"By effectively taxing research and development (R&D), the engine of growth, the proposals threaten to discourage innovation in semiconductors, energy, medicines, and other critical technologies."
"The think tank proposals of this R&D tax would foolishly jeopardize this activity. The CATO Institute has suggested that the federal government should 'demand a royalty' from universities that earn money from licensing patents that resulted from taxpayer-funded research."
"Universities are currently allowed to patent the discoveries that their researchers make with the help of these federal grants. Those patents can then be licensed to private companies in exchange for royalties that promote further discoveries."
Proposals from conservative think tanks and Department of Commerce officials to tax university income from licensing research threaten innovation in key sectors like semiconductors and energy. R&D is crucial for economic growth, and countries, including the U.S., subsidize it through tax exemptions and grants. The CATO Institute suggests demanding royalties from universities for taxpayer-funded research, while the Brownstone Institute proposes repealing the Bayh-Dole Act. This act encourages universities to patent discoveries, allowing them to license patents to private companies for royalties that fund further research.
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