A Strategy for American Innovation: Driving Towards Sustainable Growth and Quality JobsThe Obama Innovation Strategy builds on well over $100 billion of Recovery Act funds that support innovation, additional support for education, infrastructure and others in the Recovery Act and the President’s Budget, and novel regulatory and executive order initiatives. It seeks to harness the inherent ingenuity of the American people and a dynamic private sector to ensure that the next expansion is more solid, broad-based, and beneficial than previous ones. It focuses on critical areas where sensible, balanced government policies can lay the foundation for innovation that leads to quality jobs and shared prosperity.Executive Office of the PresidentEOP_7e9eabda-905e-11df-b22f-768a7a64ea2aNational Economic CouncilOffice of Science and Technology PolicyOur vision of America’s future is one where prosperity is built by skilled, productive workers and sound investments that will spread opportunity at home and allow this nation to lead the world in the technologies, innovation and discoveries that will shape the 21st century._7e9eb8e6-905e-11df-b22f-768a7a64ea2a_7e9ebbca-905e-11df-b22f-768a7a64ea2aInvestmentInvest in the Building Blocks of American Innovation._7e9ebeb8-905e-11df-b22f-768a7a64ea2a1We must first ensure that our economy is given all the necessary tools for successful innovation, from investments in research and development to the human, physical, and technological capital needed to perform that research and transfer those innovations.Fundamental ResearchRestore American leadership in fundamental research. _7e9ebfd0-905e-11df-b22f-768a7a64ea2a1.APresident Obama implemented the largest increase in basic R&D in history, which will lay the foundation for new discoveries and new technologies that will improve our lives and create the industries of the future. President Obama recognizes the fundamental role of government in fostering groundbreaking scientific and technological breakthroughs, and has committed resources and energy to ensure America leads the world in the innovations of the future.R&D Funding IncreaseEnact the Largest R&D increase in our nation’s history. _7e9ec0d4-905e-11df-b22f-768a7a64ea2a1.A.1With $18.3 billion in research funding, the Recovery Act is part of the largest annual increase in research and development in America’s history.Science Agency FundingDouble the R&D budget of key science agencies._7e9ec1ce-905e-11df-b22f-768a7a64ea2a1.A.2National Science FoundationDepartment of Energy's Office of ScienceNational Institutes of Standards and TechnologyThe President’s Budget proposed to double the research budgets of three key science agencies: the National Science Foundation, the Department of Energy's Office of Science, and the National Institutes of Standards and Technology. These investments will expand the frontiers of human knowledge and create the foundation for the industries and jobs of the future, such as the convergence of bio, info, and nanotechnologies. The Obama Administration will increase the impact of this investment by providing more support for high-risk, high-return research, for multidisciplinary research, and for scientists and engineers at the beginning of their careers.GDP & R&DInvest three percent of GDP in R&D._7e9ec2c8-905e-11df-b22f-768a7a64ea2a1.A.3The President has proposed a goal that as a country, we invest more than three percent of our GDP in public and private research and development. This will exceed the level achieved at the height of the space race.R&E Tax CreditMake the R&E tax credit permanent. _7e9ec3c2-905e-11df-b22f-768a7a64ea2a1.A.4The President’s Budget includes the full $75 billion cost of making the research and experimentation tax credit permanent. This will provide businesses with the greater confidence they need to invest, innovate, and grow.EducationEducate the next generation with 21st century knowledge and skills while creating a world-class workforce. _7e9ec4d0-905e-11df-b22f-768a7a64ea2a1.BPresident Obama has proposed initiatives to dramatically improve teaching and learning in K-12 education, expand access to higher education and training, and promote student achievement and careers in STEM (Science, Technology, Engineering, and Mathematics) fields. America's high levels of education were an important contributor to rising living standards in recent years. For America to continue to lead the world in science and technology innovation, it must have the most knowledgeable and skilled workers in the world.Public SchoolsReform public schools to deliver a complete and competitive education._7e9ec5ca-905e-11df-b22f-768a7a64ea2a1.B.1The President is committed to an education system that will prepare every child for success in a new, global economy. The Obama Administration is supporting the improvement of teaching and learning to ensure that students master world-class knowledge and critical skills for the 21st century; enhance and reward success in the teaching profession; drive innovation in America’s classrooms; and expand successful models to improve outcomes for middle- and high-school students. The President’s Race to the Top in America’s schools will deliver a historic investment and challenge the states to design and enforce higher and clearer standards, attract and keep outstanding teachers in the classroom, and use effective approaches to turn America’s lowest-performing schools around.College GraduatesRestore America to first in the world in college graduates. _7e9ec6d8-905e-11df-b22f-768a7a64ea2a1.B.2College StudentsColleges, universities, and their students are bedrocks of