Addressing an audience at Hudson Valley Community College in Troy, New York, President Obama presented his strategic vision for American innovation. Stressing the importance of innovation as the key to America’s economic growth, President Obama plans to build on the over $100 billion of Recovery Act funds that support innovation, “from high-tech classrooms to health information technology, from more efficient homes to more fuel-efficient cars, from building a smart electricity grid to laying down high-speed rail.”

Moving forward, President Obama’s strategy calls for government policies that will harness the inventiveness of American entrepreneurs and the talent of our private sector to expand our economy and create quality jobs.  In his plan, President Obama laid out three goals for American innovation.

First, the President called for renewed investment in the basic building blocks of innovation: “education, infrastructure, research.” President Obama explained, “We know that the nations that out-educate us today will out-compete us tomorrow.  The ability of new industries to thrive depends on workers with the knowledge and the know-how to contribute in those fields.  Unfortunately, today, our primary and secondary schools continue to trail many of our competitors, especially in the key areas of math and science.”  And with graduates forsaking college or dropping out early due to skyrocketing costs, “too many of our young talented people -- are slipping through the cracks.  It's not only heartbreaking for those students; it's a loss for our economy and our country.”

President Obama continued:

Secondly, President Obama’s innovation agenda emphasized the need for competitive markets to encourage and foster entrepreneurship, allowing American ideas to spread globally. The President explained, “So as we invest in the building blocks of innovation, from the classroom to the laboratory, it's also essential that we have competitive and vibrant markets that promote innovation, as well. Education and research help foster new ideas, but it takes fair and free markets to turn those ideas into industries.” The President’s budget provides for a research and experimentation tax credit, and he has proposed “reducing to zero the capital gains tax for investments in small or startup businesses.”

The President also understands the importance of a rules based system for trade. He noted that, “it's essential that we enforce trade laws and work with our trading partners to open up markets abroad; that we reform and strengthen our intellectual property system; that we sustain our advantage as a place that draws and welcomes the brightest minds from all over the world; and that we unlock sources of credit and capital which have been in short supply as a result of the financial crisis.”

Lastly, President Obama explained how government can be part of the solution for industries such as alternative energy and health IT, where the market will not produce desirable outcomes on its own. 

President Obama explained:

For more on President Obama’s strategic vision:

• Read the transcript of President Obama’s speech here. 
• Read “A Strategy for American Innovation” White Paper here.
• Read American Innovation Fact Sheets here and here.  

As we face the global energy crisis, innovators across the world are developing new green technologies to tackle climate change and reduce harmful effects on the environment. As new eco-friendly products emerge, it is essential that businesses have the proper tools to share these technologies across a global market.  

With this in mind, the UK Government launched an initiative on Tuesday to fast-track inventions with an environmental benefit, giving them priority within the patent system. This effort will place new products on the market faster, aiming to grant patents within nine months instead of the current average time of two-to-three years.

Minister for Intellectual Property David Lammy explains the new UK policy, "Climate change affects us all and any actions we take now to improve low-carbon technology has got to be positive for both the environment and our future economic competitiveness."

This initiative will enable faster dissemination of new concepts that will help our environment. Click here to read the Intellectual Property Office release.

With the recent economic downturn, venture capitalists that once poured money into green technology start ups are dramatically decreasing their investments. The first quarter of this year saw a remarkable drop-off with $154 invested in 33 start-up companies, as compared to $971 million in 67 start-ups during the last quarter of 2008, according to the New York Times. With 2009 investments in alternative energy at the lowest level since 2005, it is unclear whether these plummeting investments are just a result of the suffering economy, or if alternative energy investments are on the decline.

Venture capitalists are reigning in their spending, especially in regards to solar companies that once fueled the industry’s growth.  Despite the trepidation surrounding solar power, another New York Times article highlighted one company that still plans to forge ahead. SolarWorld AG, based in Bonn, Germany, opened a refurbished factory in Oregon last October and has been churning out solar cells ever since.  Investing $500 million in green technology during the midst of a recession might have seemed like an unusual decision at the time, but SolarWorld focused on the potential gains.

Once a world leader in solar manufacturing, the United States now only produces a mere 5 percent of solar panels worldwide. Despite federal encouragement and the recent focus on green technology, according to the New York Times, "only a fraction of 1 percent of the electricity in the United States comes from solar panels, leaving ample room for the market to grow." These percentages are seen as an opportunity for companies, like SolarWorld, looking to expand operations in the United States.

Hoping to foster the growth of renewable energy, recent federal incentives are anticipated to give the industry a boost.  As explained in the New York Times, the "recent stimulus package included grants for businesses and utilities that install solar energy systems, and the bank bailout package last year removed the dollar cap on a 30 percent tax credit for home installations. Makers of renewable energy equipment also received help in the stimulus package, signed by President Obama." These new incentives may help stimulate green technology investments at a time when venture capitalists are operating more conservatively due to the current recession.

One of the greatest global threats we face today is the energy crisis, and without a renewed focus on green innovation we are putting our global well being in serious danger. Solving the world’s greatest challenges, such as climate change, requires an exchange of ideas and innovation across global boundaries. As the world becomes more aware of the harmful consequences of global warming, people are starting to take action. This new movement towards green innovation was the central focus of this year’s World Intellectual Property Day, held on April 26, 2009.

Although much harm has been done to the environment, we still have the opportunity to forge a new path. Creating a world where green technology is ubiquitous requires innovation and the transfer of new ideas.  As highlighted by the World Intellectual Property Organization, a rules-based system that allows for the safeguarded transfer of intellectual property will "stimulate the creation, diffusion, and application of clean technologies…"  Watch the video message from World Intellectual Property Organization Director General Francis Gurry here, or read the full transcript below: