Ms. Borg added that it was “very enjoyable to hear about all of the different innovations that have come out of China and to hear from our Chinese colleague about some of the thoughts he has in regard to innovation.”
During the day’s discussions, “we realize that not only do we innovate, but we innovate very often when we look at challenges that we face,” Ms. Borg said. “Climate change, energy shortages, disease epidemics, famine, and terrorism are just a few that come to mind. Innovation—the development of new ideas and products—is necessary to offer previously unthought-of solutions to these hurdles.”
As the world’s largest economy and the world’s fastest-growing economy respectively, the United States and China “share an opportunity and an obligation to work together to promote and protect innovation,” Ms. Borg said. “Cooperation between the governments of the United States and China as well as its citizens and businesses are imperative to solve the problems of today and tomorrow.”
Three key areas where the United States and China should work together are “creating an environment that favors innovation; maintaining an open, rules-based trade system; and advancing efficient and sustainable energy policies,” Ms. Borg said.
To create an environment that fosters innovation, “countries need to get a range of policies right,” Ms. Borg said. These policies include education, research-and-development funding, good governance, transparent regulatory policies, open and competitive markets, and “policies that allow companies to succeed and sometimes fail.” She said nations “must also embrace and enforce an intellectual property system that allows innovators to reap the benefits of their ideas and rewards risk-taking.”
Intellectual property promotes innovation, Ms. Borg explained. “Without it there is little or no incentive for companies to produce new products or services.” Copyrights, trademarks, patents, and trade secrets that protect creativity, entrepreneurship, and innovation are key drivers of domestic and global economic growth, she observed. “Therefore, the theft of IP continues to be a concern. Emerging nations like China need to rigorously protect intellectual property rights for their own companies and for foreign companies.” The latter, she added, should be treated “fairly, just as (governments) would want their businesses treated abroad.”
The U.S. government would like to work with China’s government “to ensure that the rights of all intellectual-property holders, such as in the software, pharmaceutical, music, and fashion industries, are well-