Introduction and Overview


SCIENCE AND TECHNOLOGY
Shaping the Twenty-First Century



"We live in an age of possibility. A hundred years ago, we moved from farm to factory. Now we move to an age of technology, information, and global competition. These changes have opened vast new opportunities for our people, but they have also presented them with stiff challenges."

--President Bill Clinton




The elements of rapid societal and institutional change are easily recognizable as we approach the twenty-first century. The end of the Cold War, the emergence of highly competitive economies in Eur

ope and Asia, and the pervasive consequences of the information revolution have stimulated a significant ongoing reexamination of our national priorities and of the scope and scale of government needed to address them.

Science and technology have clearly been among the principal determinants of change and agents of progress. Not surprisingly, therefore, participation in the front ranks of research and innovation h as been and will continue to be essential for our national capacity to capture the gains of scientific and technological advances. In the United States, half of our economic productivity in the last half century is attributable to technological innovation and the science that supported this innovation. The knowledge-based society of the next century only increases the centrality of research, innovation, and human capital as our principal strengths, placing important continuing responsibilities on the Admi nistration and Congress:

  • America's world-leading science and technology enterprise must be sustained and nurtured.
  • We must strengthen our science, math, and engineering education and ensure their broad availability.
  • The fiscal and regulatory environment for research must be sound and responsive to rapidly changing societal and business conditions.
  • We must retain a long-term commitment to research, education, and innovation even in this period of budgetary constraint.
  • The Federal government has an important role in each of these areas, but must be viewed only as one partner in the nation's effort.

These imperatives drive the Administration's strong commitment to an integrated investment agenda in scientific research, technological innovation, business environment, and education. Many elements of that agenda represent continuing commitments that have long enjoyed bipartisan support. However, the investment portfolio must also evolve in response to the knowledge-based, information- and technology-driven, globally competitive borderless economy. With knowledge as the key resource, there is a tremendous premium on human capital development and on new ways of doing business. With global linkages growing stronger, the rapid movement of people, goods, and information has permanently altered commerce , national security, demographics, and health. With human activity noticeably affecting natural systems, for instance, by changing the concentration of atmospheric gases, and with global population growing substantially, we need to improve our understandi ng of the environment's capability to absorb the impact of human activity. Further, the global nature of environmental impacts raises the need for transnational approaches. Not surprisingly, the science and technology investments driven by these challenge s to established societal structures are in many ways those that still lack bipartisan consensus. Achieving that consensus is an important element of this Administration's plan to take us to the threshold of a new century and enable a bright future in the decades beyond.
This science and technology biennial report to the Congress summarizes the Administration's research portfolio, notes some of the advances and initiatives from the last four years, and identifies ma ny key areas of opportunity that will help shape the twenty-first century.

SCIENTIFIC RESEARCH

Science is an endless frontier, a uniquely human activity without limits. Advancing that frontier and exploring the cosmos helps feed our sense of adventure and our passion for discovery. Research a t the limits of human knowledge also is essential for training the scientists and engineers who are the source of future discoveries and innovation.
This need to develop the next generation of scientists and engineers through cutting-edge research requires a continuing focus for our basic research investment in our nation's colleges, universitie s, and medical schools. Because of this educational role, our unparalleled system of research universities is the bedrock of the science and technology enterprise. National laboratories and research institutes play important complementary educational role s by providing unique research capabilities for young scientists and engineers and extensive postdoctoral training opportunities. The Administration is unequivocally committed to maintaining leadership across the frontiers of scientific knowledge. The nat ion's prior investment has yielded a scientific and engineering enterprise without peer, whether measured in terms of discoveries, citations, awards and prizes, advanced education, or contributions to technological innovation.
The Administration is unequivocally committed to maintaining leadership across the frontiers of scientific knowledge. The nation's prior investment has yielded a scientific and engineering enterpris e without peer, whether measured in terms of discoveries, citations, awards and prizes, advanced education, or contributions to technological innovation. This scientific strength is a treasure that we must continue to build on. Thus, even as the Federal b udget deficit is eliminated, the Administration has protected the level of investment in key Federal basic science programs, not only those in the National Science Foundation and the National Institutes of Health, but also those in numerous mission agencies, such as the Department of Energy and the National Aeronautics and Space Administration (see budget table).
This basic research portfolio enjoys a good deal of bipartisan support. However, investments in some areas pertinent to current policy debates have been questioned. An example is provided by several aspects of environmental research, such as that elucidating the influence of human activity on global systems. We must establish an extensive scientific knowledge base as the foundation for future policies relating to natural resource management, climate change, protection of endangered species, and other environmental issues. The Administration looks forward to working with the Congress in support of the entire research portfolio. The quality of life of future generations of Americans depends on continu ing leadership across the scientific frontiers.

