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President's Council of Advisers on Science and Technology (PCAST) [Agenda, Notes, Paper titled: Competitiveness Subcommittee - Outline of the Area]
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Originally Processed With FOIA(s): foia Number: 2005-0336-F 2005-0336-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Economic Advisers, Council of Series: Bradford, David, Files Subseries: Subject Files OA/ID Number: 07919 Folder ID Number: 07919-018 Folder Title: President's Council of Advisers on Science and Technology (PCAST) [Agenda, Notes, Paper titled: Competitiveness Subcommittee - Outline of the Area] Stack: Row: Section: Shelf: Position: G 13 26 3 3 EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF SCIENCE AND TECHNOLOGY POLICY WASHINGTON, D.C. 20506 November 18, 1991 fill FOR Dr. David Bradford Council of Economic Advisers Dr. Wong asked me to provide you the attached agenda and background materials for Thursday's -NOVY discussion which you'll be attending 2:30-4:00 p.m. in Dr. Wong's office (Room 428). In consultation with Dr. Ralph Gomory, chair of the panel, he thought the attached outline and TOR would be informative. Dr. Wong will be back in the office Wednesday, FYI. all Them Sally Sherman X 3902 PCAST Panel on Technology, Products, and Manufacturing SPCAST November 21, 1991 1. Agenda 12:00-1:15 Organization and Selection of Discussion Topics 1:15-2:00 Working Lunch 2:00-4:00 Panel Discussion and Task Assignment 2. Possible Issues Technology Issues Tools and Processes Development Deployment Investment Issues Surces of Capital Tax Policy Management Issues Organization Training Quality Suppliers Concurrent Engineering etc. 08/26/91 16:06 FAX 212 757 5117 ALFRED P. SLOAN @006/008 ATTACHMENT C May, 1990 Competitiveness Subcommittee - Outline of the Area Introduction To study the aspects of competitiveness in which science, technology and engineering play a major role and, where appropriate, suggest Federal action that could contribute to competitiveness. This subcommittee should stress product competitiveness. It is important to our country to be "competitive" in basic science or in new technologies such as high temperature superconductivity, but this subcommittee should relate these areas to product competitiveness. When it can the subcommittee should be free to consider the effect of competitiveness or the lack of it on standard of living and on defense questions. Elements of competitiveness Product competitiveness is largely the result of the internal actions of individual firms. It is a consequence of how well they manufacture, how well they support, use, and manufacture R&D, how well they train and motivate their employees etc. These factors are not easily reached by government action. However firms are also influenced by their surroundings. Examples of this from the economic arena are cost of capital and tax structure, particularly depreciation rules and such items as the R&D tax credit. In the legal area there are the traditional questions relating to anti-trust, as well as the newer areas of product liability and intellectual property. But there are other and more technically oriented aspects of the surroundings as well. 08/26/91 16:07 FAX 212 757 5117 ALFRED P. SLOAN 2 I. Availability in the environment of new scientific and engineering knowledge. This is the kind of knowledge that historically has launched whole new industries, radically different materials, or provided new sensors to make possible new instruments etc., etc. This would include in principle really new processes that would eventually find their way into manufacturing although this has not been emphasized in the U.S. It is a longstanding Federal role to contribute here. Federal Precedents. Support of Basic Research - ONR, NSF, NIH etc. Fostering new technologies such as A.I. by support of university or (small) company research. Spinoffs to Industry - NASA Contributions from Federal Labs - DOE Support of Consortia for very advanced technology - DARPA Abroad Support of Basic Research - Most advanced countries Fostering new technologies - Japan MITI Support of Consortia for very advanced technology - Japan MITI, Europe EUREKA etc. Contributions from Federal Labs - Japan Example options Federal labs take on advanced commercial technology role Federal support of university-industry interactions. (centers, fellowships to industry) П. Environment supportive to Improvement of Existing Product. This is less a matter of really new scientific knowledge more a question of taking the next engineering step, a step usually aimed at product. Sometimes it is a question of adapting existing knowledge to the special product situation or of transferring existing knowledge to a firm that could use it. Examples would include research on existing process and manufacturing, or improved materials. Sometimes the availability of special and extreme instrumentation is useful. Sometimes it is the support of long range projects that are project oriented but beyond a single firm's economic time horizon. Federal precedents NACA Brookhaven synchrotron radiation Sematech NIST technology transfer centers 08/26/91 16:07 FAX 212 757 5117 ALFRED P. SLOAN 008/008 3 DARPA support of Gallium Arsenide Foreign Japan - some MITI Consortia Japan - The role of NTT Japan - Financial support of key industries Example options Support of advanced manufacturing centers Support of advanced technology consortia More consistent R&D tax policy. Better Manufacturing depreciation. Support of travel abroad by small businesses to learn competitive techniques. III. Availability of Technical Labor Force. Training