Today’s innovation is not your father’s—or your grandfather’s---innovation. The way that new products, services, and technologies emerge has changed, and innovation policies need to change in response to this transformed innovation ecosystem. A new study sponsored by the Information Technology and Innovation Foundation analyzes forty years of data from R&D Magazine, which has annually ranked its top 100 innovations since 1976. This historical perspective yields some interesting insights. One major finding is that the role of Federal investments in supporting innovations has grown rapidly. Also, collaboration is more important. In the 1970s, a large portion (80%) of innovations came from large corporations acting alone. Today, a similar portion of innovations—roughly 2/3--results from inter-organizational partnerships and collaborations. American firms and government agencies are quite effective in building partnerships, and this collaborative mindset is something of a competitive advantage for the US. The author contends Federal innovation policies need to respond to these trends with more funding and better collaboration across government agencies. Both of these moves will ensure that Federal support for R&D has greater impact as well as greater efficiency.

Download the July 2008 Information Technology and Innovation Foundation report, “Where Do Innovations Come From? Transformations in the U.S. National Innovation System, 1976-2006,” by Fred Block and Matthew R. Keller.