Washington, D.C. – As part of the U.S. Congress Joint Economic Committee’s (JEC) continuing look at jobs and the economic recovery, Representative Carolyn Maloney, Chair of the JEC, convened a hearing today to identify ways to help transform federally-funded university research into innovations that create jobs and further the economic recovery.

“As our economy recovers from the ‘Great Recession,’ we need to take a closer look at how innovation and entrepreneurs can rekindle economic growth,” said Maloney.  “The partnership between the federal government and universities helps form an entrepreneurial ecosystem that benefits the local economy by creating promising new start-ups and the accompanying jobs.”

Witnesses emphasized how government investment in university research can fuel both national and local economic growth and presented ideas on how to effectively leverage current investments into jobs and new companies.

President of New York’s Stony Brook University, Dr. Samuel Stanley, said, “This is absolutely the wrong time to de-invest in the institutions that I think have helped lead us in the last 60 years.  And again, I will point to this incredible partnership that has occurred between the research universities and the federal government – that has really driven the tremendous amount of the innovation...The remarkable things about the research universities is that they do lead to regional growth.”

Zachary Shulman, a venture capitalist and Cornell University Senior Lecturer, argued that New York State’s start-up tax credit should be adopted by the federal government to spur growth.  He explained, “The government could offer direct tax credits for investments made in companies commercializing university-developed technologies.  This would attract investment at the critical start-up phase when it’s needed the most [by entrepreneurs].”

The witnesses also discussed the “job-creator visa,” which is incorporated in the StartUp Visa Act of 2010, legislation that Maloney introduced earlier this year.  The legislation would provide visas for immigrant entrepreneurs who have financial backing to launch a firm and create jobs.  During the hearing, the Kauffman Foundation’s Dane Stangler said, “The research is absolutely clear on this – immigrants contribute hugely to job creation in this country.  These are immigrants who make jobs, they don’t take jobs from Americans.”

Stangler participated in the hearing on behalf of Dr. Robert Litan, who was unable to testify due to illness.  Litan, a noted expert on entrepreneurship and innovation, submitted his testimony for the record. 

Maloney concluded, “Last December, Dr. Litan’s insightful testimony shaped the national discussion on job-creator visas.  This hearing is sure to spark proposals to facilitate transforming basic research into American innovations that will lead to the next generation of jobs.”

To view video from the hearing or read witness testimony, click here.

###

The Joint Economic Committee, established under the Employment Act of 1946, was created by Congress to review economic conditions and to analyze the effectiveness of economic policy.
 www.jec.senate.gov