and orientation of Scientists and Engineers as well as technically competent people for a production environment. Clearly the availability of good people makes a difference. So does thir attitude and motivation. U.S. attitudes have favored science as high prestige, design engineering as less prestigious and manufacturing is rarely mentioned. However all branches of technical work are currently not much sought after. The Federal government has played a role in this training especially through its connection with research grants and fellowships. Vocational Training in the U.S. is a low prestige and possibly poor content activity. Federal Precedents Fellowships Grants Presidential Young investigator awards Foreign All major countries send students, graduate students, or postdocs to the U.S. in addition to funding their own. Vocational training is sometimes more highly developed. Example options Support of changes in the engineering curriculum Awards "Presidential Manufacturing Fellowship" Presidential speech including importance of manufacturing excellence. Study the need for and state of vocational education. Green Cards for foreign graduates of U.S. Universities. THE WHITE HOUSE WASHINGTON June 12, 1991 MEMORANDUM FOR RALPH GOMORY President's Council of Advisors on Science and Technology (PCAST) FROM: D. ALLAN BROMLEY Duan SUBJECT: TERMS OF REFERENCE FOR PCAST PANEL ON INTERNATIONAL ECONOMIC COMPETITIVENESS You are requested to establish a PCAST Panel on International Economic Competitiveness. The purpose of this Panel is to enable PCAST to advise the President on issues in science and technology that affect U.S. economic competitiveness and quality of life. The private sector today is facing severe competition from abroad where vastly improved industries are emerging even in the most advanced technical areas, and where the more traditional industries have shown great ability to improve their manufacturing process and development technologies. Industry abroad is also making effective use of the high skill level of some of the competitive work forces. In addition there are foreign government policies closely supportive of emerging and strategic technologies and designated industries. While product competitiveness is largely the result of the internal actions of individual firms, firms are also influenced by their surroundings. Familiar examples of this from the economic arena are cost of capital and tax structure. But there are other and more technically oriented aspects of the surroundings as well. First there is the availability of new scientific and engineering knowledge. This is the kind of knowledge that historically has launched whole new industries, radically different materials, or provided new sensors to make possible new instruments, etc. It is a longstanding Federal role to contribute here and many government agencies have focused on this. The Report of the Panel on National Critical Technologies selected 22 technologies deemed critical to national economic prosperity and to our military security. The Department of Defense, in its "Critical Technologies Plan" presents dual-purpose technologies which are adaptable to enhancing the economic competitiveness of the private sector. The Department of Commerce has issued its "Emerging Technologies Report" which identifies 12 emerging technologies. Also, the private sector Council on Competitiveness issued "Gaining New Ground - Technologies Priorities for America's Future" identifies priorities for enhancing economic competitiveness. With regard to technologies, President Bush has stated: "If America is to maintain and strengthen our competitive position, we must continue not only to create new technologies, but to learn to more effectively translate those technologies in commercial products." In addition to new technologies there is a second aspect in the need for improvement of existing product. This includes research on existing process and manufacturing, or improved materials. Sometimes the availability of special and extreme instrumentation is useful. Sometimes it is the support of long range projects beyond a single firm's economic time horizon. Federal examples include Sematech and Brookhaven synchrotron light source. A third competitiveness element is the availability of a technical labor force. This means vocational training as well as the training of scientists and engineers. To the extent that other panels do not deal with some aspects of this, I would like this to be included in the work of his committee. In the areas of new technology, product improvement, and technical workforce I would like the Panel to: 0 Report on how best to enhance the partnership between the government and the private sector aiming at a major improvement in our competitive position, and 0 Discuss actions that the government and the private sector can take, together or separately, aimed at enhancing our competitive posture. The Panel shall submit a preliminary report to the PCAST within 3 months after the Panel's first meeting. The Office of the Associate Director for Industrial Technology, Office of Science and Technology Policy, will sponsor the Panel. Dr. Ralph Gomory will serve as Chairman and Dr. Harold Shapiro will serve as Vice Chairman. Mr. William Snyder will serve as the PCAST Secretariat Representative. Determination I hereby determine that the formation of the PCAST Panel on International Economic Competitiveness is in the public interest in connection with the performance of duties imposed on the Executive Branch by law, and that such duties can best be performed through the advice and counsel of such a group. The Terms of Reference for