4367_NCOE_COVER 9/26/02 8:54 AM Page C1 mission on Entrepreneurship American Formula For Growth Federal Policy & the Entrepreneurial Economy, 1958-1998 An Initiative of the Ewing Marion Kauffman Foundation 4367_NCOE_AMERFORM 9/26/02 8:53 AM Page 1 mission on Entrepreneurship American Formula For Growth Federal Policy & the Entrepreneurial Economy, 1958-1998 October 2002 An Initiative of the Ewing Marion Kauffman Foundation 4367_NCOE_AMERFORM 9/26/02 8:53 AM Page 2 October, 2002 Dear Reader: American Formula for Growth: Federal Policy & the Entrepreneurial Economy, 1958-1998 is a thoughtful examination of the public policy roots of today’s entrepreneurial economy. So much of the United States’ public policies and cultural dynamics are taken for granted that it is time to step back and look at how we got to where we are. Research Starting-Point. This report can serve as a useful research guide for policymakers, thought leaders, and entrepreneurs who are looking to develop new policy ideas. It explains that some of the decisions that American policymakers made—many not in the traditional business policy arena—had profound impacts on our country’s fastest-growing businesses and now constitute a unique formula for entrepreneurial growth. Policy Map. We believe that policymakers need to understand the role these policies play in fostering a favorable environment for America’s entre- preneurs and to take care that they do not unintentionally impair this policy formula with future decisions designed to achieve other worthy goals. Action Agenda. Moreover, we offer an action agenda in this report—a non- partisan list of suggestions for policy changes that could actually improve upon this American policy formula for growth, in five of the most important areas affecting the entrepreneurial economy: capital markets, research & development and intellectual property protection, workforce quality, expanding ma