The Biden-Harris Administration should expand the focus of the Department of Energy’s (DOE) Loan Program Office (LPO) to meet the demands of a changing energy industry. The LPO was established to serve as a backstop to private-sector financing for large-scale energy projects with embedded technology risk. The program’s success in scaling large scale power plants and manufacturing plants for next generation energy technologies is well documented. However, the energy industry has changed since the program’s beginning, and the needs for support from the Federal Government have evolved. For example, technology areas that were deemed risky in 2009 are now mature, and in some circumstances, for example in electricity generation, the industry structure that was historically highly centralized has become much more distributed. Modernizing the LPO is a critical means for advancing the Biden-Harris Administration’s climate agenda because the Office supports the development of clean energy projects at commercial scale, leverages private sector capital, and creates middle-class jobs. 

This memo recommends three important changes to the DOE LPO:

1. The aperture of the LPO must be expanded to include a much larger set of technology areas. In particular, energy storage, hydrogen production and carbon capture, utilization and storage, among other nascent fields, should be supported. Authorizing legislation should be changed to give the Program Office the opportunity to support a technological area at its discretion.
2. The Loan Program must reduce the cost of application to incentivize more deployment of smaller projects. This will expand the potential set of projects to be supported and align the Office with overarching trends in the energy sector.
3. The Loan Program should expand its purview to support projects impeded by other financing risks in the energy system. These could include grid modernization, system hardening or smart grid updates (which often do not pass traditional cost-benefit analyses), and electric vehicle infrastructure deployment.

Challenge and Opportunity

The proposed solution solves two impending challenges to the President’s climate agenda. First, while innovation is necessary to meet climate goals, the private sector is reluctant to fund first generation projects for novel clean energy technology. As the US embarks on a pivotal decade with respect to managing the national carbon budget, deploying new technology at scale will become even more critical. In particular, reaching 2050 carbon goals will require successfully innovating in hydrogen production, carbon capture, energy storage, and load-following electric power — most of which cannot be currently supported under the Loan Program’s authorization. Second, the nation’s overall infrastructure deficit has been estimated to require an additional $2 trillion of spending by the American Society of Civil Engineers in their most recent 2017 assessment. In the energy sector, ASCE estimated the requirement for additional electricity infrastructure alone to be $177 billion. Simultaneously, the economic returns to investing in our nation’s infrastructure are significant. Recent studies suggest that for every $1 million invested in energy infrastructure, the Recovery Act created 15 durable jobs. The multiplier effect from infrastructure spending varies based on economic conditions, but as the country emerges from the COVID-19-induced recession, enabling the LPO to fund a broad swath of energy infrastructure would be a viable asset for job creation in the coming years.

Currently, the LPO is restricted to financing only the first three deployments of new technologies, and new technologies that are highly capital intensive, such as concentrated solar power. The LPO exists to absorb financing risk for the private sector, risks which often stem from capital intensity or technology uncertainty. As we consider the energy transition in the coming decades, a new set of technologies needs support for initial commercial deployment. Additionally, however, a broad array of infrastructure investments continue to go unfunded by the private sector for other reasons as well, particularly in geographies where commercial markets for offtakers are not fully developed. Expanding the technology and stage aperture of the LPO to include a broader array of projects would attract private capital and accelerate the transition to a decarbonized future.

Plan of Action

The Biden-Harris Administration should expand the DOE’s Loan Program Office (LPO) to enable the Federal Government to quickly make investments in a broad range of infrastructure categories through the pre-existing contracting authorizations at the LPO. Accordingly, we propose three changes to the DOE’s LPO. First, the technology aperture of the Loan Program should be expanded to include a broader set of technologies, including but not limited to energy storage, hydrogen production, carbon capture, utilization and storage, and carbon dioxide removal. Program staff should be granted the flexibility to support a wide range of technology areas at their discretion, in a manner not dissimilar to ARPA-E in the breadth of technical fields within staff purview.