EXAMPLES OF KEY AREAS OF OPPORTUNITY

Cognition/Neurobiology, Space Science, Molecular Biology, Earth and Ecological Sciences, Structure of Matter, Materials, Major Scientific Facilities

TECHNOLOGICAL INNOVATION AND A HEALTHY BUSINESS ENVIRONMENT

Technological innovation has been America's competitive edge for improving health, prosperity, and quality of life and for providing national security. The Federal government has traditionally supported technology development in areas for which it is the principal customer, such as national defense and space. Our civilian technology base has more complex roots - exploratory research supported by industry, basic and applied research in universities and national laboratories, and "spin-offs" from the techno logical capability developed in pursuit of Federal mission goals.
Several factors have changed significantly over the past decade. Defense technologies depend increasingly on the commercial sector, both to make cutting-edge technologies available and to reduce the cost of defense procurements. In the commercial sector, the information revolution and globalization have irreversibly affected the nature of industrial research and development. Dramatically shortened product cycles, competition for customers and from c ompanies everywhere, and the pressure for product quality improvements have, among several factors, focused commercial research and development on shorter-term business goals and away from exploratory research.
The appropriate Federal response to these changes must recognize that it is crucial to maintain our position at the forefront of technological innovation.

p.3.JPGEarthrise viewed from the Moon during the 1969 Apollo mission is representative of the American scientific and technological legac y that we build upon today. Our stewardship of that unmatched enterprise, described in this biennial report to the Congress, leads us to continued exploration of new worlds, both in the heavens and in the rich environment for discovery here on earth. Fo r example, the Administration's multi-agency Origins program seeks to understand the creation of the universe, stars, solar system, and life, and to determine if life existed or still exist s beyond earth.

The Administration response is multi-pronged: sustaining our research leadership position; strengthening a business environment that supports private sector research and development; investing in te chnological infrastructure; and advancing critical technologies, often in partnership with industry.
The Administration has advanced numerous initiatives to improve the business climate for technology development. Examples include telecommunications reform, open trade policies, intellectual propert y rights protection, regulatory reform at the FDA, procurement reform at the DOD, support for the research and experimentation tax credit, and cost-shared, industry-led research and development partnerships. However, the overarching priority, as expressed consistently by business, is deficit reduction. The annual deficit has been reduced from nearly $300 billion to almost $100 billion while preserving the research and education investments that underlie future technological innovation. The deficit reducti on accomplishments play a significant role in sustaining today's healthy economy.
The Federal government has a longstanding responsibility to support the nation's essential infrastructure. A modern infrastructure is a critical element of economic competitiveness. The Administrati on continues to invest significantly in the new kinds of infrastructure needed for the twenty-first century - upgrading the national information infrastructure, developing intelligent transportation systems, expanding the human genome database, and reinve nting our air safety system. Indeed, the Global Positioning System, based on Federally supported research and development, is rapidly developing into a new essential infrastructu re for a wide set of commercial, defense, and personal activities.

p.4.JPGPresident Clinton peers into the plasma-source ion implantion (PSII) chamber in a facility at the Los Alamos National Laboratory. PSII technology, being developed in a national laboratory-university-industry partnership with General Motors and ten other companies, the University of Wisconsin, and Los Alamos is used to harden material surfaces and extend the lifetimes of some products as much as a hundredfold. Cooperative research and development agreements serve commercial as well as military needs. An enormous number of industries can benefit from such surface modifications - the annual U.S. domestic market for machine tools alone is $5 billion. The U.S. Navy also uses this facility to improve the wear and corrosion properties of a variety of defense systems.

Advancing the development of enabling technologies is increasingly significant as the time horizons of industrial research and development grow shorter. While a short-term research focus can sustain a globally competitive position for some time, it does not provide the breakthrough technologies that generate new industries. One important Administration response is increased emphasis on government-industry partnership programs aimed at mid- to long-t erm technology development in both the public and private interest. Industry takes the lead in identifying promising directions and, after independent merit review, government shares the risk. These partnership programs have experienced significant partis an differences. The Administration will work actively to pursue partnership programs in a pragmatic bipartisan spirit. In particular, the programs are now approaching a level of experience that should permit definitive review and optimization of future in vestments.

