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The Commerce Blog

Acting Secretary Blank Begins 3-Day Innovation Tour with Stop in Silicon Valley to Discuss Newly Announced Patent and Trademark Office

Acting Secretary Blank Begins 3-Day  Innovation Tour with Stop in Silicon Valley

Acting U.S. Commerce Secretary Rebecca Blank delivered remarks to a full house and participated in a panel discussion at San Jose State University on driving U.S. innovation to create jobs. The panel was moderated by Carl Guardino, President and CEO of the Silicon Valley Leadership Group. Blank was joined by Dr. Pat Kennedy, CEO of OSISoft, Eric Kelly, President and CEO of Overland Storage  and Dr. Mohammad Qayoumi, President of San Jose State University. During the discussion, Blank noted some of the 22 ways the Department of Commerce is supporting and fostering American innovation.

In her opening remarks, Blank noted:

This past winter, our [US Patent and Trademark] Alexandria office had a special exhibit on the ground floor – 30 giant iPhones lined up side-by-side.  Each one featured one of the many patents that Steve Jobs received. As Steve said, “The ones who are crazy enough to think that they can change the world are the ones who do.”

Today, those entrepreneurs, those innovators, and those dreamers – all of you – are the reason I’m so proud to say that the Commerce Department will soon put one of its first four satellite patent offices right here in Silicon Valley.

Today, thousands of inventors here and across the country continue to help lay the foundation for America’s long-term growth and leadership.  The entrepreneurial spirit continues to thrive here in Silicon Valley. With your help, we have seen 28 straight months of private sector job growth – totaling 4.4 million jobs.  

The U.S. Patent and Trademark Office (USPTO) plans to open a satellite office in the Silicon Valley area in an effort to help local businesses and entrepreneurs innovate quicker and grow faster. Acting Secretary Blank cited a recent Commerce Department report showed that industries that rely heavily on intellectual property protection support at least 40 million jobs – and about one-third of our GDP. That report showed that these jobs pay about 42 percent more than others. So a better patent system means good jobs and stronger economic security for millions of middle class families. 

After the panel discussion, Acting Secretary Blank attended a lunch at TechShop. TechShop is a membership-based workshop that provides members with access to tools and equipment, instruction, and a community of creative and supportive people so they can build the things they have always wanted to make. Blank spoke with local business leaders to discuss entrepreneurship, innovation and how the new patent satellite office could help to support job creation. She heard ideas about how the satellite office will meet local business needs, how the office will work with regional economic development groups focused on job creation, and whether their might be in interest tailoring the patent office’s services to meet the needs of startups, incubators and accelerators.

Blank will fly to Denver – another newly announced patent office location – and host another series of conversations with local businesses and officials about improving and continuing American innovation tomorrow.

22 Ways the Department Of Commerce Is Supporting and Fostering American Innovation

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In an increasingly competitive world, the United States must invest in its best scientists, researchers and entrepreneurs so that they innovate here, make things here, and create good paying, high quality jobs for middle class families. The Department of Commerce and its bureaus are supporting and fostering innovation at all stages of product development, from original research through to final manufactured goods.

Commerce’s Economic Development Agency has launched two grant challenges, the i6 Challenge and the Advanced Manufacturing Jobs and Innovation Accelerator, to move ideas from the lab and shop floor to the marketplace at an accelerated rate. Supporting this work is the Regional Innovation Acceleration Network, a web-based tool to help economic development professionals promote entrepreneurship, business development, and technology commercialization in their region.

In April 2010, the Commerce Department launched the Internet Policy Task Force to ensure that the Internet remains open for innovation. In doing so, it has produced the Consumer Privacy Bill of Rights, made important steps forward for a National Strategy for Trusted Identities in Cyberspace, started a conversation about privacy concerns within mobile apps, and worked to combat Botnets that threaten internet security. To ensure continued Internet security, Commerce has opened a Cybersecurity Center of Excellence.

NOAA's State of the Climate Report for June 2012

Graphic: Significant climate events in June 2012

Nation experiences warmest first half of year; wildfires claim 1.3 million acres across nation

Commerce's National Oceanic and Atmospheric Administration (NOAA) issues its monthly state of the climate report for June, 2012. The average temperature for the contiguous U.S. during June was 71.2°F, which is 2.0°F above the 20th century average. Scorching temperatures during the second half of the month led to at least 170 all-time high temperature records broken or tied. The June temperatures contributed to a record-warm first half of the year and the warmest 12-month period the nation has experienced since recordkeeping began in 1895.

Precipitation totals across the country were mixed during June. The Lower 48, as a whole, experienced its tenth-driest June on record, with a nationally-averaged precipitation total of 2.27 inches, 0.62 inch below average. Record- and near-record dry conditions were present across the Intermountain West, while Tropical Storm Debby dropped record precipitation across Florida.  Full NOAA release

Innovation in the Marketplace: Dr. Desh Deshpande on Successful Proof of Concept Centers

Portrait of Desh Deshpande

Guest blog post by Nish Acharya, Director of the Office of Innovation and Entrepreneurship in the U.S. Department of Commerce’s Economic Development Administration.

