In order to accelerate and broaden growth in the New Economy, the New Economy Task Force proposes eight recommendations in four general policy categories:

RESEARCH AND TECHNOLOGICAL INNOVATION

Innovation is the driving force behind economic growth. Congress needs to affirm a bipartisan understanding that government support for basic and applied research is an investment in a public good with large payoffs for society.

1.) Increase Federal Support for Research

• Significantly Increase Investments in Federal Civilian Research
• Increase Department of Defense Research 2 Percent per Year
• Increase Federal Support for Information Technology and Productivity Research
• Spur Innovation Through Industry Research Alliances

2.) Make the Federal Tax Code an Agent of New Economy Innovation

• Expand and Make Permanent the R&D Tax Credit
• Adjust Tax Depreciation Schedules to More Accurately Reflect the Current Depreciation Rates of Equipment, Particularly Information Technology

NEW ECONOMY TRAINING AND SKILLS

The New Economy requires higher levels of education up front, including high-tech skills, and also opportunities for lifelong learning so that workers can keep pace with the high speed of developments in technology, globalization, and new business practices. In the new knowledge economy, a more educated workforce is critical not only to raising per-capita incomes but also to reducing income inequality.

3.) Encourage Companies to Invest More in Training

• Establish a 30 Percent Tax Credit for Company Investments in Remedial Education, Literacy Training, and English as a Second Language
• Provide Matching Grants to States for Incumbent Worker Training Programs
• Invest In Industry-Led Regional Skills Alliances

4.) Work with Industry to Boost the Number of Americans with High-Tech Skills

• Invest in Technology Including Professional Development for Teachers and Institute a Tax Credit for Companies Donating Computers to Schools.
• Catalyze the Formation and Expansion of State "SciTech Scholars" Programs
• Establish Forgivable Loans for Students Majoring in Math, Science, or Engineering and Agreeing to Teach in Elementary or Secondary Schools
• In Collaboration with Industry, Fund Fellowships for Science and Engineering Graduate Students

THE TRANSFORMATION TO A DIGITAL ECONOMY

This "digitization" in the 21st century promises to bring the kinds of economic benefits that mechanization brought in the 20th century. Fostering the growth of the digital economy must be one of the foundations of New Economy public policy.

5.) Take a Light Touch on Regulating E-Commerce, but Intervene to Stop Abuses

• Encourage the World Trade Organization to Adopt a Treaty Designating Cross-border E-Commerce a Tariff-Free Zone
• Stem the Tide of Unsolicited Commercial Email ("Spam")
• Create a System of Regional E-Commerce Assistance Centers to Help Small Businesses Embrace the Digital Revolution

6.) Create Digital Government

• Establish the Position of a Chief Information Officer for the Federal Government
• Establish a $500 Million Fund to Invest in Cross-Agency Digital Government Projects

FOSTERING DIGITAL OPPORTUNITY

Technological innovation, including access to high-speed telecommunications technologies, will play an increasingly important role in determining the economic health of regions and communities. In both areas -- helping disadvantaged individuals and communities prosper in the digital economy -- government can play a key enabling role. But the government must work in partnership with the private sector, not supplant it.

7.) Help All Regions Prosper in the New Economy

• Fund a $200 Million Technology Communities Initiative to Support Technology-Based Economic Development in Disadvantaged Communities
• Expand the Rural Utilities Service to Support the Deployment of Broadband Telecommunications Infrastructure

8) Support Public-Private Partnerships to Empower Community Organizations Through Information Technologies

• Provide Matching Funds to Support Private Sector Community Information Technology Alliances
• Create Regional Technology Access and Distribution Centers
• Create a Digital Brigade of AmeriCorps