U.S. Innovation policies

Apart from innovation system and policies at the level of firms, the policies of innovations have also gone into National and regional level. In today’s global economy, local and regional authorities have an ever-increasing responsibility to reinforce the capacity of their territories. In comparing the policies of innovation of European countries with U. S policies of innovation, the policies of innovation is much better in U. S than Europe and better practiced than Europe. This was revealed in the paper delivered by Jean Rostrup-Nielsen, Haldor Topsor and Lygby at Roskilde University .

They stated that “about 1/3 of U. S Government budget goes to direct support of industrial R ; D”. They further argued that the significant higher fractions of 14% of industrial R ; D being publicly funded in U. S compare to EU, which was 8%. (Jeans,Nielsen,2003. P. 1). The funding of U. S. on R ; D yearly amount to billion of dollars. For example, in 1999, FY, U. S. government gave out $1. 2 billion to fund R ; D; the aim was for the development of small firms through the Small Business Innovation research (SBIR). Additionally, 250 million dollars was disbursed for the funding of Advanced Technology program.

The American government has being in the fore-front in encouraging the small firms, the formation of small Business Administration (SBA) has been aimed at giving medium or long-term loans to small firms. .Yearly, the SBA disbursed out loan worth’s billions of dollars to firms all over United States. (Peter, Susan. 2003. P. 52) Additionally, Federal and State governments disburse billions of dollars yearly in the form of grants to 26 Federal Grant-making agencies. The purpose is to encourage universities, research centers, individual and organisations to come out with new ideas and innovations that may benefit the whole economy.

U. S. government has also been in the forefront in funding the presentation of published papers from academic research cited in U. S. patent Fund development. (Jeans,Nielsen,2003. P. 2). In 1980, U. S. government enacted Amendment to the Patent and Trademark Law, the Bayh –Dole Act. These laws are to protect intellectual property of individual or organisations U. S government has also gone further in assisting the formation high Tech firms by the formation of advanced technology program. . (Peter, Susan. 2003. P. 44)

To further increase the funding in the field of science and technology, U.S. government created National Science Foundation from National science Foundation Act of 1950; its mission was to fund researches in science and technology and funding of R;D. The National Science Foundation funds the research in the fields of science or science related field like computer science, mathematics, Biological science. Physical sciences, environmental sciences, Engineering, Education, social, Economics and Behavioral sciences, among others (NSF) Fig 1 below illustrates the innovations performances of U. S. and other European Countries in the year 2007.

From the table, U. S.government spent more money on the Improvement and protection of intellectual property (IP) in the year 2007. Other sectors that received government attention were knowledge creation, which includes the development of science and technology. Apart from federal government funding on innovation, states government are also having different policies in helping their citizens. For example, almost all states in the United States give unemployment benefits to the unemployed. Moreover, the aged people. Additional, some states have gone further, in subsidise the cost education or give scholarship to their citizens.