American innovation. President Obama has called for restoring America to first in the world in the proportion of college graduates by 2020. Between the Recovery Act and the 2010 budget, the Administration is seeking nearly $200 billion over the next decade for scholarships and tax credits to help students complete college. The Obama Administration is investing in innovative strategies to support college persistence, simplify the student aid application and reform the student loan program to shift billions in wasteful spending toward greater help for students to reach and complete college. The Administration has been actively working with Congress to fund these priorities by eliminating waste in the student aid program.STEM EducationImprove America’s Science, Technology, Engineering and Math (STEM) education._7e9ec7f0-905e-11df-b22f-768a7a64ea2a1.B.3STEM education is particularly important to America’s future scientific progress and economic growth. As part of his effort to promote innovation in K-12 education, the President has challenged governors, philanthropists, scientists, engineers, educators and the private sector to join with him to dramatically improve achievement in STEM subjects. The President’s Race to the Top fund aims to reinvigorate the teaching of STEM in America’s classrooms and support advanced learning in these subjects, especially for women, girls and other underrepresented groups. The President is also committed to using the $4 billion Race to the Top fund to encourage states to put STEM at the center of their reform efforts. Finally, the Recovery Act provided a down payment toward the goal of tripling the number of NSF Graduate Research Fellowships in science and engineering.Career PathwaysDevelop new career pathways in community college programs._7e9ec8f4-905e-11df-b22f-768a7a64ea2a1.B.4Community CollegesGiven the innovation and advances coming in future years, jobs requiring at least an associate’s degree are projected to grow twice as fast as those requiring no college experience. President Obama has proposed the American Graduation Initiative to produce 5 million more community college graduates by 2020, a key part of his college completion goal. The initiative would invest in promising reforms to raise graduation rates, tie courses to business needs, improve remedial education and strengthen transitions with high schools and four-year colleges. It would also leverage $10 billion in facilities modernization and repairs amongst other projects.Online CoursesDesign world-class online courses for post-secondary students._7e9ec9ee-905e-11df-b22f-768a7a64ea2a1.B.5Post-Secondary StudentsThe President is proposing to invest up to $500 million over the next 10 years to create world-class online courses available at community colleges for students to gain knowledge, skills and credentials. These courses will be freely available, and enable students to extend learning opportunities and successfully complete their course work. Colleges, universities, publishers, and other groups will be invited to compete to create state-of-the-art online courses that combine high-quality subject matter expertise with the latest advances in cognitive and computer sciences.High-Tech VisasImprove the processing of high-tech visas. _7e9ecae8-905e-11df-b22f-768a7a64ea2a1.B.6Foreign ScientistsForeign Technological LeadersIn order to maintain our role as a global leader and convener of scientific conferences and other gatherings, the Obama Administration has worked to ensure foreign scientists and technological leaders can visit the United States to participate in important events while continuing to protect sensitive technologies.Physical InfrastructureBuild a leading physical infrastructure. _7e9ecbf6-905e-11df-b22f-768a7a64ea2a1.CThrough the Recovery Act, the President has committed to a historic investment in our nation’s roads, bridges, transit, and air transportation networks to connect our people and our businesses.Roads, Bridges, and Mass TransitInvest in our nation’s roads, bridges, and mass transit._7e9eccf0-905e-11df-b22f-768a7a64ea2a1.C.1The Recovery act provides $36 billion for infrastructure projects to improve our nation’s highways and mass transit systems. The Obama Administration has also proposed "investing for performance" reforms that will improve transparency and accountability in the transportation financing system. Specific reform measures include building state and metropolitan project evaluation capabilities, improving project assessment tools, and creating stronger public reporting requirements. These reforms will promote accountability in the transportation financing system and increase the return to transportation investments, thereby boosting long-term economic growth.Electric GridModernize the Electric Grid._7e9ece08-905e-11df-b22f-768a7a64ea2a1.C.2Our current electricity transmission grid must be expanded and modernized to reduce congestion, maintain reliability, and accommodate the output from new sources of renewable energy. New technologies are being developed that present significant opportunities for consumers and businesses to control their energy use and costs, reducing the strain on the electric grid and improving performance. The Recovery Act provides $4.5 billion for the development of technologies to enable greater energy efficiency, customer demand response, energy storage, and other components of the "Smart Grid." The Recovery Act increased the borrowing authority of the Bonneville Power Authority by $3.25 billion and provided new borrowing authority of $3.25 billion for the Western Area Power Authority, enabling both