The National Advisory Council on Innovation and Entrepreneurship (NACIE) supports President Obama’s innovation strategy by helping to develop policies that foster entrepreneurship and identifying new ways to take great ideas from the lab to the marketplace to drive economic growth and create jobs.

One of the guiding forces of NACIE is its co-chair, Dr. Desh Deshpande, who is also Chairman and President of the Sparta Group and has been involved with many other companies, such as A123 Systems, Sycamore Networks, Tejas Networks, Sandstone Capital, and HiveFire. He is also the founder of the Deshpande Foundation, and creator and supporter of the Deshpande Center for Technological Innovation at the Massachusetts Institute of Technology (MIT), which is a leading proof of concept center.

In the last of a series of conference calls with members of NACIE, on June 27, participants spoke with Dr. Deshpande, with whom I have worked closely to identify and implement strategies to spur entrepreneurship and innovation.

During the call, Dr. Deshpande defined innovation as coming up with new ideas, while entrepreneurship is putting those ideas into practice. He pointed out that all innovation is contextual, in that no group of individuals can just sit down and solve all the world’s problems. It is important, he noted, that innovators live in the areas where the problems exist. His point echoed one that has been made by several other NACIE members, namely that innovators have a greater chance of success if they begin by solving the problems that exist in their own communities.

The Road to Revitalizing Anderson, Indiana’s Auto Sector

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Guest blog post by Thomas Guevara, Deputy Assistant Secretary of Commerce for Economic Development and a native of Indiana

As auto communities across the country work to strengthen and redefine their economies, the Obama administration is making good on the President’s commitment to invest in American innovation and advanced manufacturing to spur growth.

In my home state of Indiana, the city of Anderson, located about 25 miles northeast of Indianapolis, was once home to one of the greatest concentrations (after Flint, Michigan) of General Motors facilities in the United States. Today, not a single one of those plants is in operation.

While this is a significant challenge, there is also opportunity. That was the focus of the Auto Community Revitalization Roundtable at the Flagship Enterprise Center that I recently attended in Anderson: to hear from communities affected by the loss of manufacturing jobs, offer practical tools, share available resources, and explore solutions for auto communities in Indiana that are on the road to revitalization. The forum was organized by the Manufacturing Alliance of Communities, the Obama administration’s Office of Recovery for Auto Communities and Workers, and the RACER Trust, which was established to clean up and redevelop closed General Motors sites.

The road to revitalization requires a change of mindset. Rather than think of the abandoned facilities and their accompanying infrastructure as a disadvantage, cities such as Anderson are finding ways to repurpose these assets for future economic growth. The built industrial environment—including manufacturing plants, warehouses, road and rail links, etc.—can be refashioned and reused to suit the needs of newer, growing industries to replace the industries that departed. These industries are not the traditional manufacturers that employed our parents, but rather are modern advanced manufacturing sites that are leading the way in global competitiveness and attracting foreign direct investment.

The Fourth of July, 2012: Independence Day

Image of the Continental Congress

On July 4, 1776, the Declaration of Independence was approved by the Second Continental Congress in Philadelphia, Pennsylvania, setting the 13 colonies on the road to freedom as a sovereign nation. Written primarily by Thomas Jefferson, the Declaration is a formal explanation of why Congress had voted on July 2 to declare independence from Great Britain, more than a year after the outbreak of the American Revolutionary War. The birthday of the United States of America—Independence Day—is celebrated on July 4, the day the wording of the Declaration was approved by Congress. See an image of the Declaration of Independence from the National Archives.

As always, this most American of holidays will be marked by parades, fireworks and backyard barbecues across the nation. In 1776, the estimated number of people living in the newly-independent nation was 2.5 million. This year, the Department of Commerce’s Census Bureau estimate is 313.9 million.

For fascinating figures on the Fourth’s fireworks, flags, fanfares, firings (grills) and more, see the Census Bureau’s Facts for Features.

Innovation in Austin, TX: EDA Investments Help Create Jobs and Industries of the Future

Matt Erskine, Acting Assistant Secretary of Commerce for Economic Development, touring the Austin Technology Incubator

By Matt Erskine, Acting Assistant Secretary of Commerce for Economic Development

There is a lot of talk about innovation today, and how it can be leveraged to promote economic and job growth. In Austin, Texas, it’s more than just talk. Throughout the region, businesses are developing cutting-edge technologies, commercializing them, and—with the help of research parks, incubators, and other business support facilities—creating jobs.

Last week, I was in Austin to tour recent Obama administration EDA investments. Grants to the Austin Technology Incubator at the University of Texas, the Science, Technology, and Advanced Research (STAR) Park, and the Pecan Street Consortium are helping to spur high-tech commercialization and business development.

These investments are addressing two major issues for the Austin region - the creation of the next-generation smart grid technology infrastructure and the shortage of wet labs - to help create the jobs and industries of the future.

