As a result of globalization, strategies for investments in innovation capabilities have gained considerably in importance for businesses, research institutions and policymakers. Public policy has to provide conditions for investments in R&D and innovation that are internationally attractive and effective in stimulating innovation, economic growth and job creation. This book focuses on the changing roles and challenges of innovation and growth policy, and the strategies and measures that are critical in a globalizing world. It provides guidance for innovation policy strategy formulations and design of innovation policy measures.Globalization and the innovation imperative towards sustained economic growth require a major renewal and deepening of public policy thinking and strategies. This book focuses on these policy challenges, and the policy strategies and measures that are critical for innovation and growth in a globalizing world. Topics include: globalization and offshoring of software, the multilateral trading system and competition, innovative entrepreneurship, research frameworks and innovation awards, the globalization of converging nanotechnologies, and the relationship between knowledge and innovation. Science and technology policy makers, university professors and graduate students in public policy, innovation, business and economics will find much of value in this book.

Entrepreneurship and growth are central concerns of policy makers around the world. Local Heroes in the Global Village introduces public policies for the promotion of entrepreneurship on a comparative, primarily German-American level. The book contributes to the debate what role public policies play in stimulating national and regional economic growth. With a better understanding of the complexity and variety of existent entrepreneurship policies in the U.S. and Germany the reader of this volume will be able to formulate best practice, hands-on strategies which aim to promote nations as well as regions in an "entrepreneurial economy."

Entrepreneurship and growth are central concerns of policy makers around the world. Local Heroes in the Global Village introduces public policies for the promotion of entrepreneurship on a comparative, primarily German-American level. The book contributes to the debate what role public policies play in stimulating national and regional economic growth. With a better understanding of the complexity and variety of existent entrepreneurship policies in the U.S. and Germany the reader of this volume will be able to formulate best practice, hands-on strategies which aim to promote nations as well as regions in an "entrepreneurial economy."

This book examines ways in which formerly prosperous regions can renew their economy during and after a period of industrial and economic recession. Using New York's Capital Region (i.e., Albany, Troy, Schenectady, etc.) as a case study, the authors show how entrepreneurship, innovation, investment in education, research and political collaboration are critical to achieving regional success. In this way, the book provides other regions and nations with a real-life model for successful economic development. In the past half century, the United States and other nations have seen an economic decline of formerly prosperous regions as a result of new technology and globalization. One of the hardest-hit United States regions is Upstate New York or "the Capital Region"; it experienced a demoralizing hemorrhage of manufacturing companies, jobs and people to other regions and countries. To combat this, the region, with the help of state leaders, mounted a decades-long effort to renew and restore the region's economy with a particular focus on nanotechnology. As a result, New York's Capital Region successfully added thousands of well-paying, skill-intensive manufacturing jobs. New York's success story serves as a model for economic development for policy makers that includes major public investments in educational institutions and research infrastructure; partnerships between academia, industry and government; and creation of frameworks for intra-regional collaboration by business, government, and academic actors. Featuring recommendations for best practices in regional development policy, this book is appropriate for scholars, students, researchers and policy makers in regional development, innovation, R&D policy, economic development and economic growth.

The granting of offsets to promote exports of major aircraft systems has been a source of significant controversy. Critics believe that offsets undermine the US manufacturing base; lead to the transfer of commercial technology, possibly affecting US national security; and result in the loss of high-wage jobs. Defenders of the practice argue that offsets are a fact of commercial life and can result in net US job gains.

In an effort to focus the offsets debate on analytical issues, the White House National Economic Council asked the National Research Council to convene expert academicians, representatives from the aerospace industry, and top government officials to discuss the impact of offsets on the US economy. To ensure a rigorous discussion encompassing all points of view, the conference included a series of papers outlining the positions of key participants. The resulting volume offers a comprehensive and up-to-date analysis of the impact of aerospace offsets.

Recognizing that innovation is the key to international competitiveness in the 21st century, policymakers around the world are seeking more effective ways to translate scientific and technological knowledge into new products, processes, and businesses. They have initiated major programs, often with substantial funding, that are designed to attract, nurture, and support innovation and high-technology industries within their national economies. To help U.S. policymakers become more aware of these developments, a committee of the National Academies' Board on Science, Technology, and Economic Policy undertook a review of the goals, concept, structure, operation, funding levels, and evaluation efforts of significant innovation programs around the world. As a part of this effort, the committee identified Flanders, a region of Belgium with substantial autonomy, which is recognized for its comprehensive approach to innovation. Based on initial meetings in Washington and Brussels, and with the endorsement of Flanders Vice Minister-President Fientje Moerman, it was agreed to organize a conference that would review regional innovation policies in the context of the policies and programs of the Flanders government, and their interaction with those of the European Union. This book provides a summary of that symposium. Table of Contents Front Matter I INTRODUCTION & Innovative Flanders: Innovation Policies for the Twenty-first Century II PROCEEDINGS & Welcome Remarks on Behalf of the U.S. Delegation Session I: Perspectives on the Flemish Innovation System Session II: Perspectives on the U.S. Innovation System Keynote Address Session III: Cooperative Research and Global Competition in Semiconductors Session IV: Innovation Through Knowledge Diffusion Session V: Meeting the Early-stage Finance Challenge Session VI: Flemish Strategic Research Centers III: RESEARCH PAPER--Innovative Flanders: Innovation Policies for the Twenty-first Century IV: APPENDIXES & Appendix A: Agenda Appendix B: Biographies of Speakers Appendix C: Bibliography