Authorities to invest in transmission lines that will increase the development of renewables in their regions.High-Speed RailFulfill a new transportation vision with high-speed rail._7e9ecf2a-905e-11df-b22f-768a7a64ea2a1.C.3The President has proposed a long-term strategy to build an efficient, high-speed rail network of 100-600 mile intercity corridors, as one element of a modernized transportation system. The President made a down payment on this strategy with an $8 billion investment in the Recovery Act. This will be used to leverage other public and private funding to invest in infrastructure, equipment, and intermodal connections along three tracks. First, the strategy will advance new express high-speed corridor services (operating at speeds above 150 mph in some areas) in select corridors of 200-600 miles. Second, the strategy will develop emerging and regional high-speed corridor services (operating at speeds between 90 and 150 mph) in corridors of 100 to 500 miles. And third, the strategy will upgrade the reliability and service on conventional intercity rail services (operating at speeds up to 79-90 mph). The President has also budgeted for another $1 billion per year to continue to develop the high-speed rail network.Air Traffic ControlDevelop the next generation of air traffic control. The FY2010 Budget provides $865 million for the Next Generation Air Transportation System in the Federal Aviation Administration. The Administration supports moving from a ground-based radar surveillance system to a more accurate satellite-based surveillance system, the development of more efficient routes through the airspace, and improvements in aviation weather information._7e9ed042-905e-11df-b22f-768a7a64ea2a1.C.4IT EcosystemDevelop an advanced information technology ecosystem. _7e9ed182-905e-11df-b22f-768a7a64ea2a1.DFor America to lead the world in the technologies of the future, President Obama believes that all Americans must have affordable 21st century access to the Internet.BroadbandExpand access to broadband._7e9ed2ae-905e-11df-b22f-768a7a64ea2a1.D.1The Recovery Act provides $7.2 billion for broadband expansion and the 2010 budget includes $1.3 billion in USDA loans and grants to increase broadband capacity and telecommunication service. This support is a kickstart towards ensuring that all Americans have affordable 21st century access to the Internet. Widespread high-speed Internet access is essential for economic growth, job creation, and global competitiveness, and will foster the next generation of innovators while enabling reductions in energy consumption through telework, making online distance education tools accessible to all, enhancing remote medical monitoring capabilities, facilitating civic engagement, and supporting enhanced communications networks for first responders. Increased broadband access is a key input for rural economic development. It will enable rural businesses to improve their efficiency and expand their market reach; enable rural populations to compete remotely for a wide range of service jobs; and allow rural communities to retain their populations while attracting new businesses. The farm sector, a pioneer in rural Internet use, is increasingly comprised of farm businesses that purchase inputs and make sales online. Only 46 percent of adults in rural households have broadband access, compared to 67 percent for non-rural adults. America should lead the world in broadband adoption and Internet access, and we should not leave rural populations behind.Net NeutralityAssure net neutrality to preserve the freedom and openness of Internet access._7e9ed3da-905e-11df-b22f-768a7a64ea2a1.D.2The Internet is the ultimate level playing field, making possible the widest and most lucrative variety of entrepreneurial activity and innovation that the world has ever seen. FCC Chairman Julius Genachowski announced on September 21st that providers of Internet access should not discriminate against lawful applications or content. We want to make sure it remains possible for anyone to start a business in a garage that creates new jobs, new ideas, and new opportunities for Americans. Our nation’s economy is increasingly dependent on the Internet; the Internet is an essential infrastructure, like roads and electricity; and the global leadership that America provides today stems directly from historic policies that have ensured that telecommunications networks are open to all lawful uses by all users. That’s the way the Internet has always worked, and we want it to stay that way – not because we treasure our past, but because we care about our economic future.Information and Communications TechnologySupport research for next-generation information and communications technology._7e9ed51a-905e-11df-b22f-768a7a64ea2a1.D.3National Science FoundationDARPAThe Administration is committed to supporting research that will foster the next wave of innovation in information and communications technologies, such as "cognitive radio" that allows for the efficient sharing of spectrum, quantum computing, efficient programming of parallel computers, cyber-physical systems, secure computers and networks, data-intensive supercomputers, and nanoelectronics that enables the continuation of Moore’s Law for decades to come. The President’s Budget supports this research through grants for the National Science Foundation, DARPA, and other public and private institutions.CTOAppoint a Chief Technology Officer of the U.S. Government._7e9ed65a-905e-11df-b22f-768a7a64ea2a1.D.4Chief Technology OfficerIn April, President Obama named the first ever Chief Technology Officer of