OECD Economics Department Working Papers

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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.

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Strengthening Innovation in the United States You or your institution have access to this content

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David Carey, Christopher Hill1, Brian Kahin2
Author Affiliations
  • 1: George Mason University, United States

  • 2: MIT Center for Digital Business, United States

22 nov 2012
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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.
tertiary education attainment, green innovation, innovation, knowledge spillovers, advanced manufacturing, R&E tax credit, patents, entrepreneurship, R&D, immigration Visa, cluster, MFP growth, STEM, complex technologies
Classification 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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