Research Development and Innovation in the 111 th

Research, Development, and Innovation in the 111 th Congress John Sargent Specialist in Science and Technology Policy Congressional Research Service Presentation prepared by the Congressional Research Service

Old Washington Adage: Those who know don’t talk. Those who talk don’t know. Presentation prepared by the Congressional Research Service

Context for Federal R&D • Meet federal mission needs (e. g. , national defense) • Advance knowledge, develop and support scientific and technical workforce (Science: The Endless Frontier, Vannevar Bush, 1945) • Address societal issues (e. g. , health, safety, environment, energy security) • Support U. S. innovation, competitiveness in the global economy Presentation prepared by the Congressional Research Service

Changing Composition of Global R&D 1960 2002 (based on global R&D estimates and NSF data) Presentation prepared by the Congressional Research Service

Sectoral Perspective on R&D: Who Funds What (based on NSF data for 2006) Government Industry Universities Other Basic Research 58. 8% 17. 2% 10. 4% 13. 6% Applied Research 33. 3% 58. 9% 3. 2% 4. 6% Development 16. 2% 82. 7% 0. 3% 0. 9% Source: Science and Engineering Indicators, 2008, National Science Board Presentation prepared by the Congressional Research Service

American Competitiveness Initiative Presentation prepared by the Congressional Research Service

Some Constraints, Limitations • Available funding – – Pressure on discretionary spending Impact of economic downturn on revenues Competition among S&T disciplines Competition with non-S&T priorities • Differing perspectives on the federal role in R&D – – – – Effectiveness of federal R&D funding Picking winners and losers Corporate welfare Directed spending Effect of new technology on jobs Appropriate level of federal R&D spending Ability to capture benefits Presentation prepared by the Congressional Research Service

Federal Spending for Defense, Non-defense R&D as a Percentage of Corresponding Discretionary Outlays SOURCE: Congressional Budget Office Presentation prepared by the Congressional Research Service

Projected Growth in Medicare, Medicaid Spending SOURCE: Congressional Budget Office Presentation prepared by the Congressional Research Service

Mandatory Spending Growth SOURCE: White House Office of Management and Budget Presentation prepared by the Congressional Research Service

OMB’s Federal Budget Projections, by category Actual DATA SOURCE: White House Office of Management and Budget Presentation prepared by the Congressional Research Service

Efforts to Address Downturn • Emergency Economic Stabilization Act of 2008 – Troubled Assets Relief Program (TARP), $700 billion – Loans to General Motors ($9. 4 billion) and Chrysler ($4 billion), additional $4 billion available in February • New stimulus package Presentation prepared by the Congressional Research Service

Many S&T Agenda’s Among them, those of • President-elect Obama • Speaker Pelosi • House S&T Committee Chair Gordon • Trade, professional, and business association Another old Washington Adage: The President proposes. Congress disposes. Presentation prepared by the Congressional Research Service

President-elect Obama on S&T It’s time we once again put science at the top of our agenda and worked to restore America’s place as the world leader in science and technology. …science holds the key to our survival as a planet and our security and prosperity as a nation. …my Administration will engage leaders in the technology community and harness technology and innovation to create jobs, enhance America’s competitiveness and advance our national priorities. …I will also ensure that our defense, homeland security, and intelligence agencies have the strong research leadership needed to revitalize our defense research activities and achieve breakthrough science that can be quickly converted into new capabilities for our security. Presentation prepared by the Congressional Research Service

Obama: Changes • Vision, Priorities • Programs, Personnel • R&D Assessment System (PART) Presentation prepared by the Congressional Research Service

President-elect Obama’s Team Science and Technology John Holdren Physicist/environmental science and policy A/P for Science and Technology/Director, OSTP Eric Lander Mathematics/systems biology Co-chair, PCAST Harold Varmus Medical doctor/cellular biologist Co-chair, PCAST Jane Lubchenco Environmental scientist/marine ecologist Administrator, NOAA Presentation prepared by the Congressional Research Service

President-elect Obama’s Team Energy and Environment Carol Browner Lawyer A/P for Energy and Climate Policy Coordinator Nancy Sutley Chair, CEQ Government/public administrator Steven Chu Physicist Secretary, Department of Energy Lisa Jackson Chemical engineer Administrator, EPA Sen. Ken Salazar Chemical engineer Secretary, Department of the Interior Presentation prepared by the Congressional Research Service

R&D in the Stimulus Package • Speaker Pelosi: Forward-looking; not a 1930’s public works project; bold and persistent • Lawrence Summers: “It does not strike me that running up the research budget and then running down the research budget is a terribly rational way to run a country…. science as a short-term stimulus doesn't seem quite right to me. ” (Source: Manufacturing and Technology News, 12/3/2008) Presentation prepared by the Congressional Research Service

Federal Investments in R&D • Summers: Over the long term, robust investments in science and technology are driver of future economic growth “Basic science is basically very, very important…. only government can provide the support at the most basic level…on the other hand, the track record of governments in picking winners and losers -- in deciding what are the most fruitful industries -- is not hugely encouraging over time and in the quality of its judgment. So I would be tilting a bit more towards basic research. ” (Source: Manufacturing and Technology News, 12/3/2008) Presentation prepared by the Congressional Research Service