the U.S. government. The CTO position was created to oversee the application of technology to create jobs and spur economic growth. The Administration is committed to recruiting high-level champions for innovation across the government.Cyberspace SecuritySecure cyberspace._7e9ed79a-905e-11df-b22f-768a7a64ea2a1.D.5The President has identified cybersecurity as a national priority to ensure that cyberspace – the globally-interconnected digital communications infrastructure - is sufficiently resilient and trustworthy to support U.S. goals of economic growth, civil liberties, privacy protections, national security, and the continued advancement of democratic institutions. Leadership in this effort has been anchored in the White House through the positions of the U.S. Chief Technology Officer, the U.S. Chief Information Officer, and the President’s coming Cybersecurity Coordinator. This leadership team is partnering across the public and private sectors to build capacity for a digital nation through education, training and awareness; enhance security through information sharing, effective incident response planning, and privacy-enhancing identity management strategies; and encourage innovation through game-changing research and development strategies.Competition and EntrepreneurshipPromote Competitive Markets that Spur Productive Entrepreneurship. _7e9ed8f8-905e-11df-b22f-768a7a64ea2a2It is imperative to create a national environment ripe for entrepreneurship and risk taking that allows U.S. companies to be internationally competitive in a global exchange of ideas and innovation. Through competitive markets, innovations diffuse and scale appropriately across industries and globally.ExportsPromote American exports. _7e9eda9c-905e-11df-b22f-768a7a64ea2a2.AExports will play an increasingly critical role in the future of the American economy, and the President’s plans will ensure fair and open markets for American producers.Open MarketsOpen markets abroad. _7e9edbfa-905e-11df-b22f-768a7a64ea2a2.A.1The Obama Administration is working with our trading partners to negotiate mutually beneficial trade agreements and to maintain the worldwide flow of goods, services, and capital. Only by keeping markets open can American producers sell to world markets and derive the benefits of participating in an open exchange of ideas and innovations.ExportsPromote American Exports. _7e9edd58-905e-11df-b22f-768a7a64ea2a2.A.2United States Trade Representative (USTR)Department of CommercePresident Obama is committed to robust support for American exporters. The United States Trade Representative (USTR) and the Department of Commerce are proactively coordinating our support through programs such as the International Trade Administration and the Trade Promotion Coordinating Committee.Trade AgreementsEnforce our trade agreements to ensure access for American products abroad. _7e9edeb6-905e-11df-b22f-768a7a64ea2a2.A.3USTRDepartment of CommerceOver the last eight years the enforcement of trade agreements slowed dramatically, with the United States bringing only an average of three WTO cases per year – as opposed to the approximately 11 annually from 1995 to 2001. In this era, the United States lost its focus on ensuring that other countries lived up to their promises to open their markets, not violate America’s intellectual property, and not use dumping or subsidies to penetrate America’s markets. Under President Obama, USTR and the Department of Commerce are committed to a new emphasis on enforcing our existing agreements.Intellectual Property RightsProtect intellectual property rights. _7e9ee028-905e-11df-b22f-768a7a64ea2a2.A.4Intellectual property is to the digital age what physical goods were to the industrial age. We must ensure that intellectual property is protected in foreign markets and promote greater cooperation on international standards that allow our technologies to compete everywhere. The Administration is committed to ensuring that the United States Patent and Trademark Office has the resources, authority, and flexibility to administer the patent system effectively and issue high-quality patents on innovative intellectual property, while rejecting claims that do not merit patent protection.Export ControlsReform U.S. export controls. _7e9ee19a-905e-11df-b22f-768a7a64ea2a2.A.5The President has directed that the National Economic Council and the National Security Council review the overall U.S. export control system, tasking them to consider reforms that enhance America’s national security, foreign policy, and economic security interests. While the U.S. has one of the most robust export control systems in the world, it remains rooted in the Cold War era of over 50 years ago. It must be updated to address the threats we face today and the changing economic and technological landscape.Capital MarketsSupport open capital markets that allocate resources to the most promising ideas. _7e9ee30c-905e-11df-b22f-768a7a64ea2a2.BOpen capital markets are one of the greatest strengths of the American economy, and the President is committed to making sure these markets work.Open MarketsPromote open capital markets. _7e9ee488-905e-11df-b22f-768a7a64ea2a2.B.1In our economic system, freely moving capital searchers for the most promising innovations to nurture and propel. Providing American leadership in well regulated, open markets will support global technology development, and the President is committed to this system.Working MarketsEnsure working financial markets. _7e9ee956-905e-11df-b22f-768a7a64ea2a2.B.2While free and open markets provide significant benefits, they must work for consumers