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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 Policy Council Series: Wethington, Olin, Files Subseries: Subject Files OA/ID Number: 04295 Folder ID Number: 04295-016 Folder Title: Science & Technology [1] Stack: Row: Section: Shelf: Position: G 13 28 4 1 OFFICE OF CABINET AFFAIRS STAFFING MEMORANDUM Date: 4-15-91 Due by: FyI Subject: oniB circulation; H. Science Subcomittee on Technology From: Hollywilliamson Subcommittee markup on Amer. Technology Preemine Act ACTION CONCUR FYI ACTION CONCUR FYI HOLIDAY FITZHENRY seeso2 See 52 DANZANSKY MCMUNN ADAIR PORTER BUCHHOLZ SCHALL CASSE See p.50-52 F SECHLER EVANS WETHINGTON FARRAR WILLIAMSON GUNN HEIMBACH JACKSON Comments: FyI. file: Science Technology j (SOD ( OFFICE OFFICE SECIDENT STATE UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON. D.C. 20503 APR 12 1991 LEGISLATIVE REFERRAL MEMORANDUM LRM #M-155 TO: Legislative Liaison Officer: COMMERCE - - Michael A. Levitt - 377-3151 - 324 CEA - Francine Obermiller - 395-5036 - 242 STATE - Will Davis - 647-4463 - 225 TRANSPORTATION Tom Herlihy - 366-4687 - 226 EDUCATION - John Kristy - 401-2670 - 207 OPM - James N. Woodruff 606-1424 - 331 OSTP - Damar Hawkins - - 456-6272 - 288 USTR David Weiss - 395-3475 - 223 TREASURY - Richard S. Carro - 566-8523 - 228 JUSTICE - Paul McNulty - - 514-2061 - 217 ENERGY - Bob Rabben - 586-6718 - 209 DEFENSE - - Samuel T. Brick, Jr. - 697-1305 - 325 COMPET. COUNCIL - - 456-6614 - NCLIS - Jane Williams - 254-3100 - 278 NASA - Martin P. Kress - 453-1948 - 219 NSF Charles H. Herz - 357-9435 - 248 GSA - Lonnie P. Taylor - 501-0563 - 237 AGRICULTURE - Marvin Shapiro - 382-1272 - 312 HHS - Frances White - 245-7760 - 328 EPA - Thomas C. Roberts - 382-5414 - 326 SUBJECT: H. SCIENCE SUBCOMMITTEE ON TECHNOLOGY Subcommittee Markup on American Technology Preeminence Act of 1991 The subcommittee markup and 3 amendments that were * adopted are attached. The Department of Commerce * is preparing a views letter on this bill for submission to the full Science Committee. It will be circulated for comment shortly. DEADLINE: Thursday APR 18 1991 The Office of Management and Budget requests the views of your agency on the above subject before advising on its relationship to the program of the President, in accordance with OMB Circular A-19. Please advise us if this item will affect direct spending or receipts for purposes of the "Pay-As-You-Go" provisions of Title XIII of the Omnibus Budget Reconciliation Act of 1990. Questions should be referred to Constance BOWERS (395-3457), the legislative analyst/attorney for this item. You may respond to this request for views by: (1) faxing us the attached response sheet; (2) if the response is simple (e.g., concur/no comment), leaving a message with the secretary of the above-named analyst/attorney; (3) calling the analyst/attorney; or (4) sending us a memo or letter. James C. Takes JAMES J. JUKES (for) Assistant Director for Legislative Reference CC: David Gold Nancy Schwartz Ken Kelly Al Hubbard Holly Williamson Rob Chess Boyden Gray Bob Damus Ken Schwartz Norine Noonan Greg Henry Bill Coleman Bob Ridout Bruce McConnell Tom Dorsey Joe Hezir Cora Beebe Rob Fairweather LRM #M-155 RESPONSE TO LEGISLATIVE REFERRAL MEMORANDUM TO: Constance BOWERS Office of Management and Budget Fax Number: 395-3109 Phone Number: 395-3457 (Date) FROM: (Name) (Agency) (Telephone) SUBJECT: H. SCIENCE SUBCOMMITTEE ON TECHNOLOGY Subcommittee Markup on American Technology Preeminence Act of 1991 The following is the response of our agency to your request for views on the above-captioned subject: Concur No objection No comment See proposed edits on pages Other: AMERICAN TECHNOLOGY PREEMINENCE ACT OF 1991 Background and Summary The Subcommittee on Technology and Competitiveness will mark up an updated version of the American Technology Preeminence Act of 1990, which was introduced by Members of the Science, Space, and Technology Committee during the 101st Congress after a series of over twenty hearings related to the status of U.S. technological competitiveness in the world marketplace. The updated version of the bill authorizes appropriations for the Department of Commerce's Technology Administration programs totaling $347,500 for FY 1992, and includes funding for the Office of the Under Secretary for Technology, the National Institute of Standards and Technology, the Advanced Technology Program, and the National Technical Information Service (NTIS). The draft bill also authorizes funding levels for fiscal year 1991 totaling $289,728. For fiscal year 1992, the Administration has proposed $5 million for the Office of the Under Secretary for Technology, which represents an $800,000 increase over FY 1991 appropriated funds; 0 funding for the National Technical Information Service; and $248 million for the National Institute of Standards and Technology, compared to $215 million in FY 1991, which includes $201.8 million for the traditional intramural laboratory research programs and $46.2 million for the extramural outreach programs mandated in the Trade Bill to help U.S. industry to become more competitive. Of the $46.2 million, the Advanced Technology Program has been frozen at the FY 1991 level of $35.9 million, the State Technology Extension Program, funded at $1.3 million in FY 1991, has been phased out, and the Manufacturing Technology Centers, funded at $11.9 million in FY 1991, has been decreased to $10.3 million. Other decreases totaling, $750,000, include -$600,000 for the building and fire research centers, and -$150,000 to phase out the non-energy-related inventions program. For fiscal year 1992, the Subcommittee draft bill proposes $9 million for the Office of the Under Secretary for Technology, which includes $1.5 for the Japanese Technical Literature Program, SI million for the Clearinghouse on State and Local Initiatives, $1.5 million for the National Technical Information Service to carry out its modernization plan, and $6 million for the Office of the Under Secretary. For fiscal year 1991, $6.5 million is proposed. For the National Institute of Standards and Technology, the Subcommittee draft bill for fiscal year 1991 includes $166.2 million for the intramural programs and $117 million for the extramural programs, including $100 million