EDUCATION AND HUMAN RESOURCES

The government's core responsibility in human capital development is to strengthen America's educational system, from grade school through graduate school. This entails having all of our children prepared to learn, having our education system meet interna tional norms, and training professionals in fields critical to the national interest. Specifically, the centrality of science and technology to achieving our societal goals in the twenty-first century places new requirements on mathematics, science, and e ngineering education and training, not only for researchers but for the workforce and for an educated citizenry.
The American higher education system is unparalleled in producing world-class scientists and engineers. The tight weave of research and education that exists in our research universities, fostered t hrough bipartisan commitment, serves the nation exceptionally well. It is our stewardship responsibility to maintain strong, competitively awarded, frontier research programs at colleges and universities so as to provide a steady stream of creative scient ists and engineers as well as new knowledge. They will do much to shape our society and advance our national interests in the twenty-first century. We will also work to renew the university-government partnership that has been one of our best investments for promoting the public good.
The key educational issue for our long-term strength is the need to upgrade our entire system of K-12 education to meet the changing demands of the global marketplace. Science, math, and technology education and training are increasingly important parts of a worker's survival kit. The commitment to content standards and performance standards embodied in the Goals 2000 legislation remain s the key to both quality of education and equality of educational opportunity. In addition, the extensive introduction of information technology into the classroom will, over time, better match instructional technique with the twenty-first century work e nvironment. The Administration wishes to be a partner with state and local governments, with business and academia, and through them with teachers, parents, and students, in assuring that quality improvements benefit all children across America.
Of course, these children must also be prepared to learn. We now know that their biological, cognitive, social, and emotional development, beginning at birth, is a major determinant of their ability to learn and flourish. Sound research, such as the research on early childhood education that guided development of Head Start, will be needed to guide policies for child and a dolescent development in this period of rapid societal change. Families and communities need strengthening; healthy behaviors must be encouraged; environmental hazards should be reduced; learning can be assisted through new technologies. Research related to these challenges represents a critical investment in human capital.

EXAMPLES OF KEY AREAS OF OPPORTUNITY

Mentoring in Science and Mathematics, Improved Pedagogy, Educational Technology, Expanded Access to Higher Education, Child Development, University-Government Partnership

SCIENCE AND TECHNOLOGY SERVING NATIONAL GOALS

Our nation's investment agenda in scientific research, technological innovation, and a healthy business environment, coupled with a strong commitment to education and human resources development, will promote the continuing beneficial application of scien ce and technology towards our overarching national goals of economic growth and prosperity, personal health, national security and global stability, and environmental stewardship.

TECHNOLOGY FOR ECONOMIC GROWTH

Sustained prosperity for Americans requires a continuous stream of technological innovation. The Administration has acted in a variety of roles - funder, partner, facilitator - to stimulate new enabling technologies of importance both to Federal missions and to economic growth. Specific priorities, many of them pursued through a variety of partnership programs, include: an 80-mile-per-gallon automobile; advanced construction and building technologies; a new wave of biotechnologies, with impact not only on drug availability but also on agriculture and environmental remediation; advanced energy supply technologies, such as biomass and other renewable sources; energy conservation and resource efficiency technologies; and advanced manufacturing technologies. In addition, a number of initiatives will revolutionize our information and transportation infrastructure: intelligent highways; air traffic technologies to increase safety and reduce environmental impacts; a new generation of supercomputers and of the In ternet; and the widespread introduction of educational technology into the classroom.