and investors. The recent financial crisis highlighted the danger of managing a 21st century economy with a 20th century regulatory framework. We are committed to building a system where individuals and businesses can innovate and take chances without fearing that the system will pose untenable risks. Our plan: ◦Requires that all financial firms that pose a significant risk to the financial system at large are subjected to consolidated supervision and regulation. ◦Increases supervision of financial markets to help ensure that our markets are strong enough to withstand system-wide stress and the potential failure of one or more large financial institutions. ◦Rebuilds trust in our markets by creating a Consumer Financial Protection Agency to focus exclusively on protecting consumers in credit, savings, and payment markets. ◦Provides the government with the tools to cope with crises by ensuring the orderly unwinding of failing firms and avoiding the untenable choice between bailouts or damaging collapse. ◦Raises international regulatory standards and improves international coordination.Growth and InnovationEncourage high-growth and innovation-based entrepreneurship. _7e9eeae6-905e-11df-b22f-768a7a64ea2a2.CThe Obama Administration believes it is essential that entrepreneurs continue to create new and vibrant businesses that lead to new jobs and economic growth.New BusinessesIncrease access to capital for new businesses. _7e9eec6c-905e-11df-b22f-768a7a64ea2a2.C.1New BusinessesU.S. Small Business Administration (SBA)Providing access to credit for entrepreneurs and small business owners is a foundational element of economic recovery and growth. The Recovery Act reduced fees and increased guarantee levels on small business loans, while the U.S. Small Business Administration (SBA) has increased small business lending by more than 61% from the depths of the recession while broadening the base of commercial SBA lenders. Growth capital is essential. The Small Business Investment Company (SBIC) Debentures program provides debt and mezzanine financing at a time when the equity markets have pulled back from providing capital to these companies. The President has also proposed eliminating the capital gains tax on small businesses.Training and MentoringProvide training and mentoring to entrepreneurs. _7e9eedfc-905e-11df-b22f-768a7a64ea2a2.C.2EntrepreneursCommunity CollegesUniversitiesPhilanthropic SectorWomenMinoritiesEntrepreneurs with access to a network of trainers, mentors, and counselors can improve their chances for success in building high-growth businesses. The SBA has 68 district offices and over a thousand nonprofit "resource partners" that offer 14,000 counselors who serve about 1.5 million entrepreneurs and small business owners each year. The Administration is partnering with community colleges, universities, and the philanthropic sector to deliver more training and mentoring resources to aspiring entrepreneurs to promote the creation of new businesses, particularly among women and minorities.Regional ClustersCreate competitive communities by promoting regional innovation clusters._7e9eefd2-905e-11df-b22f-768a7a64ea2a2.C.3Economic Development Administration (EDA)ResearchersEducatorsIndustry LeadersIn various regions of the U.S., entrepreneurs are collaborating with local researchers, educators and industry leaders to foster specialized knowledge, technical expertise, and cutting-edge products. This will help American businesses retain and achieve new levels of competitiveness. The President’s Budget provides $50 million in regional planning and matching grants within the Economic Development Administration (EDA) to support the creation of regional innovation clusters that leverage regions’ existing competitive strengths to boost job creation and economic growth. The Budget also launches a $50 million initiative in EDA that will create a national network of business incubators to encourage entrepreneurial activity in economically distressed areas.Government DataStimulate entrepreneurship through increased access to government data._7e9ef176-905e-11df-b22f-768a7a64ea2a2.C.4EntrepreneursThe Administration launched Data.gov, a one-stop shop for free access to data generated across all Federal agencies. By empowering the American people to find, use, and repackage data, Data.gov will give rise to new businesses (like the GPS and genomics industries that grew from increased access to public information) and empower entrepreneurs to evaluate opportunities.Unfair Business PracticesProtect small businesses from unfair business practices._7e9ef360-905e-11df-b22f-768a7a64ea2a2.C.5Small BusinessesIn many industries, small companies are critical innovators, bringing enormous benefits to consumers while putting competitive pressure on incumbent firms. The Obama Administration is committed to enforcing the antitrust laws to insure that innovative entrepreneurs are not excluded from the market by anti-competitive conduct. The Department of Justice actively investigates allegations of exclusionary conduct as part of its law enforcement mission to keep markets open and competitive.Public Sector and CommunitiesImprove public sector innovation and support community innovation. _7e9ef518-905e-11df-b22f-768a7a64ea2a2.DInnovation must occur within all levels of society, including the government itself. The Obama Administration supports the broad adoption of community innovations that work and is committed to making government perform better and more efficiently, including by working more openly.Transparency, Participation, and CollaborationMake the government more