the discovery of up to 21.2 percent al all new FDA-approved drugs from 1990 through 2007.292

Capturing the value of U.S. investments in R&D: The assumption that the output of the U.S. innovation process will be captured by U.S.-based industry has been rendered obsolete by globalization and the rise of corporate open innovation practices. In today’s world, knowledge created through federally funded research at universities and national laboratories can be commercialized and industrialized virtually anywhere. The key is to take measures to provide the funding, support services, and to anchor new and existing companies in clusters of competency here in the United States.

This report highlights the features of a more comprehensive innovation policy. It calls for a better understanding by government of the real factors behind corporate decisions on where to develop new technologies, commercialize products, and locate production and help close competitive gaps with other nations to the degree possible. Some of these gaps can be closed with more enlightened tax policy, in others through incentives such as research grants, loans, and credits for U.S.-based manufacturing.

The committee’s formal findings and recommendations on how to sustain a strong American innovation system for the 21st century are found in the next two chapters.

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292 Ashley J. Stevens, Jonathan J. Jensen, Katrine Wyller, Patrick C. Kilgore, Sabarni Chatterjee, and Mark L. Rohrbaugh, “The Role of Public-Sector Research in the Discovery of Drugs and Vaccines,” The New England Journal of Medicine, February 9, 2011, (http://healthpolicyandreform.nejm.org/?p=13730&query=home).



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