Helping innovative small businesses

There are lots of federal programs designed to help traditional small businesses — retail stores, service providers, restaurants and others — grow from employing one person to employing 10 people. They’re great, and deserve our continued support.

Especially in this economy, though, we need to think bigger. How do we help the innovative small companies doing cutting-edge research and development reach their potential and grow from employing five people to employing 50? Or 500? Or 5,000? Delaware is home to dozens of these types of companies, and for these innovators to grow and create jobs, we have to support them in their critical early stages. That’s why this week I introduced an idea to level the playing field and help our innovative small businesses grow. The federal government would award qualifying new companies an “innovation credit” that it could sell to a larger, more established company for a cash infusion. It’s a new approach that I’m working on with my colleagues on both sides of the aisle and leaders in the business community. Our economy was built on out-of-the-box thinking, and right now, that’s exactly what our economy needs.

What are your out-of-the-box ideas for helping our innovative small businesses grow? I want to hear what you think, so please click here to share your thoughts.

Innovation is the spark that powers job creation. Behind nearly every innovation are two of my favorite words: research and development. After all, it’s through R&D that ideas become innovations, innovations become products, and products transform industries.

As our economy continues to recover, we have to put the transformative power of innovation to work creating high quality jobs in Delaware. Large businesses already have access to an R&D tax credit to help them develop new products, but as it stands now, small businesses and start-ups – which have much higher job creation potential – don’t have the same opportunity.

The tax code is a powerful tool in the government’s toolbox, but tax credits can’t help emerging companies that don’t yet have tax liabilities. A “small business innovation credit,” or “tradable R&D tax credit,” is a way to help small businesses with great potential for job growth to fulfill that potential.

Will you share your ideas for supporting innovative Delaware small businesses? Take a minute and let me know how you think we can help small companies grow and create jobs.

We can’t let tough economic times slow down the power of American ingenuity, especially when history has taught us that now is exactly the time we need to be investing in our innovators. That’s why supporting our local businesses so they can grow and create good jobs continues to be my top priority.

I look forward to hearing from you, and to continuing to work together.

Senator Coons calls for new R&D tax credit for innovative small businesses

From Roll Call: Senator Chris Coons, a member of the Senate Budget Committee and Congressional Manufacturing Caucus, authored an op-ed that appeared in Tuesday’s edition of Roll Call on the need for an R&D tax credit for innovative start-up businesses.

Over the past three decades, the research and development tax credit has helped tens of thousands of successful American companies create jobs by incentivizing investment in innovation. There is little doubt that it has strengthened our economy and deserves to be made permanent. But with America’s global manufacturing competitiveness at stake, it’s time Congress shows the same type of support for entrepreneurs and young companies.

Small and startup businesses are driving our nation’s economic recovery and creating jobs by taking risks to turn their ideas into marketable products. Over the past few decades, firms that were younger than five years old were responsible for the overwhelming majority of new jobs in this country.

There are plenty of federal programs designed to help traditional small businesses — retail stores, service providers, restaurants and others — grow from employing one person to employing 10 people, but how do we help the “gazelle” companies reach their potential and grow from employing five people to employing 50? Or 500? Or 5,000?

For these innovators to grow and create jobs, we have to support them in their critical early stages.

Click here to read the op-ed in Roll Call.

Click her to learn more about Chris’ work to support job creation.

Senator Coons floats idea to help innovative small businesses

Senator Coons went to the Senate floor this afternoon to lay out an idea he's been working on to help entrepreneurs and the leaders of young businesses to grow their companies by investing in research and development.

The Research and Development Tax Credit has helped incentivize innovation at established businesses for 30 years, which is why Chris is such an ardent supporter of the credit and has twice introduced legislation to make it permanent. The problem is, young companies that aren't yet profitable can't benefit from the tax credit.

So how can the federal government help those businesses grow and create jobs?

Chris' idea would create a tradable version of the R&D Tax Credit. Innovative young companies looking to expand their research and development efforts would be eligible for this "innovation credit," which they would then be able to sell to a bigger, more established company. The bigger company gets the tax credit, while the young company gets a cash infusion.

It's win-win.

In his remarks Monday afternoon, Chris talked about two innovative Delaware companies that might be able to utilize such a tradable credit like this — Elcriton in New Castle and Evozym in Newark. You can watch the speech above or click here to read the full transcript.

The Senator is eager for feedback on the idea, and invited other legislators and business leaders to weigh-in and help shape the idea before he introduces it as legislation. You can share your own opinion on the idea by clicking here.

SOTU Analysis: Investing in research and development

After working for eight years at a materials-based science company, Senator Coons was especially interested in plans for investing in scientific research and development laid out by President Obama in his State of the Union address this week.

