Presentation prepared by the Congressional Research Service Research, Development, and Innovation in the 111 th Congress John Sargent Specialist in Science

Presentation prepared by the Congressional Research Service

Research, Development, and Innovation in the 111th Congress

John SargentSpecialist in Science and Technology Policy

Congressional Research Service


Old Washington Adage:

Those who know don’t talk.

Those who talk don’t know.


Context for Federal R&D

• Meet federal mission needs (e.g., national defense)

• Advance knowledge, develop and support scientific and technical workforce(Science: The Endless Frontier, Vannevar Bush, 1945)

• Address societal issues (e.g., health, safety, environment, energy security)

• Support U.S. innovation, competitiveness in the global economy


Changing Composition of Global R&D

Federal Defense-related

R&D 34%

Rest of the

World 31%

Other Federal

R&D 11%

Other U.S. R&D 24%

1960

Other U.S. R&D 24%

Other Federal R&D

4%

Rest of the

World 67%

Federal Defense-

related R&D 5%

2002

(based on global R&D estimates and NSF data)


Sectoral Perspective on R&D:Who Funds What

(based on NSF data for 2006)

Government Industry Universities Other

Basic Research 58.8% 17.2% 10.4% 13.6%

Applied Research 33.3% 58.9% 3.2% 4.6%

Development 16.2% 82.7% 0.3% 0.9%

Source: Science and Engineering Indicators, 2008, National Science Board


American Competitiveness Initiative


Some Constraints, Limitations

• Available funding– Pressure on discretionary spending– Impact of economic downturn on revenues– Competition among S&T disciplines– Competition with non-S&T priorities

• Differing perspectives on the federal role in R&D– Effectiveness of federal R&D funding– Picking winners and losers– Corporate welfare– Directed spending– Effect of new technology on jobs– Appropriate level of federal R&D spending– Ability to capture benefits


Federal Spending for Defense, Non-defense R&D as a Percentage of Corresponding Discretionary Outlays

SOURCE: Congressional Budget Office


Projected Growth in Medicare, Medicaid Spending

SOURCE: Congressional Budget Office


Mandatory Spending Growth

SOURCE: White House Office of Management and Budget


OMB’s Federal Budget Projections, by category

DATA SOURCE: White House Office of Management and Budget

Actual

-

500

1,000

1,500

2,000

2,500

FY2007

Actual

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

MandatoryDiscretionary - SecurityDiscretionary - Non-security


Efforts to Address Downturn

• Emergency Economic Stabilization Act of 2008– Troubled Assets Relief Program (TARP), $700 billion– Loans to General Motors ($9.4 billion) and Chrysler

($4 billion), additional $4 billion available in February

• New stimulus package


Many S&T Agenda’s

Among them, those of• President-elect Obama• Speaker Pelosi• House S&T Committee Chair Gordon• Trade, professional, and business association

Another old Washington Adage:

The President proposes.

Congress disposes.


President-elect Obama on S&T

…my Administration will engage leaders in the technology community and harness technology and innovation to create jobs, enhance America’s competitiveness and advance our national priorities.

It’s time we once again put science at the top of our agenda and worked to restore America’s place as the world leader in science and technology.

…science holds the key to our survival as a planet and our security and prosperity as a nation.

…I will also ensure that our defense, homeland security, and intelligence agencies have the strong research leadership needed to revitalize our defense research activities and achieve breakthrough science that can be quickly converted into new capabilities for our security.


Obama: Changes

• Vision, Priorities

• Programs, Personnel

• R&D Assessment System (PART)


President-elect Obama’s Team Science and Technology

John Holdren

Physicist/environmental science and policyA/P for Science and Technology/Director, OSTP

Eric Lander

Mathematics/systems biologyCo-chair, PCAST

Harold Varmus

Medical doctor/cellular biologistCo-chair, PCAST

Jane Lubchenco

Environmental scientist/marine ecologist Administrator, NOAA


President-elect Obama’s Team Energy and Environment

Carol BrownerLawyerA/P for Energy and Climate Policy Coordinator

Nancy SutleyGovernment/public administratorChair, CEQ

Steven ChuPhysicistSecretary, Department of Energy

Lisa JacksonChemical engineerAdministrator, EPA

Sen. Ken SalazarChemical engineerSecretary, Department of the Interior


R&D in the Stimulus Package

• Speaker Pelosi: Forward-looking; not a 1930’s public works project; bold and persistent

• Lawrence Summers: “It does not strike me that running up the research budget and then running down the research budget is a terribly rational way to run a country…. science as a short-term stimulus doesn't seem quite right to me.” (Source: Manufacturing and Technology News, 12/3/2008)


Federal Investments in R&D

• Summers: Over the long term, robust investments in science and technology are driver of future economic growth

“Basic science is basically very, very important….only government can provide the support at the most basic level…on the other hand, the track record of governments in picking winners and losers -- in deciding what are the most fruitful industries -- is not hugely encouraging over time and in the quality of its judgment. So I would be tilting a bit more towards basic research.”(Source: Manufacturing and Technology News, 12/3/2008)


