SSTI Digest

Industrial research and development spending totaled approximately $145 billion in 1996, a 10 percent increase for the second year in a row. More than 83 percent of that funding came from industry itself with the federal government providing the remaining funds, according to a new Data Brief prepared by the National Science Foundation. Small businesses, those with 500 or less employees, spent slightly more than $20.2 billion or 14 percent of the total industrial R&D spending in 1996. This represented a 21 percent increase over 1995's total. The increase in total industrial R&D spending was highlighted by a rebound in R&D spending among manufacturers. Following eight years in which nonmanufacturing R&D rose about 15 percent each year in current dollars, while manufacturing increases were approximately three percent, the figures almost reversed themselves in a single year. During the 1995-96 period covered by the NSF survey, manufacturing R&D rose by 12 percent — and just as dramatically — nonmanufacturing R&D slowed to a modest two percent increase for the year. …

On June 25, Senators Bill Frist (R-TN) and Jay Rockefeller (D-WV) introduced a new bill, the Federal Research Investment Act (S. 2217). The purpose of the bill is to provide for the continuation of federal research investment in a fiscally sustainable way. The Act is intended to encourage as an overall goal, the doubling of the annual authorized amount of federal funding for basic scientific, medical, and pre-competitive engineering research over the next twelve years. The bill also sets a minimum level of investment in order to maintain the high priority that science, engineering, and technology had previously been afforded in the federal budget. The language of the bill provides for a steady 2.5% annual increase above the rate of inflation each year for the next twelve years. The bill assumes that the rate of inflation each year will be 3%. By the year 2010, if this bill is passed, the civilian research and development appropriation would total more than $67.9 billion. The bill also states that there is a minimum funding threshold. If funding ever fell below this level, long-term…

The National Science Foundation's (NSF) Division of Science Resources Studies has released three individual data briefs all pertaining to federal research and development funding trends. In FY 1996 total expenditures by universities and colleges for separately budgeted research and development activities in science and engineering (S&E) increased 3.5% over the FY 1995 level, reaching nearly $23 billion, according to data brief "Academic R&D Expenditures Maintain Steady Growth in FY 1996." When adjusted for inflation, academic R&D increased 1.4% over the 1995 level. Academic R&D expenditures financed by the federal government increased 3% in FY 1996 to $13.8 billion. This represents 60% of the R&D dollars expended at universities and colleges. Expenditures financed by all non-federal sources combined grew nearly 4% in FY 1996 to $9.2 billion. Spending from industry sources increased the fastest at 6% for a total funding level of more than $1.5 billion. Industry funding was followed by the largest non-federal source, institutional funds, with a 4% gain which totaled…

Lou Tornatzky has announced that he will be stepping down from his position as Director of the Southern Technology Council (STC), a position he has held since 1993. Tornatzky will be relocating with his family to the West Coast, but will continue to serve as an STC Research Fellow. STC is seeking to fill the position left vacant by Tornatzky's departure. The Director reports to the Executive Director of STC's parent organization, the Southern Growth Policies Board (SGPB). The STC Director has primary responsibility for building the projects and activities of the Council, but also participates in and leads projects of SGPB as well. STC fosters cooperative initiatives among regional science and technology organizations, and functions as a forum for information and recommendations about best practices, strategies, policies, and programs. Fifteen southern states, as well as several corporations and non-profit organizations, have representatives on the 40-person Council. The successful candidate for this position will be an innovative, mission-focused individual with the demonstrated…

The Education Commission of the States has released a report entitled "Transforming Postsecondary Education for the 21st Century." This report is the result of an extensive survey of Governors from the fifty states and Puerto Rico. Their perceptions regarding the need to reshape the higher education system to meet fundamental state needs is the focus of the study. The findings suggest that while some differences exist between governors in terms of how they view post-secondary education, there is more general agreement than may be commonly understood. Concerns about the economic competitiveness of the future workforce and public accountability of the post-secondary systems are themes that emerge from the data, suggesting that there will continue to be a growing emphasis on performance-based funding, vocational/career training and lifelong learning. The following points were uncovered in the survey and analyzed in the report: Education issues are of paramount importance to governors. K-12 education, post-secondary education and early childhood education/child care issues were…

The environmental technology and services industry, and its contribution to the national economy, have been evaluated in a new report entitled "Survey of Environmental Products and Services." The report is the product of a collaborative effort between the U.S. Environmental Protection Agency (EPA), the Department of Commerce's International Trade Administration, and the Department of Commerce's Bureau of the Census. The survey is the first attempt to measure the extent of commercial environmental activity using a comprehensive list of products and services. The report found that the value of products, revenues for services, and receipts for construction projects related to environmental activities totalled approximately $102.8 billion in 1995. Of the $102.8 billion, $55.7 billion were revenues for environmentally related services. Revenues for environmental construction projects were $17.0 billion, and the value of environmental product shipments was $14.4 billion. Another $15.7 billion in environmental activities could not be reported in separate categories. The survey also found that…