Second, the Loan Program must be adjusted to account for a more distributed energy industry by reducing the cost of application and the corresponding size of project to be supported. For example, the first deployment of a novel grid-scale energy storage technology could be financed at the $10+ million level rather than the $100+ million level. A company looking to deploy that technology would be currently discouraged from applying as a result of the upfront cost of application. The Loan Program should support projects across the capital scale, with flexible application requirements depending on the order of magnitude of public support being requested. 

Finally, the Loan Program should expand to support projects impeded by other financing risks in the energy system. These risks could include high-risk project cash flows from uncertain offtake agreements, as for example with public transportation infrastructure or grid modernization, system hardening, and electric vehicle infrastructure deployment. A comprehensive list of infrastructure to support should include:

• Existing planned projects and deferred maintenance on public transit systems;
• Identified grid modernization or hardening programs in state resource plans;
• Accelerated smart grid expansion;
• Building retrofits for both energy efficiency and carbon emissions reduction;
• Electric charging stations; and
• Addressing methane leakage in pipeline systems.

Conclusion

At the Roosevelt Project, we are developing action plans for communities that experience significant industrial upheaval, particularly in the context of forthcoming energy transitions. Though these transitions will vary in their nature as a result of local socio-economic realities, access to or distance from natural resources, and exposure to various climate risks, the transitions will most acutely affect communities of working-class, low-income, under-educated Americans. Federal support for the deployment of shovel-ready energy infrastructure can support the creation of high-quality jobs. For infrastructure deployment to positively contribute to both decarbonization and job creation, projects must be targeted to regions that are likely to be affected by the transition. The adjustments to the DOE LPO proposed here offer one important tool for quickly deploying infrastructure in the next four years.

Summary

The United States leads the world in the market share – and ‘mindshare’ – of massive digital platforms in domains such as advertising, search, social media, e-commerce, and financial technologies. Each of these digital domains features one or two dominant market players who have become big through the ‘network effect,’ wherein large volumes of customer activity provide data inputs to make these platforms work even better. However, the gains that big players enjoy from the network effect often come at the expense of the platform’s customers. The network effect is further amplified by platform lock-in, whereby new platforms are unable to interoperate with existing market players. A more serious risk manifests when the dominant platform provider provides the same services as that of businesses using the platform, thus becoming a competitor with a built-in information advantage. This prevents new entrants to the market from growing big, limiting the choices available to consumers and creating the conditions for harmful monopolies to emerge.

Therefore, the Biden-Harris Administration should advocate for legislation and enact policies designed to bring openness and transparency into the digital platforms marketplace. A key aspect of such policies would be to require a set of interoperability standards for large digital platforms. Another would be to require open Application Programming Interfaces (APIs) that allow customers (end-users as well as businesses) to seamlessly take their data with them to competitors. These actions will unleash greater competition in the digital marketplaces that are becoming the mainstay of the US economy and increase transparency, choice and opportunities that the US consumer and businesses can benefit from.

Summary

The United States is an invention and innovation powerhouse that has long produced remarkable achievements. Yet American invention is at a crossroads today. After more than a half-century of unrivaled global leadership in basic science, innovation, and manufacturing, the U.S. is losing ground throughout the innovation pipeline across a wide range of sectors. The COVID-19 pandemic has exposed this vulnerability, making brutally clear the need for innovation to address major challenges that arise and highlighting weaknesses such as our dependency on global supply chains. A strong Invention Ecosystem can power our path to economic recovery, sustained growth and societal resilience.

This report explains the functions of the Invention Ecosystem, presenting a framework that highlights the ecosystem’s main components and the inventor and innovation pathways that 1) inspire and prepare students and future inventors to address crucial challenges and thrive and support the innovation economy, and 2) build and sustain today’s inventors and entrepreneurs to enable value creation from their ideas in the form of products and businesses. These pathways together will yield a pipeline of people and businesses that create jobs, foster resilient economies, and produce solutions to our most pressing challenges.

The ecosystem is outlined in four sections, represented by its distinct pillars including K-12 education, higher education, entrepreneurship and industry. Each section describes the role of the pillar, features specific challenges related to the ecosystem, and offers a set of discrete policy recommendations for a policymaker audience to extract and optimize the full value of U.S. innovation.