Many nations are currently adopting a variety of directed strategies to launch and support research parks, often with significant financial commitments and policy support. By better understanding how research parks of other nations operate, we can seek to improve the scale and contributions of parks in the U.S. To that end, the National Academies convened an international conference on global best practices in research parks. This volume, a report of the conference, includes discussion of the diverse roles that research parks in both universities and laboratories play in national innovation systems. The presentations identify common challenges and demonstrate substantial differences in research park programs around the world. Table of Contents Front Matter Summary I INTRODUCTION Introduction: Research Parks in the 21st Century II PROCEEDINGS Welcome--Charles Wessner Keynote Address I--Jeff Bingaman Keynote Address II--C. D. Mote, Jr. Panel I: Leading Asian Models of S&T Parks Panel II: North American and European S&T Parks Keynote Address III--James Barker Panel III: U.S. Parks: The Laboratory Model Panel IV: U.S. Parks: University-Based Models Panel V: The Evaluation Challenge and Policy Synergies Closing Remarks--Mary Good III RESEARCH PAPER Research, Science, and Technology Parks: An Overview of the Academic Literature--Albert N. Link IV: APPENDIXES Appendix A: Biographies of Speakers Appendix B: Participants List Appendix C: Bibliography

Responding to the challenges of fostering regional growth and employment in an increasingly competitive global economy, many U.S. states and regions have developed programs to attract and grow companies as well as attract the talent and resources necessary to develop innovation clusters. These state and regionally based initiatives have a broad range of goals and increasingly include significant resources, often with a sectoral focus and often in partnership with foundations and universities. These are being joined by recent initiatives to coordinate and concentrate investments from a variety of federal agencies that provide significant resources to develop regional centers of innovation, business incubators, and other strategies to encourage entrepreneurship and high-tech development. This has led to renewed interest in understanding the nature of innovation clusters and public policies associated with successful cluster development. The Board on Science, Technology, and Economic Policy (STEP), conducted a symposium which brought together state and federal government officials, leading analysts, congressional staff, and other stakeholders to explore the role of clusters in promoting economic growth, the government's role in stimulating clusters, and the role of universities and foundations in their development. Growing Innovation Clusters for American Prosperity captures the presentations and discussions of the 2009 STEP symposium on innovation clusters. It includes an overview highlighting key issues raised at the meeting and a summary of the meeting's presentations. This report has been prepared by the workshop rapporteur as a factual summary of what occurred at the workshop. Table of Contents Front Matter I: OVERVIEW GROWING CLUSTERS FOR AMERICAN PROSPERITY: OVERVIEW II: SUMMARY OF PRESENTATIONS WELCOME--Charles Wessner OPENING REMARKS--Susan Crawford KEYNOTE ADDRESS--Michael Crow PANEL I: WHY CLUSTERS MATTER: INNOVATION CLUSTERS AND ECONOMIC GROWTH PANEL II: REGIONAL INNOVATION CLUSTERS: THE OBAMA ADMINISTRATION'S INNOVATION INITIATIVE PANEL III: STATE AND REGIONAL INITIATIVES LUNCHEON ADDRESS--Karen Mills PANEL IV: THE UNIVERSITY CONNECTION PANEL V: FILLING THE GAPS: THE ROLE OF FOUNDATIONS ROUNDTABLE: KEY ISSUES AND NEXT STEPS FORWARD III: APPENDIXES APPENDIX A: AGENDA APPENDIX B: BIOGRAPHIES OF SPEAKERS APPENDIX C: PARTICIPANTS LIST APPENDIX D: BIBLIOGRAPHY