for the Advanced Technology Program. For fiscal year 1992, $211 million is proposed for the intramural programs and $127.5 million for the extramural programs, including $100 million for the Advanced Technology Program. This reflects the concern of various Committee Members that NIST has been grossly underfunded over the years, given its major responsibilities for support of this Country's industrial base. During the 1980s, NIST programs have been frozen more often than not without adjustments for inflation, and in terms of real purchasing power they have shrunk significantly. NIST's metrology research provides the measurement base American business needs to manufacture the quality products now required to compete in the world marketplace. It also reflects the Administration's decision that NIST's long-term budget should double by 1996. NIST'S own budget proposal to the Department of Commerce recommended $436.5 million for NIST, including $110 million for the Advanced Technology Program. The American Technology Preeminence Act also establishes a Presidential Commission on Reducing Capital Costs for Emerging Technology to recommend legislative changes to lower the cost of capital in developing technologies; a Commission on Research, Development Technology Utilization and Government Procurement Policy to recommend changes in government purchasing law; establishes a High Resolution Information Systems Board to increase the cooperation of Government and industry in high resolution information systems; strengthens the biennial OSTP report which identifies critical civilian technologies which will be important to the U.S. economy during the ten years following the report; and authorizes a number of studies to address technology policy issues. Recommended language and technical changes have also been made to the bill to conform it to present public law. COMPETITIVENESS BILL SUMMARY AMERICAN TECHNOLOGY PREEMINENCE ACT OF 1991 Title 1. This title authorizes each of the programs of the Technology Administration. For the activities of the Office of the Under Secretary For Technology, $6.5 million is authorized for FY 1991, which includes $1.3 million for the Office of the Under Secretary, $2.7 million for Technology Policy, $1.0 million for Japanese Technical Literature, $1.0 million for the Clearinghouse on State and Local Initiatives and $500,000 for the modernization of the National Technical Information Service. For FY 1992, $9.0 million is authorized which includes, $1.6 million for the Office of the Under Secretary, $3.4 million for Technology Policy, $1.5 million for Japanese Technical Literature, $1.0 million for the Clearinghouse on State and Local Initiatives, and $1.5 million is provided for the modernization of the National Technical Information Service. For the National Institute of Standards and Technology (NIST), the authorization levels for the intramural scientific and technical research and services activities are $166.2 million for FY 1991 and $211 million for FY 1992, and for the extramural industrial technology services program, $117 million for FY 1991 and $127.5 million for FY 1992, which includes $15 million in FY 1991 and $25 million in FY 1992 for Regional Centers for the Transfer of Manufacturing Technology with the assumption that new centers will be started each of the two fiscal years; $2 million in FY 1991 and $2.5 million in FY 1992 is provided for the State Technology Extension Program; and $100 million is authorized for each of the 1991 and 1992 fiscal years for the Advanced Technology Program. This title also provides start-up matching finds for a program to place U.S. standards experts in developing nations to make sure that those nation's standards codes permit the marketing of U.S.-designed products. The fire research and building technology programs are combined for administrative purposes only, with separate budget accounts to be maintained, and a report on the results of the combination is required. A provision authorizing NIST and the Federal Aviation Administration to undertake a joint research program to develop an all-fire resistant aircraft cabin interior has been added. The NIST Organic Act is amended to provide NIST with authority to manage its scientific and technical fellowship programs and to recruit and employ highly qualified foreign nationals who have advanced degrees from U.S. universities and have filed to become U.S. citizens. The National Advisory Commission on Semiconductors is extended through FY 1992. 1 Title II. This title is cited as the "Emerging Technologies and Advanced Technology Program Amendments Act of 1991 and provides statutory language for assistance to solve generic technology and manufacturing problems in emerging technology fields including high resolution information systems and advanced materials research and development, but specific spending levels are not designated for specific technologies. Conditions under which a company can participate in the Advanced Technology Program are set out. A comprehensive report is required 4 years after enactment of the law of the activities of the Advanced Technology Program. Title III. This title makes the funding for the Federal Laboratory Consortium permanent, extends federal patent law to the legislative branch, and authorizes appropriated funds to carry out administrative responsibililties under the Malcolm Baldrige Quality Improvement Act. Title IV. A Presidential Commission on Reducing Capital Costs for Emerging Technology is established to develop legislative recommendations to increase the competitiveness of U.S. industry by encouraging investment in quality, product and process improvements, and new product development and marketing. A report to the President and the Congress is required one year after enactment of the Act. Title V. This title establishes a High Resolution Information Systems Board within the Office of Science and Technology Policy to increase the cooperation of Government and industry in high resolution information systems. This title strengthens the biennial OSTP report which identifies critical civilian technologies which will be important to the U.S. economy during ten years following the report. It also requires reports on quality, on competitive research, on international standards, and on