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Council Report Finds Endless Opportunities But Limited Resources

MAY 03, 1996

A wide array of partnerships and collaborations is the key to keeping the U.S. R&D enterprise vital and competitive in the post-Cold War era -- that is the conclusion of a report released in April by the Council on Competitiveness. The Council, a nonpartisan organization with members from the private sector, academia, and labor unions, hopes the report will help foster a national consensus on the roles of government and other players in research and development. The 145-page report is entitled, “Endless Frontier, Limited Resources,” in recognition of the fact that while “the promises and expectations of R&D are increasing,” all sectors are having difficulty finding sufficient resources to pursue those opportunities.

The Council finds that the U.S. “has an urgent interest in resolving” the ideological debate over federal R&D policy, which “has injected a striking degree of unpredictability into the entire innovation process.” The report suggests identifying research by three categories, distinguished by time, risk and relevance: Short-term, low-risk research, for which industry is primarily responsible, is targeted at incremental improvements that can reach the marketplace in one to three years. Mid-term, mid-risk research, for which industry and government share the primary responsibility, requires four to seven years, and often pursues the relevance of longer-term research discoveries. Long-term, high-risk research, which is mainly the province of universities and the government, can be targeted toward some practical purpose or can be intended simply to expand fundamental scientific knowledge. “In the final analysis,” the report says, “policy makers must cut through this semantic quagmire and come to grips with two fundamental questions: What research is necessary to maintain the nation’s scientific and technological competitiveness; [and] which of those research endeavors will not be accomplished without government investment?”

The report lays out recommendations for government, industry, and academia. Recognizing that all three sectors are experiencing budget pressures, it recommends that each re-examine and focus on its main priorities, develop its unique strengths and capabilities, and partner with the other sectors to leverage and share in their unique strengths.

The report’s advice to industry is: “increase its contribution to the U.S. R&D enterprise” by furnishing more resources and using them more effectively; overcome organizational and attitudinal barriers to partnerships; increase and strengthen its R&D spending; “focus its research priorities” and integrate its knowledge and capabilities more fully; and “take timely advantage” of leading-edge results from universities and government labs so the U.S. gains the benefits before foreign firms.

For government, the report urges: meet its “obligation to stimulate civilian research,” particularly in critical areas beyond the reach of industry sectors alone; “do its part to foster research partnerships” by participation and by improving access to federally funded research; “create a business environment more conducive to” private support of R&D; adjust federal research to today’s missions and budgets; and maintain its support of American universities to ensure the nation has centers of excellence in critical fields.

The academic sector, the report says, should: continue its indispensable role of producing “a steady stream of students well-educated in science and technology;" and review its policies - particularly on intellectual property rights - to encourage partnerships.

The recommendations are backed up by six case studies of critical U.S. industrial sectors: aircraft, automotive, chemical, electronics, information technologies, and pharmaceuticals. The studies analyze the challenges each industry is facing, how it is reacting, and how it compares with foreign competitors.

The report is available via the Council on Competitiveness Home Page at: http://nii.nist.gov/coc.html - select Major Policy Reports under the Publications category for a link to the report. It can be purchased in the U.S. for $25.00 plus $3.50 shipping from The Council on Competitiveness Publications Office, 1401 H Street, NW, Suite 650, Washington, DC 20005, (202) 682-4292.

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