SSTI Digest

Four industries (aerospace, computers and office machinery, electronics and communications equipment, and pharmaceuticals) are growing at a rate more than twice as fast as other manufactured goods,  thereby driving national economic growth around the world, according  to a National Science Foundation (NSF) Issue Brief, High-Tech Industries Drive Global Economic Activity (NSF 98-319).

The study found that since 1980, these industries’ inflation-adjusted growth has averaged nearly 6 percent annually compared with a rate of 2.4 percent for other manufactured goods. Global economic activity in high-tech industries was especially strong from 1992-95, when output grew at over 8 percent per year, once again more than twice the rate of growth for all other manufacturing industries.

The report also examines how high-tech industries benefit national economies finding that:

The most comprehensive source of statistical information on science and engineering issues has been released by the National Science Board. "Science and Engineering Indicators: 1998" is the 13th report in a biennial series.

The 800-page report contains a wealth of information on a variety of topics, including four cross-cutting themes:

• increasing globalization of science, technology, and the economy
• greater emphasis throughout the world on science and engineering education and training
• structural and priority changes in the science and engineering enterprise
• increasing impact of science and technology on our daily lives.

Among the findings reported in Indicators are:

Industrial research and development spending totaled approximately $145 billion in 1996, a 10 percent increase for the second year in a row. More than 83 percent of that funding came from industry itself with the federal government providing the remaining funds, according to a new Data Brief prepared by the National Science Foundation. Small businesses, those with 500 or less employees, spent slightly more than $20.2 billion or 14 percent of the total industrial R&D spending in 1996. This represented a 21 percent increase over 1995's total.

The increase in total industrial R&D spending was highlighted by a rebound in R&D spending among manufacturers. Following eight years in which nonmanufacturing R&D rose about 15 percent each year in current dollars, while manufacturing increases were approximately three percent, the figures almost reversed themselves in a single year.

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.

A recent study found that 90 percent of industry participants benefitted in some way by participating in the National Science Foundation's (NSF) Engineering Research Center (ERC) Program. Nearly a quarter of all firms reported having developed a new product or process as a result of their interaction with an ERC, and two-thirds reported that their firm's competitiveness had increased.

Industry participants reported five main benefits: access to new ideas, know-how, or technologies; technical assistance; interaction with other firms participating in the program; access to ERC equipment and facilities; and, hiring ERC students and graduates.

Not all companies received every type of benefit, but of the benefits realized by particular companies, among the highest-valued were the employment of ERC students and graduates, gains in intellectual property, and access to specialized equipment and facilities.

Rita Colwell was confirmed by the Senate on May 22 as the new National Science Foundation (NSF) Director. She is expected to be sworn in within a few weeks. Dr. Colwell was the President of the University of Maryland Biotechnology Institute and former President of the American Association for the Advancement of Science. She has a Ph.D. in marine microbiology from the University of Washington.

Dr. Eugene Wong has been named assistant director for engineering at the National Science Foundation. As the head of NSF's engineering directorate, he will oversee a $320 million annual budget. His most recent position was with a start-up California company.

A recently released data brief from the National Science Foundation, entitled Six States Account for Half of the Nation's R&D, analyzed the distribution of research and development activity by state and found most of the activity is concentrated in a small number of states.

As the data brief reports, six states—California, Michigan, New York, Massachusetts, New Jersey, and Texas (in decreasing order of magnitude)— account for half of the nation's R&D. California's level of R&D expenditures was $36 billion and represented approximately one-fifth of the $177 billion U.S. total.

The top ten states (adding, in descending order, Illinois, Pennsylvania, Maryland and Ohio) accounted for nearly two-thirds of the national effort. The 20 highest-ranking states in R&D expenditures accounted for approximately 85 percent of the U.S. total. The lowest 20 states accounted for five percent.

The National Science Foundation (NSF) has released an assessment of its Engineering Research Centers (ERC) Program. The two-part study looked at two key aspects of the ERC program: ERC- industry interaction and effectiveness of former ERC graduate students in the workforce.

The ERC-industry portion of the study found that the benefits received by member companies is directly related to the length and level of involvement in a center. The longer a firm participates and the more direct personal interaction there is between corporate and center personnel, the more direct benefits the firm will have received and the greater the impact on company competitiveness.

The study cited three factors in promoting industry participation: (1) the existence of a champion for the ERC within the company; (2) the receptivity of company technical staff to ERC ideas and results; and (3) management support for the ERC partnership within the company.

The National Science Foundation (NSF) has decided to reclassify its R&D budget, which will result in a reduction of funding available for its Small Business Innovation Research program (SBIR). The reclassification was recommended by Inspector General Linda Sundro. NSF Director Neal Lane has concurred with the recommendations.

Each agency with an extramural R&D budget in excess of $100 million must set aside a percentage of their extramural R&D funding for the SBIR program. In FY 1997, the SBIR set-aside was 2.5%. Congress also authorized a smaller set-aside, currently 0.15% of the extramural R&D budget, for the Small Business Technology Transfer (STTR) program.

Research and development expenditures in 1997 are expected to reach $205.7 billion, a 6.5 percent increase over 1996's $193.2 billion in spending. Since 1994, R&D spending has been increasing at a rate of more than 5 percent a year, according to a recent National Science Foundation Data Brief.

The federal share of the nation's R&D expenditures is expected to continue declining -- to 30.5 percent of R&D expenditures. The federal share of the nation's R&D funds first fell below 50 percent in 1978 and was consistently between 44 and 47 percent from 1980 to 1990. Since then, the federal share has dropped steadily.

The National Science Foundation's (NSF) Office of Science and Technology Infrastructure (OSTI) has announced that funds will be available for additional Science and Technology Centers (STC). NSF is currently soliciting proposals from qualified candidates for the Science and Technology Centers: Integrative Partnerships Program.

NSF established the STC Program in 1987, and charged it with pursuing university-based multidisciplinary research, encouraging knowledge transfer to non-academic sectors of society, and establishing innovative education activities.