coordination of high resolution information system purchases by the Government. A Commission on Research, Development, Technology Utilization, and Government Procurement Policy, which will make recommendations on how to change governmental purchasing law and procedures to ensure that emerging technologies are encouraged through these purchases, is established. This title also requires the Department of Commerce to study the feasibility of creating a Federal On-line Information Product Catalog to be an authoritative register of governmental information products and services disseminated by the Federal government and to assist agencies and the public in locating Federal government information. The National Academies are asked to undertake a review of U.S. activities related to testing and certification of products made for export. Title VI. This title requires NIST to implement a voluntary accreditation program to be used in the evaluation and 2 detection of lead in paint films, soil and dust, and to establish performance criteria and standards for lead paint encapsulants and strippers within 2 years of enactment of this Act. 3 -/-/ TB081 H. Science S/c on Fennology HLC 4/10/91 Markey 102D CONGRESS 1ST SESSION H. R. IN THE HOUSE OF REPRESENTATIVES Mr. VALENTINE introduced the following bill; which was referred to the Committee on A BILL To enhance the position of United States industry through application of the results of Federal research and development, and for other purposes. I Be it enacted by the Senate and House of Representatives 2 of the United States of America in Congress assembled, TB081 4/10/91 H. Science Subentlee on 2 Technology Markup 1 SECTION 1. SHORT TITLE. 2 This Act may be cited as the American Technology 3 Preeminence Act of 1991 4 TITLE I--DEPARTMENT OF COMMERCE RESEARCH AND TECHNOLOGY 5 SEC. 101. SHORT TITLE. 6 This title may be cited as the Technology 7 Administration Authorization Act of 1991 8 SEC. 102. STATEMENT OF POLICY. 9 Congress finds that in order to help United States 10 industries to speed the development of new products and 11 processes so as to maintain the economic competitiveness of 12 the Nation, it is necessary to strengthen the programs and 13 activities of the Department of Commerce Technology 14 Administration and National Institute of Standards and 15 Technology. 16 SEC. 103. TECHNOLOGY ADMINISTRATION. 17 (a) FISCAL YEAR 1991. There are authorized to be 18 appropriated to the Secretary of Commerce (hereafter in this 19 Act referred to as the Secretary ), to carry out the 20 activities of the Under Secretary for Technology (hereafter 21 in this Act referred to as the Under Secretary ) and the 22 Assistant Secretary for Technology Policy, $6,500,000 for 23 fiscal year 1991, which shall be available for the following 24 line items: TB081 3 1 (1) Office of the Under Secretary, $1,300,000. 2 (2) Technology Policy, $2,700,000. 3 (3) Japanese Technical Literature, $1,000,000. 4 (4) Clearinghouse on State and Local Initiatives on 5 Productivity, Technology, and Innovation, $1,000,000. 6 (5) National Technical Information Service, $500,000 7 to carry out the modernization plan described in section 8 212 (f) (3) (D) of the National Technical Information Act of 9 1988 (15 U.S.C. 3704b (f) (3) (D) 10 (b) FISCAL YEAR 1992.--There are authorized to be 11 appropriated to the Secretary, to carry out the activities of 12 the Under Secretary and the Assistant Secretary for 13 Technology Policy, $9,000,000 for fiscal year 1992, which 14 shall be available for the following line items: 15 (1) Office of the Under Secretary, $1,600,000. 16 (2) Technology Policy, $3,400,000. 17 (3) Japanese Technical Literature, $1,500,000. 18 (4) Clearinghouse on State and Local Initiatives on -19 Productivity, Technology, and Innovation, $1,000,000. 20 (5) National Technical Information Service, 21 $1,500,000 to carry out the modernization plan described 22 in section 212 ( f ) (3) (D) of the National Technical 23 Information Act of 1988 (15 U.S.C. 3704b ( f ) (3) (D) 24 (c) OPERATING COSTS.--Operating costs for the National 25 Technical Information Service associated with the TB081 4 1 acquisition, processing, storage, bibliographic control, and 2 archiving of information and documents shall be recovered 3 primarily through the collection of fees. 4 (d) REPORT AND CERTIFICATION TO CONGRESS. Within 90 days 5 after the date of enactment of this Act, the Secretary of 6 Commerce shall submit to Congress a report which-- 7 (1) describes the Department of Commerce's response 8 to the Inspector General's Report No. ATD-024-0-001; 9 (2) includes a revised detailed modernization plan 10 for the National Technical Information Service; 11 (3) contains a business plan for the National 12 Technical Information Service which includes detailed 13 profit and loss analysis for groups of products and 14 services and for major market segments; and 15 (4) certifies that the National Technical Information 16 Service has-- 17 (A) employed a chief financial officer who is a 18 certified public accountant with experience in the 19 dissemination of scientific and technical 20 information; and 21 (B) begun taking reasonable steps toward 22 strengthening its accounting system in response to 23 the Inspector General's report described in paragraph 24 (1). 25 (e) TECHNICAL AMENDMENT. -Section 5422(a) of the Omnibus TB081 5 1 Trade and Competitiveness Act of 1988 (15 U.S.C. 4603a(a)) 2 and section 273(c)(4) of the National Defense Authorization 3 Act for Fiscal Years 1988 and 1989 (15 U.S.C. 4603(c)(4)) are 4 each amended by striking Economic Affairs and inserting 5 in lieu thereof Technology . 6 SEC. 104. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY. 7 (a) FISCAL YEAR 1991.-(1) There are authorized to be 8 appropriated to the Secretary, to carry out the intramural 9 scientific and technical research and services activities of 10 the National Institute of Standards and Technology (hereafter II in this Act referred to as the Institute ), $166,228,000 12 for fiscal year 1991, which shall be available for the 13 following line items: 14 (A) Electronics and Electrical Measurements, I5 $21,273,000. 16 (B) Manufacturing Engineering, $8,266,000. 17 (C) Chemical Science and Technology, $18,617,000. 18 (D) Physics, $25,522,000. 19 (E) Materials Science and Engineering, $26,495,000. 20 (F) Building and Fire Research, $9,821,000. 21 (G) Computer Systems, $11,819,000. 22 (H) Applied Mathematics and Scientific Computing, 23 $5,847,000. 24 (I) Technology Assistance, $8,978,000. 25 (J) Research Support Activities, $29,590,000. TB081 6 1 (2) (A) Of the total of the amounts authorized under 2 paragraph (1), $2,000,000 are authorized only for steel 3 technology. 4 (B) Of the amount authorized under paragraph (1) (I) 5 (i) $150,000 are authorized only for the evaluation 6 of nonenergy-related inventions and related technology 7 extension activities; 8 (ii) $250,000 are authorized only for Institute 9 participation in the pilot program established under 10 subsection (e); and II (iii) $1,700,000 are authorized only for the 12 Institute S management of the extramural funding programs 13 authorized under section 105. 14 (C) Of the total amount authorized under paragraph IS (1) (J), $7,223,000 are authorized only for the technical 16 competence fund. 17 (b) FISCAL YEAR 1992.--(1) There are authorized to be 18 appropriated to the Secretary, to carry out the intramural $19 scientific and technical research and services activities of 20 the Institute, $211,000,000 for fiscal year 1992, which shall 21 be available for the following line items: 22 (A) Electronics and Electrical Measurements, 23 $34,000,000. 24 (B) Manufacturing Engineering, $13,500,000. 25 (C) Chemical Science and Technology, $22,000,000. TB081 7 1 (D) Physics, $27,000,000. 2 (E) Materials Science and Engineering, $30,000,000. 3 (F) Building and Fire Research, $12,300,000. 4 (G) Computer Systems, $16,000,000. 5 (H) Applied Mathematics and Scientific Computing, 6 $6,500,000. 7 (I) Technology Assistance, $11,000,000. 8 (J) Research Support Activities, $38,700,000. 9 (2) (A) Of the total of the amounts authorized under 10 paragraph (1), $2,000,000 are authorized only for steel 11 technology. 12 (B) Of the amount authorized under paragraph (1)(I)-- 13 (i) $500,000 are authorized only for the evaluation 14 of nonenergy-related inventions and related technology 15 extension activities; 16 (ii) $250,000 are authorized only for Institute 17 participation in the pilot program established under 18 subsection (e); and 19 (iii) $2,700,000 are authorized only for the 20 Institute's management of the extramural funding programs 21 authorized under section 105. 22 (C) Of the total amount authorized under paragraph 23 (1) (J), $7,565,000 are authorized only for the technical 24 competence fund. 25 (c) TRANSFERS.-- (1) Funds may be transferred among the TB081 8 1 line items listed in subsection (a) (1) and among the line 2 items listed in subsection (b) (1), so long as the net funds 3 transferred to or from any line item do not exceed 10 percent 4 of the amount authorized for that line item in such 5 subsection and the Committee on Commerce, Science, and 6 Transportation of the Senate and the Committee on Science, 7 Space, and Technology of the House of Representatives are 8 notified in advance of any such transfer. 9 (2) The Secretary may propose transfers to or from any 10 line item listed in subsection (a) (1) or subsection (b) (1) II exceeding 10 percent of the amount authorized for such line 12 item, but such proposed transfer may not be made unless-- 13 (A) a full and complete explanation of any such 14 proposed transfer and the reason therefor are transmitted 15 in writing to the Speaker of the House of 16 Representatives, the President of the Senate, and the I7 appropriate authorizing Committees of the House of 18 Representatives and the Senate, and -19 (B) 30 calendar days have passed following the 20 transmission of such written explanation. 21 (d) RELATION TO OTHER AUTHORIZATIONS. Except for 22 authorizations provided in the Omnibus Trade and 23 Competitiveness Act of 1988 (Public Law 100-418; 102 Stat. 24 1448) and the Steel and Aluminum Energy Conservation and 25 Technology Competitiveness Act of 1988 (15 U.S.C. 5101 et TB081 9 1 seq.), this Act contains the complete authorizations of 2 appropriations for the Institute for fiscal year 1992. 3 (e) PILOT PROGRAM. Pursuant to the authorizations 4 contained in subsections (a) (1) (I) and (b) (1) (I), the 5 Secretary is authorized to pay the Federal share of the cost 6 of establishing and carrying out a pilot program under 7 section 112 of the National Institute of Standards and 8 Technology Authorization Act for Fiscal Year 1989 (15 U.S.C. 9 272 note). The purpose of the pilot program is to assist a 10 country or countries that have requested assistance from the 11 United States in the development of comprehensive industrial 12 standards by providing the continuous presence of United 13 States personnel on-site for a period of 2 or more years to 14 provide such assistance and by providing, as necessary, 15 additional technical support from within the Institute. Such 16 funds may be obligated for such purpose only to the extent of 17 matching funds from sources outside the Federal Government. 18 (f) CONSTRUCTION OF FACILITIES. Section 14 of the 19 National Institute of Standards and Technology Act (15 U.S.C. 20 278d) is amended by striking herein: and all that 21 follows, and inserting in lieu thereof herein. 22 (g) FIRE AND BUILDING PROGRAMS. The fire research and 23 building technology programs of the Institute shall be 24 combined for administrative purposes only, and separate 25 budget accounts for fire research and building technology TB081 10 1 shall be maintained. No later than December 31, 1991, the 2 Secretary, acting through the Director of the Institute, 3 shall report to Congress on the results of the combination, 4 on efforts to preserve the integrity of the fire research and 5 building technology programs, on the long-range basic and 6 applied research plans of the two programs, on procedures for 7 receiving advice on fire and earthquake research priorities 8 from constituencies concerned with public safety, and on the 9 relation between the combined program at the Institute and 10 the United States Fire Administration. 