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SSTI Digest

Agreement on SBIR Funding at NIH

The House-passed National Institutes of Health (NIH) appropriations for FY 97 included a problematic provision that would have changed the formula for awarding Small Business Innovation Research (SBIR) projects at the Institutes. The provision would allow NIH to fund SBIR research only if the average score of the pool of small business proposals met or exceeded the score of basic research proposals submitted by universities and other research centers.

Several representatives raised objections to the limitation, noting that the SBIR program deals with applied research which cannot be directly compared with basic research proposals. In addition to the difference in the type of research performed, SBIR supporters pointed out that the vastly different evaluation and scoring processes make it difficult to compare the two types of proposals. They argued the provision would curtail the number of grants NIH could make to small business.

Five Nominated to the National Science Board

President Clinton announced his intention to nominate five members to the National Science Board (NSB), an advisory body to the National Science Foundation. The five are:

John A. Armstrong of Amherst, Massachusetts, the former Vice President of Science and Technology and member of the Corporate Management Board at IBM.

M.R.C. Greenwood of Davis, California, Chancellor of the University of California, Santa Cruz. She served as the Associate Director or Science in the White House Office of Science and Technology Policy from November 1993 to May 1995.

Stanley Vincent Jaskolski of Cleveland, Ohio, the Chief Technical Officer and Vice President of Technical Management for the Eaton Corporation, Cleveland, Ohio. He will become president of the Industrial Research Institute in May 1997.

California Manufacturing Technology Center Seeks Applicants

The California Manufacturing Technology Center has begun a search process for qualified applicants to fill a number of economic development-oriented engineering positions. The CMTC seeks applicants with over eight years of hands-on manufacturing experience to: define and develop proposals, present to potential clients, perform and manage projects, and build a network of consultants.

Qualified candidates will have an engineering/science degree (Master's or MBA preferred) and excellent presentation and interpersonal skills. Sales or marketing training and/or experience is a plus. The application process will be open at least through October, 1996. If your qualifications meet the requirements of CMTC, please send your resume to: California Manufacturing Technology Center, P.O. Box 2225, Hawthorne, CA 90250-2225, ATTN: Human Resources

For more information, contact Kathy Pearson at 310-263-3084.

Company R&D Funding Rises as Federal Support Declines

Increased company support of R&D offset reduced Federal funding in 1994 and contributed to an overall increase in U.S. industrial R&D, to $119.6 billion, according to the National Science Foundation's Survey of Industrial Research and Development for 1994.

The Survey shows that firms spent $119.6 billion on research and development (R&D) in the United States, 2 percent more than during 1993. Company funding continued to increase, from $94.6 billion to $97.1 billion, as it has each year since 1953. Federal funding decreased from $22.8 billion to $22.5 billion, continuing a trend that began in 1988. After adjusting for inflation, company-funded R&D rose 0.6 percent and Federally funded R&D fell 3.5 percent.

House Passes Commerce Appropriation Bill

The U.S. House of Representatives on a vote of 246-179 on Wednesday approved an appropriations bill that includes funding for the U.S. Department of Commerce. Programs affected by the bill include the National Institute of Standards and Technology's Manufacturing Extension Partnership (MEP) and Advanced Technology Program (ATP), and the National Telecommunications and Information Administration's (NTIA) Information Infrastructure Grants (IIG).

Federal Centers' Compensation Study

The General Accounting Office (GAO) has collected and provided information on fiscal year 1993 costs for professional staff, managers and executives at the Department of Defense's (DOD) Federally Funded Research and Development Centers (FFRDC). FFRDCs were established during World War II to meet the special research needs that the federal and private sector could not provide. Over the years the number of FFRDCs have varied, but in fiscal year 1993 there were 39, with 10 sponsored by DOD.

The GAO found that the average base salary for FFRDC executives, managers and professional staff was $73,000.

The average employer cost of benefits for all FFRDC personnel ranged from 19 percent to 45 percent of salaries, and executives' benefits had the greatest variance, ranging from 19 percent to 54 percent of salaries. The GAO calculated that the average total compensation in fiscal year 1993 for all FFRDC employees was $90,000.

S&E Indicators Available

Science and Engineering Indicators - 1996 is available from the National Science Foundation's (NSF) National Science Board. The report is both a reference document and a policy document that provides an extensive array of data. The 1996 report has expanded to include output as well as input indicators as well as some indicators of the impact and outcome of science and engineering in the U.S.

Some of the new topics in the 1996 report include:

Position Available at NASA (USC)

Director, NASA Far West Regional Technology Transfer Center (FWRTTC), School of Engineering, University of Southern California

The mission of FWRTTC is to play a leading role in the commercialization of NASA technology, with the primary focus on technology developed in the three NASA field centers in its region; Ames Research Center, Jet Propulsion Laboratory, and Dryden Flight Research Center. The FWRTTC region includes the eight western states (CA, OR, WA, AK, AZ, HI, NV and ID) and the FWRTTC supports an affiliate organization in each of these states to assist in the commercialization work.

ATP Public Meeting: Tools for DNA Diagnostics

The Advanced Technology Program (ATP) of the National Institute for Standards and Technology (NIST) has announced a public meeting to bring together all ATP awardees of the ATP Tools for DNA Diagnostics program "to present an overview of the non-proprietary aspects of their research and development activities." The goals of the meeting are to: "inform the DNA diagnostics community about activities at this stage of the focused program, promote cross-fertilization of concepts and efforts, promote strategic partnering across companies and other organizations, accelerate commercialization of emerging technologies, and promote networking." The meeting will be held September 9-10 at NIST headquarters in Gaithersburg, MD.

SSTI Transitions...

We welcome our first SSTI-Kauffman Interns: Cathleen McComas and Nakisha Fouch. Cathleen is a graduate student in public policy and management. Nakisha is pursuing her bachelor's degree in economics. Funding for the SSTI-Kauffman Intern Program has been provided by the Ewing Marion Kauffman Foundation's Center for Entrepreneurial Leadership.

We are sorry to say goodbye to Ellen Moore, SSTI's Services Coordinator. Ellen was responsible for the initial administrative set-up of the Institute and produced the SSTI Weekly Digest.

Update on the FY 1997 Budget

Last week, the House and the Senate approved the concurrent (final) budget resolution for FY 1997. The $1.63 trillion spending blueprint establishes broad spending targets for the coming fiscal year. Nondefense R&D is budgeted at $32.2 billion in FY 1997, down from the FY 1996 total of $32.7 billion.

The AAAS R&D Budget and Policy Project has calculated the impact of the resolution on nondefense r&d. The impact on the major r&d agencies breaks down as follows:



Agency/Program R&D

FY 1995

R&D

FY 1996 (est.)

GAO Uncertain About Impact of R&D Tax Credit

The General Accounting Office (GAO) has released a report, "Tax Policy and Administration: Review of Studies of the Effectiveness of the Research Tax Credit," that concludes that much uncertainty remains about the responsiveness of research spending to tax incentives. There was mixed evidence that the amount of research and development spending stimulated by the federal credit equals or exceeds the cost of the lost revenue.

GAO found that it was "unable to conclude from the recent studies that they provide adequate evidence that a dollar of research tax credit would stimulate a dollar of additional research spending."