In view of the House Ways and Means Oversight Subcommittee's
recent hearings into the R&D tax credit, I believe you
will find the enclosed article of substantial interest.

Industrial Innovation: Implementing the Policy Agenda,
appeared last year in the Sloan Management Review. It
addresses the efficiency and institutional attractiveness
of the R&D tax credit as a means to stimulate industrial
innovation. Based upon these criteria, the tax credit is
a poor approach to the issue of stimulating innovation.
The article also reviews the body of task forces which
examined the question of stimulating industrial innovation,
and the reasons why these efforts have had minimal impact
on national policy.

In the two years since the above work was performed,
we have examined other policy options which the U.S.
might adopt to enhance the ability of domestic industry
to compete in the global marketplace. If this work is
of interest to your committee members, we would appreciate
an opportunity to meet with you.

By way of background, the Global Competitiveness Council
is an independent "think tank" monitoring the international
trade arena. It now serves as a national focal point for
research into the tools and techniques used by various
nations to enhance their competitive position.

I look forward to hearing from you on this matter.

About The Authors

Dr. Bruce Rubinger is a leading authority on the management of technology. He has devoted the past nine years to analyzing evolving patterns of international competition in technology intensive industries. This work has addressed such issues as research and development, international strategic planning and accelerating industrial innovation. He has also examined environmental scanning and its links to R&D management. Dr. Rubinger is currently the Director of Studies with the Global Competitiveness Council, an independent Boston-based "think tank" that conducts research into industrial competitiveness.

Dr. Rubinger's background is a blend of technology and the science of decision-making. He holds degrees in electrical engineering & controls systems, and a doctorate in decision-analysis from the Polytechnic Institute of New York. At the Massachusetts Institute of Technology he studied economics and system dynamics. In addition, Dr. Rubinger has developed case study material for the Harvard Business School's course on The Management of Technological Innovation. He has served as a senior policy analyst with the federal government, leading the interagency Comparative Industrial Policy project. Dr. Rubinger has also been an advisor to several management consulting organizations and Fortune 500 companies.