11 (h) AIRCRAFT FIRE RESEARCH (1) The Secretary, acting 12 through the Director of the Institute, and the Administrator 13 of the Federal Aviation Administration shall jointly prepare 14 a plan for a research program to develop the fire technology 15 and materials necessary for the development of an all fire 16 resistant aircraft cabin interior. Such plan shall include 17 funding requirements, a brief description of the necessary 18 research projects, and a schedule for completion of each such 19 research project, and shall be submitted to the Congress 20 within 1 year after the date of enactment of this Act. 21 (2) Subject to the availability of appropriations, the 22 Secretary, acting through the Director of the Institute, and 23 the Administrator of the Federal Aviation Administration 24 shall jointly carry out the research program described in the 25 plan prepared under paragraph (1). TB081 11 I (i) EDUCATIONAL PROGRAMS. (1) Section 18 of the National 2 Institute of Standards and Technology Act (15 U.S.C. 278g-1)) 3 is amended by striking the period at the end of the first 4 sentence and inserting in lieu thereof , and to United 5 States citizens for research and technical activities on 6 Institute programs. . 7 (2) Section 17 of the National Institute of Standards and 8 Technology Act (15 U.S.C. 278g) is amended by adding at the 9 end the following new subsection: 10 (d) For any scientific and engineering disciplines for 11 which there is a shortage of suitably qualified and available 12 United States citizens and nationals, the Secretary is 13 authorized to recruit and employ in scientific and 14 engineering fields at the Institute foreign nationals who 15 have been lawfully admitted to the United States for 16 permanent residence under the Immigration and Nationality Act 17 and who intend to become United States citizens. Employment 18 of a person under this paragraph shall not be subject to the 19 provisions of title 5, United States Code, governing 20 employment in the competitive service, or to any prohibition 21 in any other Act against the employment of aliens, or against 22 the payment of compensation to them. 23 SEC. 105. EXTRAMURAL PROGRAMS OF THE INSTITUTE. 24 (a) FISCAL YEAR 1991. In addition to any sums otherwise 25 authorized under this Act, there are authorized to be TB081 12 1 appropriated to the Secretary, to carry out the extramural 2 industrial technology services programs of the Institute 3 created under sections 25, 26, and 28 of the National 4 Institute of Standards and Technology Act (15 U.S.C. 278k, 5 2781, and 278n), $117,000,000 for fiscal year 1991, which 6 shall be available for the following line items: 7 (1) Regional Centers for the Transfer of 8 Manufacturing Technology, $15,000,000. 9 (2) State Technology Extension Program (carried out 10 under section 5121 5121(d) (d) of the Omnibus Trade and 11 Competitiveness Act of 1988), $2,000,000. 12 (3) Advanced Technology Program, $100,000,000. 13 (b) FISCAL YEAR 1992.-In addition to any sums otherwise 14 authorized under this Act, there are authorized to be 15 appropriated to the Secretary, to carry out the extramural 16 industrial technology services programs of the Institute 17 created under sections 25, 26, and 28 of the National 18 Institute of Standards and Technology Act (15 U.S.C. 278k, :19 2781, and 278n), $127,500,000 for fiscal year 1992, which 20 shall be available for the following line items: 21 (1) Regional Centers for the Transfer of 22 Manufacturing Technology, $25,000,000. 23 (2) State Technology Extension Program, $2,500,000. 24 (3) Advanced Technology Program, $100,000,000. 25 (c) LIMITATION.- No funds are authorized under this TB081 13 1 section for any project under the extramural programs of the 2 Institute which have not been competitively reviewed through 3 the merit review processes required by the National Institute 4 of Standards and Technology Act (15 U.S.C. 271 et seq.). 5 (d) AMENDMENTS TO EXTENSION PROGRAM. Section 5121 5121(b) (b) of 6 the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 7 2781 note) is amended by striking paragraph (5). 8 (e) ADVISORY COMMITTEE. Section 5142 5142(f) (f) of the Omnibus 9 Trade and Competitiveness Act of 1988 (15 U.S.C 4632(£)) is 10 amended by striking and 1990 and inserting in lieu 11 thereof 1990, 1991, and 1992 12 SEC. 106. SALARY ADJUSTMENTS. 13 In addition to any sums otherwise authorized by this Act, 14 there are authorized to be appropriated to the Secretary for 15 fiscal years 1991 and 1992 such additional sums as may be 16 necessary to make any adjustments in salary, pay, retirement, 17 and other employee benefits which may be provided for by law. 18 SEC. 107. AVAILABILITY OF APPROPRIATIONS. -19 Appropriations made under the authority provided in this 20 Act shall remain available for obligation, for expenditure, 21 or for obligation and expenditure for periods specified in 22 the Acts making such appropriations. 23 SEC. 108. BUY-AMERICAN PROVISIONS. 24 (a) RESTRICTIONS ON CONTRACT AWARDS. No contract or 25 subcontract made with funds authorized under this title may TB081 14 1 be awarded for the procurement of an article, material, or 2 supply produced or manufactured in a foreign country whose 3 government unfairly maintains in government procurement a 4 significant and persistent pattern or practice of 5 discrimination against United States products or services 6 which results in identifiable harms to United States 7 businesses, as identified by the President pursuant to 8 subsection (g) (1) (A) of section 305 of the Trade Agreements 9 Act of 1979 (19 U.S.C. 2515 (g) (1) (A). Any such determination 10 shall be made in accordance with such section 305. 11 (b) PROHIBITION AGAINST FRAUDULENT USE OF MADE IN 12 AMERICA LABELS. If it has been finally determined by a 13 court or a Federal agency that any person intentionally 14 affixed a label bearing a Made in America inscription, or 15 an inscription with the same meaning, to any product sold in 16 or shipped to the United States that is not made in the 17 United States, that person shall be ineligible to receive any 18 contract or subcontract from the Department of Commerce, J9 pursuant to the debarment, suspension, and ineligibility 20 procedures in subpart 9.4 of chapter 1 of title .48, Code of 21 Federal Regulations. 