MBDA Achieves 130x Return on Taxpayer Investment in FY2011

Front Cover of the Minority Business Development Agency's FY 2011 Annual Performance Report

Guest blog post by David Hinson, National Director, Minority Business Development Agency

When Muhammad Ali, the legendary world heavyweight boxing champion, was asked by reporters why he kept boasting about being the greatest in the ring, he used to say, “It isn’t bragging if you can back it up.”

The MBDA FY2011 Annual Performance Report (APR) (7MB PDF) backs up what we’ve been saying about MBDA’s achievements under President Obama. In 2011, we registered the best performance in our 43-year history. It was our third record-breaking year in a row.

The recently released APR presents detailed information about the contracts and capital MBDA helped obtain for minority-owned businesses, along with the number of new jobs created. It also highlights our strategic and organizational accomplishments.

Let me give you just a few of those highlights.

Despite the serious head winds the economy is facing, more than 5,780 new jobs were created by minority-owned firms working with MBDA and its network of MBDA Business Centers in FY 2011.  MBDA assisted minority-owned businesses in obtaining access to nearly $4 billion in contracts and capital.

During the first three years of the Obama Administration,

  • MBDA facilitated a total of more than 16,300 new jobs, an increase of 20% over the prior three-year period.  
  • MBDA directly served more than 17,400 minority-owned businesses and indirectly served thousands more, a 36% increase over the prior three-year period.
  • And MBDA achieved a Return on taxpayer Investment (ROI) between 102x and 130x, an impressive 86% increase over the prior three-year period. 

MBDA’s FY2011 APR also presents a state-by-state detailed analysis of the performance of minority-owned businesses broken down by industry.

Dallas, Denver and San Jose Join Detroit as Regional U.S. Patent Offices

United States Patent and Trademark Office Seal

Acting U.S. Commerce Secretary Rebecca Blank and Under Secretary of Commerce for Intellectual Property and Director of the U.S. Patent and Trademark Office (USPTO) David Kappos today announced plans to open regional USPTO offices in or around Dallas, Texas, Denver, Colorado, and Silicon Valley, California. These offices are in addition to the already-announced first USPTO satellite office to open on July 13 in Detroit, Michigan. The four offices will function as hubs of innovation and creativity, helping protect and foster American innovation in the global marketplace, helping businesses cut through red tape, and creating new economic opportunities in each of the local communities.

The offices announced today will help the USPTO attract talented IP experts throughout the country who will work closely with entrepreneurs to process patent applications, reduce the backlog of unexamined patents, and speed up the overall process, allowing businesses to move their innovation to market more quickly, and giving them more room to create new jobs.

Patents are a significant factor in private sector job creation. In fact, the U.S. Commerce Department issued a recent report finding that IP-intensive industries are the source – directly or indirectly – of 40 million jobs, contributing $5.06 trillion to the U.S. economy in 2010.

Selection of the four sites was based upon a comprehensive analysis (PDF) of criteria including geographical diversity, regional economic impact, ability to recruit and retain employees, and the ability to engage the intellectual property community. The Leahy-Smith America Invents Act of 2011 (AIA), signed into law by President Obama in September, requires the USPTO to establish regional satellite locations as part of a larger effort to modernize the U.S. patent system over the next three years.

“Intellectual property protection and innovation are engines of economic growth and the bedrock of America’s private sector,” said Acting U.S. Commerce Secretary Rebecca Blank. “The Obama administration is committed to making certain our businesses and entrepreneurs have the resources they need to grow, create jobs and compete globally. These new offices are an historic step toward further advancing our world’s best IP system, and reinforcing the United States as the number one destination for innovation capital, and research and development around the world.”

General Counsel Kerry Leads Administration Efforts to Support Long-Term Economic Growth in Iraq

General Counsel Kerry standing a podium

Guest blog post by Cameron F. Kerry, Department of Commerce General Counsel

On June 28, 2004, Iraq's first democratically elected government assumed full sovereign authority. Eight years later, I joined Iraqi counterparts to discuss Iraq's next great challenge: integrating itself into the world economy. Overcoming this challenge is a critical step in Iraq's transition since, as President Obama has noted, “Iraq is assuming its rightful place among the community of nations.”

The Department of Commerce mission in Iraq is to help the country assume this role while working to expand and facilitate increased U.S. business opportunities. As part of this mission, I had the honor of co-hosting two conferences focused on Iraq’s economic growth strategy. Iraq faces the challenge of generating trade and investment at the same time as managing the expansion of its resource wealth to ensure economic diversification. While these challenges are significant, I was encouraged by the universal agreement between panelists, government officials, and private sector representatives that these challenges can be overcome by the adoption of a commercial law framework that emphasizes predictability, transparency, and economic security.

The first of these conferences, co-hosted by Iraq’s Minister of Finance Rafi al-Issawi, brought together experts from U.S., multilateral, and private institutions to discuss with Iraqi counterparts how under-developed commercial law and financial mechanisms can act as barriers to trade and investment. A common theme in the two days of discussion was how the rule of law is vital to a welcoming economic environment in Iraq in which U.S. and Iraqi businesses can predict and plan their investments, purchases, and sales with greater certainty.