This report was produced by the Day One Project with support from the Lemelson Foundation.

Summary

Comprehensive and reliable mortality data is vital for public health research. Improving our infrastructure for managing these data will generate insights that promote longevity and healthy aging, as well as enable more effective response to rapidly evolving public health challenges like those posed by the COVID-19 pandemic. A modernized mortality data system will ultimately be self-sustaining through access fees, but will require federal investment to update state reporting infrastructure and data use agreements. The Biden-Harris administration should launch an effort to modernize our nation’s infrastructure for aggregating, managing, and providing research access to mortality data.

The COVID-19 pandemic has highlighted the urgent need to address lags in American pharmaceutical manufacturing. An investment of $5 billion over five years will improve U.S. pharmaceutical manufacturing infrastructure, including the development of new technologies that will enable the responsive, end-to-end, on-demand production of up to half of the Food and Drug Administration (FDA) list of 223 essential medicines by year two, and the entire portfolio by year five. Spearheading improvements in domestic manufacturing capacity, coupled with driving the advancement of new adaptive, on-demand, and other advanced medicine production technologies will ensure a safe, responsive, reliable, and affordable supply of quality medicines, improving access for all citizens, including vulnerable populations living in underserved urban communities, rural areas, and tribal territories.

Challenge and Opportunity

Urgent Need to Strengthen U.S. Pharmaceutical Manufacturing

COVID-19 has served as a wake-up call and an opportunity to bring pharmaceutical manufacturing into the 21st century. Production factory closures, shipping delays, shutdowns, trade limitations, and export bans have severely disrupted the supply chain. Yet the demand for vaccines and COVID-19 treatment options worldwide continues to increase. However, recent advances in manufacturing technology can be deployed to create a 21st century domestic pharmaceutical manufacturing economy that is distributed, flexible, and scalable, while producing consistent high-quality medicines that Americans rely on.

To improve national security and achieve the goal of medicine production self-sufficiency, the Biden-Harris Administration has an opportunity to address legacy issues plaguing the pharmaceutical manufacturing industry and usher in a technology revolution that will leapfrog our legacy 19th century industrial manufacturing processes. The Biden-Harris Administration should prioritize:

Improving the domestic production of small-molecule medicines, including Key Starting Materials (KSMs) and Active Pharmaceutical Ingredients (APIs) in order to reduce dependence on foreign manufacturers. China and India together supply 75- 80 percent of the APIs imported to the U.S.¹ In March, during the largest spring spike in U.S. COVID-19 cases, India restricted the export of 26 APIs as well as finished pharmaceuticals. The U.S is the leading market for generic pharmaceuticals, with 9 out of every 10 prescriptions filled being for generic drugs in 2019, and a projected market value of $415 billion by 2023.² An aggressive race to the bottom in terms of price has driven the vast majority of supply chain manufacturing overseas, where lower production costs and government subsidies, particularly for exports, benefit foreign suppliers.

Improving the scale, efficiency, and effectiveness of domestic biopharmaceutical manufacturing. The past decade has ushered in a significant shift in the nature of pharmaceutical products: there is now a greater prevalence of large molecule drugs, personalized therapeutics, and a rise in treatments for orphan diseases. New approaches to developing vaccines, such as the mRNA COVID-19 vaccine, are setting a new paradigm for future vaccines using DNA, RNA, adenoviruses, and proteins. There is an urgent need to scale up the domestic manufacturing of biologics, including vaccines, to address biomedical threats. In addition, innovation in manufacturing technology is critical to improving both scalability and time to market. New technology will improve yields while lowering costs and reduce waste through green chemistry.

Additional benefits associated with establishing a robust domestic manufacturing base, including distributed manufacturing capability, include:

Reducing vulnerabilities associated with an over-reliance on centralized manufacturing and processing models. In the food industry, a COVID-19 outbreak in just a few chicken and pork processing plants led to a nationwide shortage of these important foods. A more flexible, resilient distributed manufacturing model, such as one utilizing additive manufacturing and 3-D printing, would have prevented the need for such a disruptive response. 3-D printing, for example, has successfully delivered more than 1,000 parts to local hospitals during the pandemic.

