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SSTI Digest

Budget, Tax Bill Update

On Tuesday, President Clinton signed two budget bills, approved last week by Congress: one aims to balance the budget by the year 2002, and a companion piece cuts taxes by a net $95 billion over five years.

The Taxpayer Relief Act of 1997 includes a provision that extends the 20 percent federal research and development tax credit from May 31, 1997 to June 30, 1998. The Act, while not providing a two-year extension that proponents sought, provides continuity for the program. The tax credit is not a permanent provision and was allowed to expire for months between 1995 and 1996.

Comments Requested on Commerce's Strategic Plan

The Department of Commerce is soliciting comments on its draft Strategic Plan, which enunciates a mission statement, strategic themes, and goals and objectives for its programs. This 122-page plan responds to the Government Performance and Results Act's (GPRA) requirement that each agency prepare a Strategic Plan that aligns its programs and activities to its mission. The GPRA identifies stakeholder consultation as a key part of this strategic planning process.

The central role of technology in promoting economic growth of the nation is recognized in both the Department's mission and its plan. The plan is available on the Internet at www.doc.gov/ bmi/ BUDGET/ STRTDRFT/strtoc.htm or by calling SSTI. Comments about the Department's plan may be sent via e-mail to John Fassett at <john.fassett@nist.gov>

Reports by the Carnegie Commission on Science, Technology and Government Available Through SSTI

SSTI is pleased to be able to provide reports issued by the Carnegie Commission on Science, Technology, and Government. The Commission was created in 1988 by the Carnegie Corporation of New York to help government institutions respond to the unprecedented advances in science and technology transforming the world.

This premier science and technology organization published a series of reports that are highly diverse, intellectually rich, and practical in application. The main themes, ranging from Congress' role in science and technology policy to environmental research and development, address issues critical to all science and technology practitioners and policy makers.

Eisenstein to Head NSF Directorate of Mathematical and Physical Sciences

Robert A. Eisenstein, Ph.D., has been appointed Assistant Director for Mathematical and Physical Sciences at the National Science Foundation (NSF). The appointment will become effective September 8.

Eisenstein has served as the director of the physics division at NSF since 1992. As director, he played a significant role both in the management of large-scale projects such as the Laser Interferometer Gravity Wave Observatory, and in the establishment of physics divisions in biological physics and complex phenomena.

NSF Director Bob Lane stated, "Bob has the leadership and wisdom to help pave a new road for integrative, multi-disciplinary, and increasingly interdependent science and engineering."

Dr. Eisenstein received his masters and doctoral degrees in physics from Yale University, and his AB degree in physics from Oberlin College. He is a Fellow of the American Physical Society.

National Governors' Association Has New Chairman

Ohio Governor George V. Voinovich, began his term as the National Governors' Association (NGA) Chairman at the association's annual meeting in Las Vegas this week. He succeeded Nevada Governor Bill Miller.

Governor Tom Carper, a Democrat from Delaware, has been chosen as the Association's Vice-Chairman. Governor Carper will become Chairman of NGA next summer when Governor Voinovich's term expires.

Atkinson to Leave R.I.; Position Available

Rob Atkinson, the executive director of the Rhode Island Economic Policy Council, has announced his resignation. He has accepted a position with the Progressive Policy Institute, leading a new initiative on science and technology. As a result of his departure, the Council is seeking an executive director.

The Council is a non-profit corporation, co-chaired by the Governor and a business CEO, with a 19-member board from business, labor, higher education and government leadership of Rhode Island. The Council is equally funded by industry and the state. It provides objective, in-depth analysis of the state's economy; develops and implements creative strategies; recommends policies; and advises the Governor, Administration and General Assembly.

SSTI Releases Issue Brief on R&D Tax Incentives

The State Science and Technology Institute (SSTI) recently released an issue brief that examines specific tax incentives offered by the states to encourage research and development (R&D) activity. The report, State Research and Development Tax Incentives, identifies tax incentives for R&D offered in 1996 by individual states and describes their major attributes. It also considers the use and cost of the incentives.

SSTI found that thirty-five states offered some type of incentive for research and development activity in 1996. Many of the states offered an income tax credit modeled after the federal research and experimentation tax credit guidelines. Other types of incentives included sales and use tax credits and property tax credits.

Mitchell Caught in Downsizing

Apparently as a result of Secretary of Commerce William Daley's pledge to cut the number of political employees in the department, Graham Mitchell, the assistant secretary of commerce for technology policy, will lose his job at the end of September, according to published reports. It is unclear if the position is being eliminated.

The Office of Technology Policy, headed by Mitchell, works in partnership with the private sector to develop and advocate national policies that maximize technology's contribution to U.S. economic growth, the creation of high-wage jobs, and improvements in quality of life.

Japan's Plan to Double It's R&D Budget is on Track

Japan is on schedule to double the government's R&D investment by the year 2000, according to a June 13 National Science Foundation Issue Brief.

Japan originally declared in 1992 its intent to double the amount of funding provided for R&D. In line with this goal, the Japanese government approved an R&D budget increase of 12.5% in 1996 and a 6.8% increase in 1997. If this expansion continues, annual government R&D funding will be approximately $18 billion in the year 2000, double the 1992 budget in constant dollars.

Changes to ATP Announced

U.S. Secretary of Commerce William M. Daley announced several changes to the Advanced Technology Program (ATP) yesterday. The changes came as a result of a Department study reviewing the ATP. A number of the changes are designed to increase the role of the states in the program.

The first change called for in the Secretary's report is to "encourage state participation in ATP awards." As a means of encouraging state participation in ATP awards, the program will allow joint ventures to be led by states and state-sponsored non-profits. The selection process will give weight to the "business commercialization plan" part of the criteria to post-ATP "value-added" that can be provided by state technology development organizations.

Nominations Sought for Tibbetts Award

The Small Business Administration (SBA) is seeking nominations for the Tibbetts Awards to recognize outstanding technological innovation, economic impact, and business achievements of individuals and organizations associated with the Small Business Innovation Research (SBIR) program.

The awards, named for Roland Tibbetts who was instrumental in the creation of the SBIR program, were established last year when 67 individuals and companies were recognized. This year's awards will be presented on October 16 as part of a national SBIR conference.

Nominees may be individuals, small firms, organizations and projects that have provided outstanding contributions to the SBIR program. Nominees may come from the private, non-profit, or government sectors.

NIST Seeking Baldrige Award Examiners for 1998

The National Institute of Standards and Technology (NIST) is looking for business and quality experts to serve a one-year term on the Board of Examiners that reviews applications for the 1998 Malcolm Baldrige National Quality Award. The board consists of approximately 325 members, including nine judges and 60 senior examiners.

Examiners volunteer their time to evaluate applications for the award, prepare feedback reports for applicants and recommend award winners to the NIST director.

Key qualifications include expertise in business, education or health care management, processes and results as well as knowledge of quality practices and improvement strategies.

Information brochures on the Board of Examiners are available by calling 301/ 975-2036. Examiner applications will be available in November.