Since the adoption of the Sarbanes-Oxley Act, there have been indications that the process of nurturing innovative and high-tech start-up companies has been slowed. The high cost of becoming and remaining a public company has made an initial public offering (IPO) financially impractical for many small companies, which in turn has narrowed the options of the venture capital firms that have usually provided seed money financing for risky high-tech start-ups.

Without the assurance that an IPO will be available, venture capital firms have turned to private equity and large firm buyers as a way to realize the value of their seed money investment. These acquirers are more costly sources of capital for small companies than the traditional public markets, and in many cases have incentives to suppress innovative new products rather than develop them further. Following a keynote address by Cynthia Glassman of the U.S. Department of Commerce, Ms. Glassman and other panelists will discuss whether this development poses long-term risks for innovation in the U.S. economy.