During a U.S. Senate Small Business and Entrepreneurship Committee hearing, Chair Joni Ernst (R-Iowa) highlighted her report that revealed vulnerabilities in the protection of American intellectual property from the Chinese Communist Party (CCP). The report identified loopholes and inconsistent due diligence standards that could potentially expose hundreds of millions of dollars in sensitive information.
Ernst called for Congress to pass her INNOVATE Act, which aims to reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The act seeks to protect intellectual property from Chinese espionage, maintaining America's position as a leader in technological development.
Emily Bruyère, a Senior Fellow at the Foundation for Defense of Democracies, supported Chair Ernst's stance. She agreed that reforming the due diligence process within SBIR and STTR programs is crucial. Bruyère also stressed the importance of reclaiming award funds if taxpayer-funded intellectual property is exposed to foreign adversaries.
