government agencies and national laboratories, however, have a relatively small offshore presence that limits their ability to learn from other nations, but could do so.125

c. The Internet and Cross-Border Data Flows: The Internet and information and communications technologies (ICT) are at the forefront of developments changing the way business is done internationally. The Internet and ICT have also transformed the way R&D activities are performed by “enabling distributed research, grid and cloud computing, simulation, or virtual worlds.”126 The Internet, because of its global nature, is accelerating the “pace and scope of research and innovation, and encouraging new kinds of entrepreneurial activity.”127 Networked information systems and data flows have become a core component of 21st century innovation. It is important that international consensus be achieved on maintaining the free and open flow of legitimate data and knowledge across borders so that the benefits of the Internet and ICT on world growth and innovation can be preserved and expanded.

d. Greater Awareness: The massive investments in innovation capacity and ambitious policy initiatives underway around the world will have an impact on the United States in ways that can scarcely be imagined today. It can be certain, however, that the impact will be immense. Not all of these strategies will work, yet some are likely to transform 21st century global competition, with profound implications for America’s well-being and national security. Yet the United States currently invests little to track foreign technology investments, industrial policies, and proinnovation policies, much less project their implications into the future.

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125 The U.S. military has a limited number of science and technology representatives overseas. For example, the Office of Naval Research operates regional offices in places such as Singapore, Prague, Santiago, and London. In addition, and the staff of many U.S. embassies include officers whose portfolios cover science, but they often have many additional responsibilities such as health and the environment, and few may focus on innovative technologies.

126 OECD, “The Future of the Internet Economy,” Policy Brief, June 2008, p. 4. The Internet has also increased R&D efficiency. Marlo I. Kafouros, “The Impact of the Internet on R&D Efficiency: Theory and Evidence,” Technovation, Volume 26, Issue 7, July 2006.

127 OECD, “The Future of the Internet Economy,” Ibid.

125 The U.S. military has a limited number of science and technology representatives overseas. For example, the Office of Naval Research operates regional offices in places such as Singapore, Prague, Santiago, and London. In addition, and the staff of many U.S. embassies include officers whose portfolios cover science, but they often have many additional responsibilities such as health and the environment, and few may focus on innovative technologies.

126 OECD, “The Future of the Internet Economy,” Policy Brief, June 2008, p. 4. The Internet has also increased R&D efficiency. Marlo I. Kafouros, “The Impact of the Internet on R&D Efficiency: Theory and Evidence,” Technovation, Volume 26, Issue 7, July 2006.



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