CBO outlined several scenarios in a report published Monday, which said policymakers could focus funding on education and research and development as well as offer tax incentives, loans or loan guarantees for private-sector entities that pursue innovation.
Under the legal and regulatory environment, the government could also implement reforms to the immigration policy, patent system and other regulatory policies and tools.
CBO noted that the federal government can work with industry, academia and other organizations to foster technology commercialization, domestic manufacturing and specializations in science, technology, engineering and math, among other developments.
CBO also examined the entry of foreign-born workers and students who specialize in STEM fields, funding increases and other resources for the U.S. Patent and Trademark Office and reductions of “low-quality” and “nuisance” patents and patent lawsuits.
The government could also review or eliminate potential trade-offs between innovation and other regulatory tools and policies, CBO said.