Obama-Biden Campaign Science and Technology Policy • Ensure the Full and Free Exchange of Ideas through an Open Internet and Diverse Media Outlets • Create a Transparent and Connected Democracy • Deploy a Modern Communications Infrastructure • Improve America's Competitiveness • Prepare All our Children for the 21 st Century Economy • Prepare Adults for a Changing Economy • Employ Science, Technology and Innovation to Solve Our Nation's Most Pressing Problems • Appointment of a Chief Technology Officer (CTO) Presentation prepared by the Congressional Research Service

Obama-Biden Campaign Improve America’s Competitiveness • Double federal funding for basic research over ten years • Expand research at American colleges and universities; provide grants to early-career researchers • Make the R&D tax credit permanent • Restore scientific integrity • Increase support for high-risk, high-payoff research portfolios at our science agencies Presentation prepared by the Congressional Research Service

Obama-Biden Campaign Employ Science, Technology and Innovation to Solve Our Nation's Most Pressing Problems • Lower health care costs by investing in electronic information technology systems • Invest in clean energy development and deployment • Modernize public safety networks • Advance biomedical research • Advance stem cell research Presentation prepared by the Congressional Research Service

Obama-Biden Campaign Chief Technology Officer • ICT for governance – – Transparency Use of best-in-class technology Citizen input to agencies Interoperability of ICT broadly and for emergency communication • Cybersecurity • Technology and innovation policy Presentation prepared by the Congressional Research Service

Speaker Pelosi on S&T “Americans must continue to innovate in order to create new thriving industries that will produce millions of good jobs here at home and a better future for the next generation. ” Innovation Agenda – – – Creating a new generation of innovators Sustained commitment to R&D Affordable broadband access for all Americans Declaring energy independence Small business tools for innovation Presentation prepared by the Congressional Research Service

Chairman Gordon on S&T There’s a misperception that we cannot afford to invest in science because of the current economic conditions. I believe that investing in science and developing new technologies is the path to reinvigorating our economy, growing jobs, meeting our energy needs, and helping us address climate change • • Innovation: Maintaining Our Competitiveness Energy: Developing Clean Technologies Workforce: Creating Jobs of the Future Environment: Protecting Our Natural Resources Space: Exploring and Inspiring Transportation: Building New Types of Infrastructure Security: Protecting People from Natural and Man-Made Threats Investigations and Oversight: Uncovering Mismanagement and Restoring Scientific Integrity Presentation prepared by the Congressional Research Service

Presentation prepared by the Congressional Research Service

Total Federal R&D FY 2007 -2009 (budget authority) FY 2007 (actual) FY 2008 (estimate) FY 2009 (estimate) $139. 1 billion $143. 1 billion $147. 3 billion • From FY 2007 to FY 2008, Federal R&D increased $4. 0 billion, 2. 9%. • For FY 2009, President Bush requested an increase in Federal R&D of $3. 9 billion, 2. 7% Caveats: inconsistencies in R&D accounting between agencies (R&D/RDT&E/S&T), classification of expenditures, inclusion/exclusion of Congressionally-directed funding • Presentation prepared by the Congressional Research Service

Federal R&D Budget by Agency, FY 2007 -2009 (budget authority, amount in millions of dollars) Agency Defense 2007 Actual 2008 Estimate 2009 Request Dollar Change, 2008 to 2009 Percent Change, 2008 to 2009 $ 78, 329 $ 80, 192 $ 80, 494 $ 302 0. 4% 29, 201 29, 475 29, 480 5 0. 0% NASA 9, 952 10, 436 10, 737 301 2. 9% Energy 8, 522 9, 739 10, 558 819 8. 4% National Science Foundation 4, 479 4, 500 5, 201 701 15. 6% Homeland Security 1, 246 1, 143 3, 287 2, 144 187. 6% Agriculture 2, 275 2, 309 1, 952 -357 -15. 5% Commerce 1, 080 1, 113 1, 157 44 4. 0% Transportation 768 823 901 78 9. 5% Veterans Affairs 892 960 884 -76 -7. 9% Interior 604 676 617 -59 -8. 7% Environmental Protection Agency 606 557 550 -7 -1. 3% 1, 118 1, 140 1, 145 5 0. 4% $139, 072 $143, 063 $146, 963 $3, 900 2. 7% Health and Human Services Other TOTAL SOURCE: Analytical Perspectives, Budget of the United States Government, Fiscal Year 2009, Office of Management and Budget, The White House, February 2008 Presentation prepared by the Congressional Research Service

Federal Defense and Non-Defense R&D Source: Science and Engineering Indicators, 2008, National Science Board Presentation prepared by the Congressional Research Service

Presentation prepared by the Congressional Research Service

Headlines from CQ • Advocates Push for Inclusion of ‘Green’ Jobs, Projects in Stimulus Package “[Green jobs] put people to work here in America. You can’t outsource installation of a solar roof on your house to another country. ” – Speaker Pelosi • Interests Big and Small Reach for Their Pieces of the Stimulus Pie • Ballooning Deficit Projections Highlight Challenge to Obama and Congress Estimated at $1. 2 trillion for FY 2008; does not include funding provided under Emergency Economic Stabilization Act of 2008 Presentation prepared by the Congressional Research Service