the PCAST Panel on International Economic Competitiveness include no assignment requiring Panel members to participate personally and substantially in the conduct of any specific procurement, or place any member in the position of acting as a "procurement official." Approved: DAMan D. Allan Bromley Browley Assistant to the President for Science and Technology Jane12,1991 Date P.CAST 11/12/1/91 manufacturing new technology introduction Pas. on sit education available of new capital 95% of RTD theney is spent in unumfocturing sectn quality of the curtsfore mechanical infratracture: machine tools out f date tred to facility productuity build quality cuta product design for easy manufation change in corch behavir just in time close relatives with suppliers -2- Maleolum Baldrige Award E ducation Pay for coop programs Followships for people to came from industry t trach, Trainprope colorane there Eucourozing company training Problem in the Approuticeships cooperative New technology Most start-ap companies = spin-offs SPA : perx can PCAST Panel on Technology, Products, and Manufacturing November 21, 1991 1. Agenda 12:00-1:15 Organization and Selection of Discussion Topics 1:15-2:00 Working Lunch 2:00-4:00 Panel Discussion and Task Assignment 2. Possible Issues Technology Issues Tools and Processes Development Deployment Investment Issues Surces of Capital Tax Policy Management Issues Organization Training Quality Suppliers Concurrent Engineering etc. 08/26/81 10:00 ГАЛ 212 101 0117 ALPRED 1 ATTACHMENT C May, 1990 Competitiveness Subcommittee - Outline of the Area Introduction To study the aspects of competitiveness in which science, technology and engineering play a major role and, where appropriate, suggest Federal action that could contribute to competitiveness. This subcommittee should stress product competitiveness. It is important to our country to be "competitive" in basic science or in new technologies such as high temperature superconductivity, but this subcommittee should relate these areas to product competitiveness. When it can the subcommittee should be free to consider the effect of competitiveness or the lack of it on standard of living and on defense questions. Elements of competitiveness Product competitiveness is largely the result of the internal actions of individual firms. It is a consequence of how well they manufacture, how well they support, use, and manufacture R&D, how well they train and motivate their employees etc. These factors are not easily reached by government action. However firms are also influenced by their surroundings. Examples of this from the economic arena are cost of capital and tax structure, particularly depreciation rules and such items as the R&D tax credit. In the legal area there are the traditional questions relating to anti-trust, as well as the newer areas of product liability and intellectual property. But there are other and more technically oriented aspects of the surroundings as well. 2 I. Availability in the environment of new scientific and engineering knowledge. This is the kind of knowledge that historically has launched whole new industries, radically different materials, or provided new sensors to make possible new instruments etc., etc. This would include in principle really new processes that would eventually find their way into manufacturing although this has not been emphasized in the U.S. It is a longstanding Federal role to contribute here. Federal Precedents. Support of Basic Research - ONR, NSF, NIH etc. Fostering new technologies such as A.I. by support of university or (small) company research. Spinoffs to Industry - NASA Contributions from Federal Labs - - DOE Support of Consortia for very advanced technology - - DARPA Abroad Support of Basic Research - Most advanced countries Fostering new technologies - Japan MITI Support of Consortia for very advanced technology Japan MITI, Europe EUREKA etc. Contributions from Federal Labs - - Japan Example options Federal labs take on advanced commercial technology role Federal support of university-industry interactions. (centers, fellowships to industry) II. Environment supportive to Improvement of Existing Product. This is less a matter of really new scientific knowledge more a question of taking the next engineering step, a step usually aimed at product. Sometimes it is a question of adapting existing knowledge to the special product situation or of transferring existing knowledge to a firm that could use it. Examples would include research on existing process and manufacturing, or improved materials. Sometimes the availability of special and extreme instrumentation is useful. Sometimes it is the support of long range projects that are project oriented but beyond a single firm's economic time horizon. Federal precedents NACA Brookhaven synchrotron radiation Sematech NIST technology transfer centers 3 DARPA support of Gallium Arsenide Foreign Japan - some MITI Consortia Japan - The role of NTT Japan - Financial support of key industries Example options Support of advanced manufacturing centers Support of advanced technology consortia More consistent R&D tax policy. Better Manufacturing depreciation. Support of travel abroad by small businesses to learn competitive techniques. III. Availability of Technical Labor Force. Training and orientation of Scientists and Engineers as well as technically competent people for a production environment. Clearly the availability of good people makes a difference. So does thir attitude and motivation. U.S. attitudes have favored science as high prestige, design engineering as less prestigious and manufacturing is rarely mentioned. However all branches of