June 5, 2012

Services Innovation Policy in the United States EPISIS Conference

Stephen Ezell, Senior Analyst

Information Technology and Innovation Foundation

The Study: compares the innovation-based competiveness of 44 Asian, European, and American nations and regions.

16 indicators: including

corporate and government R&D, scientists and engineers, new firms, corp. tax, productivity growth and others.

The Atlantic Century II

http://www.itif.org/files/2011-atlantic-century.pdf

Overall Score for Global Competitiveness and Innovation

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Summary – What the United States Doesn’t Have

U.S. lacks a national service innovation policy.

No institutional/policy focus on supporting private sector services innovation (as opposed to ag./mfg.).

6

Summary – What the United States Does Have

A new National Innovation Strategy… Which does have indirect policies to support

innovation in some key services sectors: Government Health care

SSME and SRII.

Education Wireless/ICT

7

A Strategy for American Innovation

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1. Health Care NSF’s Service Enterprise Systems (SES) research Community Health Data Initiative (CHDI) Promotion of Electronic Health Records (EHRs)

2. Education ARPA-Ed National Education Technology Plan (NTEP)

3. Information/Communications Technology (ICT) National Broadband Policy (2009) National Wireless Initiative (2012)

Spurring Innovation in Certain Key Services Sectors

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4. Government Interagency innovation task force

Crowdsourcing/Prizes

Open Data/Big Data

Tying funding to performance and innovation

Spurring Innovation in Government

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1. Institutionalize services science research through NSF and collaborative-industry university partnerships.

2. Embrace the self-service economy, including addressing inhibiting regulations.

3. Develop a U.S. services sector competitiveness strategy.

3 Steps to Improve U.S. Service Innovation Policy

A U.S. Services Sector Competitiveness Strategy 1. Factor Inputs/Framework Conditions (“4 Ts”)

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A U.S. Services Sector Competitiveness Strategy 1. Factor Inputs/Framework Conditions 2. Sector Studies/Policies/Regulations

Hotels Construction Logistics Health care Government Education Wholesale/Retail Trade

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A U.S. Services Sector Competitiveness Strategy 1. Factor Inputs/Framework Conditions 2. Sector Studies/Policies/Regulations 3. Functions (e.g., processing information; processing

money; moving people; etc.)

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A U.S. Services Sector Competitiveness Strategy 1. Factor Inputs/Framework Conditions 2. Sector Studies/Policies/Regulations 3. Functions 4. Tool Development (e.g., self-service systems, cloud,

automation, voice recognition, expert systems [e.g., IBM’s Watson], flexible displays, analytics, etc.)

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A U.S. Services Sector Competitiveness Strategy 1. Factor Inputs/Framework Conditions 2. Sector Studies/Policies/Regulations 3. Functions 4. Tool Development 5. Platform Enablement (e.g., smart grid; health IT;

broadband; 4G wireless; mobile payments; electronic IDs; GPS; ITS)

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A U.S. Services Sector Competitiveness Strategy 1. Factor Inputs/Framework Conditions 2. Sector Studies/Policies/Regulations 3. Functions 4. Tool Development 5. Platform Development 6. Firms’/Organizations’ Adoption (e.g., incentives/

penalties for adoption, tax incentives for R&D and capital equipment, etc.)

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Facebook: facebook.com/innovationpolicy

Blog: www.innovationfiles.org

YouTube: www.youtube.com/techpolicy

Website: www.itif.org

Twitter: @itifdc

Thank you! sezell@itif.org

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