Staring in 2022, a provision in the 2017 Tax Cuts and Jobs Act will require companies to start amortizing their R&D investments over five years instead of expensing them in the same year they incur the costs. Congress should repeal the rule before it takes effect. Otherwise, companies will do less research in the United States, jobs will be lost, and U.S. competitiveness will suffer.
Science and R&D
June 29, 2020
Fact of the Week: Twenty-Eight Percent of Patents by U.S. Inventors in 2017 Relied on Federal Research
A substantial portion of patents (28.2 percent in 2017) rely on government-funded research.
June 15, 2020
Fact of the Week: Chinese Firms Led By A CEO Without A College Degree File 28 Percent Fewer Patent Applications
Researchers estimate that Chinese companies with a CEO who has less than a college degree invest 1.6 percent less of their assets into R&D and file 28 percent fewer patent applications.
June 8, 2020
Podcast: The Real History of Silicon Valley and the Lessons It Holds for Innovation Policy Today, With Margaret O’Mara
What many don’t realize is how important federal investments were in kick-starting the growth of Silicon Valley and other tech hubs in the past.
May 4, 2020
As policymakers consider the value of small business innovation programs, they should understand that their returns on investment are considerably larger than conventional estimates indicate.
April 27, 2020
Fact of the Week: Start-ups That Utilize Public Research Institutes are 5.3 Percentage Points More Likely to Innovate
Public research institutes (PRIs) are government-owned non-academic centers designed to collaborate with other research groups. They are a key complement to firms’ own R&D investments, although they are often overshadowed.
April 6, 2020
Fact of the Week: Industries That Depend on External Financing Suffer 9.3 Percent Deeper Drops in Their Patenting Rates Than Other Industries do After a Banking Crisis
In the wake of economic downturns, companies are forced to cut costs, often turning to R&D activities, which have a low impact on short-term revenue. A new study has isolated one of the mechanisms through which this takes place by examining patenting in the years after different kinds of economic crises.
March 31, 2020
How SBA’s Affiliation Rules for Venture-Backed Firms Will Limit the Effectiveness of the Paycheck Protection Program
The failure of small venture-backed businesses to qualify for Paycheck Protection Loans could cost more than 275,000 jobs this year directly and more 1 million jobs in total, including indirect losses. The Trump administration should waive the Small Business Administration’s “affiliation rule” in this crisis to prevent these mass layoffs and furloughs.
March 23, 2020
The economic and social impacts of COVID-19 are widespread and profound, so much so that it will take a long time to catalogue and assess them all in detail.
February 17, 2020
Congress should double the Alternative Simplified Credit, and lawmakers should pay for the increased research incentive by eliminating the tax break on qualified dividends, which mostly goes to wealthy stockholders.
February 15, 2020
Many of the capabilities the country needs for its defense reside in the private sector, so it is critical to establishing better links between the commercial sector and the military.