Obama-Biden CampaignScience and Technology Policy

• Ensure the Full and Free Exchange of Ideas through an Open Internet and Diverse Media Outlets

• Create a Transparent and Connected Democracy• Deploy a Modern Communications Infrastructure• Improve America's Competitiveness• Prepare All our Children for the 21st Century Economy• Prepare Adults for a Changing Economy• Employ Science, Technology and Innovation to

Solve Our Nation's Most Pressing Problems• Appointment of a Chief Technology Officer (CTO)


Obama-Biden CampaignImprove America’s Competitiveness

• Double federal funding for basic research over ten years • Expand research at American colleges and universities;

provide grants to early-career researchers• Make the R&D tax credit permanent • Restore scientific integrity

• Increase support for high-risk, high-payoff research portfolios at our science agencies


Obama-Biden CampaignEmploy Science, Technology

and Innovation to Solve Our Nation's Most Pressing Problems

• Lower health care costs by investing in electronic information technology systems

• Invest in clean energy development and deployment

• Modernize public safety networks • Advance biomedical research• Advance stem cell research


Obama-Biden Campaign

Chief Technology Officer

• ICT for governance– Transparency– Use of best-in-class technology– Citizen input to agencies– Interoperability of ICT broadly and for emergency

communication

• Cybersecurity• Technology and innovation policy


Speaker Pelosi on S&T

“Americans must continue to innovate in order to create new thriving industries that will produce millions of good jobs here at home and a better future for the next generation.”

Innovation Agenda– Creating a new generation of innovators– Sustained commitment to R&D– Affordable broadband access for all Americans– Declaring energy independence– Small business tools for innovation


Chairman Gordon on S&T

• Innovation: Maintaining Our Competitiveness• Energy: Developing Clean Technologies• Workforce: Creating Jobs of the Future• Environment: Protecting Our Natural Resources• Space: Exploring and Inspiring• Transportation: Building New Types of Infrastructure• Security: Protecting People from Natural and Man-Made Threats• Investigations and Oversight: Uncovering Mismanagement and

Restoring Scientific Integrity

There’s a misperception that we cannot afford to invest in science because of the current economic conditions. I believe that investing in science and developing new technologies is the path to reinvigorating our economy, growing jobs, meeting our energy needs, and helping us address climate change



Total Federal R&DFY2007-2009

(budget authority)

FY2007 (actual) $139.1 billion

FY2008 (estimate) $143.1 billion

FY2009 (estimate) $147.3 billion

• From FY2007 to FY2008, Federal R&D increased $4.0 billion, 2.9%.

• For FY2009, President Bush requested an increase in Federal R&D of $3.9 billion, 2.7%

• Caveats: inconsistencies in R&D accounting between agencies (R&D/RDT&E/S&T), classification of expenditures, inclusion/exclusion of Congressionally-directed funding


Federal R&D Budgetby Agency, FY2007-2009(budget authority, amount in millions of dollars)

Agency2007 Actual

2008Estimate 2009 Request

Dollar Change, 2008 to 2009

Percent Change, 2008

to 2009

Defense $ 78,329 $ 80,192 $ 80,494 $ 302 0.4%

Health and Human Services 29,201 29,475 29,480 5 0.0%

NASA 9,952 10,436 10,737 301 2.9%

Energy 8,522 9,739 10,558 819 8.4%

National Science Foundation 4,479 4,500 5,201 701 15.6%

Homeland Security 1,246 1,143 3,287 2,144 187.6%

Agriculture 2,275 2,309 1,952 -357 -15.5%

Commerce 1,080 1,113 1,157 44 4.0%

Transportation 768 823 901 78 9.5%

Veterans Affairs 892 960 884 -76 -7.9%

Interior 604 676 617 -59 -8.7%

Environmental Protection Agency 606 557 550 -7 -1.3%

Other 1,118 1,140 1,145 5 0.4%

TOTAL $139,072 $143,063 $146,963 $3,900 2.7%

SOURCE: Analytical Perspectives, Budget of the United States Government, Fiscal Year 2009, Office of Management and Budget, The White House, February 2008


Federal Defense and Non-Defense R&D

0%

10%

20%

30%

40%

50%

60%

70%

80%

1980 1984 1988 1992 1996 2000 2004 2008

Defense

Non-Defense

Source: Science and Engineering Indicators, 2008, National Science Board



Headlines from CQ

• Advocates Push for Inclusion of ‘Green’ Jobs, Projects in Stimulus Package

“[Green jobs] put people to work here in America. You can’t outsource installation of a solar roof on your house to another country.” – Speaker Pelosi

• Interests Big and Small Reach for Their Pieces of the Stimulus Pie

• Ballooning Deficit Projections Highlight Challenge to Obama and Congress

Estimated at $1.2 trillion for FY2008; does not include funding provided under Emergency Economic Stabilization Act of 2008

Documents

Presentation prepared by the Congressional Research Service Research, Development, and Innovation in the 111 th Congress John Sargent Specialist in Science