Where do innovations come from?

Report from the Information Technology and Innovation Foundation (ITIF) claims that U.S. innovation has become far more collaborative in recent years, meaning that fewer private firms are producing the most significant innovations on their own; the government partners with industry in the majority of cases. The report looks at the the top 100 innovations from R&D Magazine for the past forty years and finds that while 80% of these award-winning innovations were produced solely by firms in 1970, over two-thirds of them are now produced by government-industry collaborations.

Ultimately, the report recommends that U.S. Innovation System be understood in more collaborative terms in today’s innovation milieu. Foreign competition has become far more fierce, innovations far more complex to produce (requiring more resources than most firms possess), and more rapid–technological life cycles have been greatly reduced. An effective and competitive innovation system, then, requires us to disabuse ourselves of the notion that the government only provides institutional (regulatory) and basic science support, and that firms can then do the innovating on their own.

Read the report here.

Leave a Reply

Comments are closed.