Biden’s Position on Federal Tech and Innovation

Published: November 10, 2020

Federal Market AnalysisAdministration Transition

A report published by the nonprofit, nonpartisan research and educational group, Information Technology & Innovation Foundation, outlines Biden’s position in ten technological innovation areas.

During every presidential election since 2008, the Information Technology & Innovation Foundation (ITIF) institution publishes a report comparing candidates’ agendas on key technology areas.  ITIF’s latest report for the 2020 presidential election explores each platform’s policy stance on key technology and innovation areas. The report’s content pulls from campaign websites, policy documents and public statements made by the candidates. Assuming election results remain unchanged, looking at the report’s findings on Biden’s vision in various technology environments is vital to prepare contractors for what’s to come.

In general, Biden views the federal government as an active partner with industry to develop a technology agenda. Hand-in-hand with a larger federal role in tech and innovation, large investments are likely in federal R&D. Additionally, Biden supports increased transparency and accountability regulations on tech industries.  With that, here is a look at Biden’s vision, per ITIF’s report, in ten technological innovation spaces:  

Innovation and Research and Development (R&D). Biden proposes new R&D investments, specifically an additional $300B over four years, for breakthrough technologies such as AI and quantum computing. He also hopes to ramp up small business participation with the creation of a venture capital investment program and the formation of small business innovation hubs.

Internet and Digital Economy. Biden calls for increased cybersecurity to protect smart grids and critical infrastructure. Additionally, the 2020 Democratic Platform calls for federal data privacy legislation to increase digital content protection. Biden also promises to pressure online platforms to prevent the spread of misinformation and supports the removal of Section 230 under the Communications Decency Act.

Broadband and Telecommunications. Biden plans to commit $20B in rural broadband as part of a larger infrastructure package, support 5G, and triple USDA’s broadband grants to increase coverage. Moreover, the platform expects to restore FCC’s authority over broadband providers and provide subsidies to low-income Americans to support access.

Education and Skills. Biden plans to expand the number of high-skilled visas and eliminate limits on employment-based visas. Biden also supports investments in STEM education ($5B in graduate programs in teaching and health care), vocational training ($20B in high-tech labs and facilities at HBCUs), community colleges ($8B to improve health and safety at facilities) and minority-serving institutions ($70B to make them more affordable).

Taxes. Biden proposes several changes to raise taxes on corporations and high-income individuals, estimated to grow revenues by $3.8T over the next 10 years. Increases include a 28% hike in the corporate tax rate, and a 21% minimum tax rate for Foreign Corporate Income. In efforts to incentivize reinvestment in the American economy, the Biden platform promises a 10% tax credit to refurbish old plants, expand facilities and move jobs to the U.S., as well as a $6B three-year provision for firms investing in communities experiencing mass layoffs or closures.  Biden also proposes denying expenditure deductions for pharmaceutical advertising and offshoring production.

Regulation. Biden envisions using antitrust laws to fight large mergers across industries, incorporating broader criteria into antitrust decisions, and reviewing all mergers and acquisition under the Trump administration.

Trade. The Biden platform commits to working with allies on new trade agreements, particularly those with stronger climate change commitments. Moreover, he aims to prioritize major domestic investments before pursuing new trade agreements.

Advanced Manufacturing. Biden calls for the development of a manufacturing and innovation strategy and the expansion of existing manufacturing partnerships and training programs. Furthermore, Biden plans to request $600M in funding for the Manufacturing Extension Partnership (MEP), quadrupling its budget.

Life Sciences and Biotechnology. Biden aims to arm HHS/BARDA with the necessary resources to produce COVID-19 therapeutics and vaccines, and proposes a substantial increase in NIH funding within a $300B umbrella for innovation funding.

Clean Energy Innovation. The Biden platform strongly advocates for clean energy and green infrastructure over the next four years, with significant investments to achieve net-zero U.S. emissions by 2050 and the development of innovative low-carbon energy technologies. Further, Biden calls for increased funding for DOE laboratories and the creation of ARPA-C at DOE to help reach clean energy targets.

Stay tuned. The Federal Market Analysis team will publish its own report in December analyzing the activities and impacts of the new administration and how contractors can prepare for the upcoming changes.