Since 1991, the National Research Council, under the auspices of the Board on Science, Technology, and Economic Policy, has undertaken a program of activities to improve policymakers' understandings of the interconnections of science, technology, and economic policy and their importance for the American economy and its international competitive position. The Board's activities have corresponded with increased policy recognition of the importance of knowledge and technology to economic growth. The goal of the this symposium was to conduct two public symposia to review and analyze the potential contributions of public-private partnerships and identify other relevant issues for the Department of Energy, Office of Vehicle Technologies, Energy Storage Team's activities in the energy storage research and development area. The symposia will also identify lessons from these and other domestic and international experiences to help inform DoE as to whether its activities are complete and appropriately focused. Additional topics that emerge in the course of the planning may also be addressed. Building the U.S. Battery Industry for Electric Drive Vehicles: Summary of a Symposium gathers representatives from leading battery manufacturers, automotive firms, university researchers, academic and industry analysts, congressional staff, and federal agency representatives. An individually-authored summary of each symposium will be issued. The symposium was held in Michigan in order to provide direct access to the policymakers and industrial participants drawn from the concentration of battery manufacturers and automotive firms in the region. The symposium reviewed the current state, needs, and challenges of the U.S. advanced battery manufacturing industry; challenges and opportunities in battery R&D, commercialization, and deployment; collaborations between the automotive industry and battery industry; workforce issues, and supply chain development. It also focused on the impact of DoE's investments and the role of state and federal programs in support of this growing industry. This task of this report is to summarize the presentations and discussions that took place at this symposium. Needless to say, the battery industry has evolved very substantially since the conference was held, and indeed some of the caveats raised by the speakers with regard to overall demand for batteries and the prospects of multiple producers now seem prescient. At the same time, it is important to understand that it is unrealistic to expect that all recipients of local, state, or federal support in a complex and rapidly evolving industry will necessarily succeed. A number of the firms discussed here have been absorbed by competitors, others have gone out of business, and others continue to progress. Table of Contents Front Matter I OVERVIEW Overview II PROCEEDINGS Day One--Welcome and Opening Remarks Overview of NAS Study:Building the Battery Industry for Electric Vehicles Keynote Address Panel I: The Federal Outlook for the U.S. Battery Industry Panel II: The State of Battery R&D and Manufacturing in the United States Panel III: Strengthening the Supply Chain Panel IV: Market Drivers: Creating Demand for Electric Vehicles Panel V: Building the Battery Workforce Day Two--Welcome and Introduction Panel VI-A: Federal and State Programs to Support the Battery Industry Panel VI-B: Federal and Michigan Programs to Support the Battery Industry Roundtable: What Have We Learned and Next Steps III APPENDIXES Appendix A: Agenda Appendix B: Biographies of Speakers Appendix C: Participants List Appendix D: Bibliography

America's position as the source of much of the world's global innovation has been the foundation of its economic vitality and military power in the post-war. No longer is U.S. pre-eminence assured as a place to turn laboratory discoveries into new commercial products, companies, industries, and high-paying jobs. As the pillars of the U.S. innovation system erode through wavering financial and policy support, the rest of the world is racing to improve its capacity to generate new technologies and products, attract and grow existing industries, and build positions in the high technology industries of tomorrow. Rising to the Challenge: U.S. Innovation Policy for Global Economy emphasizes the importance of sustaining global leadership in the commercialization of innovation which is vital to America's security, its role as a world power, and the welfare of its people. The second decade of the 21st century is witnessing the rise of a global competition that is based on innovative advantage. To this end, both advanced as well as emerging nations are developing and pursuing policies and programs that are in many cases less constrained by ideological limitations on the role of government and the concept of free market economics. The rapid transformation of the global innovation landscape presents tremendous challenges as well as important opportunities for the United States. This report argues that far more vigorous attention be paid to capturing the outputs of innovation - the commercial products, the industries, and particularly high-quality jobs to restore full employment. America's economic and national security future depends on our succeeding in this endeavor.

New York's Nanotechnology Model: Building the Innovation Economy is the summary of a 2013 symposium convened by the National Research Council Board on Science, Technology, and Economic Policy and members of the Nano Consortium that drew state officials and staff, business leaders, and leading national figures in early-stage finance, technology, engineering, education, and state and federal policies to review challenges, plans, and opportunities for innovation-led growth in New York. The symposium participants assessed New York's academic, industrial, and human resources, identified key policy issues, and engaged in a discussion of how the state might leverage regional development organizations, state initiatives, and national programs focused on manufacturing and innovation to support its economic development goals. This report highlights the accomplishments and growth of the innovation ecosystem in New York, while also identifying needs, challenges, and opportunities. New York's Nanotechnology Model reviews the development of the Albany nanotech cluster and its usefulness as a model for innovation-based growth, while also discussing the New York innovation ecosystem more broadly. Table of Contents Front Matter I--OVERVIEW II--PROCEEDINGS Appendix A--Agenda Appendix B--Biographies of Speakers Appendix C--Participants List Appendix D--Bibliography

