US job market: Four ways to cut the unemployment rate

The McKinsey Global Institute has released a set of recommendations on how to create 21 million new jobs by 2020. Here's a look at the institute's core proposals.

3. Spur emerging industries and innovation

  • close
    Bloom Energy, whose power servers at eBay offices in San Jose, Calif., are pictured here, is a Silicon Valley startup focused on clean energy.
    Paul Sakuma/AP/File
    View Caption
  • About video ads
    View Caption

America remains a world leader in innovation, but other nations have been moving fast to cultivate their own prowess at developing technologies of the future.

The report says a vital first step is to restart the flow of financing to startups, perhaps borrowing from state-level programs that have encouraged "angel investors" and venture capital firms. And in addition to its role in funding basic research, the government can collaborate with universities and businesses in efforts to ensure that jobs spawned by the new technologies end up in the US rather than overseas.

3 of 4