OECD: United States Losing its Edge in Innovation

The United States is losing its edge in innovation, and needs to implement strong pro-innovation policies as well as education reform "to maintain its status as the world's most vibrant and productive economy."

That's the conclusion of the latest "Economic Survey of the United States" by the Organization for Economic Cooperation and Development, or OECD, which asserts that "fissures have begun to appear" in U.S. innovation.

"The United States is still one of the most innovative economies in the world, but competition is growing and we need better policies to keep the U.S. at the frontiers of innovation," said OECD Deputy Secretary-General Richard Boucher.

Among the recommendations in the OECD report, the organization asserts that "reductions in the federal R&D budget should be as limited as possible."

"Ideally, funds would be appropriated to continue on the path approved in the 2007 America COMPETES Act of doubling the budgets for three key science agencies within a decade," the report adds.  

The OECD also urges federal policymakers to build on the America Invents Act "by ensuring that the legal standards for granting injunctive relief and damages awards for patent infringement reflect realistic business practices and the relative contributions of patented components of complex products."

"Further reforms in the patent law should promote innovation by limiting the possibility to extract disproportionate licensing fees for minor patented functions within complex products," the report says.