The Manufacturing Extension Partnership (MEP)-- a program of the U.S. Department of Commerce's National Institute of Standards and Technology (NIST)-- has sought for more than two decades to strengthen American manufacturing. It is a national network of affiliated manufacturing extension centers and field offices located throughout all fifty states and Puerto Rico. Qualified MEP Centers work directly with small and medium manufacturing firms in their state or sub-state region, providing expertise, services and assistance directed to foster growth, improve supply chain positioning, leverage emerging technologies, upgrade manufacturing processes, develop work force training, and apply and implement new information.
"Strengthening American Manufacturing: The Role of the Manufacturing Extension Partnership" is the summary of a symposium convened to review current operations and some of the recent MEP initiatives in the broader context of global manufacturing trends and the opportunities for high-value manufacturing companies. Business leaders, academic experts, and state and federal officials addressed the metrics and impacts of MEP and identified potential areas of improvement. The meeting drew attention to the scale and focuses of MEP, and highlighted the role it plays in supporting and enabling U.S. manufacturers to compete more effectively in the global marketplace. This report includes an overview of key issues raised at this workshop and a detailed summary of the conference presentations.

Since 1991, the National Research Council, under the auspices of the Board on Science, Technology, and Economic Policy, has undertaken a program of activities to improve policymakers' understandings of the interconnections of science, technology, and economic policy and their importance for the American economy and its international competitive position. The Board's activities have corresponded with increased policy recognition of the importance of knowledge and technology to economic growth. One important element of STEP's analysis concerns the growth and impact of foreign technology programs. U.S. competitors have launched substantial programs to support new technologies, small firm development, and consortia among large and small firms to strengthen national and regional positions in strategic sectors. Some governments overseas have chosen to provide public support to innovation to overcome the market imperfections apparent in their national innovation systems. They believe that the rising costs and risks associated with new potentially high-payoff technologies, and the growing global dispersal of technical expertise, underscore the need for national R&D programs to support new and existing high-technology firms within their borders. Similarly, many state and local governments and regional entities in the United States are undertaking a variety of initiatives to enhance local economic development and employment through investment programs designed to attract knowledge-based industries and grow innovation clusters. These state and regional programs and associated policy measures are of great interest for their potential contributions to growth and U.S. competitiveness and for the "best practice" lessons that they offer for other state and regional programs. STEP's project on State and Regional Innovation Initiatives is intended to generate a better understanding of the challenges associated with the transition of research into products, the practices associated with successful state and regional programs, and their interaction with federal programs and private initiatives. The study seeks to achieve this goal through a series of complementary assessments of state, regional, and federal initiatives; analyses of specific industries and technologies from the perspective of crafting supportive public policy at all three levels; and outreach to multiple stakeholders. Building the Ohio Innovation Economy: Summary of a Symposium explains the of the study, which is to improve the operation of state and regional programs and, collectively, enhance their impact. Table of Contents Front Matter I: OVERVIEW Overview II: PROCEEDINGS DAY 1 Welcome and Introduction Keynote Address Panel I: The Ohio Innovation Economy in the Global Context Panel II: Stimulating Manufacturing in Ohio Panel III: Innovation Clusters and Economic Development Keynote Address: Investing in Ohio Panel IV: State and Regional Innovation Programs Panel V: The New Energy Economy in Ohio DAY 2: Welcome and Introduction Panel VI: 21st Century Universities: Drivers of Regional Growth & Employment Panel VII: Biomedical Growth Opportunities Panel VIII: Growing the Ohio Flexible Electronics Industry Panel IX: Early-Stage Finance and Entrepreneurship in Ohio III: APPENDIXES Appendix A: Agenda Appendix B: Biographies of Speakers Appendix C: Participants List Appendix D: Bibliography

Responding to the challenges of fostering regional growth and employment in an increasingly competitive global economy, many U.S. states and regions have developed programs to attract and grow companies as well as attract the talent and resources necessary to develop innovation clusters. These state and regionally based initiatives have a broad range of goals and increasingly include significant resources, often with a sectoral focus and often in partnership with foundations and universities. These are being joined by recent initiatives to coordinate and concentrate investments from a variety of federal agencies that provide significant resources to develop regional centers of innovation, business incubators, and other strategies to encourage entrepreneurship and high-tech development. Building Hawaii's Innovation Economy: Summary of a Symposium explains the study of selected state and regional programs in order to identify best practices with regard to their goals, structures, instruments, modes of operation, synergies across private and public programs, funding mechanisms and levels, and evaluation efforts. This report reviews selected state and regional efforts to capitalize on federal and state investments in areas of critical national needs. Building Hawaii's Innovation Economy also reviews efforts to strengthen existing industries as well as specific new technology focus areas such as nanotechnology, stem cells, and energy in order to better understand program goals, challenges, and accomplishments. Table of Contents Front Matter I: OVERVIEW Hawaii's Innovation Strategy II: PROCEEDINGS Day 1--Welcome Opening Remarks--Sen. Daniel K. Inouye Presentation of the Hawaii Innovation Council Report Session I: The Global Challenge and the Opportunity for Hawaii Luncheon Address--Gov. Neil Abercrombie Session II: Leveraging Federal Programs and Investments for Hawaii Session III: Small Business, Universities, and Regional Growth Day 2--Welcome and Introduction Opening Remarks--Sen. Daniel K. Akaka Session IV: University of Hawaii's Current Research Strengths and Security and Sustainability: Energy and Agriculture Opportunity Session V: Medical Opportunities in Hawaii Session VI: Roundtable - Next Steps for Hawaii III: APPENDIXES Appendix A: Agenda Appendix B: Biographies of Speakers Appendix C: Participants List Appendix D: Bibliography

