Motivating Entrepreneurship and Innovative Activity: Analyzing US Policies and Programs

Abstract

Government policy has undertaken a number of key initiatives, such as the Small Business Innovation Research (SBIR) program, the Advanced Technology Program (ATP), and the Defense Advanced Research Projects Agency (DARPA), with the goal of developing the innovative capacity and overall economic performance of the country. These agencies not only help firms innovate where they otherwise would most likely not have, but they also help to address the current and future needs of government agencies for innovative solutions. In order to understand how and why government intervention is needed, the chapter offers an explanation of why R&D and innovation necessitates governmental support.