Copyright State Science & Technology Institute 2002. Information in this issue of the SSTI Weekly Digest was prepared under a cooperative agreement with the U.S. Department of Commerce, Economic Development Administration. Redistribution to all others interested in tech-based economic development is strongly encouraged — please cite the State Science & Technology Institute whenever portions are reproduced or redirected. Any opinions expressed in the Digest do not necessarily reflect the official position of the U.S. Department of Commerce.
Subscription to the SSTI Weekly Digest is free. If you are reading a forwarded copy of this issue and would like to receive your own copy each week directly, please subscribe at: http://www.ssti.org/Digest/digform.htm Requests to unsubscribe should be sent to sstiwd@ssti.org
SENATORS FRIST AND ROCKEFELLER INTRODUCE BILL TO DOUBLE CIVILIAN R&D SPENDING
On June 25, Senators Bill Frist (R-TN) and Jay Rockefeller (D-WV) introduced a new bill, the Federal Research Investment Act (S. 2217). The purpose of the bill is to provide for the continuation of federal research investment in a fiscally sustainable way.
The Act is intended to encourage as an overall goal, the doubling of the annual authorized amount of federal funding for basic scientific, medical, and pre-competitive engineering research over the next twelve years. The bill also sets a minimum level of investment in order to maintain the high priority that science, engineering, and technology had previously been afforded in the federal budget.
The language of the bill provides for a steady 2.5% annual increase above the rate of inflation each year for the next twelve years. The bill assumes that the rate of inflation each year will be 3%. By the year 2010, if this bill is passed, the civilian research and development appropriation would total more than $67.9 billion.
The bill also states that there is a minimum funding threshold. If funding ever fell below this level, long-term harm to both the research infrastructure and economic strength of the United States would be caused. Therefore, the Act states that the total amount of federally-funded research and development should never fall below 2.1% of the overall federal budget.
Historically, the percentage of the civilian discretionary budget allocated to research and development efforts has increased steadily from approximately 10% in 1980 to 14% for fiscal year 1998. The investment in civilian research and development efforts for fiscal year 1998 represents 2.12% of the overall federal budget.
The legislation would also mandate that a study be conducted by the National Academy of Science that would recommend processes to determine prioritizing research programs, assessing performance, and terminating programs which are unsuccessful.
It is questionable whether or not the bill will be able to pass through the Senate during the already full 105th Congressional agenda. However, several factors support the possibility that the bill may make it to the floor for a vote. First, Senator Frist chairs the Senate Commerce Subcommittee on Science, Technology, and Space. Secondly, Senator Rockefeller is the subcommittee's ranking Democrat. Finally, there are six other strong co- sponsors of the bill: Senators Lieberman, Bingaman, Breaux, Domenici, Burns, and Gramm.
There is currently no companion piece in the House. However, House Speaker Newt Gingrich (R-GA) recently stated at a commencement speech at the University of California at San Diego that he wants to see federal spending on science and technology double.
NSF RELEASES THREE DATA BRIEFS ON FEDERAL R&D FUNDING
The National Science Foundation's (NSF) Division of Science Resources Studies has released three individual data briefs all pertaining to federal research and development funding trends.
In FY 1996 total expenditures by universities and colleges for separately budgeted research and development activities in science and engineering (S&E) increased 3.5% over the FY 1995 level, reaching nearly $23 billion, according to data brief "Academic R&D Expenditures Maintain Steady Growth in FY 1996." When adjusted for inflation, academic R&D increased 1.4% over the 1995 level.
Academic R&D expenditures financed by the federal government increased 3% in FY 1996 to $13.8 billion. This represents 60% of the R&D dollars expended at universities and colleges.
Expenditures financed by all non-federal sources combined grew nearly 4% in FY 1996 to $9.2 billion. Spending from industry sources increased the fastest at 6% for a total funding level of more than $1.5 billion. Industry funding was followed by the largest non-federal source, institutional funds, with a 4% gain which totaled more than $4.2 billion. State and local governments' R&D funding was up nearly 3% to over $1.7 billion.
Academic R&D expenditures are concentrated in relatively few institutions. The 100 leading research institutions (out of the 674 institutions represented in the data) accounted for 81% of federally financed spending and 80% of all academic R&D expenditure.