22 (c) BUY-AMERICAN Requirement. (1) The Secretary is 23 authorized to award to a domestic firm a contract for the 24 purchase of goods that, under the use of competitive 25 procedures, would be awarded to a foreign firm, if-- TB081 15 1 (A) the final product of the domestic firm will be 2 completely assembled in the United States; 3 (B) when completely assembled, more than 50 percent 4 of the final product of the domestic firm will be 5 domestically produced: and 6 (C) the difference between the bids submitted by the 7 foreign and domestic firms is not more than 6 percent. 8 (2) This subsection shall not apply to the extent to 9 which-- 10 (A) in the opinion of the Secretary, after taking 11 into consideration international obligations and trade 12 relations, such applicability would not be in the public 13 interest; 14 (B) in the opinion of the Secretary, after 15 consultation with the Secretary of Defense, compelling 16 national security considerations require otherwise; or 17 (C) the President determines that such an award would 18 be in violation of the General Agreement on Tariffs and 19 Trade or an international agreement to which the United 20 States is a party. 21 (3) This subsection shall apply only to contracts made 22 for which-- 23 (A) amounts are authorized by this title to be made 24 available; and 25 (B) solicitations for bids are issued after the date TB081 16 1 of enactment of this Act. 2 (4) The Secretary, before January 1, 1993, shall report 3 to the Congress on contracts covered under this subsection-- 4 (A) entered into with foreign firms pursuant to a 5 determination made under paragraph (2) of this 6 subsection; and 7 (B) awarded to domestic firms pursuant to paragraph 8 (1) of this subsection, in fiscal years 1991 and 1992. 9 (5) For purposes of this subsection-- 10 (A) the term domestic firm means a business 11 entity that is incorporated in the United States and that 12 conducts business operations in the United States; and 13 (B) the term foreign firm means a business entity 14 not described in subparagraph (A). 15 TITLE II--ADVANCED TECHNOLOGY PROGRAM AMENDMENTS 16 SEC. 201. EMERGING TECHNOLOGIES RESEARCH AND DEVELOPMENT. 17 (a) SHORT TITLE.--This title may be cited as the 18 Emerging Technologies and Advanced Technology Program 19 Amendments Act of 1991 20 (b) FINDINGS AND PURPOSES--(1) The Congress finds that-- 21 (A) technological innovation and its profitable 22 inclusion in commercial products are critical components 23 of the ability of the United States to raise the living 24 standards of Americans and to compete in world markets; 25 (B) maintaining viable United States-based high TB081 17 1 technology industries is vital to both the national 2 security and the economic well-being of the United 3 States; 4 (C) the Department of Commerce has reported that the 5 United States is losing or losing badly, relative to 6 Japan and Europe, in many important emerging technologies 7 and risks losing much of the $350 billion United States 8 market and $1 trillion world market expected to develop 9 by the year 2000 for products based on emerging 10 technologies; 11 (D) it is in the national interest for the Federal 12 Government to encourage and, in selected cases, provide 13 limited financial assistance to industry-led private 14 sector efforts to increase research and development in 15 economically critical areas of technology; 16 (E) joint ventures are a particularly effective and 17 appropriate way to pool resources to conduct research 18 that no single company is likely to undertake but which 19 will create new generic technologies that will benefit an 20 entire industry and the welfare of the Nation; 21 (F) it is vital that industry within the United 22 States attains a leadership role and capability in 23 development, design, and manufacturing in fields such as 24 high-resolution information systems, advanced 25 manufacturing, and advanced materials; and TB081 18 1 (G) the Advanced Technology Program, established 2 under section 28 of the National Institute of Standards 3 and Technology Act (15 U.S.C. 278n), is the appropriate 4 vehicle for the United States Government to provide 5 limited assistance to joint development within the United 6 States of new high technology capabilities in fields such 7 as high-resolution information systems, advanced 8 manufacturing technology, and advanced materials, and can 9 help encourage United States industry to work together on 10 problems of mutual concern. 11 (2) The purposes of this section are-- 12 (A) to strengthen the Advanced Technology Program 13 created under section 28 of the National Institute of 14 Standards and Technology Act (15 U.S.C. 278n), and to 15 provide improved guidelines for the allocation of 16 Advanced Technology Program funds appropriated under the 17 authorizations contained in section 105 of this Act; 18 (B) to promote and assist in the development of 19 advanced technologies and the generic application of such 20 technologies to civilian products, processes, and 21 services; 22 (C) to improve the competitive position of United 23 States industry by supporting industry-led research and 24 development projects in areas of emerging technology 25 which have substantial potential to advance the economic TB081 19 1 well-being and national security of the United States, 2 such as high-resolution information systems, advanced 3 manufacturing technology, and advanced materials; and 4 (D) to support projects that range from idea 5 exploration to prototype development and address long- 6 term, high-risk areas of technological research, 7 development, and application that are not otherwise being 8 adequately developed by the private sector, but are 9 likely to yield important benefits to the Nation. 10 (c) ADVANCED TECHNOLOGY PROGRAM.