The US taxpayers funded China’s innovation – we must stop
After watching small business innovation programs in America, foreign enemies and beneficiaries of corporate care are obtained, I have seen enough. The small business innovation research program is designed to finance the next generation of American creators; Engineers in MPs all over America, startups for defense technology, real small companies with penetration ideas. Instead, we are supporting research that ends in Beijing while a handful of “Sbir Mills” pocket hundreds of millions of taxpayers.
Senator Johnnst recently displays the amazing scope of this problem: Six of the 25 largest recipients in the program had clear links with China, however they still get nearly $ 180 million from Pentagon in 2023 and 2024, and this after the due care systems were supposed to be in place. Meanwhile, the best 20 “SBIR Mills” – companies that consume software resources – received 3.4 billion dollars from the first and second stage contracts, and often produce more than one white papers for politics. Meanwhile, a real American struggle, at 1 am in the emerging garage in order to obtain financing or touring the bureaucracy.
This is not just a waste – this is the national security crisis that denies the difficulty in developing innovation.
From my work with defense technology companies, I saw this imbalance directly. Foreign -backed entities reach advanced applications, complex education, previous knowledge and professional documents of professional degree that are not perfectly suitable for their supposed “startup” mode. They represent themselves as small American companies, although they are connected to vast international networks, as they carefully commission the property below the disclosure thresholds.
Meanwhile, the actual American innovators-a four-person garage group facing the real inhabitants of the joints-is impossible for the leaves and competition from unlimited support entities. The program has become the opposite of what was intended to congress. It is the well -being of companies connected and well financing, instead of innovation fuel for emerging American companies.
Beijing has a weapon of open innovation system in America against us. China has announced a $ 138 billion project fund in March 2025, specifically targeting quantum startups and startups, which were the areas where the financing of small business innovation research was a large. The “led by the state, which is driven by institutions” allows Chinese entities to provide strategic bids for American intellectual property while American companies face restrictions on the market.
Our technology self -subjugation pattern is clear: foreign entities use American partners as nominal owners, technology development with American taxpayer financing, then marketing innovations abroad. We literally finance our technological displacement.
Ernst’s innovation law addresses these problems with the targeted reforms that the program strongly needs.
It ends corporate care. The draft law creates lifelong hats on the amount of small business innovation research program that funds each company, including subsidiary companies and subsidiaries. No more companies that create new limited liability companies every few years to circumvent the borders while real startups are frozen.
It also stops foreign exploitation. The legislation creates consistent care criteria for all federal agencies, and the comprehensive disclosure of financing sources and decision -making authority requires, and implements a 10 -year viewing period to capture historical relations that are missing by the current rules.
It also protects American intellectual property. Perhaps more importantly, the draft law includes 10 -year provisions for intellectual property sales for countries of attention. If the dated research ends in the federal point of view with the beneficiary litigants, taxpayers can recover their investments, with penalties.
Provides real accountability. Reforms focus on financing the program on companies that already produce a commercially viable technology for American markets, not endless research and that never leave the laboratory.
This is not partisan policy, it is the basic competence. When China spends $ 55 billion on research and development in 2025 while we let our innovation programs use, every month of delay costs America’s competitive advantage.
Small business innovation research and small business technology transfer programs end on September 30. Congress has a narrow window to implement these critical repairs before re -mandate becomes more than one of our innovation units. Ernst is actively negotiating the support of the two parties, but the time is not limited to passing the innovation law.
We do not need another study or another session. Ernst report provides evidence. The innovation law provides a solution. What we need is the work of Congress before the programs ended within five weeks.
The American innovation built the modern world, but only when we funded the actual Americans.
The Innovation Law guarantees taxpayer dollars to create American job opportunities, American marketing and American competitive advantage.
It is time to stop financing the Golden Age in China and start securing our region.
Tyler Bever is the manager in Executive strategiesAnd a Washington -based company operating with defense technology companies and small companies that transport federal programs.