EXAMPLES OF KEY AREAS OF OPPORTUNITY

Next Generation Internet, Infrastructure Development, Biotechnology, Manufacturing, Construction, High Performance Computing and Communications

BETTER HEALTH THROUGH RESEARCH

Improving the health of Americans requires a broad spectrum of basic research in the biomedical, agricultural, and social and behavioral sciences and technology development, often drawing upon tools developed in the physical sciences.
The Federal health-related research portfolio, led by the National Institutes of Health, supports the unquestioned world-leading enterpris e for understanding, preventing, and treating disease. New approaches to understanding disease processes at the molecular level are bearing fruit and promise further advances in areas such as AIDS and Alzheimer's disease. New preventive strategies against diseases are being emphasized. Emerging infectious diseases highlight the need for more research on the human immune system and on the ever-growing number of pathogens that threaten human health. Research must also focus on the links between disease and climate, ecological change, population growth, and human behavior. Vaccines developed using new recombinant DNA tools are lowering health care costs and protecting our children. Genetic understanding of diseases such as breast cancer, obesity, and many ot hers has improved markedly in the last few years. The biology of normal brain development and of brain disorders has progressed significantly in this decade and will continue to be an area of emphasis.
Another important area of health-related research stems from the need to ensure an adequate, safe, and nutritious food supply. A new science-based approach to food safety, called the Hazard Analysis and Critical Control Point system, has been implemented to reduce pathogen contamination. Agricultural research will maintain and enhance the growth in food and fiber productivity while reducing environmental impact. Integrated pest management research will reduce the use of synthetic pesticides by placing greater emphasis on natural controls, host resistance, and biological controls. Gene maps will be used to improve plants, livestock, and other beneficial organisms. These research programs will safeguard human health while contributing to agricultural profitability and minimizing environmental damage. Basic research in agriculture is an important Federal investment.

EXAMPLES OF KEY AREAS OF OPPORTUNITY

Genetic Medicine, Disease Prevention, Food Safety, Nutrition, Integrated Pest Management, Genetic Resources

NATIONAL SECURITY AND GLOBAL STABILITY

Science and technology have long been fundamental to the strength and security of our nation, both militarily and economically. The technological superiority in warfighting equipment on which the military depends is the product of a strategic commitment t o science and technology, through research investments in defense laboratories, industry, and universities. Scientific advances and new technologies in areas such as simulation, communications, visualization, sensing, and miniaturization have not only exp anded the capabilities of our military forces, but have changed the way in which wars are fought.
A strategic commitment to science and technology will be even more important with a reduced military establishment facing the new and varied security challenges of the post-Cold War era. Nuclear mat erials must be managed securely from cradle to grave, both at home and in the states of the former Soviet Union. Our stockpile of nuclear weapons must be kept safe and reliable. This will be accomplished without explosive testing through a deeper understa nding of the associated science, through a new science-based surveillance and diagnostic capability, and through a new generation of numerical simulations.
The Administration is also working to fight the growing scourge of terrorism. Significant advances are being made in developing counterterrorism technologies, such as sophisticated bomb-detection sy stems.
We also recognize that our national security depends on global stability. No country is isolated from the consequences of newly emerging diseases, major demographic shifts, environmental degradation , military conflicts, or other global dislocations. Thus, building global partnerships is an important part of our security strategy, and international cooperation in science and technology is, in turn, an important component of such partnerships.

EXAMPLES OF KEY AREAS OF OPPORTUNITY

New Defense Technologies, Cradle-to-Grave Nuclear Materials Management, Emerging Infectious Diseases, Counterterrorism, Global Partnerships


FEDERAL RESEARCH AND DEVELOPMENT INVESTMENTS

(Budget authority, dollar amounts in millions)Source: OMB

1993*
Actual
1997
Estimate
1998
Proposed
By Agency:
Defense
Health and Human Services
National Aeronautics and Space Admininstration
Energy
National Science Foundation
Agriculture
Commerce
Interior
Transportation
EPA
Other
Total

38,898
10,472
8,873
6,896
2,012
1,467
793
649
613
511
1,308
72,492

37,461
12,933
9,314
6,186
2,458
1,545
1,050
581
639
504
1,150
73,821

36,780
13,478
9,603
7,312
2,553
1,485
1,115
605
754
555
1,229
75,469

By R&D Theme:
Basic Research
Applied Research
Development
Equipment
Facilities
Subtotal

13,362
13,608
42,795
NA
2,727
72,492

14,885
14,529
42,153
937
1,317
73,821

15,303
15,159
41,636
960
2,411
75,469

By Civilian Theme:
Basic Research
Applied Research
Development
Equipment
Facilities
Subtotal

11,951
9,130
7,269
NA
1,979
30,329

13,747
10,469
7,860
492
984
33,552

14,112
11,125
8,117
506
1,128
34,988

By Defense Theme:
Basic Research
Applied Research
Development
Equipment
Facilities
Subtotal

