The interaction between innovation and the local government will become important driving force for U.S.productivity during post-recession era.Based on McKinsey Global Institute's report: Growth and renewal in the United States: Retooling America's economic engine, this article focused on the role of innovation and local government for the economy's renewal of U.S.The article showed that it was very pivotal to reshape the innovation economy.The regional and local capacity for innovation and the business innovation will boost economic growth. <<