Improving the reliability of facilities and the quality of products for the U.S. market through the development and deployment of advanced manufacturing technologies. Low-cost, offshore manufacturing raises quality risks; more than half of FDA warning letters issued between 2018 and 2019 were sent to facilities in India or China.4 There are numerous examples of risks to both the health and security of U.S. citizens in the recent past. In 2007, a Chinese company deliberately contaminated the blood thinner Heparin and 246 Americans died. In 2015, the FDA banned 29 products after inspecting a Chinese pharmaceutical factory, although it exempted 14 products over U.S. shortage concerns. And in 2018, a Chinese vaccine maker sold at least 250,000 substandard doses of vaccine for diphtheria, tetanus, and whooping cough.

Improving access for vulnerable populations living in underserved urban communities, rural areas, and tribal territories. COVID-19 created unprecedented pressure on the federal system when requests from 56 State, Local, Tribal, and Territorial (SLTT) authorities nearly simultaneously requested medical supplies. According to testimony presented by the RAND Corporation, the quantities of material in the Strategic National Stockpile (SNS) were not nearly enough to fill all of the requests, resulting in a heated competition and a failure to deliver products to all of the different parts of the United States equitably.

Reducing critical drug shortages that have plagued U.S. health systems for more than a decade. With COVID-19 cases on the rise, and hospitalizations increasing in more than 40 states, critical drug supplies are waning, with 29 out of 40 drugs used to combat the coronavirus currently in short supply. In addition, 43% of 156 acute care medicines used to treat various illnesses are running low. In 2019 the U.S. experienced 186 new drug shortages; 82% of which were classified as being due to “unknown” reasons, largely because of the intentional opacity and secrecy of the upstream supply chain. According to the Center for Infectious Disease Research and Policy (CIDRAP) the U.S. health system spends more than $500 million a year on estimated costs related to drug shortages, with approximately $200 million in direct costs and up to $360 million on indirect costs.

Stabilize pricing by enabling ‘just in time’ manufacturing capability that reduces the need to stockpile large supplies of medicines and is more responsive to surges in demand. Furthermore, complex supply chains, procurement mechanisms, and the consolidation of U.S. buyers create ‘pay-to-play’ schemes that contribute to chronic drug shortages by driving manufacturers out of the market and contribute to price volatility. New technologies that enable responsive and efficient approaches to surges in demand, or to address drug shortages, will also stabilize pricing over time. Today, one in four Americans cannot afford their medication. Mylan, for example, increased the price of EpiPen by more than 500%, from $94 for a two-dose pack in 2007 to $608 in 2018.

21st Century Problems Require 21st Century Solutions

Advanced manufacturing technologies such as continuous flow, which allows for drugs to be produced in a continuous stream, can reduce the time it takes to manufacture a drug and ensure quality through advanced controls and process analytic technologies. These technologies can enable remote monitoring during production and real-time release testing. In addition, miniaturized manufacturing units that could easily fit in existing pharmacies would facilitate a distributed network for producing medicines that is flexible enough to rapidly pivot and make any therapeutic required for national security or emergency preparedness with short lead times. A distributed network of on-demand pharmaceutical manufacturing devices will improve supply availability without the need to stockpile large quantities of medications.

Automation will play a key role in advanced pharmaceutical manufacturing, as will 3-D printing. Automation will reduce manufacturing overheads and ensure quality, scalability, and increased outputs. It allows advanced connectivity of equipment, people, processes, services, and supply chains. The 3-D printing of pharmaceutical products, meanwhile, is accelerating following the FDA’s approval of the first 3-D printed drug in 2015. This technology accommodates personalized doses and dosage forms and other emerging technologies that enable bespoke tablet sizes, dosages, and forms (suspension, wafers, gel strips, etc.) to optimize patient compliance and ease of use. Another major advantage is the possibility of redistributed manufacturing–printing medicine much closer to the patient. 3-D printing and on-the-spot drug fabrication will have major implications in medical countermeasures and for medications with limited shelf-life.

