Startup Act 2.

0
Between 1980 and 2005, companies less than ve years old accounted for nearly all net job creation
Net Job Creation By: Startups Existing Firms
+2 Million

-2 Million

1980

2005

million

3

Number of jobs created by startups each year on average
Source: Kauffman Foundation

TALENT

Entrepreneurial and highly-skilled immigrants fuel economic growth and create jobs for Americans
Thousands of foreign born students graduate each year from American universities with degrees important to the U.S. economy. Startup Act 2.0 creates more opportunities for these talented individuals to stay in the U.S. and contribute to our economy.
31,290 Chinese Students
many are sent home to compete against the U.S.

25%

Percentage of engineering and technology firms founded in the U.S. by foreign born nationals between 1995-2005.
Source: Kauffman Foundation

6,490 South Korean Students
many are sent home to compete against the U.S.

Startup Act 2.0 creates a visa for entrepreneurs with a good idea, capital, and the ability to create jobs for Americans

4,360 Taiwanese Students
many are currently sent home to compete against the U.S.

2,200 Turkish Students

many are sent home to compete against the U.S.

Year 1 Years 2-4

53,510 Indian Students

Masters and Doctorate Degrees in Computer Science, Engineering, and Math Fields Awarded to Foreign Nationals in 2009 Source: Department of Homeland Security

many are sent home to compete against the U.S.

=
One Entrepreneur Five American Jobs

PRO-GROWTH POLICIES

Laws and regulations impact the chances a startup will create jobs and be successful

Startup Act 2.0 creates a report with data on policies that either encourage or inhibit startup creation and growth in order to create healthy competition among states.

BENEFIT

COST

VS
CAPITAL

In FY2010, federal agencies produced a cost bene t analysis for only 18 of 66 rules costing more than $100 million. Startup Act 2.0 requires all “major rules” proposed by any government agency be studied to ensure costs of compliance do not outweigh bene ts. Source: Office of Managament and Budget

Commonsense changes to the tax code will help startups grow and create jobs

FOR STARTUPS More than half the current research and development tax credit goes to rms with over $1 billion in receipts, while many startups are not able to access this credit. Startup Act 2.0 creates an R & D tax credit speci cally for startups to help them create technologies that will result in new jobs.
Source: U.S. Government Accountability Office

R&D

Exempting capital gains taxes on investments in startups held for ve years or more would

$7.5 Billion
of new investment in startups
Source: Kauffman Foundation

UNLOCK

INNOVATION

Moving more ideas from the lab into the marketplace means more jobs and economic growth 3,088
Patents awarded to universities in 2009
Startup Act 2.0 uses existing federal research and development funding to support innovative projects at American universities in order to accelerate and improve the commercialization of cuttingedge technologies developed through faculty research.

Discoveries and innovation made possible by university research
The concept of “attachments” to email - Carnegie Mellon University The rst antiviral compound and a landmark AIDS drug - Yale University

651

Startups created from university research

Google’s internet search algorithm was developed by its founders during doctoral programs. -Stanford University, 2001

Source: Association of University Technology Managers

Visit www.moran.senate.gov/StartupAct to learn more

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