While federal spending at academic institutions increased in FY 1996, another Data Brief indicates that expenditures might decline in FY 1997. "Federal Academic Science and Engineering Obligations Decreased Slightly in FY 1996," instead of focusing on spending, focused on funding that was obligated by the federal government — funds must first be obligated before being expended.
The data indicates a possible decline in expenditures in the next fiscal year. The report states that in FY 1996, federal agencies obligated $14.3 billion for academic science and engineering (S&E). This is $23 million, or two-tenths of one percent, below FY 1995 levels. After adjusting for inflation, the decrease exceeded 2%.
This information is based on the most recent data from the NSF's annual Survey of Federal S&E Support to Universities, Colleges, and Nonprofit Institutions. This is only the fourth time since the inception of NSF's survey in 1963 that current dollar obligations had fallen.
The Department of Health and Human Services (HHS) accounted for just over one-half of all federal FY 1996 academic S&E obligations. When combined with support from NSF and the Department of Defense (DoD), these three agencies were responsible for nearly four-fifths of the academic S&E total. However, only HHS reported real S&E growth with a 2% increase.
In a third Data Brief, "Federal Obligations for Applied Research Keep Pace with Those for Basic Research," NSF examined federal obligations for R&D and R&D plant for all sectors, not just funds directed to academic institutions. NSF predicts that federal obligations for R&D and R&D plant will decrease slightly less than 1%, in FY 1998. Most of this decrease is found within R&D plant obligations.
Agencies project a 2.5% increase in the research portion of the R&D total. Research would account for 42% of the FY 1998 R&D funding, with basic and applied research support totaling more than $15 billion each. In constant 1992 dollars, basic research would remain nearly flat, and applied research would increase about 1% from FY 1997 levels.
As in the past, the federal government obligates the largest portion of R&D funding to development, which accounts for approximately 55% of the FY 1998 preliminary total. However, the development share of the total has decreased throughout the 1990s, from 64% in FY 1990 to an estimated 55% in FY 1998.
R&D plant is slated to decrease 13% to under $2 billion. After adjusting for inflation, the real decrease is 15%. These statistics are being released in advance of the NSF's "Federal Funds for Research and Development: Fiscal Years 1996, 1997, and 1998".
The six lead agencies in basic research funding will account for 97% of the federal basic research total in FY 1998. These agencies are: HHS, NSF, DOE, NASA, DoD, and USDA. Of these six agencies, NASA and USDA report an expected decrease in basic research funding, while each of the other four agencies expects strong to modest increases.
Seven agencies will account for 88% of the federal applied research obligations in FY 1998. These agencies are: HHS, DOE, NASA, DoD, USDA, DOC, and the Department of the Interior (DOI). DoD and USDA each report an expected decrease in applied research funding, DOC indicates its funding will remain nearly the same, and the other four agencies expect strong to modest increases.
Science Resource Studies Data Briefs are available via the Internet at http://www.nsf.gov/sbe/srs/ stats.htm. For more information about obtaining reports, contact pubs@nsf.gov or call 301/947-2722.
TORNATZKY GOING WEST; STC SEEKS NEW DIRECTOR
Lou Tornatzky has announced that he will be stepping down from his position as Director of the Southern Technology Council (STC), a position he has held since 1993. Tornatzky will be relocating with his family to the West Coast, but will continue to serve as an STC Research Fellow.
STC is seeking to fill the position left vacant by Tornatzky's departure. The Director reports to the Executive Director of STC's parent organization, the Southern Growth Policies Board (SGPB). The STC Director has primary responsibility for building the projects and activities of the Council, but also participates in and leads projects of SGPB as well.
STC fosters cooperative initiatives among regional science and technology organizations, and functions as a forum for information and recommendations about best practices, strategies, policies, and programs. Fifteen southern states, as well as several corporations and non-profit organizations, have representatives on the 40-person Council.
The successful candidate for this position will be an innovative, mission-focused individual with the demonstrated ability to build the organization. A full position description is available on the SSTI web site at www.ssti.org.
Candidates for the position should send a complete resume or vita, including the names and contact information for three references, plus two recent writing samples, to: STC Search Committee, PO Box 12293, Research Triangle Park, NC 27709.
State Science & Technology Institute
5015 Pine Creek Drive
Westerville, OH 43081
Phone: (614) 901-1690
Fax: (614) 901-1696
Email: ssti@ssti.org© 2002 State Science and Technology Institute. All rights reserved.