Innovation in theTelecommunications Industry

The STEP (Science, Technology, and Economic Policy) Board has been encouraged by William Kennard, Chairman of the FCC, to carry out a study on the economics of innovation in the telecommunications industry. The economic aspects of U.S. telecommunications policy have traditionally been largely concerned with pricing, competition and market structure. In recent years technological innovation has emerged as a regular and central issue in the regulatory and merger-review proceedings before the FCC. To respond to the FCC's encouragement, the STEP Board needs to draw up a research program and a funding plan.

The key question is - what public policies will maintain or even enhance the flow of technological innovation in the telecommunications industry? This is a broad question, and the STEP Board must decide which aspects of this question can be usefully addressed by a STEP Board-initiated project. This will be the task of the workshop.

The workshop chaired by STEP Board member, Roger Noll, will be held late September, 2000, in California. Participants will include economists specializing in innovation, government officials, and representatives of industry who are knowledgeable about the economic literature on innovation and telecommunications.

An agenda for this meeting is forthcoming.