Business in America News

Patent Reform: Celebrating the One Year Anniversary of the America Invents Act

On September 16, 2011, President Obama signed into law one of the most significant legislative reforms to the patent system in our Nation’s history. The America Invents Act was passed with the President’s strong leadership last year, after nearly a decade of effort. 

A year later, the U.S. Patent and Trademark Office is implementing the legislation in a manner that makes it easier for American entrepreneurs and businesses to bring their inventions to the marketplace sooner, converting their ideas into new products and new jobs. It will help companies and inventors avoid costly delays and unnecessary litigation, and let them focus instead on innovation and job creation.

As a number of important provisions of the law go into effect this week, we can already see substantial progress towards the law’s goals. Patent applications filed today will take nearly 40 percent less time to receive an initial patentability determination on their innovation compared to January 2009. The new Track One program provides a fast-track option for processing within 12 months, and offers discounts for small inventors. And the backlog of patent applications has been reduced to its lowest point in years. The USPTO’s continued focus on improving patent quality will be aided by new trial proceedings that provide an affordable alternative to litigation to review the merits of existing patents.  A final decision in each case will be issued in less than a year. The USPTO has also published for review a proposed fee schedule that will expand an existing 50 percent discount on patent application fees for small entities. A new program for micro-entities—individuals or very small enterprises— offers a 75 percent fee discount.  A USPTO-driven pro bono program—launched first in Minnesota and now being introduced in Colorado and California, with many more locations on tap for 2013—helps cash-strapped inventors receive the legal help they need to obtain patents.The USPTO will also open new satellite offices in Denver, Silicon Valley, and Dallas-Fort Worth, in addition to the first satellite office in Detroit, Michigan that opened in July 2012. These offices will help further reduce the patent application backlog and help local innovators raise capital and get their inventions to market more rapidly.

White House Business Council American Economic Competitiveness Forum Talks Transportation Infrastructure

Redoubling Efforts to Support American Manufacturing

I just returned from the White House Business Council American Economic Competitiveness Forum on Manufacturing, where I had an opportunity to hear from a group of American manufacturers—representing businesses of all sizes from across the country—about how the Obama Administration can continue to support them as they build things here and sell them everywhere. As we have seen in recent months, manufacturing is one of the bright spots for our economy. Over the past two and a half years, more than half-a-million manufacturing jobs have been created in the U.S. – the strongest job growth in that sector since the 1990s. In fact, just last month, an additional 25,000 new manufacturing jobs were added. 

In terms of production, manufacturing output is up 20 percent since 2009, and increased again in July. One manufacturing sector that has been consistently strong is the motor vehicles and parts industry, which has added 165,000 jobs since June 2009— a sector that might not even exist in the U.S. today if not for the assistance this Administration gave to the U.S. auto industry in 2009. 

This matters because we know that manufacturing jobs are good jobs that pay more than average and provide greater benefits. They strengthen economic security for middle class families. 

Travel and Tourism Industry Vital to Job Creation

Earlier this week I joined Secretary of the Interior Ken Salazar for a dialogue with leaders within the travel and tourism industry at the White House Business Council American Economic Competitiveness Forum. We held a very useful discussion about how the Administration can continue to help support travel and tourism and the millions of jobs associated with the industry.

Travel and tourism has been a particularly bright spot in our economic growth over the past two years. I recently announced that 2012 will likely be another record year for international travel to the U.S. In fact, in May 2012 international travel to the U.S. reached nearly $14 billion – up 8% from May 2011. That caps 29 straight months of growth. Many people do not realize that international travel to the U.S. counts as an export, since foreign citizens purchase U.S. goods and services when they travel here.  Hence, the travel and tourism industry has been a critical factor in the increase of export-supported jobs, which have grown by 1.2 million from 2009-2011.

We can build on this momentum by strengthening public-private partnerships with the industry, which is the core of the new National Travel and Tourism Strategy. Already, we’ve reinvigorated the Tourism Policy Council – a Commerce-led team involving a dozen agencies that touch on travel and tourism. Also, the Trade and Tourism Advisory Board – involving many of the people at this Forum – has never been more active.  In fact, they contributed many great ideas as we wrote the Strategy.

Advance Estimate of GDP for the Second Quarter of 2012 and Annual Revision

Today’s report shows that the economy posted its twelfth straight quarter of positive growth, as real GDP (the total amount of goods and services produced in the country) grew at a 1.5 percent annual rate in the second quarter of this year, according to the “advance” estimate released by the Bureau of Economic Analysis.  Over the last three years, the economy has expanded by 6.7 percent overall, and the private components of GDP have grown by 9.9 percent.  While the economy continues to move in the right direction, additional growth is needed to replace the jobs lost in the deep recession that began at the end of 2007

With today’s report, the BEA also released its annual revisions back to 2009.  While the revisions did not meaningfully change the pace of growth over that entire period, it is noteworthy that State and local government purchases were revised up in 2009, which is consistent with the Recovery Act cushioning the effect of the recession and helping to launch the recovery.  Since the Recovery Act funds have been phasing out, however, declining State and local government activity has subtracted from GDP.  Indeed, today’s report indicates that State and local government purchases have declined for 11 straight quarters, the longest streak ever recorded since the official record of quarterly data began in 1947.  

To strengthen economic growth and increase job creation, President Obama has proposed to Congress a plan that would help State and local governments retain and hire teachers and first responders, assist the construction sector and economy of tomorrow by rebuilding and modernizing our Nation’s infrastructure, and would give small businesses tax cuts to encourage them to increase payroll.  President Obama also proposed extending tax cuts to protect middle class families and virtually every small business owner from getting a tax increase at the beginning of next year.  The Senate passed the President’s plan this week and President Obama has said that as soon as the House will act he will sign it right away in order to give certainty and security to middle class families. Extending these tax cuts would provide more certainty for the economy for 98 percent of American families and 97 percent of small business owners. 

