Books 2021: How the U.S. and Georgia Are Innovating to Gain Global Advantage

Author: Robert D. Atkinson and Stephen J. Ezell, authors

Review by: Al Hodge, founder of Hodge Consulting Services LLC and a 40-year economic development veteran

Although first published in 2012, “Innovation Economics” remains a go-to for innovators, thought leaders, public-policy makers and investors. Since that time, conservative and liberal U.S. presidents and a variety of other office-holders have tinkered with or overhauled policies and funding. Presidents Obama and Trump enacted some recommendations but ignored or modified others. Either way, a book aimed at helping America regain its innovative edge by 2020 still proves instructive as we enter the third year of the decade.

The premise of the book is that the U.S. is susceptible to losing its innovative edge, and the authors explicitly refute the excuses used to justify the lack of a robust innovation policy, from “we have always been the innovation nation and always will be” to “blame the data” to “we have faced challenges before and we’ll be just fine,” among many others.

Innovation policy should include Inspiration, Intention, Insight, Incentive, Institutional Innovation and Investment, they argue, comparing U.S. policies to those of other developed countries including Germany, Canada, Japan and the United Kingdom, which have all seen varying degrees of success and failure along the innovation continuum.

China is noted for focusing on innovation policy including extraordinary public funding, though heavy criticism follows for currency manipulation, intellectual property theft and government requirements for sharing information by corporations investing there. None of these negative actions augur well for the long term.

The authors argue that relative economic decline in the U.S., while jarring for a nation that has led the world for decades, doesn’t have to be inevitable with the right investments in education, competitive tax policy and fiscal discipline combined with strategic investments, trade policy, regional innovation grants, and more research and development incentives and funding by national, state and local governments. They add that many public-sector funds should be matched by the private sector.

The final sentence gives “hope that the new race for global innovation advantage will spur America out of its slumber and divisiveness to again become the global innovation leader, not just as a front-runner in the race, but as a referee to ensure the race is fair and that everyone benefits from the competition.”

There are many lessons to be taken from this book, and the U.S. and Georgia seem to be reading and acting on some, learning from the rest of the world as we seek to retool our innovation landscape.

The state’s experience welcoming investors from South Korea, a leader in the alternative-energy revolution, is a good example. Georgia has attracted solar energy and electric-vehicle battery plants bringing billions of dollars in capital. South Korea is climbing the ranks of the top international investor nations, which include Japan, Germany and others with diversified, innovative economies.

This is the result of solid strategy. Georgia is a leader in the Regional Leaders Summit – the only state to participate in this seven-region partnership across continents. Georgia Tech has secured regional grants for competitiveness with industry clusters and in 2021 applied for and received Artificial Intelligence Corridor grants. The University of Georgia and the other research universities are diversifying their innovation portfolios to address new frontiers. The State of Georgia has also enhanced the Georgia Research Alliance and the Georgia Department of Economic Development’s Centers of Innovation by focusing on future-facing industries like electric vehicles and alternative energy, life science, aerospace, materials, logistics, agriculture/food throughout the State. Startups have continued across the state, and all this has coalesced to draw the largest-ever economic development announcement: a $5 billion Rivian Automotive plant.

The state is also investing in K-12 education – especially college and career academies, through the Georgia Foundation for Public Education and its 2021 merger with the Georgia Innovation Fund Foundation. The Technical College System of Georgia and the University System of Georgia continue to be competitive advantages.

Innovation is about quality of living, quality of place and yes, economics. Complacency should not be tolerated, and poor policy should be a thing of the past. The government has successfully intersected with private-sector dynamism on numerous occasions in recent years, from Operation Warp Speed that brought us COVID-19 vaccines, to broadband funding and alternative-energy strategies.

But we should not rest on our laurels – as a nation or a state. Chips anyone?