1,411
4,478
35,526
NA
748
42,163

1,138
4,060
34,293
445
333
40,269

1,191
4,034
33,519
454
1,283
40,481

By R&D Share:
Defense
Civilian
Total

42,163
30,329
72,492

40,269
33,552
73,821

40,481
34,988
75,469

Percent civilian
R&D support to universities
Merit (peer) reviewed R&D programs
42%
11,674
NA
45%
12,979
22,229
46%
13,268
22,717
*Equipment and Facilities were not collected separately in 1993

THE PROMISE OF ENVIRONMENTAL SCIENCE

Advances in environmental science and technology hold tremendous promise for creation of a sustainable future, a future where environmental health, economic prosperity, and quality of life are mutually reinforcing. We need to apply science and technology in order to assess, anticipate, and avoid the negative consequences of environmental change.
The process of assessment underpins the application of science and technology to sustainability. The major international assessments of global-scale environmental changes are a significant example. Such assessments also identify gaps in scientific knowledge and guide the construction of current and future research agendas. For example, the creation and maintenance of high-quality, long-term monitoring and observation programs, including those operat ing from earth orbit, is being vigorously pursued.
The improvements in observational, computational, and communications technologies are greatly advancing our ability to anticipate environmental issues. Advanced modeling - of molecular interactions and of entire earth systems, of human and industrial processes, and of human impact on the environment - has already yielded significant benefits. For example, the improved forecasting of severe weather events has reduced economic losses. Vegetation/ecosy stem modeling will answer questions about the effects of different climate scenarios.
Avoiding environmental problems while simulaneously maintaining economic growth is one of the greatest challenges facing our research enterprise. Advances in industrial ecology, lean production, and materials can greatly improve the efficiency of our industries and concomitantly benefit the environment. Basic research on endocrine system disruption and environmental exposure will determine regulatory needs. The Global Change Research Program will pr ovide the foundation for mitigation and adaptive measures at regional, national, and global levels.

EXAMPLES OF KEY AREAS OF OPPORTUNITY

Environmental Monitoring, Endocrine Disruptors, Sustainable Development, Energy, Natural Hazard Mitigation, Regional Effects of Global Change

ADVANCING THE SCIENCE AND TECHNOLOGY PORTFOLIO

The advances and initiatives indicated above, and described more fully in the following chapters, are representative of the Federal research and development portfolio. This portfolio covers a remarkable spectrum of activities, from probing the farthest re aches of the universe made visible by technological advances to developing new technologies made possible by the progress of science. The total Federal research and development investment is approximately $74 billion in fiscal year 1997 (see budget table) . However, if we exclude the expenditures of the Department of Defense for development of specific weapons systems, the Federal government invests about $40 billion annually to generate new knowledge, new technologies, and new scientists and engineers; this is about 2.5 percent of the Federal budget. The impressive return on this investment drives our strong commitment to sustaining America's leadership in science and technology . The importance of this commitment is underlined by the fact that U.S. non-defense R&D expenditures total 2.0 percent of GDP, whereas Japan and Germany are spending 2.7 percent and 2.4 percent, respectively, of GDP.
In addition to increasing allocations for research, the Administration has begun a process of management reforms to improve effectiveness of the investment. Examples include:

  • Revising and streamlining regulations and agency directives.
  • Eliminating regulations that are outdated or add no value.
  • Automating research support functions (such as electronic submission or research proposals).
  • Developing performance-based organizations.

Lean but accountable research administration, both in the Federal agencies and in the performing institutions - universities, medical schools, national laboratories, and industrial research centers - will sustain our competitive position even as expenditures are constrained.
The diversified Federal research portfolio serves the multiplicity of missions for which our Federal departments and agencies are responsible. This distributed system of research funding provides st rong linkages between research and the core agency missions, but also places a premium on coordination and complementarity of agency programs. The National Science and Technology C ouncil (NSTC), now in its fourth year, is improving such coordination, so that our Federal investment is being used to best advantage in the national interest. The programs of all of the NSTC agencies are represented in this biennial report to the Con gress, which we submit with the hope that the accomplishments of and challenges to American science and technology will attract our shared commitment. This commitment to the work of our scientists and engineers will indeed shape the twenty-first century.

Table of Contents | Chapter 1


Table of Contents

Cover Page

Title Page

Letter from the President to Congress

Letter from the Director of OSTP

Introduction and Overview

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Appendix

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