The Small Business Innovation Research (SBIR) program is one of the largest examples of U.S. public-private partnerships. Founded in 1982, SBIR was designed to encourage small business to develop new processes and products and to provide quality research in support of the many missions of the U.S. government, including health, energy, the environment, and national defense. In response to a request from the U.S. Congress, the National Research Council assessed SBIR as administered by the five federal agencies that together make up 96 percent of program expenditures. This book, one of six in the series, reports on the SBIR program at the National Aeronautics and Space Administration, and finds that the program is making significant progress in achieving the Congressional goals for the program. Keeping in mind NASA's unique mission and the recent significant changes to the program, the committee found the SBIR program to be sound in concept and effective in practice at NASA.. The book recommends programmatic changes that should make the SBIR program even more effective in achieving its legislative goals. Table of Contents Front Matter Summary 1 Introduction 2 Findings and Recommendations 3 Applications and Awards at NASA 4 SBIR Program Outcomes 5 Program Management Appendixes Appendix A: NASA SBIR Program Data Appendix B: NRC Phase II Survey and NRC Firm Survey Appendix C: NRC Phase I Survey Appendix D: NRC Project Manager Survey Appendix E: Case Studies Appendix F: Bibliography

In response to a Congressional mandate, the National Research Council conducted a review of the Small Business Innovation Research Program (SBIR) at the five federal agencies with SBIR programs with budgets in excess of $100 million (DOD, NIH, NASA, DOE, and NSF). The project was designed to answer questions of program operation and effectiveness, including the quality of the research projects being conducted under the SBIR program, the commercialization of the research, and the program's contribution to accomplishing agency missions. This report summarizes the presentations at a symposium exploring the effectiveness of Phase III of the SBIR program (the commercialization phase), during which innovations funded by Phase II awards move from the laboratory into the marketplace. No SBIR funds support Phase III; instead, to commercialize their products, small businesses are expected to garner additional funds from private investors, the capital markets, or from the agency that made the initial award. Table of Contents Front Matter I. Introduction II. Proceedings, Opening Remarks Introduction Meeting Mission Needs Panel I: The SBIR Program: Different Needs, Common Challenges Panel II: Transitioning SBIR: What Are the Issues for Prime Contractors? Panel III: Challenges of Phase III: SBIR Award Winners Panel IV: Best Practice for Agency Programs: Program Executive Offices and Program Offices Panel V: Lessons Learned Concluding Remarks Appendix A. Biographies of Speakers Appendix B. Participants List Appendix C. Bibliography

Starting in the mid 1990s, the United States economy experienced an unprecedented upsurge in economic productivity. Rapid technological change in communications, computing, and information management continue to promise further gains in productivity, a phenomenon often referred to as the New Economy. To better understand this phenomenon, the National Academies Board on Science, Technology, and Economic Policy (STEP) has convened a series of workshops and commissioned papers on Measuring and Sustaining the New Economy. This major workshop, entitled Software, Growth, and the Future of the U.S. Economy, convened academic experts and industry representatives from leading companies such as Google and General Motors to participate in a high-level discussion of the role of software and its importance to U.S. productivity growth; how software is made and why it is unique; the measurement of software in national and business accounts; the implications of the movement of the U.S. software industry offshore; and related policy issues. Table of Contents Front Matter I Introduction -- Software and the New Economy II Proceedings -- Introduction--Dale W. Jorgenson The Economics of Software--William J. Raduchel Panel I - The Role of Software - What Does Software Do? Panel II - How Do We Make Software and Why Is It Unique? Panel III - Software Measurement - What Do We Track Today? Panel IV - Moving Offshore: The Software Labor Force and the U.S. Economy Panel V - Participants' Roundtable- Where Do We Go from Here? Policy Issues? Concluding Remarks--Dale W. Jorgenson III Research Paper -- The Economics of Software: Technology, Processes, and Policy Issues--William J. Raduchel Appendix A Biographies of Speakers Appendix B Participants List Appendix C Selected Bibliography on Measuring and Sustaining the New Economy

