Congressman warns ‘innovation economy is under threat,’ calls for bipartisan approach

Amid rising geopolitical tensions, Congressman Sam Liccardo warned Wednesday that the foundations of America’s innovation economy are “under threat” — and said both parties are to blame.

Delivering remarks at San José State University’s annual economic summit, Liccardo advocated for political leaders to embrace a new approach that prioritizes technological growth, competitiveness and bipartisan cooperation.

“The innovation economy is under threat,” said Liccardo, who represents California’s 16th Congressional District and previously served as San Jose’s mayor. “Frankly, both parties need to get out of the way.”

Liccardo pointed to what he described as growing disillusionment among Silicon Valley entrepreneurs, venture capitalists and executives toward Democratic policies under the Biden administration.

While acknowledging past wins on clean energy and semiconductor investments, he argued that bureaucracy has hindered development.

“We were the party of obstacles, and we couldn’t get out of our own way,” he said. “We need to understand that Democrats are losing Silicon Valley, and we’re doing this with a lot of self-inflicted wounds.”

Under the new administration, Liccardo criticized President Trump’s economic policies, saying that tariffs and the subsequent economic uncertainty damaged American competitiveness and inadvertently benefited global rivals.

He said Trump’s decisions, such as a 25% tariff on a leading U.S. tech company, reduced funding for research institutions and restrictive immigration policies, weakened the country’s position.

“It took three quarters of a century for American inventors, companies, scientists, universities, labs and venture capital to build what we now know can be destroyed in just a few months,” he said.

To address these challenges, Liccardo outlined an “innovation agenda” centered on restoring federal investment in science and research, reforming housing and zoning laws, and adopting more balanced antitrust policies.

He also emphasized the critical role of immigrants in the U.S. workforce, advocating for a more functional legal immigration system that doesn’t force people to risk dangerous travel or wait decades for a green card.

On housing, Liccardo proposed converting empty commercial properties into residences and using tax credits to close financing gaps. He underscored the need to tackle high construction costs, permitting delays and zoning barriers — especially in Silicon Valley, where seismic and environmental regulations can raise costs and delay development.

“Innovation in the agenda requires both parties to think differently and to acknowledge the primacy of American competitiveness in a perilous world,” Liccardo said. “Our future depends on our ability to embrace innovation again, and that's on all of us.”