Committee on Comparative Innovation Policy: Best Practice for the 21st Century Board on Science, Technology, and Economic Policy Policy and Global Affairs Charles W. Wessner and Sujai J. Shivakumar, Editors ThE NATIONAL ACADEMIES PRESS Washington, D.C. www.nap.edu THE NATIONAL ACADEMIES PRESS 500 Fifth Street, N.W. Washington, DC 20001 NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance. This study was supported by: Contract/Grant No. SB1341-03-C-0032 between the National Academy of Sciences and the U.S. Department of Commerce; Contract/Grant No. OFED- 381989 between the National Academy of Sciences and Sandia National Laboratories; and Contract/Grant No. NAVY-N00014-05-G-0288, DO #2, between the National Academy of Sciences and the Office of Naval Research. This material is based upon work also supported by the Defense Advanced Research Projects Agency Defense Sciences Office, DARPA Order No. K885/00, Program Title: Materials Research and Development Studies, Issued by DARPA/CMD under Contract #MDA972-01-D-0001. Additional funding was provided by Intel Corporation, International Business Machines, and Google. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the organizations or agencies that provided support for the project. International Standard Book Number-13: 978-0-309-10483-8 International Standard Book Number-10: 0-309-10483-1 Limited copies are available from Board on Science, Technology, and Economic Policy, National Research Council, 500 Fifth Street, N.W., W547, Washington, DC 20001; 202-334-2200. Additional copies of this report are available from the National Academies Press, 500 Fifth Street, N.W., Lockbox 285, Washington, DC 20055; (800) 624-6242 or (202) 334-3313 (in the Washington metropolitan area); Internet, http://www.nap.edu. Copyright 2007 by the National Academy of Sciences. All rights reserved. Printed in the United States of America. The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Charles M. Vest is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibil- ity given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy’s purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scien- tific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Ralph J. Cicerone and Dr. Charles M. Vest are chair and vice chair, respectively, of the National Research Council. www.national-academies.org Committee on Comparative Innovation Policy: Best Practice for the 21st Century* William J. Spencer, Chair Chairman Emeritus, retired SEMATECH Kenneth Flamm, Vice Chair Mary L. Good, Vice Chair Dean Rusk Chair in International Donaghey University Professor Affairs Dean, Donaghey College of Lyndon B. Johnson School of Public Information Science and Affairs Systems Engineering University of Texas at Austin University of Arkansas at Little Rock and STEP Board and STEP Board Alice H. Amsden Bronwyn Hall Professor of Political Economy Professor of Economics Massachusetts Institute of Technology University of California at Berkeley Gail H. Cassell Mark B. Myers Vice President, Scientific Affairs Visiting Professor of Management Distinguished Lilly Research Scholar The Wharton School of Business for Infectious Diseases University of Pennsylvania Eli Lilly and Company Alan Wm. Wolff Lewis S. Edelheit Managing Partner Senior Research and Technology Dewey Ballantine Advisor, retired General Electric *As of December 2006.  Project Staff* Charles W. Wessner Study Director Sujai J. Shivakumar Paul Fowler Senior Program Officer Senior Research Associate McAlister T. Clabaugh Ken Jacobson Program Associate Consultant David E. Dierksheide Jeffrey C. McCullough Program Officer Program Associate *As of December 2006. i For the National Research Council (NRC), this project was overseen by the Board on Science, Technology and Economic Policy (STEP), a standing board of the NRC established by the National Academies of Sciences and Engineering and the Institute of Medicine in 1991. The mandate of the STEP Board is to integrate understanding of scientific, technological, and economic elements in the formulation of national policies to promote the economic well-being of the United States. A distinctive characteristic of STEP’s approach is its frequent interactions with public and private-sector decision makers. STEP bridges the disciplines of business management, engineering, economics, and the social sciences to bring diverse expertise to bear on pressing public policy questions. The members of the STEP Board* and the NRC staff are listed below: Dale Jorgenson, Chair David T. Morgenthaler Samuel W. Morris University Professor Founding Partner Harvard University Morgenthaler Ventures Timothy Bresnahan Joseph Newhouse Landau Professor in Technology and John D. MacArthur Professor of the Economy Health Policy and Management Stanford University Harvard University Lew Coleman Edward E. Penhoet President President Dreamworks Animation Gordon and Betty Moore Foundation Kenneth Flamm Arati Prabhakar Dean Rusk Chair in International General Partner Affairs U.S. Venture Partners Lyndon B. Johnson School of Public Affairs William J. Raduchel University of Texas at Austin Independent Director and Investor Mary L. Good Jack Schuler Donaghey University Professor Chairman Dean, Donaghey College of Ventana Medical Systems Information Science and Systems Engineering Suzanne Scotchmer University of Arkansas at Little Rock Professor of Economics and Public Policy Amo Houghton University of California at Berkeley Member of Congress, retired *As of December 2006. ii STEP Staff* Stephen A. Merrill Charles W. Wessner Executive Director Program Director McAlister T. Clabaugh Sujai J. Shivakumar Program Associate Senior Program Officer David E. Dierksheide Jeffrey C. McCullough Program Officer Program Associate Paul Fowler Mahendra Shunmoogam Senior Research Associate Program Associate *As of December 2006. iii Contents PREFACE xiii I INTRODUCTION 1 II. PROCEEDINGS 25 Welcome Remarks 27 Ralph Cicerone, National Academy of Sciences Ronen Sen, Ambassador of India to the United States Opening Remarks India and the United States: A New Strategic Responsibility 30 Paula Dobriansky, Department of State Panel I: India and the United States: An Emerging Global Partnership 35 Moderator: Daid McCormick, Department of Commerce India’s Reforms: Current Challenges and Opportunities 35 Montek Singh Ahluwalia, Planning Commission of India Opportunities and Challenges in U.S.–Indian Science and Technology Cooperation 39 Samuel Bodman, Department of Energy ix