Much of U.S. public policy reflects what is valued most in the United States--entrepreneurship, the productive interaction of market forces, individual achievement, and inventiveness. It appears to some that the United States has become preoccupied with short-term concerns and has not been acting with its accustomed determination to maximize opportunity. This booklet was published in an attempt to refocus public attention on the conditions that foster innovation in the medical field. The following elements are discussed in detail: protection of intellectual property, regulatory review, tort law, research and development, science education, and tax policy. The main emphasis is on the impact of these areas on biomedical technology. In particular, this report highlights the decline in the proportion of undergraduates receiving science and engineering degrees in the United States. It is recommended that federal support for science education be increased, minimum standards for science and mathematics in schools be increased, public education be modernized, and existing programs be strengthened. The need for partnerships between schools and industry is stressed. (CW)