1. Strengthening our National Innovation System Gary R. Bachula Technology Administration U.S. Department of Commerce

2. “National Innovation System” zThe Production of Knowledge zThe Application of Knowledge

3. Production of Knowledge zResearch & Development yScientists and Engineers: xUniversities xGovernment Labs xPrivate Labs ySupporting Infrastructure: xLabs & Equipment xInstitutions xPolicies xFunding Sources

4. Production of Knowledge Issues yPublic Funding of R&D yPrivate Funding of R&D yBalance of R&D Portfolios yR&D Infrastructure yScience, Math & Engineering Education yPolicy Climate for the Conduct of R&D

5. R&D Policy Climate zIntellectual Property Rights zAnti-Trust zTax Incentives (R&E Tax Credit, Capital Gains) zRegulatory Issues zStandards zInternational, National,State, Local Policies zPerformance Measurements zRisk-Sharing, Partnerships zAccounting Practices

6. Application of Knowledge zProblem Solving, New Products, Services, Efficient Processes yKnowledge Producers yGovernment Agencies yEntrepreneurs yVenture Capitalists yBusiness Managers yFinancial Institutions

7. Application of Knowledge zBarriers to Deployment: yIPR yTax yAnti-Trust yRegulatory yStandards zSkills & Workforce Issues zSeed, venture, mezzanine capital z“Valley of Death” zBridging the gap between research & commercialization zPartnerships zFederal, state, local Issues

8. “Barriers to Innovation” Early Stage Knowledge Production yResources for Fundamental Science yInfrastructure for Fundamental Science: xLaboratories & Equipment xInformation Infrastructure yNumber, Quality & Skills of S&T Workforce

9. “Barriers to Innovation” Next-Stage Applied Research & Technology Development yResources for the “Valley of Death” yPrivate Sector “Seed Capital” yRisk-Sharing, Uncertainty -- the need for partnerships, collaborations, consortia yTax, regulatory, IPR, standards barriers yMarket barriers

10. “Barriers to Innovation” Technology Commercialization yVenture Capital yTax, regulatory, IPR, standards, anti-trust yComplex Systems

11. “Barriers to Innovation” zMarket barriers zRegulatory barriers zResources zExternalities zStandards zTechnical barriers zInfrastructure zComplex systems zMultiple policy levels: international, national,state, local zKnowledge diffusion Technology Application (Deployment, Diffusion )

12. “Barriers to Innovation” z“Complex v. Simple” Innovations zEach sector has different issues… z“No one size fits all policy solutions”

13. A Final Thought…. Can government policy keep up with “The Speed of Innovation?”