- Global Competitiveness
A Case For Translating Innovation Into GrowthAugust 29, 2012
A McKinsey Quarterly report argues that the public and private sectors must work together to realize the country's innovation and growth potential.
From the iPhone to pharmaceuticals, many innovative products are created in the U.S., but some pundits point to signs overseas and statistics that show this country might be losing its ability to gain from innovation.
To address that issue, a McKinsey Quarterly report draws on conversations with CEOs of advanced industrial companies and original research, concluding that the report’s authors are concerned.
“We are confident that the United States can realize its innovation and growth potential. Its natural advantages are undeniable. But other countries are building up cutting-edge technology, demand, talent, and entrepreneurism, while the United States seems to be in retreat. The public and private sectors must work together to reverse that trend,” the report states.
Revitalizing innovation and growth in the United States requires a national commitment in which public and private sectors work jointly, the report argues. Steps for changing historic trends and translating innovation into economic growth are outlined in the report:
- Clear the way for cutting edge industrial technologies of the future: The report states that policy makers must ramp up public-sector procurement targets and set standards for next-generation technologies.
- Rebuild infrastructure: U.S. production and engineering upgrades should be made, as well as cutting through regulations that add costs and time to construction, the reports argues.
- Attract and retain talent: The report suggests streamlining green card application processes and expanding efforts such as the U.S. Department of Labor’s High Growth Job Training Initiative.
- Re-energize the entrepreneurial spirit in large U.S. companies: “The rapid expansion of small, inventive companies that grow up to become large ones innovating at scale is one of the hallmarks of U.S. leadership,” the report states. “The country should continue to encourage this model, and more executives of large companies should embrace it.”