An American Renaissance in Manufacturing Happening In Kansas City and Columbia, Missouri

Ed note: this post was originally published on The Commerce Blog, the official blog of the U.S. Department of Commerce

I am back in my home state of Missouri today, so it is even more of a treat to witness firsthand the resurgence in American manufacturing.  I visited two manufacturers today – the A. ZAHNER Company, in Kansas City, and Environmental Dynamics International (EDI), in Columbia – and had the chance to talk to some remarkable  local businesses leaders and entrepreneurs in both cities.

Under President Obama’s leadership, and with the hard work of businesses and workers like those here in Missouri, our private sector has now seen 28 straight months of job growth – 4.4 million jobs. Of course, there is more work to be done, but we are making progress in critical areas. Over the last two and a half years, we’ve seen the strongest growth in manufacturing jobs since the 1990s. Missouri alone has gained nearly 9,000 new manufacturing jobs since 2010.

On top of that, manufacturers in states like Missouri are realizing that investing here at home is both the right thing to do and the smart thing to do. Many businesses – both here and abroad – are deciding to keep jobs here, bring jobs back to the U.S., or to set up operations here for the first time—a trend called “insourcing.”

We need to do everything possible to support businesses in places like Missouri that are thinking about insourcing. The Obama Administration will continue to call on Congress to pass legislation to give our companies a tax break if they move operations and jobs back.

New Visa Legislation Enables Israeli Investors to Create American Jobs

Last week, President Obama signed into law H.R. 3992, bipartisan legislation introduced by Rep. Howard Berman (CA28), which would further open America to direct investment by Israeli investors, provided Israel reciprocates with similar opportunities for American investors. The law adds Israel to a list of 80 countries whose citizens are eligible for E-2 investor visas.  

E-2 visas are temporary visas granted to investors from a particular list of treaty countries. To qualify for this visa, foreign national investors must intend to come to the United States to develop and direct the operations of a business in which the foreign national must have invested — or be in the process of investing — a substantial amount of capital in the enterprise.  In Fiscal Year 2011, the United States issued 28, 245 visas for this purpose.  

Israel is a significant trade partner with the United States. In 2011, bilateral trade with Israel totaled $26.9 billion, and it is among the U.S.’s top 10 largest per capita export markets. Israel is a world leader in security and defense technologies, medicine, agriculture and clean energy.  As we work to build an America Built to Last, and get our economy back on track, the Obama Administration is focused on supporting and generating investment in these and other critical industries. 

Women Entrepreneurs Are Creating Jobs: An Interactive Timeline

The worst economic crisis since the Great Depression didn’t develop overnight, and it won’t be solved overnight. But while we have a long way to go, over the past 27 months, American companies have added more than 4.3 million jobs. Behind that number are countless small businesses – entrepreneurs with bold ideas and a willingness to dream big. 

President Obama knows that small business owners are the engines of our economy. That’s why he has signed 18 new small business tax cuts into law. As our country continues to recover from the worst recession since the Great Depression, we must continue to support and celebrate America’s job creators. 

That’s why StartUp America, the Council on Women and Girls and the White House Business Council have put together an interactive tool to introduce you to some of the women entrepreneurs who are helping our country succeed. Some of these small business owners are on the cutting edge of social media, advanced manufacturing and biotechnology. Others have opened traditional “main street” establishments, such as stores and restaurants. All of them have created jobs, and made their communities better places to work and live. 

Startup Stories: JOBS Act Expands Opportunities for True Investments

Ed note: In honor of Small Business Week, StartUp America is highlighting success stories from American enterpreneurs

Stockbox Grocers is a startup out of Seattle, WA that places neighborhood grocery stores throughout urban areas to increase access to fresh produce, essential staples, and good meals. Stores are tucked inside empty storefronts or reclaimed shipping containers that can be dropped into available parking lots. As a community focused for-profit, we’ve been able to leverage a wide range of support to grow our business from an idea into reality and we expect to continue to fund our development by further cultivating relationships within our community and across the country.  

In Fall 2011, Stockbox opened a prototype store that allowed us to test our unique business model, receive direct feedback from customers, and test key design features. We converted an 8’ x 20’ box into an inviting retail space complete with signage, curtains, community boards, a sitting area, and over 300 unique items sourced from a co-op distributor and local farms. Customers were blown away by the large variety of affordable and fresh food and this new alternative to local mini-marts. 

We were able to open the store in only a few months because of our supporters: community groups welcomed our concept with open arms; local non-profits and government offices helped with outreach and implementation; and we raised much of our funding via a donation-based crowdfunding campaign. This online fundraising platform allowed us to share our story and develop an even wider range of support, collecting almost 200 donors from Seattle and other cities, who contributed more $21,000 in 45 days. 

Carrie Ferrence and Jacqueline Gjurgevich are the co-founders of Stockbox Grocers, a Seattle-based startup that is working to fix the grocery gap in neighborhoods that don’t have access to good food.

The JOBS Act will expand opportunities for Stockbox and other startups to raise funds through similar crowdfunding websites – not just donations but true investments. Stockbox sees these new options as powerful tools in building relationships with investors who are interested in supporting community-based businesses, as opposed to the traditional venture capitalist format.  This will help us reach more people and raise more funds from ordinary Americans (not just the wealthy “accredited” investors currently allowed to invest in most private companies) in a way that is in line with our company’s mission.  And this provides us with resources to scale, in order to open more stores and create more jobs within communities.