The Manufacturing Extension Partnership (MEP) - a program of the U.S. Department of Commerce's National Institute of Standards and Technology - has sought for more than two decades to strengthen American manufacturing. It is a national network of affiliated manufacturing extension centers and field offices located throughout all fifty states and Puerto Rico. Funding for MEP Centers comes from a combination of federal, state, local and private resources. Centers work directly with manufacturing firms in their state or sub-state region. MEP Centers provide expertise, services and assistance directed toward improving growth, supply chain positioning, leveraging emerging technologies, improving manufacturing processes, work force training, and the application and implementation of information in client companies through direct assistance provided by Center staff and from partner organizations and third party consultants. 21st Century Manufacturing seeks to generate a better understanding of the operation, achievements, and challenges of the MEP program in its mission to support, strengthen, and grow U.S. manufacturing. This report identifies and reviews similar national programs from abroad in order to draw on foreign practices, funding levels, and accomplishments as a point of reference and discusses current needs and initiatives in light of the global focus on advanced manufacturing, Table of Contents Front Matter Summary 1 The Structure and Role of MEP 2 U.S. Manufacturing in Global Context 3 MEP and Lean Manufacturing 4 Development of MEP Center Metrics 5 MEP Center Performance Measures and Evaluations of Program Outcomes 6 New Approach: Next Generation Strategy 7 Foreign Programs to Support Applied Research and Manufacturing 8 Findings and Recommendations Appendixes Appendix A1: Canada's Industrial Research Assistance Program (IRAP) Appendix A2: Fraunhofer-Gesellschaft: The German Model of Applied Research Appendix A3: Taiwan's Industrial Technology Research Institute: A Cradle of Future Industries Appendix A4: Catapult: Britian's New Initiative in Applied Research Appendix A5: The Carnot Initiative in France Appendix B: An Evaluation of the MEP: A Cross Study Analysis--Jan Youtie Appendix C1: MEP Center Data (FY2010-2011) Appendix C2: Open-ended Responses from Center Directors Appendix D: Bibliography

Responding to the challenges of fostering regional growth and employment in an increasingly competitive global economy, many U.S. states and regions have developed programs to attract and grow companies as well as attract the talent and resources necessary to develop innovation clusters. These state and regionally based initiatives have a broad range of goals and increasingly include significant resources, often with a sector focus and often in partnership with foundations and universities. These are being joined by recent initiatives to coordinate and concentrate investments from a variety of federal agencies that provide significant resources to develop regional centers of innovation, business incubators, and other strategies to encourage entrepreneurship and high-tech development. Building the Illinois Innovation Economy is a study of selected state and regional programs to identify best practices with regard to their goals, structures, instruments, modes of operation, synergies across private and public programs, funding mechanisms and levels, and evaluation efforts. This report reviews selected state and regional efforts to capitalize on federal and state investments in areas of critical national needs. This review includes both efforts to strengthen existing industries as well as specific new technology focus areas such as nanotechnology, stem cells, and energy in order to improve our understanding of program goals, challenges, and accomplishments. As a part of this review, The Committee on Competing in the 21st Century: Best Practice in State and Regional Innovation Initiatives is convening a series of public workshops and symposia involving responsible local, state, and federal officials and other stakeholders. These meetings and symposia will enable an exchange of views, information, experience, and analysis to identify best practice in the range of programs and incentives adopted. Building the Illinois Innovation Economy summarizes discussions at these symposia, fact-finding meetings, and commissioned analyses of existing state and regional programs and technology focus areas, the committee will subsequently produce a final report with findings and recommendations focused on lessons, issues, and opportunities for complementary U.S. policies created by these state and regional initiatives. Table of Contents Front Matter I: OVERVIEW Overview II: PROCEEDINGS DAY 1: Welcome and Introduction Opening Keynote: The Illinois Innovation Opportunity Panel I: The Overall Innovation Challenge Keynote: Innovation and the Clean Energy Challenges Panel II: Federal R&D Strategies Panel III: Illinois Innovation Initiatives DAY 2: Welcome and Introduction Keynote Address Panel IV: Innovation in Illinois: A Regional Case Study Panel V: New Initiatives and Best Practices in Innovation Panel VI: The Industry Perspective on Illinois Roundtable: Best Practices, Lessons, and Opportunities III: APPENDIXES Appendix A: Agenda Appendix B: Biographies of Speakers Appendix C: Participants List Appendix D: Bibliography