technical work are currently not much sought after. The Federal government has played a role in this training especially through its connection with research grants and fellowships. Vocational Training in the U.S. is a low prestige and possibly poor content activity. Federal Precedents Fellowships Grants Presidential Young investigator awards Foreign All major countries send students, graduate students, or postdocs to the U.S. in addition to funding their own. Vocational training is sometimes more highly developed. Example options Support of changes in the engineering curriculum Awards "Presidential Manufacturing Fellowship" Presidential speech including importance of manufacturing excellence. Study the need for and state of vocational education. Green Cards for foreign graduates of U.S. Universities. THE WHITE HOUSE WASHINGTON June 12, 1991 MEMORANDUM FOR RALPH GOMORY President's Council of Advisors on Science and Technology (PCAST) FROM: D. ALLAN BROMLEY Duan SUBJECT: TERMS OF REFERENCE FOR PCAST PANEL ON INTERNATIONAL ECONOMIC COMPETITIVENESS You are requested to establish a PCAST Panel on International Economic Competitiveness. The purpose of this Panel is to enable PCAST to advise the President on issues in science and technology that affect U.S. economic competitiveness and quality of life. The private sector today is facing severe competition from abroad where vastly improved industries are emerging even in the most advanced technical areas, and where the more traditional industries have shown great ability to improve their manufacturing process and development technologies. Industry abroad is also making effective use of the high skill level of some of the competitive work forces. In addition there are foreign government policies closely supportive of emerging and strategic technologies and designated industries. While product competitiveness is largely the result of the internal actions of individual firms, firms are also influenced by their surroundings. Familiar examples of this from the economic arena are cost of capital and tax structure. But there are other and more technically oriented aspects of the surroundings as well. First there is the availability of new scientific and engineering knowledge. This is the kind of knowledge that historically has launched whole new industries, radically different materials, or provided new sensors to make possible new instruments, etc. It is a longstanding Federal role to contribute here and many government agencies have focused on this. The Report of the Panel on National Critical Technologies selected 22 technologies deemed critical to national economic prosperity and to our military security. The Department of Defense, in its "Critical Technologies Plan" presents dual-purpose technologies which are adaptable to enhancing the economic competitiveness of the private sector. The Department of Commerce has issued its "Emerging Technologies Report" which identifies 12 emerging technologies. Also, the private sector Council on Competitiveness issued "Gaining New Ground - Technologies Priorities for America's Future" identifies priorities for enhancing economic competitiveness. With regard to technologies, President Bush has stated: "If America is to maintain and strengthen our competitive position, we must continue not only to create new technologies, but to learn to more effectively translate those technologies in commercial products." In addition to new technologies there is a second aspect in the need for improvement of existing product. This includes research on existing process and manufacturing, or improved materials. Sometimes the availability of special and extreme instrumentation is useful. Sometimes it is the support of long range projects beyond a single firm's economic time horizon. Federal examples include Sematech and Brookhaven synchrotron light source. A third competitiveness element is the availability of a technical labor force. This means vocational training as well as the training of scientists and engineers. To the extent that other panels do not deal with some aspects of this, I would like this to be included in the work of his committee. In the areas of new technology, product improvement, and technical workforce I would like the Panel to: 0 Report on how best to enhance the partnership between the government and the private sector aiming at a major improvement in our competitive position, and 0 Discuss actions that the government and the private sector can take, together or separately, aimed at enhancing our competitive posture. The Panel shall submit a preliminary report to the PCAST within 3 months after the Panel's first meeting. The Office of the Associate Director for Industrial Technology, Office of Science and Technology Policy, will sponsor the Panel. Dr. Ralph Gomory will serve as Chairman and Dr. Harold Shapiro will serve as Vice Chairman. Mr. William Snyder will serve as the PCAST Secretariat Representative. Determination I hereby determine that the formation of the PCAST Panel on International Economic Competitiveness is in the public interest in connection with the performance of duties imposed on the Executive Branch by law, and that such duties can best be performed through the advice and counsel of such a group. The Terms of Reference for the PCAST Panel on International Economic Competitiveness include no assignment requiring Panel members to participate personally and substantially in the conduct of any specific procurement, or place any member in the position of acting as a "procurement official." Approved: DAMan D. Allan Bromley Kamley Assistant to the President for Science and Technology Jane12,1991 Date