Creating Jobs thru Innovation - Conditions
Conditions to rebuild the American economy!
Highly competitive markets fuel the speed of innovation. In markets where near monopoly conditions exist, innovation slows to a crawl as the company has no outside force challenging its leadership position.
Stable economic environment that is pro-business
The willingness of organizations to invest in the development of innovations is the tied to the economic return they will receive. Therefore stable economic environments (e.g. low inflation, growing GDP, predictable non-burdensome tax regulation, etc) allow for organizations to plan and commit to the long investment cycles needed for breakthrough innovations.
Availability of risk capital
Whether it is from within an organization or from venture capitalists, risk capital is a fundamental requirement for innovation. Without it, the idea dies before it even has a chance.
Transparent regulatory systems
The regulatory systems need to be open and free from biases. The lack of a transparent regulatory system discourages organizations from developing new innovations since the ability to secure the reward is blocked by others who use influence to prevent a truly competitive marketplace for ideas.
Ethics and the rule of law
When some of the conditions are non-existent, innovation can still flourish where there is a moral and ethical structure in place. The core is a legal and judicial system that ensures uniform application of the law to all parties.
A strong emphasis on education
The engine that makes innovation happen is our ability to apply human ingenuity to the problems and opportunities that emerge. The education system is critical to nurturing human ingenuity by establishing a foundation of critical and creative thinking skills.
A strong research and development infrastructure
Research and development infrastructure is established when the government, universities and industries achieve a high level of alignment, support and cooperation. To achieve this level of support, incentives and rewards need to be in place to encourage the right behaviors.
Effective protection of intellectual property
Without an effective intellectual property policy, there is little to no incentive to invent. It is through the guaranteed protection that rewards the risks taken to discover and commercialize breakthroughs.