transparent, participatory, and collaborative._7e9ef6bc-905e-11df-b22f-768a7a64ea2a2.D.1On his first day in office, the President signed the Memorandum on Transparency and Open Government, thereby placing government accountability and civic engagement at the forefront of the Administration’s governing philosophy. The President’s Memorandum urged agencies to promote three principles for bringing innovation to government: transparency, participation, and collaboration. Transparency promotes accountability by providing citizens with information about what their Government is doing. Public participation in decision-making strengthens democracy and ensures that Government makes policies with the benefit of information that is widely dispersed in society. Collaboration improves the effectiveness of Government by encouraging cooperation and knowledge-sharing within the Federal Government, across levels of Government and between the Government and private institutions.Open GovernmentPromote Open Government. _7e9ef8b0-905e-11df-b22f-768a7a64ea2a2.D.2The Administration created the White House Open Government Initiative to coordinate Open Government policy, projects, and design technology platforms that foster openness across the Executive branch. The Initiative has achieved many important milestones, including: ◦Publishing government data online to make it easy for anyone to remix and reuse, thus involving the American people in the development of public policy, ◦Challenging thousands of Federal employees to propose ideas for slashing the time required to process veterans’ disability benefits, ◦Releasing information on Executive branch personnel and salaries, and ◦Launching the IT dashboard, a one-stop clearinghouse of information that allows anyone with a web browser to track government spending on technology and hold the government accountable.Program ImprovementUse innovation to improve government programs._7e9efa5e-905e-11df-b22f-768a7a64ea2a2.D.3President Obama is committed to using novel techniques and research support to improve the efficiency and effectiveness of government programs. For example, the Recovery Act includes a $7 billion fund to incentivize innovative reforms in states’ Unemployment Insurance programs. States that use the most recent wage data and commit to cover more groups of job seekers get rewarded with higher payments. Already 32 states have qualified, and of these 24 of them changed their laws to do so. Another example is support for patient-centered health research in the Recovery Act. This research will lead to higher quality and more effective ways to deliver healthcare. The results will stimulate action across the health system to incorporate these findings into programs.Community InnovationsCommit White House Resources to scaling and promoting community innovations._7e9efc0c-905e-11df-b22f-768a7a64ea2a2.D.4The President created the White House Office of Social Innovation and Civic Participation to grow the marketplace for community innovations and provide the technology and tools for greater civic participation to help tackle our nation’s toughest problems. The office will build upon efforts across the agencies, such as the Department of Education’s $650 million Invest in Innovation (i3) Fund, to create new models of Federal grant-making that focus on encouraging, testing and scaling the most promising ideas and programs. The office uses its convening power to coordinate and partner with citizens, philanthropists, and the private sector to create a supportive environment for on-going innovations in communities. Part of the effort will include using innovative tools such as prizes and challenges. The President’s Budget includes $50 million in seed capital for the nation’s first Social Innovation Fund, which will identify the most promising, results-oriented non-profit programs and provide the capital needed to replicate their success in communities around the country.National PrioritiesCatalyze Breakthroughs for National Priorities._7e9efeaa-905e-11df-b22f-768a7a64ea2a3There are certain sectors of exceptional national importance where the market is unlikely to produce the desirable outcomes on its own. These include developing alternative energy sources, reducing costs and improving lives with health IT, and manufacturing advanced vehicles. In these industries where markets may fail on their own, government can be part of the solution.Clean EnergyUnleash a clean energy revolution._7e9f006c-905e-11df-b22f-768a7a64ea2a3.AHistoric investments in smart grid, energy efficiency, and renewable technologies like wind, solar, and biofuels will help unleash a wave of ingenuity and progress that creates jobs, grows our economy, and ends our dependence on oil.Renewable EnergyDouble the nation’s supply of renewable energy in the next three years. _7e9f0274-905e-11df-b22f-768a7a64ea2a3.A.1Department of the InteriorThe President has set a goal to double the generation of renewable energy in the next three years, unleashing a wave of innovation in the clean energy industries of the future. To accomplish this vision, the Recovery Act included billions of dollars to support loan guarantees and the extension of the Production Tax Credit for electricity production from renewable energy sources, leveraging tens of billions of dollars in private investment. The Recovery Act and the President’s 2010 Budget also include significant increases for renewable energy technology R&D. In addition, the President pursued regulatory reform to ease the transition to a clean energy economy. In April the Department of the Interior released final regulations that will govern