address, stressing the critical role that start-ups and small businesses play in the American economy.  However, he noted that this defining characteristic has waned in the wake of the recession, citing specifically that start-up companies had declined by 23% since 2007.  Interestingly, he points out that there has also been a “globalization of entrepreneurship” that has begun to model and compete with the preeminent American system. He emphasized the new public-private initiative, Start-up America Partnership, which is spreading awareness and providing assistance to entrepreneurs seeking to grow their business.  Also, major pieces of legislation, namely the Start-up Act and the AGREE Act, have been advanced with bipartisan support to promote job growth through entrepreneurship.  Citing renewed national awareness and broad the support for the policy, Case believes now must be the time to end the discussion and take action.

Senators Jerry Moran (R – Kan.) and Mark Warner (D-Va.) did take action and cosponsored the Start-up Act in order to address this concern.  They agreed that the keys to fostering entrepreneurship in America included a favorable tax structure and a sensible regulatory policy, along with better means of capital formation and a streamlining of the IPO process.  In addition, they recognize that we need to win the “global battle for talent” by investing in education and developing smarter immigration policies.   This philosophy is put into practice in the bill, which includes an income tax credit for specified start-ups, potential Sarbanes-Oxley reform, and a process for expedited commercialization of university research.  In addition, the Act would amend immigration laws for those with degrees in STEM fields and other “alien entrepreneurs.” The two senators are a model for the bipartisan support of this issue, something that has become increasingly rare in a time that needs it most.

Stay tuned for more details on an upcoming PAGE event with Senator Warner on the Start-up Act on Tuesday April 24, 2012 at the Wilson Center.

Posted by: Brian Gowen

Sources: The Brookings Institution, The Library of Congress THOMAS

Emerging Global Trends in Advanced Manufacturing

In continuing its focus on the future of manufacturing in the United States and around the world, PAGE hosted a report launch from the Institute for Defense Analyses Science and Technology Policy Institute (STPI) on the future of advanced manufacturing both at home and abroad.  Commissioned by the Office of the Director of National Intelligence,   Emerging Global Trends in Advanced Manufacturing identifies and outlines key developments within this sector that are likely to affect both the national and economic security of the United States well into the future.  The study placed heavy attention upon the critical, emerging trends in advanced manufacturing, how they align with the investment and growth interests of nations around the world, and what the industry is expected to look like decades down the road.

The report defines advanced manufacturing as intended to improve existing or create entirely new materials, products, and processes.  While advanced manufacturing products and processes are occurring across a broad swath of industries, STPI identifies four primary “technology areas” that are or will be significantly influenced by advanced manufacturing: semiconductors, synthetic biology, additive manufacturing, and advanced materials/integrated computational materials engineering.

As outlined in the study, the current tsunami of technological change is expected lend tremendous energy to the expansion of advanced manufacturing over the long term.  The report pinpoints five major trends in innovation that will play a major role in that growth: the “increasingly ubiquitous role of information technology” as it drives data creation; the increasing role of modeling and simulation; rapid changeability; supply chain management that is continuously transformed by globalization; and the prominence of sustainable manufacturing.

But how do we promote the development of advanced manufacturing? The above question is critical in today’s job-focused, growth-centered public discourse.  The report outlines key factors that enable this development.  Especially important for policymakers are those that affect location choice among firms.  In their presentation, the STPI researchers highlighted market size and growth, co-location or clustering, access to skilled labor, and access to natural resources.

At its conclusion, the report did make a few projections about the state of advanced manufacturing both 10 and 20 years down the road.  In ten years, advanced manufacturing is highly likely to be data intensive and largely automated.  Systems will increasingly be globally linked, thus necessitating investments in cyber and network infrastructure by firms.  It will be much more energy and resource efficient as well.  In twenty years, the study predicts that manufacturing will be atomically precise with a heavy focus on mass customization.

Despite increasing momentum, the widespread development of advanced manufacturing across the United States does face many challenges, namely investment, an able workforce, regulations, and proper IP structures.  In the event commentary, it was pointed out that that America needs to “go back to the fundamentals” in order to remain competitive.  We must understand the competition and the global best practices and seek to implement them at home, ensuring that America maintains a competitive advantage in this emerging sector.

A video of the event can be found here.

Posted by: Brian Gowen

Sources: Institute for Defense Analyses Science and Technology Policy Institute

Photo Credit: David Hawxhurst/WilsonCenter