A committee under the auspices of the Board on Science, Technology, and Economic Policy (STEP), is conducting a study of selected state and regional programs in order to identify best practices with regard to their goals, structures, instruments, modes of operation, synergies across private and public programs, funding mechanisms and levels, and evaluation efforts. The committee is reviewing selected state and regional efforts to capitalize on federal and state investments in areas of critical national needs. Building the Arkansas Innovation Economy: Summary of a Symposium includes both efforts to strengthen existing industries as well as specific new technology focus areas such as nanotechnology, stem cells, and energy in order to better understand program goals, challenges, and accomplishments. As a part of this review, the committee is convening a series of public workshops and symposia involving responsible local, state, and federal officials and other stakeholders. These meetings and symposia will enable an exchange of views, information, experience, and analysis to identify best practice in the range of programs and incentives adopted. Drawing from discussions at these symposia, fact-finding meetings, and commissioned analyses of existing state and regional programs and technology focus areas, the committee will subsequently produce a final report with findings and recommendations focused on lessons, issues, and opportunities for complementary U.S. policies created by these state and regional initiatives. Since 1991, the National Research Council, under the auspices of the Board on Science, Technology, and Economic Policy, has undertaken a program of activities to improve policymakers' understandings of the interconnections of science, technology, and economic policy and their importance for the American economy and its international competitive position. The Board's activities have corresponded with increased policy recognition of the importance of knowledge and technology to economic growth. One important element of STEP's analysis concerns the growth and impact of foreign technology programs.1 U.S. competitors have launched substantial programs to support new technologies, small firm development, and consortia among large and small firms to strengthen national and regional positions in strategic sectors. Some governments overseas have chosen to provide public support to innovation to overcome the market imperfections apparent in their national innovation systems. They believe that the rising costs and risks associated with new potentially high-payoff technologies, and the growing global dispersal of technical expertise, underscore the need for national R&D programs to support new and existing high-technology firms within their borders. Table of Contents Front Matter I OVERVIEW II PROCEEDINGS Appendix A: Agenda Appendix B: Participants List Appendix C: Bibliography

While nations have always competed for territory, mineral riches, water, and other physical assets, they compete most vigorously today for technology-based innovations and the value that flows from them. Much of this value is based on creating scientific knowledge and transforming it into new products and services for the market. This process of innovation is complex and interdisciplinary. Sometimes it draws on the genius of individuals, but even then it requires sustained collective effort, often underpinned by significant national investments. Capturing the value of these investments to spur domestic economic growth and employment is a challenge in a world where the outputs of innovation disseminate rapidly. Those equipped to understand, apply, and profit from new knowledge and technical advances are increasingly able to capture the long-term economic benefits of growth and employment. In response to this new, more distributed innovation paradigm, the National Academies Board on Science, Technology, and Economic Policy (STEP) convened leading academics, business leaders, and senior policymakers from Germany and the United States to examine the strengths and challenges of their innovation systems. More specifically, they met to compare their respective approaches to innovation, to learn from their counterparts about best practices and shared challenges, and to identify cooperative opportunities. The symposium was held in Berlin and organized jointly by the German Institute for Economic Research (DIW) and the U.S. National Academies with support of the German Federal Ministry for Education and Research (BMBF) and the American Embassy in Berlin. Both U.S. and German participants described common challenges on a wide variety of issues ranging from energy security and climate change to low-emissions transportation, early-stage financing, and workforce training. While recognizing their differences in approach to these challenges, participants on both sides drew out valuable lessons from each other's policies and practices. Participants were also aware of the need to adapt to a new global environment where many countries have focused new policy measures and new resources to support innovative firms and promising industries. Meeting Global Challenges: U.S.-German Innovation Policy reviews the participants meeting and sets goals and recommendations for future policy. Table of Contents Front Matter I: OVERVIEW Overview II: PROCEEDINGS DAY 1 & Welcome--Gert G. Wagner Opening Remarks for Germany--Georg Schutte Opening Remarks for the United States--The Honorable Philip Murphy Keynote Address--John Fernandez Panel I: Current Trends in Innovation Policy Keynote Address--Werner Hoyer Panel II: Competition and Cooperation in a Global Economy Panel III: Human Resources, Competition for Manpower, and the Internationalization of Labor Panel IV: Growing Universities for the 21st Century Roundtable: Competition and Cooperation: Systematic Challenges DAY 2 & Panel V: Helping Small Business: Current Trends and Programs Panel VI: Early-Stage Finance and Entrepreneurship Panel VII: Policies and Programs for CO2 Reduction Panel VIII: Building Electric Vehicle Industries Panel IX: Medical/Biomedical Innovation for the 21st Century Panel X: Policies and Programs to Build Solar Industries Roundtable: Energy Change: What Are the Consequences for the German and U.S. Innovation Systems? Closing Remarks III: APPENDIXES Appendix A: Agenda Appendix B: Bibliography

