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
October 9, 2018
Fact of the Week: Following China's Anti-Corruption Campaign, Highly Productive Firms Received 44 Percent More R&D Subsidies
The Chinese government funds an exceptionally large amount of R&D, with direct government subsidies accounting for a quarter of the country’s total R&D spending in 2015. As such, how well the government allocates those funds plays an outsized role in determining how innovative the nation can be.
September 24, 2018
Fact of the Week: New, Knowledge-Intensive Enterprises That Use Innovations From Government-Funded Programs Add Employees and Grow Sales Faster
Large bodies of research have established that firms can benefit from the spillover effects of innovation by other firms and universities, but significantly less is known about the extent to which firms benefit from R&D conducted by governments outside of academia. This year, the U.S. government launched the Unleashing American Innovation initiative, attempting to maximize private use of public research, which a new paper indicates is badly needed.
September 10, 2018
Fact of the Week: Federal R&D Contracts That Operate as Cooperative Agreements are More Likely to Result in Patents
Federal funding of private R&D comes in two forms: grants, in which the government has very little interaction with the research decisions made, and cooperative agreements, in which the government has significant control over research decisions and much more detailed project monitoring. Whether this higher level of government involvement hinders researchers by increasing bureaucracy or ensures that funding is not misallocated is hotly contested, but a paper released in June gives reason to believe that cooperative agreements are used well.
August 20, 2018
Never Lost Again: The Google Mapping Revolution That Sparked New Industries and Augmented Our Reality
In a book review for the New York Journal of Books, Rob Atkinson writes that “Never Lost Again” is a first-class business story, illuminating broader lessons that are easy to overlook when we think about high-tech startups.
July 30, 2018
Comments to the National Institute of Standards and Technology Regarding Federal Technology Transfer Authorities and Processes
While the U.S. government should expand federal support for scientific research, it also should improve the efficiency with which federally funded knowledge creation leads to innovation and jobs.
June 21, 2018
ITIF hosted a discussion with author Mark Zachary Taylor to better understand the politics of innovation and the implications for the United States.
June 4, 2018
Business R&D growth over the past three decades has been anemic, and companies are focusing more on near-term product development, less on basic and applied research. Meanwhile, the U.S. government is cutting support for research while many other countries are expanding support.
January 8, 2018
All states, but especially the laggards, would benefit from policies to attract more industry research funding, particularly as such funding appears to generate technology-based economic activity.
December 11, 2017
Fact of the Week: Technology-Based Economic Development Programs Generated 1,300 Additional Tech-Based Jobs Per Year Between 1981 and 2000
For the average state, tech-based economic development programs provide an additional 1,300 tech-based jobs a year, while an additional year’s commitment to the SBIR provides 2,000 more jobs, writes John Wu in Innovation Files.
December 4, 2017
Innovation Fact of the Week: NIH Would Need an Additional $11.6 Billion to Bring its Funding Back to Where it was in 2003 as a Share of GDP
For the U.S. government to restore National Institutes of Health funding to a level comparable to 2003, it would have had to allocate an additional $11.6 billion dollars last year, writes John Wu in Innovation Files.