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Continued Innovation Requires Government Cooperation

One clear theme from IPI’s Fifth Annual Communications Policy Summit, held last Tuesday, is that we don’t need government to direct, fund or control innovation —we just need government to cooperate.

Often, this “cooperation” just means self-restraint. On Internet taxation, for instance, it’s pretty clear that the moratorium against multiple and discriminatory taxes on the Internet has worked effectively, and that it’s time to make it permanent in order for government to restrain itself from its tendency to indiscriminately grab for revenue (video).

Other times, it means government staying within its regulatory purview. Attendees at our Summit were treated to a live demonstration of new mobile health devices that use an iPhone to not only gather and collect data, but also to upload the data to doctors and monitors. Putting this power in patients’ hands can truly reform health care delivery and outcomes. But discussants pointed out that the instincts of the Food and Drug Administration (FDA) to broadly regulate many of these technologies as medical devices will stifle innovation and cut consumers off from helpful and possibly life-saving technology (video).

Government can also cooperate by not monopolizing resources that are needed by the private sector–in this case, much-needed spectrum for wireless innovation. As we increasingly rely upon cloud-based services for access and productivity, we can expect demand for spectrum to increase exponentially. We need not only effective, non-discriminatory auction processes to reallocate spectrum to more efficient uses, but we also need government to give up (in some cases) and share (in other cases) spectrum it has effectively monopolized (video).

Future innovation, particularly in new Wi-Fi technologies, also requires government to recognize the value of unlicensed spectrum. Both content and network companies are innovating to ensure our continuous, mobile access to content and productivity, which will require abundant availability of unlicensed spectrum for home and mobile entertainment, educational and productivity applications (video).

In our vibrant, free-market economy, innovation is occurring at breakneck speed. The private sector works. We don’t need government to direct, fund or control innovation—we just need government to listen, learn, and cooperate where necessary.