--Section 28 of the 11 National Institute of Standards and Technology Act (15 U.S.C. 12 278n) is amended-- 13 (1) in subsection (b) (1) (B), by inserting through 14 grants, cooperative agreements, or contracts after 15 such joint ventures ; 16 (2) in subsection (b) (2), by inserting provide 17 grants to and before enter into contracts ; 18 (3) by amending subsection (d) (2) to read as follows: 19 (2) In the case of joint ventures, the Program 20 shall not make an award unless the award will facilitate 21 the formation of a joint venture or the initiation of a 22 new research and development project by an existing joint 23 venture. ; 24 (4) in subsection (d) (3), by striking cooperative 25 agreement both places it appears and inserting in lieu TB081 20 1 thereof award ; 2 (5) by amending subsection (d) (7) to read as follows: 3 (7) Each agreement with any business or joint 4 venture that receives an award under this section shall 5 specify a test, as mutually agreed to by the Secretary 6 and the recipient, for determining whether the venture or 7 project shall be deemed to have been a commercial success 8 and providing that in such event there will be 9 appropriate recoupment to the Federal Government. Such 10 recoupment shall not exceed the principal amount, with 11 reasonable interest, of any monetary awards provided to 12 such recipient under the Program. The Secretary shall 13 issue regulations establishing guidelines for agreement 14 provisions stating the circumstances under which a 15 venture or project will be found to be a commercial 16 success and the general procedures and terms for 17 recoupment in such cases. ; 18 (6) by adding at the end of subsection (d) the 19 following new paragraphs: 20 (10) A company shall be eligible to receive 21 financial assistance under this section only if-- 22 (A) the Secretary finds that the company S 23 - participation in the Program would be in the economic 24 interest of the United States, as evidenced by 25 investments in the United States in research, TB081 21 1 development, and manufacturing (including, for 2 example, the manufacture of major components or 3 subassemblies in the United States); significant 4 contributions to employment in the United States; and 5 agreement with respect to any technology arising from 6 assistance provided under this section to promote the 7 manufacture within the United States of products 8 resulting from that technology (taking into account 9 the goals of promoting the competitiveness of United 10 States industry), and to procure parts and materials 11 from competitive suppliers; and 12 (B) either-- 13 (i) the company is a United States-owned 14 company; or 15 (ii) the Secretary finds that the company 16 has a parent company which is incorporated in a 17 country which affords to United States-owned 18 companies opportunities, comparable to those 19 afforded to any other company, to participate in 20 any joint venture similar to those authorized 21 under this Act; affords to United States-owned 22 companies local investment opportunities 23 comparable to those afforded to any other 24 company; and affords adequate and effective 25 protection for the intellectual property rights TB081 22 1 of United States-owned companies. 2 (11) Grants, contracts, and cooperative agreements 3 under this section shall be designed to support projects 4 which are high risk and which have the potential for 5 eventual substantial widespread commercial application. 6 In order to receive a grant, contract, or cooperative 7 agreement under this section, a research and development 8 entity shall demonstrate to the Secretary the requisite 9 ability in research and technology development and 10 management in the project area in which the grant, 11 contract, or cooperative agreement is being sought. 12 (12) (A) Title to any intellectual property arising 13 from assistance provided under this section shall vest in 14 a company or companies incorporated in the United States. 15 The United States may reserve a nonexclusive, 16 nontransferable, irrevocable paid-up license, to have 17 practiced for or on behalf of the United States, in 18 connection with any such intellectual property, but shall 19 not, in the exercise of such license, publicly disclose 20 proprietary information related to the license. Title to 21 any such intellectual property shall not be transferred 22 or passed, except to a company incorporated in the United 23 States, until the expiration of the first patent obtained 24 in connection with such intellectual property. 25 (B) For purposes of this paragraph, the term TB081 23 1 intellectual property means an invention patentable 2 under title 35, United States Code, or any patent on such 3 an invention. 4 (C) Nothing in this paragraph shall be construed to 5 prohibit the licensing to any company of intellectual 6 property rights arising from assistance provided under 7 this section. ; 8 (7) by amending subsection (e) to read the follows: 9 (e) The Secretary may, 30 days after notice to 10 Congress, suspend a company or joint venture from receiving 11 continued assistance under this section if the Secretary 12 determines that the company, the country of incorporation of 13 the company or a parent company, or the joint venture has 14 failed to satisfy any of the criteria set forth in subsection 15 (d) (10), and that it is in the national interest of the 16 United States to do so. ; and 17 (8) by inserting after subsection (e) the following 18 new subsections: .. 19 (f) When reviewing private sector requests for 20 Department of Commerce assistance to proposed joint ventures, 21 and when monitoring the progress of assisted joint ventures, 22 the Secretary shall, as appropriate, coordinate with the 23 Secretary of Defense and other senior Federal officials to 24 ensure cooperation and coordination in Federal technology 25 programs and to avoid unnecessary duplication of effort. The TB081 24 1 Secretary is authorized to work with the Secretary of Defense 2 and other appropriate Federal officials to form interagency 3 working groups or special project offices to coordinate 4 Federal technology activities. 5 (g) In order to analyze the need for and value of joint 6 ventures in specific technical fields, to evaluate any joint 7 ventures requesting the Secretary assistance, or to monitor 8 the progress of any joint venture which receives Federal 9 funds pursuant to the authorizations contained in this 10 section, the Secretary, the Under Secretary, and the Director 11 may organize and seek advice from such industry advisory 12 committees as they consider useful and appropriate. 13 (h) Up to 10 percent of the funds appropriated for 14 carrying out this section may be used for standards 15 development and technical activities by the Institute in 16 support of the purposes of this section. 