More female and minority inventors could increase US GDP by 4%: study
Increased participation of female and minority inventors in the innovation process could boost the US’ gross domestic product (GDP) by more than 4%, according to a new proposal by The Hamilton Project, an economic policy initiative.
The paper, “ Policies to Broaden Participation in the Innovation Process” was published earlier in August and written by Lisa Cooke, professor of economics and international relations at Michigan State University. She noted that US GDP per capita could be 0.6% to 4.4% higher with greater participation in the innovative process among women and minorities.
According to the report, since the 1960s, both women and underrepresented minorities have earned an increasing share of bachelor’s degrees and advanced degrees in the areas most associated with invention—the science, technology, engineering, and mathematics (STEM) fields. However, this has not been reflected in a similar increase in patenting activity among these groups.
The report noted that the National Science Foundation calculated that the “innovation economy”, which consists of the science and engineering workforce, comprised roughly seven million to 25 million workers in 2017.
These workers, according to the report, earn substantially more than the median income for all workers. In 2017, the median innovation worker earned $85,390, compared to $37,690 for all workers. The report noted however, that both participation in and salaries in innovation vary greatly by gender, race, and ethnicity.
While the median salary for men in the innovation economy in 2010 was $80,000, it was only $53,000 for women, or 66% of the median male salary. In 2017, the median salary for scientists and engineers was $90,000 for men, yet it was only $66,000 for women, or 73% of the median male salary.
According to the report, African American scientists and engineers make up only 4.8% of workers employed in the innovation economy. It also noted that in 2015, the share of median African American salary to the salary earned by white counterparts for Science and engineering related occupations was also 92%.
The racial wealth gap is most pronounced at the stage of commercialisation of invention or innovation, according to the report. The report states that while “entrepreneurship is a traditional path to the middle class and wealth in the US”, there is only one African American entrepreneur for every 50 white entrepreneurs, and African American founders receive only 1% of venture capital funding.
The report recommended a range of approaches to close these gaps, including policies aimed at further increasing the share of women and underrepresented minorities who are educators in STEM fields, bringing more people into the world of invention, and ensuring equal access to the tools and resources needed to drive innovation.
It suggested a number of measures to broaden participation in the innovation process, including improving data collection at the US Patent and Trademark Office, making commercialisation more inclusive and tackling systemic barriers in the workplace.
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