In the November 26, 1999 Issue:
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.
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Holiday Issue of Digest
In observance of Thanksgiving, SSTI will be closed November 25 - 26. We hope everyone has a safe and happy holiday!
Idaho Creates S&T Council
Fulfilling a promise made in his 1999 State of the State Address, Idaho Governor Dirk Kempthorne recently announced the formation of the Idaho Science and Technology Advisory Council. The council’s first responsibility will be to develop a state science and technology strategic plan. The Idaho Department of Commerce will provide staff support for the council.
Dr. Bill Shipp, director of the Department of Energy’s Idaho National Engineering and Environmental Laboratory (INEEL), will chair the council and serve as the state’s Science and Technology Advisor. Other members of the advisory council were not named but will also be appointed by Governor Kempthorne.
In addition to advising the governor on science and technology issues, Dr. Shipp will assist the Idaho Department of Commerce, State Board of Education, Idaho colleges and universities, other government agencies and private sector organizations regarding science and technology. Shipp will retain his position as Director for INEEL’s new management contractor, Bechtel BWXT Idaho, while serving in his advisory capacity to the state.
Dr. Shipp becomes the second Bechtel employee this year to become a state science and technology advisor. Nevada Governor Kenny Guinn appointed Dr. Christopher Hagen advisor this past spring.
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Foreign-owned R&D Growing in United States
Research and development (R&D) spending in the US by foreign-owned companies has increased to more than $17 billion annually and accounts for nearly 15 percent of total company-funded R&D in the United States, according to Globalizing Industrial Research and Development — Update, a new report released by the US Department of Commerce Office of Technology Policy.
Furthermore, the study found that during the past seven years, R&D expenditures by foreign-owned businesses in the US have increased faster than total R&D expenditures by US firms. In the high-technology sector, R&D expenditures by foreign companies account for one out of every four dollars spent on industrial R&D in the US. The growth in R&D spending by foreign companies can largely be attributed to the expansion of R&D expenditures by the US affiliates of multinational companies from six countries: Switzerland, Japan, the United Kingdom, Germany, France, and the Netherlands.
In a complementary trend, the US industrial base is expanding its overseas R&D operations. R&D expenditures by US multinational companies have more than tripled in the past decade, increasing to $14 billion, and represent nearly eleven percent of R&D performed in the US. More than half of US R&D expenditures abroad are accounted for by five countries: Germany, the United Kingdom, Canada, France, and Japan. However, several studies show that, while US R&D investment abroad has increased, leading-edge R&D on a company’s core technology almost inevitably is still performed inside the US.
In regards to industry sectors, the drug industry showed the most global trend, with a ratio of 30 percent of US R&D abroad to 49 percent of R&D performed by foreign companies in the US. The US auto industry performs nearly 25 percent of R&D in Europe to develop cars and diesel engines for the European market, but the foreign share of US R&D is only five percent.
The report concludes that the real challenge for future US R&D will be to compete with low-cost innovators. To do so, US policymakers must make a strong, strategic and sustained commitment to investment in science and technology, develop the means to rapidly integrate new knowledge and technologies into products, and gain access to growing global sources of innovation.
Copies of Globalizing Industrial Research and Development — Update are available on the web at http://www.ta.doc.gov/Reports.htm
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People
The following people in the science and technology field have made or announced career changes recently:
Pat Valente has been named the Deputy Director of the Technology Division of the Ohio Department of Development.David Weiss is leaving his post as Maryland State Technology Coordinator.
Maine Governor Angus King appointed Dr. Janet Yancey-Warona to serve as the Director for the new Maine Technology Institute.
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