The global economy is characterized by increasing locational competition to attract the resources necessary to develop leading-edge technologies as drivers of regional and national growth. One means of facilitating such growth and improving national competitiveness is to improve the operation of the national innovation system. This involves national technology development and innovation programs designed to support research on new technologies, enhance the commercial return on national research, and facilitate the production of globally competitive products. Understanding the policies that other nations are pursuing to become more innovative and to what effect is essential to understanding how the nature and terms of economic competition are shifting. Building the 21st Century U.S.-China Cooperation on Science, Technology, and Innovation studies selected foreign innovation programs and comparing them with major U.S. programs. This analysis of Comparative Innovation Policy includes a review of the goals, concept, structure, operation, funding levels, and evaluation of foreign programs designed to advance the innovation capacity of national economies and enhance their international competitiveness. This analysis focuses on key areas of future growth, such as renewable energy, among others, to generate case-specific recommendations where appropriate.

The SBIR program allocates 2.5 percent of 11 federal agencies' extramural R&D budgets to fund R&D projects by small businesses, providing approximately $2 billion annually in competitive awards. At the request of Congress, the National Academies conducted a comprehensive study of how the SBIR program has stimulated technological innovation and used small businesses to meet federal research and development needs. Drawing substantially on new data collection, this book examines the SBIR program at the Department of Defense and makes recommendations for improvements. Separate reports will assess the SBIR program at NSF, NIH, DOE, and NASA, respectively, along with a comprehensive report on the entire program. Table of Contents Front Matter Summary 1 Introduction 2 Findings and Recommendations 3 SBIR Awards at DoD 4 Outcomes 5 Phase III Challenges and Opportunities 6 Program Management Appendixes Appendix A: DoD Data Book Appendix B: NRC Phase II and Firm Surveys Appendix C: NRC Phase I Survey Appendix D: Case Studies Appendix E: Bibliography

The Small Business Administration issued a policy directive in 2002, the effect of which has been to exclude innovative small firms in which venture capital firms have a controlling interest from the SBIR program. This book seeks to illuminate the consequences of the SBA ruling excluding majority-owned venture capital firms from participation in SBIR projects. This book is part of the National Research Council's study to evaluate the SBIR program's quality of research and value to the missions of five government agencies. The other books in the series include: An Assessment of the SBIR Program (2008) An Assessment of the SBIR Program at the National Science Foundation (2007) An Assessment of the Small Business Innovation Research Program at the National Institutes of Health (2009) An Assessment of Small Business Innovation Research Program at the Department of Energy (2008) An Assessment of the Small Business Innovation Research Program at the National Aeronautics and Space Administration (2009) An Assessment of the Small Business Innovation Research Program at the Department of Defense (2009) Table of Contents Front Matter Executive Summary 1 Introduction 2 Study Methodology 3 Venture Funding for NIH Phase II Winners, 1992-2002 4 Focus on the Top 200 Award Winners 5 Other Sources of Data on the Participation of Venture-owned Firms 6 Comparing Project Outcomes 7 Impact of the SBA Ruling on the NIH SBIR Program Appendixes Appendix A: Venture-funded Firms Among the 200 Most Prolific Winners of NIH Phase II Awards 1992-2002 Appendix B: NRC Non-participant Survey Appendix C: NIH List of Firms Excluded on the Grounds of Venture Capital Ownership Appendix D: Venture-funded Firms: Data from Hoover's Small Business Database and VentureSource Appendix E: Analysis of the Evidence Submitted by BIO Appendix F: SBA Administrative Ruling on Appeal of Cognetix, Inc. Appendix G: Letter from Elias A. Zerhouni, Director, National Institutes of Health to Hector V. Barreto, Administrator, U.S. Small Business Administration, June 28, 2005 Appendix H: Testimony by Steven C. Preston, SBA Administrator, to the House Small Business Committee, March 13, 2008 Appendix I: Bibliography

Terrorism and the measures needed to prevent terrorist attacks pose a central policy challenge for the U.S. To meet this unprecedented challenge, the U.S. has great technological assets. What is needed are mechanisms to help the government draw on these strengths in a timely and effective fashion. To do so, the government needs to reach out to university researchers, national laboratories, small, high-tech businesses and leading corporations. One of the most effective ways to do this is through public-private partnerships. To link the lessons of the National Academies study on a /Government-Industry Partnershipsa to this critical national interest, the Academy organized a conference to bring the lessons of its analysis to bear on the war on terror. By encouraging policy attention to examples of effective public-private partnerships (in particular, the need for clear goals and regular assessments), this report contributes to a better understanding of the potential partnerships to bring new security-enhancing technologies and equipment to the market in a cost-effective and timely manner.