Innovation to the rescue? Comparing the candidates

Innovation to the rescue? Forget bank bailouts, investment in innovative sectors like IT, medical devices and biotech will be important in rescuing the US economy. Here’s how the US presidential candidates John McCain and Barack Obama would apply science and innovation policy to solve the economic crisis.

John McCain (Republican) Policy Checklist

1. Encourage private sector investment for R&D through tax incentives.
2. Limit government regulation.
3. Leverage existing federal agencies involved in innovation.
4. Have a strong trade, immigration and competitiveness agenda.
5. Places emphasis for innovation on the marketplace.
6. Support innovation through Cooperative Research and Development Agreements with industry and government public/private partnerships that share costs and accelerate the application of technology in government.
7. Make the R&D tax credit permanent and extend it beyond the current level.
8. Maintain capital gains taxes at the current 15 percent level.
9. Devote $2 billion annually to research fostering the clean use of coal.
10. Promote nuclear energy.
11. Offer $300 million prize to the developer of an advanced battery technology.
12. Bring talented scientists into the federal government.
13. Assure highly skilled workers educated in the U.S. can stay after graduation.
14. Tie H-1B visa caps to market conditions and let visa holders renew their visas while waiting for green cards.
15. Provide alternative approaches to litigation for resolving patent challenges.
16. Favors cracking down on intellectual property protection on and off the Internet.

Barack Obama (Democrat) Policy Checklist

1. Double the current level of federal government funding for basic research.
2. Target additional funding for specific initiatives like $150 billion over 10 years for clean energy programs and $50 billion over five years for health information technology.
3. May reevaluate current federal innovation structure and reorganize it if necessary.
4. Recognizes importance of private sector for economic growth, but believes government can play proactive and constructive role in helping private sector commercialize its innovation.
5. Make the R&D tax credit permanent at the current level.
6. Increase capital gains and dividend tax rates from the current 15 percent to between 20 percent and 28 percent.
7. Eliminate capital gains on start-ups and small businesses.
8. Close the carried interest provision that allows venture capitalists to recognize investment profit as capital gains.
9. Create a national network of public-private business incubators and invest $250 million annually to increase the number and size of such incubators.
10. Fund $200 million in grants annually to develop regional high tech clusters.
11. Create an Advanced Manufacturing Fund to identify and invest in cutting-edge manufacturing strategies.
12. Create a Clean Technologies Deployment Venture Capital Fund with $10 billion annually for five years to move promising technologies from the lab to commercialization.
13. Create a technology transfer program within the Department of Energy to export climate-friendly technologies to developing countries.
14. Include individuals with technology backgrounds in economic policy-making organizations.
15. Increase the number of permanent visas issued to highly skilled foreign workers.
16. Supports a temporary increase in H1-B visa program until the visa system can be reviewed and reformed.
17. Offer patent applicants the option of a rigorous and public peer (citizen) review to produce patents less vulnerable to legal challenges.
18. Work to insure intellectual property is protected in foreign markets, and promote greater cooperation on international standards that allow U.S. technology to compete globally.