Finally, investing in advanced biopharmaceutical manufacturing infrastructure and innovation would establish the capacity to produce domestically through a network of high-tech, end-to-end manufacturing and development solutions, which will ensure that the medicines of today and tomorrow, such as new vaccines, can be made quickly, safely, and at scale.

Plan of Action

The Biden-Harris Administration should launch a national adaptive pharmaceutical manufacturing initiative focused on the ambitious goal of achieving medicine production self-sufficiency. The Presidential Initiative should be led by an Ambassador who reports to the Secretary of Defense. The Secretary of Defense is already leading a whole-of-government effort to assess risk, identify impacts, and propose recommendations in support of a healthy manufacturing and defense industrial base – a critical aspect of economic and national security. The Department of Defense (DoD) coordinates these efforts in partnership with the Departments of Commerce, Labor, Energy, and Homeland Security, and in consultation with the Department of the Interior, the Department of Health and Human Services (HHS), the Director of the Office of Management and Budget, and the Director of National Intelligence.

Clear deliverables and timeline-dependent milestones are critical to the success of this initiative. New local manufacturing solutions — such as state-of-the-art facilities and devices for automated end-to-end pharmaceuticals to be deployed in a trailer — can augment ongoing efforts to reduce manufacturing ramp-up time, the need for strict environmentally controlled secure storage facilities, and waste from expired medications. Having stand-alone or mobile devices for automated end-to-end pharmaceuticals would empower local authorities to manage delivery and distribution protocols, ensuring that local populations have the lifesaving medicines they need when they need them.

To this end, the DoD, in collaboration with HHS and the FDA, should launch a national initiative to increase U.S. manufacturing capacity and accelerate the development of new technology, with an emphasis on the adoption of advanced analytical capabilities to ensure quality. These platforms should be able to produce precursors, APIs, and final drug products (small molecule and biologics) in multiple forms, enabling rapid response priority medicines on demand, targeting the creation of a self-sustaining domestic supply chain of the 223 medicines on the FDA Essential Medicines list, as well as new vaccines and medicines coming off patent in the next 5 years.

The establishment of a national pharmaceutical manufacturing network will facilitate a U.S. strategic asset that changes how we source, manufacture, and distribute medicines. This robust domestic network will mitigate drug shortages, ensure quality, and allow rapid response to emergency scenarios. Importantly, it re-establishes a domestic pharmaceutical manufacturing industry that relies less on overseas suppliers, advances our country’s innovation prowess, and will create thousands of new U.S. jobs.

Recommendations for the Department of Health and Human Services and the Department of Defense

To enable a more resilient, responsive and adaptive U.S. pharmaceutical supply chain and achieve medicine production self-sufficiency, the following actions are recommended.

First, sign an executive order that directs the formation of a Joint Interagency Task Force (JIATF) DoD, HHS and FDA, led by a Presidential appointee (Ambassador), with a $5 billion, 5-year funding commitment, to establish a more robust domestic responsiveness that includes advanced manufacturing technologies for biologics and small molecules. A key objective of the executive order and the formation of a JIATF is to ensure the U.S. can produce medicines stateside with improved responsiveness.

This initiative will:

• Identify a portfolio of products that can be rapidly deployed at a national, state or local level utilizing advanced manufacturing platforms, identify associated research and development agenda needs, and determine how this aligns with other initiatives such as the Strategic National Stockpile.
• Support targeted synthetic biology research and development to enable faster manufacturing of low-cost, on-demand vaccines and precision immunotherapies.
• Support the advanced development of green, modular, on-demand small-molecule manufacturing technologies that would accommodate small batch lines, with an ability to scale and produce higher volume when needed. • Support targeted advanced development of sensor technologies that can monitor online and real-time quality control.
• Support the acquisition and/or establishment of new U.S.-based manufacturing facilities.
• Support green technology solutions.
• Establish a center for excellence in advanced manufacturing at the FDA, to support and advance regulatory science.
• Identify new business models to support the economically sustainable domestic adoption and deployment of new manufacturing technology.
• Enact push and pull incentives to direct new medical countermeasure development funded by HHS (Biomedical Advanced Research and Development Authority, BARDA) and other federal agencies to utilize adaptive manufacturing practices as appropriate.