President Obama didn’t disappoint, saying “Innovation also demands basic research.  Today, the discoveries taking place in our federally-financed labs and universities could lead to new treatments that kill cancer cells but leave healthy ones untouched.” Delaware has long been a leader in basic research and innovation in this country. Basic research in Delaware is currently investigating disease pathways, developing stronger magnets, supporting the purchase of a specialized nuclear magnetic resonance spectrometer and building a massive neutrino telescope at the South Pole. Could any of these investments result in tomorrow’s game-changing technologies? We have no real way of knowing, which is why Chris believes we must continue to invest in a diversity of projects.

Chris supports these investments not only because they can improve our quality of life, but because they strengthen our economy by creating jobs across Delaware. In his first piece of legislation, the Job Creation Through Innovation Act, he called for increasing and making permanent the tax credit companies get for research and development, an idea strongly supported by a News Journal editorial. The permanence of the tax credit is especially important, since many projects have multi-year planning horizons and companies need the certainty for long-term planning in order to invest and create jobs in Delaware.

The formula for America’s economic success has long been the unstoppable combination of an innovative citizenry and investment in cutting-edge research. President Obama called on Congress directly to protect that vital investment, even in tough economic times. He urged “don’t gut these investments in our budget.  Don’t let other countries win the race for the future.  Support the same kind of research and innovation that led to the computer chip and the Internet; to new American jobs and new American industries.”

Click here to read more about Chris’ work supporting Delaware businesses.

What We’re Reading: Washington Post editorial echoes Senator Coons’ comments on online piracy

On Sunday, The Washington Post published an editorial on the still-urgent need for legislation to combat online piracy by foreign-operated websites. The editorial agreed with comments made earlier in the week by U.S. Senator Chris Coons that the House’s Stop Online Piracy Act (SOPA) went too far, but that the Senate’s PROTECT IP Act (PIPA) was measured and appropriate. Senator Coons is a cosponsor of the PROTECT IP Act, and after leaders announced this week that a vote on the bill would be delayed, the Senator pledged to support continued efforts to reach a consensus that protects both American intellectual property and Internet freedom.

Internet giants such as Google railed against the bills [PROTECT IP and SOPA], arguing they sanctioned government censorship and threatened the viability and security of the Internet. The protests culminated last week in a remarkable, largely unprecedented protest during which sites such as Wikipedia temporarily went dark. Millions of individuals — many of them armed with distorted descriptions of the bills — phoned, e-mailed, and used social networks to demand that they be quashed.

 …

Some opponents will fight any regulation of the Internet. This should not be acceptable. A free and viable Internet is essential to nurturing and sustaining the kinds of revolutionary innovations that have touched every aspect of modern life. But freedom and lawlessness are not synonymous. The Constitution does not protect the right to steal, and that is true whether it is in a bricks-and-mortar store or online.

Click here to read the full editorial on the Washington Post’s web site.

Click here to read Senator Coons’ recent statement on the PROTECT IP Act.

Protecting intellectual property and Internet freedom

Senator Coons, a leader on protecting American innovation, has worked with Delaware businesses large and small on solutions to prevent foreign criminals from pirating their products, designs or ideas. This type of intellectual property theft affects tens of thousands of jobs in Delaware.

After a Senate vote on the PROTECT IP Act was delayed, Chris said “I have heard from a significant number of Delawareans on the issue this week through both digital and traditional channels and I deeply appreciate their engagement. I passionately share their concern for protecting Internet freedom and will bear it in mind as we move forward on this and future legislation.”

 In a statement to the press, Chris continued “We cannot pretend that online piracy isn't an issue, nor can we pretend that the Internet can be a lawless domain. Tech companies cannot blindly profit from the theft of American intellectual property, just as content providers cannot pretend that their products exist in a vacuum. They must learn to cohabitate the Internet space, and to work constructively with Congress on a fair legal infrastructure for policing that space. Congress will not turn away from its role in crafting a responsible balance that accommodates both property and freedom. “ 

Senator Coons leads bipartisan call for clean energy action

As a leading voice on clean energy innovation in the United States Senate, Senator Coons led a bipartisan group of 26 Senators in calling for Energy Secretary Steven Chu to help speed the development of alternative energy technologies by focusing on critical market development and innovation issues.

The Senators co-signed a letter to Secretary Chu which urges the Department of Energy to sponsor a study of clean energy deployment, market development, and financing which would be carried out by the National Academy of Sciences, stating “acting wisely is no less important than acting quickly.”

“The global clean energy race will continue to accelerate at an ever increasing pace with – or without – the United States in the running,” the Senators write in this morning’s letter. “Especially disturbing is the growing gap between our progress and that of nations taking the lead in the later stages of the energy value chain – the deployment, finance, manufacture, and consumption in domestic and export markets.  The United States must adopt a sustainable set of policies to recapture our leadership role in clean energy.”

The study would address the deployment of energy technologies and market dynamics that are inhibiting the U.S. from meeting its critical energy goals. Such a study will build upon previous studies of this kind which have led to important legislative advances. This includes a 2005 report titled Rising Above the Gathering Storm, which led to the passage of the America COMPETES Act. Chris is a strong supporter of the America COMPETES Act, which makes strategic investments in game-changing technologies as well as science, technology, engineering, and math education.

