Stem cell innovation in the USA: the benefits of the minimal state.

Stem cell science is an emerging global industry in which nation states compete fiercely for economic advantage. Currently, the USA dominates this international competition but critics have argued that it lacks an innovation strategy to maintain its position. Strong international competition and internal policy problems may pose significant challenges to the future of US stem cell science. At the same time, the governments of the UK, China, India, Australia and Singapore are developing strategies to enhance their competitive edge within the global stem cell economy. How should the US government respond to these developments? Is a federal strategy necessary to protect the advantages of the US stem cell industries or can it be assumed that the present innovation infrastructure is sufficiently flexible and dynamic to cope with the global challenge? In this paper we address these questions through an examination of the US stem cell innovation system from the perspectives of science, society and the market.