Key milestones and deliverables of this initiative include the following:

1. By year 2, ensure that 50% of the FDA’s Essential Medicines are manufactured from end-to-end in the United States, to include starting materials and APIs.
2. By Year 5, the FDA will have the capability to manufacture all Essential Medicines in the United States.
3. In this same time frame, the quality of every dose of the medicines produced can be provided to the FDA for oversight.
4. All starting materials are sourced domestically or from trusted allied nations.

Conclusion 

Expanding critical U.S. pharmaceutical manufacturing infrastructure and establishing an adaptive, transparent on-demand pharmaceutical manufacturing capability guarantees safe, secure, high-quality, and reliable supply of affordable drugs and would create thousands of new U.S. high-paying jobs. By utilizing green technology, it could reduce hazardous material waste by as much as 30 percent over conventional manufacturing. It would also improve transparency and supply chain efficiencies that could reduce shortages, lower costs, and improve the quality of medicines. A distributed, modular, on-demand manufacturing network capable of making biologics and small molecules cannot be disrupted by the loss of centralized facilities, natural disasters, pandemics, or adversarial actions. New local on-demand manufacturing solutions will reduce manufacturing ramp-up time, the need for strict environmentally-controlled secure storage facilities, and waste from expired medications. It will empower local authorities to manage delivery and distribution protocols, ensuring that local populations have the lifesaving medicines they need when they need them. In addition, it would offer the potential to improve warfighter resilience and recovery by providing the groundwork for producing medicines on demand, and at the point of care, whether it be on a C-5, submarine, or at a forward combat support hospital.

Summary

The Biden-Harris Administration should establish a National DeepTech Capital Fund (NDTC Fund) to bridge capital gaps and enable more DeepTech entrepreneurs to bring promising and beneficial technologies to market. 

Greater investment in DeepTech is critical in order to return the United States to the forefront of advanced science and technology research and development (R&D). “DeepTech” refers to companies and innovators building science-based, or R&D-based, products and services including hardware and advanced materials, robotics, manufacturing, and biotech. U.S. government investment in technology has declined by two-thirds in the past decades. Private capital typically eschews investment in advanced technologies, due to a combination of the additional expertise needed for and risks inherent to advanced-technology investment. Silicon Valley’s early days were cushioned by government risk capital at a time when the private sector could not see the value of investing in R&D. But relying entirely on Silicon Valley to drive investment in innovation has led the U.S. to a point where it risks being replaced by other innovation centers such as China. A National DeepTech Capital Fund would encourage and enable investment in companies building solutions to society’s greatest challenges, while ensuring that the United States remains at the center of global innovation.

Summary

Science and technology (S&T) must play a prominent and strategic role at all levels of United States foreign policy. On Day One, the Biden-Harris Administration should reinvigorate and reassert U.S. strength in science, technology, and data-driven decision making. S&T issues at the Department of State (Department) have historically been concentrated into specific offices and personnel, which has constrained the use of S&T as a tool to advance U.S. foreign policy goals. On Day One, the Administration can better identify, allocate, and elevate S&T issues and personnel throughout the Department. Building and rewarding diverse teams with the right mix of skills is good management for any organization, and could create significant progress toward breaking down the silos that prevent the realization of the full benefits of the S&T expertise that already exists among U.S diplomatic personnel.

Summary

This transition document provides over 25 actionable recommendations on the future of the United States Patent and Trademark Office (USPTO), in order to support future federal leadership and enable their success. The document is the result of collaboration between the Day One Project and a group of veteran policymakers who convened virtually to produce recommendations related to the following three categories:

1. Identifying specific policy and governance ideas that can be pursued in the first days and months of the next administration.
2. Gathering “lessons learned” from those who have previously served in government to learn from past challenges and better inform future initiatives.
3. Understanding key science and technology staffing and “talent” needs, and related challenges for the USPTO that can be addressed in the next administration.

