Restoring U.S. Competitiveness
Contact: Jennifer Meyer, 571-408-0238
February 1, 2012
The Center for Public Policy Innovation Publishes Special Report on Restoring U.S. Competitiveness
Washington, DC – Today, the Center for Public Policy Innovation (CPPI), a not-for-profit educational think tank, published a special report entitled, “Restoring U.S. Competitiveness: Creating Jobs and Unleashing the Potential of Small Businesses through Technology and Innovation,” which identifies key issues and outlines several important policy and regulatory changes impacting the nation’s start-ups and other small businesses. The report follows CPPI’s December 8th Public Policy Forum, which was co-sponsored by the Digital Dialogue Forum (DDF) with support from Dell Inc., Qualcomm and Intuit. CPPI’s event brought leading industry, academic, and government stakeholders together to explore policy changes that would facilitate small business growth by increasing access to capital, technology and global markets.
“Startups and small businesses are the backbone of the American economy. They are responsible for the vast majority of all new jobs created in the United States; they are the nation’s greatest source of innovation; and they are critical to helping restore U.S. competitiveness,” CPPI President and CEO Chris Long said. “This report addresses real policy and regulatory solutions that can help spur U.S. job growth and innovation in the coming years.”
“Job creation has rightfully dominated most conversations of late. This report sheds light on the precursor to job creation and what I find to be top of mind for the CEOs I meet with – access to capital, global markets and modern technology. Focusing on those three elements can help small businesses thrive in a way that will reinvigorate the U.S. economy,” added Steve Felice, president and chief commercial officer of Dell, who moderated CPPI’s December panel discussion.
Key findings from CPPI’s special report include:
Access to a Variety of Capital. Many investors aren’t aware of startups in their region. Bringing visibility to these new firms will help attract investment from local resources. Also, making the capital gains tax exemption permanent for investors in qualified small businesses (QSB) would provide a corporate tax credit of up to $5 million for these QSBs in the first taxable year of profit, followed by a 50 percent corporate income tax exclusion in the two succeeding taxable years to help finance growth.
Access to Modern Technology. Cloud computing and mobile technologies have lowered the cost of entry for smaller firms, allowing them to invest more in their innovative ideas. Moreover, global supply chains used to be controlled by larger firms; however, smaller firms now have the ability to build virtual supply chains to expand their presence around the globe.
Access to Global Markets. President Obama is committed to opening up foreign markets to American businesses, as evidenced by his pledge to double the amount of exports over the next five years. He also reiterated this commitment in his State of the Union Address last week stating “I will go anywhere in the world to open new markets for American products.” A number of government agencies, including the Small Business Administration, have already been providing small businesses with information and assistance to help them bring their products to overseas markets. Making these programs easier to find would help smaller firms take advantage of these valuable resources.
Distinguishing Startups from Small Businesses. Failure is a natural and important part of successful firm development. Startup owners learn valuable lessons when their firms fail, and they often develop an expanded professional network that will benefit them over the long term.
CPPI’s latest report on restoring U.S. competitiveness can be downloaded from the organization’s web site at www.cppionline.org.
CPPI and the Digital Dialogue Forum plan to hold an ongoing series of public policy forums and report on the findings from these events. The “Restoring U.S. Competitiveness” series will foster collaboration and seek consensus on a range of issues that impact domestic growth and economic vitality. The next event, to be held March 21, will examine the role that Chief Financial Officers (CFOs) play in the strategic decision making of large, global technology companies.
About the Center for Public Policy Innovation
The Center for Public Policy Innovation (CPPI) is a 501(c)(3) not for profit educational think tank whose mission is to assist government officials in addressing the many challenging issues brought on by the rapid advancement of Information Technology. CPPI provides policymakers with thought leadership, informed policy analysis, and innovative strategies to help ensure American competitiveness in the global economy and comprehensive security on the home front. CPPI convenes educational symposiums, site visits, and other forums that bring together stakeholders from government, industry, academia, and the civic sector to discuss policy issues in a collaborative environment.