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Strengthening our National Innovation System. Gary R. Bachula Technology Administration U.S. Department of Commerce. “National Innovation System”. The Production of Knowledge The Application of Knowledge. Production of Knowledge. Research & Development Scientists and Engineers:

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strengthening our national innovation system

Strengthening ourNational Innovation System

Gary R. Bachula

Technology Administration

U.S. Department of Commerce

national innovation system
“National Innovation System”
  • The Production of Knowledge
  • The Application of Knowledge
production of knowledge
Production of Knowledge
  • Research & Development
    • Scientists and Engineers:
      • Universities
      • Government Labs
      • Private Labs
    • Supporting Infrastructure:
      • Labs & Equipment
      • Institutions
      • Policies
      • Funding Sources
production of knowledge4
Production of Knowledge


  • Public Funding of R&D
  • Private Funding of R&D
  • Balance of R&D Portfolios
  • R&D Infrastructure
  • Science, Math & Engineering Education
  • Policy Climate for the Conduct of R&D
r d policy climate
Intellectual Property Rights


Tax Incentives (R&E Tax Credit, Capital Gains)

Regulatory Issues


International, National,State, Local Policies

Performance Measurements

Risk-Sharing, Partnerships

Accounting Practices

R&D Policy Climate
application of knowledge
Application of Knowledge
  • Problem Solving, New Products, Services, Efficient Processes
    • Knowledge Producers
    • Government Agencies
    • Entrepreneurs
    • Venture Capitalists
    • Business Managers
    • Financial Institutions
application of knowledge7
Barriers to Deployment:






Skills & Workforce Issues

Seed, venture, mezzanine capital

“Valley of Death”

Bridging the gap between research & commercialization


Federal, state, local

Application of Knowledge


barriers to innovation
“Barriers to Innovation”

Early Stage Knowledge Production

  • Resources for Fundamental Science
  • Infrastructure for Fundamental Science:
    • Laboratories & Equipment
    • Information Infrastructure
  • Number, Quality & Skills of S&T Workforce
barriers to innovation9
“Barriers to Innovation”

Next-Stage Applied Research & Technology Development

  • Resources for the “Valley of Death”
  • Private Sector “Seed Capital”
  • Risk-Sharing, Uncertainty -- the need for partnerships, collaborations, consortia
  • Tax, regulatory, IPR, standards barriers
  • Market barriers
barriers to innovation10
“Barriers to Innovation”

Technology Commercialization

  • Venture Capital
  • Tax, regulatory, IPR, standards, anti-trust
  • Complex Systems
barriers to innovation11
Market barriers

Regulatory barriers




Technical barriers


Complex systems

Multiple policy levels: international, national,state, local

Knowledge diffusion

“Barriers to Innovation”

Technology Application (Deployment, Diffusion)

barriers to innovation12
“Barriers to Innovation”
  • “Complex v. Simple” Innovations
  • Each sector has different issues…
  • “No one size fits all policy solutions”
a final thought

A Final Thought….

Can government policy keep up with

“The Speed of Innovation?”