Changing the World
For decades, the U.S. venture capital industry has garnered the envy of the
world. It has spurred the development of many high-tech industries (see
side bar) and has helped to build innovative powerhouse companies that
are now household names: Amazon, Google, Apple, Cisco, Staples and eBay.
These successes have made the U.S. a magnet for the globe’s best and
brightest scientists and entrepreneurs.
Today, countries around the world have begun to emulate the U.S. model
by adjusting their tax and regulatory policies and by strengthening
intellectual property protection. This will inevitably lead to more innovation
worldwide – but also to increased competition for venture capital dollars
and the benefits they produce. The primacy of the U.S. industry is no longer
the given that it once was.
For this reason, U.S. policymakers must evaluate the potential impacts and
consequences of new rules and regulations with great care. They must also
weigh the benefits of such policies against the risk of hobbling what has
been one of America’s most decisive competitive advantages over the past
half century.