Bipartisan consensus emphasizes the need to enhance U.S. innovation and technology leadership. However, federal agencies’ interventionist policies often overlook real market dynamics, undermining innovation. The decline in venture capital investments, exacerbated by diminished IPO opportunities, reflects this issue. Recommendations include strengthening intellectual property protections, recalibrating antitrust enforcement to focus on actual competitive harm, and refining securities regulation to alleviate burdens on public companies. These adjustments aim to restore investor confidence and promote a healthier startup ecosystem. Ultimately, effective innovation policy is crucial for maintaining the U.S.’s technological and geopolitical advantage against global competitors.