The document also includes a cover memo which highlights some of the overarching key considerations for the future of the USPTO.

Contributors

• Margo A. Bagley
• Sharon Barner
• Brian Cassidy
• Colleen V. Chien
• Mark Allen Cohen
• Ayala Deutsch
• Ben Haber
• Philip G. Hampton
• Justin Hughes
• David J. Kappos
• Quentin Palfrey
• Arti K. Rai
• Teresa Stanek Rea
• Robert L. Stoll
• A. Christal Sheppard
• Saurabh Vishnubhakat
• Stephen Yelderman

Summary

The next administration should launch national Place-Based Public-Private Partnerships for Innovation (P4I) to supercharge American innovation by leveraging the power of proximity and partnerships, and in so doing, lay the foundation for a new and more inclusive era of American prosperity.

The P4I initiative will catalyze the formation and growth of vibrant Innovation Zones (IZs), creating powerful points of convergence that weave together place-based investments with educational, research, entrepreneurship, and economic supports to advance inclusive economic development from the American heartland to the coasts. IZs will catalyze the public-private development of mixed-use innovation hubs that house and support: training programs to prepare diverse and resilient labor forces; advanced research and development (R&D) activities undertaken by partnerships between universities and industry; and, incubators, accelerators, and investor groups to incubate, grow, and retain high-tech businesses.

P4I should be implemented by an interagency committee convened by the White House Office of Science and Technology Policy (OSTP) under the auspices of the President’s Council of Advisors on Science and Technology (PCAST). An interagency initiative will be critical for success, mobilizing federal agencies that share responsibility for all aspects of innovation and economic development policy, including STEM R&D, formation and growth of U.S. innovation industries (small to large), and innovation-based economic and workforce development.

Summary

Convergence is a compelling novel paradigm and a potent force for advancing scientific discovery via transdisciplinary collaboration. It is also a useful framework for multi-sector partnerships. The Biden-Harris Administration should form a Convergence Directorate at the National Science Foundation (NSF) to accelerate research and innovation and help ensure U.S. leadership in the industries of the future.

In forming the Directorate, NSF should:

• Commit resources that are commensurate with the importance of the Directorate’s mission.
• Provide the sustained focus needed to realize the tremendous potential of convergence.
• Ensure that the Directorate is organized to reflect the principles of convergence in its structure and operations.

Summary

The United States Agency for International Development (USAID) tackles some of the toughest challenges in some of the toughest places on earth, including fighting global pandemics, growing economic prosperity, strengthening democratic institutions, and providing humanitarian relief. USAID plays an important role in addressing global development problems that initially lack effective, scalable, and sustainable solutions. Yet USAID’s activities allow little room for the risk taking or iteration needed to drive significant improvements and encourage disruptive new ideas, with most programs implemented through detailed plans with rigid designs.

Imagine if the pace of progress for global development could match the breakneck pace of advances in the tech sector. The next administration should assess where current USAID interventions are inadequately meeting global need, applying best practices from innovation to improve programs accordingly. This will include shifting to outcomes-based performance metrics, dedicating budget for experimentation, establishing incentives that encourage risk-taking, linking payments with outcomes, and conducting ex-post evaluations of scale and sustainability.

Summary

To bolster competition, entrepreneurship, and innovation, the next administration should facilitate business-to-business (B2B) data sharing between startups and data-rich, established companies. Asymmetry in the digital economy is an existing market failure that, if left unchecked will continue to intensify to the detriment of consumer choice and our collective security.

Leveling the playing field requires policy to remove barriers to entry created by data advantages and to promote market competition through increased access to big data. Specifically, we propose that the Small Business Administration’s Office of Investment and Innovation establish a data-sharing program that gives entrepreneurs access to the data they need to improve algorithms underpinning their products and services. This would support a thriving and diverse ecosystem of startups that could in time yield valuable new markets and products.