The State of Maine, the University of Maine, the US Navy, and the Maine Science and Technology Foundation (MSTF) have signed an agreement that initiates a partnership to improve the stewardship of the state's natural resources. The partners will work together under a memorandum of agreement to gather and exchange environmental information using the Navy's remote sensing technology. This technology can be used to monitor erosion, pollution, sea level rise, fishery stocks, and the conditions that would be ripe for algae blooms which kill countless fish and shellfish each year. Remote sensing is a process in which extremely clear pictures are taken from distant equipment, such as a satellite, an airplane, or radar. Scientists match these crystal clear photographs with the information known about landscape and topography to obtain nearly perfect descriptions of the environment. This matching process is called "ground truthing." The partners will create integrated science and technology working groups; determine the data and technology needed for joint projects; identify related…

Nadia Goodman, the Louisiana Department of Economic Development's Director of Policy, Planning and Technology, has announced that she is retiring effective June 30. In addition to being very active within the Science and Technology Council of the States (STCS), Mrs. Goodman has been a good friend of SSTI's since its creation. SSTI staff trust that she will continue to provide advice and offer insights from her new residence in Mexico. For information on how to stay in contact with Mrs. Goodman, contact SSTI at 614/421-SSTI (7784). or Victor Johnson at the Louisiana Department of Economic Development at 504/342-5388.

The Senate Committee on Commerce, Science and Transportation has favorably reported, with amendments, Senate Bill 1325, the Technology Administration Authorization Act for FY 1998-2000. The bill was originally introduced by Senator Frist (R-TN) in October of 1997. The Bill authorizes appropriations to the Department of Commerce for activities that fall under the auspices of the Technology Administration (TA). Total funding of $681,400,00 in FY 1998, $683,836,000 in FY 1999, and $688,610,000 in FY 2000 has been authorized in the bill. The bill authorizes $192.5 million for the Advanced Technology Program (ATP) in FY 1998, $204 million in FY 1999, and $210.12 million in FY 2000. The bill authorizes $113.5 million for the Manufacturing Extension Program (MEP) in FY 1998, and $114.37 million in FY 1999 and 2000. S.1325 with its amendments would make several changes to the NIST Act, specifically, changing the process by which ATP operates. The bill would: Require reviewers to make a determination that the research projects in questions would not go forward in a…

The U.S. Senate Science and Technology Caucus, chaired by Senator Bill Frist (R-TN), held a roundtable discussion last week on the future of American innovation and competitiveness, specifically how to maintain America's science and technology edge in the world marketplace. The roundtable participants included representatives from MIT, Harvard Business School, and the Council on Competitiveness. The discussion focused on building a workforce with proficiency in science and technology and the government's role in encouraging innovation and research. The meeting unveiled a report, "Competing Through Innovation," detailing the conclusions and recommendations of a National Innovation Summit held earlier this year (see the 3/20/98 issue of the Digest for additional information) hosted by MIT and organized by the Council on Competitiveness. The report focuses on current trends affecting U.S. innovation such as the talent pool, research base, availability of research funding, vitality of U.S. markets and access to international markets. The Science and Technology Caucus is a bipartisan…

The U.S. Air Force has announced that its Small Business Innovative Research (SBIR) Program topics for FY99 will be released in mid-June. The Air Force is pre-releasing its topics before the Department of Defense's Pre-Solicitation in order to provide small businesses the maximum amount of time to ask technical questions. This early release offers the additional benefit of giving companies enough time to start marketing and networking. According to the topic authors, technical points of contact, and SBIR awardees, marketing research is extremely important to the success of a proposal. These early marketing discussions have often proven invaluable in preparing the SBIR proposals. Small businesses have also often learned of other types of solicitations against which they can propose. Questions may be addressed to the sponsoring activity through November 30, 1998. As of December 1, no additional technical information can or will be made available by Air Force personnel during the DOD program solicitation period. The Air Force solicitation topics will be released on the Web at www.…

A recent study found that 90 percent of industry participants benefitted in some way by participating in the National Science Foundation's (NSF) Engineering Research Center (ERC) Program. Nearly a quarter of all firms reported having developed a new product or process as a result of their interaction with an ERC, and two-thirds reported that their firm's competitiveness had increased. Industry participants reported five main benefits: access to new ideas, know-how, or technologies; technical assistance; interaction with other firms participating in the program; access to ERC equipment and facilities; and, hiring ERC students and graduates. Not all companies received every type of benefit, but of the benefits realized by particular companies, among the highest-valued were the employment of ERC students and graduates, gains in intellectual property, and access to specialized equipment and facilities. The study indicated that company benefit is directly related to the length and level of active involvement in a center. The longer a firm participates and the more direct personal…