Click here to learn more about Chris’ work on clean energy and jobs.

President Obama launches Office of Manufacturing Policy

Once the backbone of our economy and pathway to the middle class, America’s manufacturing industry has particularly struggled in the current economic climate. With factories closing around the nation and thousands of workers laid off, Senator Coons and a coalition of leaders have voiced their support for efforts to rehabilitate the manufacturing industry and get Americans back to work.

That’s why Chris was pleased Monday about President Obama’s announcement that he was creating a new Office of Manufacturing Policy that would be part of the National Economic Council at the White House. The office, which will be co-chaired by Secretary John Bryson and National Economic Council Director Gene Sperling, will work across federal agencies to coordinate the execution of manufacturing programs and the development of manufacturing policy.

“At this make-or-break time for the middle class and our economy, we need a strong manufacturing sector that will put Americans back to work making products stamped with three proud words: Made in America,” President Obama said.  “I am grateful that Secretary Bryson and Gene Sperling will head up this office to continue our efforts to revitalize this great American industry and fight for American workers and jobs.”

Since being sworn-in to the Senate, Chris has fought to strengthen our manufacturing industry and create jobs for American and Delawarean manufacturing workers. Specifically, Chris devoted his Senate maiden speech to manufacturing and the first bill he introduced contained measures that would jumpstart domestic manufacturing and create conditions to help businesses grow and create high-quality, high-paying middle-class jobs.

Click here to learn more about Chris’ fist bill, the “Job Creation Through Innovation Act.”

Click here to watch Senator Coons deliver his maiden speech.

Click here to learn more about Chris’ work to create jobs for Delawareans. 

Senate takes steps to protect American intellectual property

Senator Coons commended the Senate Judiciary Committee’s passage of two critical bills to combat dangerous intellectual property theft on Thursday. The first bill that passed the Committee was the Counterfeit Drug Penalty Enhancement Act of 2011, which would penalize those knowingly trafficking in counterfeit pharmaceuticals.  The second bill was the Economic Espionage Penalty Enhancement Act, which would increase the maximum penalties for theft of a trade secret to benefit a foreign company or government.

A firm believer in the importance of protecting American innovation and ideas, Chris, who is a cosponsor of both bills, has repeatedly highlighted the importance of intellectual property and strengthening our government’s efforts to enforce intellectual property rights. 

“Individuals who steal ideas from American companies are stealing more than just intellectual property — they are stealing jobs, and when pharmaceuticals are involved, they are putting lives at risk,” Chris said in a statement to the press. “This country cannot afford to let the rampant intellectual property theft underway now to continue to go unchecked. Trade secrets — whether in the form of ideas, schematics, or formulas — are critical to American companies and especially to American manufacturers. As a nation we haven’t done enough to protect the ideas on which our economy depends, but these measures will help change that.”

Copyright infringement and the sale of counterfeit goods cost the U.S. economy billions of dollars and hundreds of thousands of jobs, in addition the billions of dollars in lost tax revenue for federal, state and local governments and threatens the safety and wellbeing of consumers. Fortunately, the two measures passed by the U.S. Senate Judiciary Committee on Thursday will help combat the theft of intellectual property by increasing the sentences of criminals who are found guilty of trafficking in counterfeit pharmaceuticals or committing economic espionage.

Chris is a member of the Senate Judiciary Committee and a former counsel for one of Delaware’s leading science-based manufacturers.

Click here to learn more about Chris’ work on the Senate Judiciary Committee. 

What We’re Reading: Women and STEM education

From the Associated Press: Since the ratification of the 19^th Amendment nearly a century ago, women have broken numerous societal barriers and are leveling the occupational playing field in areas that were once considered “male professions,” including law and medicine.

Our current economic environment has hurt many job sectors and forced companies to lay off workers. Senator Coons and many others agree that, in order to improve our economy and ensure its future success, we must invest in science, technology, engineering, and math (STEM) education, which has always been at the heart of American innovation.

Women are currently still lagging behind men in earning higher degrees in the profitable STEM fields. Fortunately, women are making steady strides, thanks, in part, to an increased push by secondary education teachers to encourage girls to pursue careers in these fields.

With two-thirds of all undergraduate degrees and 60 percent of master's degrees now going to women, many believe it's only a matter of time before that trend influences the upper echelons of the STEM fields.

Already, statistics from the Council of Graduate Schools show that women, overall, earned slightly more than half of the doctorates handed out in all disciplines in the United States in 2009 and 2010. When it comes to the STEM fields, women have been most successful in medicine and biology – and least successful in engineering, math and computer science.

But experts hope that, too, will change. A recent report from the American Association of University Women notes that, 30 years ago, the ratio of seventh- and eighth-grade boys who scored more than 700 on the SAT math exam, compared with girls, was 13 to 1. Now it's 3 to 1.

Read the entire story here.

Learn about Chris’ work to improve education here.