President Barack Obama's speech about innovation Monday was hailed by a range of technology industry stakeholders as a bold step toward achieving economic recovery and maintaining American competitiveness.
President Obama articulated his support for making permanent a research and development tax credit, which is proposed in his FY10 budget request, by noting that it would help companies afford the high cost of developing new ideas, technologies and products. Also among Obama's talking points was the importance of a lower tax rate on capital gains to spur investments in start-up businesses. He said zeroing out the tax for investments in certain businesses is essential because they are engines of innovation and produce 13 times more patents per employee than large companies.
TechNet, a political network of Silicon Valley CEOs, lauded Obama's strategy saying that now, more than ever, "America's future prosperity is tied to the enactment of policies that foster a culture of innovation and job growth." Business Software Alliance President Robert Holleyman said Obama's vision is aligned with the tech sector's belief that government should "set ambitious goals, create incentives for innovation and investment, create a favorable business environment, and allow companies to compete."
Senate Republican High Tech Task Force Chairman Orrin Hatch (UT) slammed the speech, arguing that his words did not match his policy proposals and in several instances "go in exactly the opposite direction."