the development of renewable energy in offshore waters. These rules will enable our Nation to tap into the ocean’s vast sustainable resources to generate clean, green energy in an environmentally sound and safe manner.Energy Efficient IndustriesPromote energy efficient industries. _7e9f0436-905e-11df-b22f-768a7a64ea2a3.A.2The Recovery Act and national energy policy will generate a proliferation of new technologies, processes, and jobs relating to improving energy efficiency. The Recovery Act alone provided $5 billion in funding for weatherization assistance to low-income residents, $4.5 billion for greening Federal buildings, and $6.3 billion for state and local government renewable energy and energy efficiency and conservation efforts.Clean Energy InnovationInvest in Clean energy innovation. _7e9f06e8-905e-11df-b22f-768a7a64ea2a3.A.3The President has proposed a 10 year, $150 billion investment in the research, development and demonstration of clean energy technologies, such as solar, wind, green buildings, efficient lighting, next-generation biofuels, proliferation-resistant nuclear reactors, energy storage, and carbon capture and storage.Cap-and-Trade ProgramEnact a cap-and-trade program to curb oil dependence and greenhouse gas emissions while spurring renewable energy technologies._7e9f08b4-905e-11df-b22f-768a7a64ea2a3.A.4President Obama supports a comprehensive cap-and-trade program that will provide a clear signal that the current energy mix is unacceptable and that low-carbon energy sources are the way of the future. The program will provide the certainty necessary for businesses to make transformative investments in renewable alternatives and energy efficiency.American WorkforceRE-ENERGYSE the American workforce. _7e9f0b20-905e-11df-b22f-768a7a64ea2a3.A.5American WorkforceYoung AmericansThe President has proposed RE-ENERGYSE, a joint educational campaign from the Department of Energy and the National Science Foundation to inspire tens of thousands of young Americans to pursue careers in clean energy. RE-ENERGYSE will support fellowships, interdisciplinary graduate programs, and partnerships between academic institutions and innovative companies to prepare a generation of Americans to meet the energy challenge.Vehicle TechnologiesSupport advanced vehicle technologies. _7e9f0cf6-905e-11df-b22f-768a7a64ea2a3.BRecord battery grants announced last month are part of a concerted effort to place the U.S. on the cutting edge of advanced vehicle technology, from electric cars to biofuels to advanced combustion. For the sake of our national security, economy, and environment, it is crucial to diversify away from oil as the sole source of transportation fuel. Today, oil accounts for 96 percent of the fuel that powers our country’s vehicle fleet. The lack of widespread, affordable alternatives to oil makes us vulnerable to market disruptions and dependent on oil producers. Oil is also responsible for one third of our carbon dioxide emissions and is a significant source of local air pollution, threatening our climate security and the health of our local communities. The President’s strategy is to put the U.S. at the cutting edge of the advanced vehicle technology industry, which will not only reduce our dependence on oil, but will also create jobs, strengthen our manufacturing base, improve the quality of the air we breathe, and offer consumers greater safety, performance, and choice.InvestmentMake the largest investment in technology for electric vehicles and transportation electrification in U.S. history._7e9f1070-905e-11df-b22f-768a7a64ea2a3.B.1In early August the Administration announced $2 billion in grants which will catalyze private sector investment to build a globally competitive domestic battery and electric drive component industry. With this support, American factories will produce the lightest, cheapest, longest-lasting, and most powerful vehicle batteries in the world. American batteries and components will power affordable electric cars that can travel over hundred miles on a single charge and offer customers superb performance. These vehicles will be even more attractive thanks to the tax credit of up to $7,500 offered for electric and plug-in electric vehicles in the Recovery Act. The Administration is also making a $400 million holistic investment in transportation electrification as a system. Beyond batteries, vehicles, and components, this includes demonstrating pilot systems that put the pieces together – testing the infrastructure to plug the cars, training the workers to build and service them, and educating the consumers who will buy them. The lessons from these projects will help the private sector more quickly develop profitable electric vehicles that meet the needs of drivers.Aadvanced Vehicle TechnologiesDeploy up to $25 billion in loans to support American manufacturing of advanced vehicle technologies._7e9f125a-905e-11df-b22f-768a7a64ea2a3.B.2American manufacturersThrough the $25 billion Advanced Technology Vehicles Manufacturing Loan Program, the Administration is supporting competition within the marketplace to produce the most cost-effective solutions to reduce oil dependence. The Administration awarded the first $8 billion in conditional loan commitments in June. These included $5.9 billion for Ford Motor Company to transform factories across Illinois, Kentucky, Michigan, Missouri, and Ohio to produce 13 more fuel efficient models; $1.6 billion to Nissan North America, Inc. to retool their Smyrna, Tennessee factory to build advanced electric automobiles and to build an advanced battery manufacturing facility; and $465 