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GOAL: LONG-TERM ECONOMIC GROWTH THAT
CREATES JOBS AND
PROTECTS THE ENVIRONMENT
Technology is the engine of economic growth. In the United States,
technological
advance has been responsible for as much as two-thirds of productivity
growth since the
Depression. Breakthroughs such as the transistor, computers, recombinant
DNA and
synthetic materials have created entire new industries and millions of
high-paying jobs.
International competitiveness depends less and less on traditional
factors such as
access to natural resources and cheap labor. Instead, the new growth
industries are
knowledge based.
They depend on the continuous generation of new technological
innovations and the
rapid transformation of these innovations into commercial products the
world wants to buy.
That requires a talented and adaptive work force capable of using the
latest technologies and
reaching ever-higher levels of productivity.
Modern production systems also make much more efficient use of energy
and
materials. Advances in technology can lead to enormous reductions in the
environmental
emissions associated with automobiles, buildings, and factories. And
because pollution
always signals inefficiencies and, because wasteful energy costs raise
the price of doing
business, these technology advances can also lead to increased profits.
We can promote technology as a catalyst for economic growth by:
· directly supporting the
development, commercialization, and deployment of
new technology;
· fiscal and regulatory policies that indirectly promote these
activities;
· investment in education and training; and,
· support for critical transportation and communication
infrastructures.
Technology Development Commercialization and Use
Since World War-II, the federal
government’s de facto technology policy has consisted of support for
basic science and mission-oriented R&D - largely defense technology.
Compared to Japan and our other competitors, support for commercial
technology has been minimal in the U.S. Instead, the U.S. government has
relied on its investments in defense and space to trickle down to
civilian industry.
Although that approach to commercial technology may have made sense in
an earlier era, when U.S. firms dominated world markets, it is no longer
adequate. The nation urgently needs improved strategies for
government/industry cooperation in the support of industrial technology.
These new approaches need not jeopardize agency missions: In many
technology areas, missions of the agencies coincide with commercial
interests or can be accomplished better through close cooperation with
industry.
This Administration will modify the ways
federal agencies do business to encourage
cooperative work with industry in areas of mutual interest. President
Eisenhower undertook a
similar policy change in 1954, when he issued an executive order
directing federal agencies
to support basic research, This new policy will result in
significantly more federal R&D
resources going to (pre-competitive) projects of commercial relevance.
It will also result in
federal programs that go beyond R&D, where appropriate, to promote the
broad application
of new technology and know-how.
R&D. At the level of technology development, the fundamental mechanism
for carrying out
this new approach is the cost-shared R&D partnership between
government and industry, All federal R&D agencies (including the
nation’s 726 federal laboratories) will be encouraged to
act as partners with industry wherever possible. In this way, federal
investments can be
managed to benefit both government’s needs and the needs of U.S.
businesses.
This reorientation is particularly urgent for the Department of Defense,
which accounts for 56 percent of all federal R&D. A significant portion
of DoD’s research and development budget is already focused on dual-use
projects - particularly projects supported by the Defense Advanced
Research Projects Agency (DARPA). Since a growing number of defense
needs can be met most efficiently by commercial products and technology
in the years ahead, this fraction will increase. DoD is developing a
strategy to improve the integration of defense and commercial technology
development.
All federal support for technology development is being reviewed to
ensure that research priorities are in line with contemporary needs of
industry and to ensure that strategies for working with industry are
consistent.
To strengthen industry-government cooperation and to provide more
federal support for commercial R&D:
The ratio of civilian and dual-use
R&D to purely military R&D is significantly higher In President
Clinton’s economic plan. This is a first step toward balancing
funding levels for these two categories. In 1993, the civilian share
of the total federal R&D budget was approximately 41%. Under
President Clinton’s plan, the civilian share will be more than 50%
by 1998. Total spending for civilian R&D will rise from $27.9
billion to 36.6 billion during this period.
· The Commerce Department's Advanced
Technology Program is expanded significantly. Established in 1990,
the ATP shares the costs of industry-defined and industry-led
projects selected through merit-based competitions.
· The Defense Advanced Research
Projects Agency (DARPA) will be renamed the Advanced Research
Projects Agency (ARPA) - as the agency was known before 1972. The
ARPA program in dual use will be expanded in ways that increase the
likelihood that defense research can lead to civilian product
opportunities.
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