Why the U.S. Innovation Ecosystem Is Slowing Down

The data suggests that American innovation is sputtering: Productivity growth in the United States, which is powered by innovation, has been decelerating. Total factor productivity grew substantially in the middle of the 20th century, but started slowing in 1970. This slow growth continues today, with productivity lower than it was more than 100 years ago, despite increased investment in scientific research. What explains this? Research suggests that the U.S. innovation ecosystem has splintered since the 1970s, with corporate and academic science pulling apart and making application of basic scientific discoveries more difficult. If we want to see greater productivity growth, we need to explore alternative ways to translate science into invention.