million to Tesla Motors to manufacture electric drive trains and electric vehicles in California. Up to an additional $17 billion in loans will be made under this program over the next several years.BiofuelsSupport the next generation of American biofuels._7e9f143a-905e-11df-b22f-768a7a64ea2a3.B.3The Administration is investing in next generation biofuels that displace oil consumption and reduce greenhouse gas emissions. Through $800 million in Recovery Act grants as well as up to $500 million to support loan guarantees, the Administration is accelerating the development of clean technologies like cellulosic and algae-based biofuels –harnessing recent advances in synthetic biology.Vehicle Fuel DfficiencyImprove vehicle fuel efficiency to reduce oil dependence and spark innovation._7e9f162e-905e-11df-b22f-768a7a64ea2a3.B.4In May, President Obama announced a groundbreaking national autos program that put us on a path to adopting uniform Federal standards to regulate both fuel economy and greenhouse gas emissions. The result will be a projected reduction in oil consumption of approximately 1.8 billion barrels over the life of the program and a projected total reduction in greenhouse gas emissions of approximately 950 million metric tons. This landmark policy will spark innovation in more fuel-efficient vehicles, reduce pollution, and promote energy security.Health Care TechnologyDrive innovations in health care technology. _7e9f187c-905e-11df-b22f-768a7a64ea2a3.CThe President’s health IT initiative is designed to drive technological innovation that will help prevent medical errors, improve health care quality, reduce costs, and cement U.S. leadership of this emerging industry. The inefficiencies in our health care system raise costs and reduce the quality of care. New advances in health information technology will increase efficiency while broad reform will free businesses and individuals to innovate and grow.Health ITExpand the use of health IT._7e9f1a8e-905e-11df-b22f-768a7a64ea2a3.C.1Expanded use of advanced health information technology (e.g. electronic medical records, mobile health applications, sensors for monitoring chronic diseases) will help prevent medical errors, improve health care quality, begin to modernize the American health care system and reduce costs. The Recovery Act provides over $19 billion in investments to modernize health information technology.Medical ResearchRenew our commitment to medical research._7e9f1c8c-905e-11df-b22f-768a7a64ea2a3.C.2The Recovery act included a $10 billion expansion in health research. This will fund projects such as an initiative to identify all of the genetic changes involved in 20 types of cancer, clinical trials of medicines that could help stop the HIV/AIDS pandemic, the largest infusion of funding to discover the causes and treatment for autism, and using DNA sequencing to discover how to prevent and treat heart, lung, and blood diseases.Health Care CostsSlow the growth of health care costs._7e9f1e76-905e-11df-b22f-768a7a64ea2a3.C.3The President is committed to comprehensive reform for a health care system that makes it possible to improve the quality of care while slowing the growth rate of costs. Doing this will free up resources that can be used to invest in American businesses and improve the living standards for all Americans.Grand ChallengesHarness science and technology to address the "grand challenges" of the 21st century. _7e9f20b0-905e-11df-b22f-768a7a64ea2a3.DThe President’s renewed commitment to science, technology and innovation will allow the nation to set and meet ambitious goals that will improve our quality of life and establish the foundation for the industries and jobs of the future. Examples include: •Complete DNA sequencing of every case of cancer; smart anti-cancer therapeutics that kill cancer cells and leave their normal neighbors untouched; early detection of dozens of diseases from a saliva sample; nanotechnology that delivers drugs precisely to the desired tissue; personalized medicine that enables the prescription of the right dose of the right drug for the right person; a universal vaccine for influenza that will protect against all future strains; and regenerative medicine that can end the agonizing wait for an organ transplant. •Solar cells as cheap as paint, and green buildings that produce all of the energy they consume. •A light-weight vest for soldiers and police officers that can stop an armor-piercing bullet. •Educational software that is as compelling as the best video game and as effective as a personal tutor; online courses that improve the more students use them; and a rich, interactive digital library at the fingertips of every child. •Intelligent prosthetics that will allow a veteran who has lost both of his arms to play the piano again. •Biological systems that can turn sunlight into carbon-neutral fuel, reduce the costs of producing anti-malarial drugs by a factor of 10, and quickly and inexpensively dispose of radioactive wastes and toxic chemicals. •An "exascale" supercomputer capable of a million trillion calculations per second – dramatically increasing our ability to understand the world around us through simulation and slashing the time needed to design complex products such as therapeutics, advanced materials, and highly-efficient autos and aircraft. •Automatic, highly accurate and real-time translation between the major languages of the world – greatly lowering the barriers to international commerce and collaboration.2009-09-202010-07-15http://www.whitehouse.gov/administration/eop/nec/StrategyforAmericanInnovation/OwenAmburOwen.Ambur@verizon.net