17 (i) As used in this section-- 18 ``(1) the term high-resolution information systems :19 means equipment and techniques required to create, 20 transmit, receive, display, process, record, store, 21 recover, and play back high resolution images and 22 accompanying sound; 23 (2) the term advanced manufacturing technology 24 means numerically-controlled machine tools, robots, 25 automated process control equipment, computerized TB081 25 I flexible manufacturing systems, associated computer 2 software, and other technology for improving 3 manufacturing and industrial processes; 4 (3) the term advanced materials means a field of 5 research including the study of composites, ceramics, 6 metals, polymers, superconducting materials, materials 7 produced through biotechnology, and materials production 8 technologies, including coated systems, that provide the 9 potential for significant advantages over existing 10 materials; 11 ``(4) the term joint venture means any group of 12 activities, including attempting to make, making, or 13 performing a contract, by two or more persons for the 14 purpose of-- 15 (A) theoretical analysis, experimentation, or 16 systematic study of phenomena or observable facts; 17 (B) the development or testing of basic 18 engineering techniques; 19 (C) the extension of investigative finding or 20 theory of a scientific or technical nature into 21 practical application for experimental and 22 demonstration purposes, including the experimental 23 production and testing of models, prototypes, 24 equipment, materials, and processes; 25 (D) the collection, exchange, and analysis of TB081 26 1 research information; 2 (E) the production of any product, process, or 3 service; or 4 (F) any combination of the purposes specified 5 in subparagraphs (A), (B), (C), (D), and (E), 6 and may include the establishment and operation of 7 facilities for the conducting of research, the conducting 8 of such venture on a protected and proprietary basis, and 9 the prosecuting of applications for patents and the 10 granting of licenses for the results of such venture; 11 (5) the term United States-owned company means a 12 company that has majority ownership or control by 13 individuals who are citizens of the United States; and 14 (6) the term foreign-owned company means a 15 company other than a United States-owned company. 16 (d) EFFECTIVE DATE. The amendments in subsection (c) 17 shall take effect immediately upon enactment; however, the 18 amendments shall not apply to applications submitted in 19 response to the Federal Register Invitation for Proposals 20 dated July 24, 1990, or awards or other assistance granted 21 pursuant to that notice. 22 (e) MANAGEMENT COSTS.--Section 2 of the National 23 Institute of Standards and Technology Act (15 U.S.C. 272) is 24 amended by adding at the end thereof the following new 25 subsection-- TB081 27 1 (d) In carrying out the extramural funding programs of 2 the Institute, including the programs established under 3 sections 25, 26, and 28 of this Act, the Secretary may retain 4 reasonable amounts of any funds appropriated pursuant to 5 authorizations for these programs in order to pay for the 6 Institute's management of these programs. 7 (f) COMPREHENSIVE REPORT.-- The Secretary of Commerce 8 shall, not later than 4 years after the date of enactment of 9 this Act, submit to each House of the Congress and the 10 President a comprehensive report on the results of the 11 Advanced Technology Program established under section 28 of 12 the National Institute of Standards and Technology Act (15 13 U.S.C. 278n), including any activities in the areas of high- 14 resolution information systems, advanced manufacturing 15 technology, and advanced materials. 16 TITLE III--AMENDMENTS TO THE STEVENSON-WYDLER TECHNOLOGY 17 INNOVATION ACT OF 1980 18 SEC. 301. FEDERAL LABORATORY CONSORTIUM. :19 (a) Section 11 (e) (7) of the Stevenson-Wydler Technology 20 Innovation Act of 1980 (15 U.S.C. 3710(e) (7)) is amended-- 21 (1) in subparagraph (A), by striking ``a fiscal year 22 referred to in subparagraph (B) (ii)" and inserting in 23 lieu thereof any fiscal year ; and 24 (2) by amending subparagraph (B) to read as follows: 25 (B) A transfer shall be made by any Federal agency TB081 28 1 under subparagraph (A), for any fiscal year, only if the 2 amount so transferred by that agency (as determined under 3 such subparagraph) would exceed $10,000. 4 (b) Section 11 (e) (8) of the Stevenson-Wydler Technology 5 Innovation Act of 1980 (15 U.S.C. 3710(e) (8)) is repealed. 6 SEC. 302. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS. 7 (a) Section 12 (d) (1) of the Stevenson-Wydler Technology 8 Innovation Act of 1980 (15 U.S.C. 3710a(d)(1)) is amended by 9 inserting intellectual property, after equipment,' 10 both places it appears. 11 (b) Within 6 months after the date of enactment of this 12 Act, the Secretary shall report to the Congress on the 13 advisability of authorizing a new form of cooperative 14 research and development agreement which would permit Federal 15 contributions of funds. 16 SEC. 303. DEFINITION OF FEDERAL AGENCY. 17 Section 4(8) of the Stevenson-Wydler Technology 18 Innovation Act of 1980 (15 U.S.C. 3703(8)) is amended by : 19 inserting as well as any agency of the legislative branch 20 of the Federal Government after ``of such title 21 SEC. 304. QUALITY IMPROVEMENT. 22 The Secretary is authorized to use appropriated funds to 23 cover the cost of the Malcolm Baldrige National Quality Award 24 program to the extent such funds are needed in addition to 25 the funds specified under section 17 (f) of the Stevenson- TB081 29 1 Wydler Technology Innovation Act of 1980 (15 U.S.C. 2 3711a(f)). 3 SEC. 305. UNDER SECRETARY. 4 Section 5(c) of the Stevenson-Wydler Technology 5 Innovation Act of 1980 (:5 U.S.C. 3704(c) is amended-- 6 (1) by redesignating paragraphs (13) and (14) as 7 paragraphs (14) and (15), respectively; and 8 (2) by inserting after paragraph (12) the following 9 new paragraph: 10 :: (13) serve as a focal point for discussions among 11 United States companies on topics of interest to industry 12 and labor, including discussions regarding manufacturing 13 and discussions regarding emerging technologies;" 14 TITLE IV--NATIONAL COMMISSION ON REDUCING CAPITAL COSTS FOR 15 EMERGING TECHNOLOGY 16 SEC. 401. NATIONAL COMMISSION ON REDUCING CAPITAL COSTS FOR 17 EMERGING TECHNOLOGY. 18 (a) ESTABLISHMENT AND PURPOSE.-There is established a ... 19 National Commission on Reducing Capital Costs for Emerging 20 Technology (hereafter in this section referred to as the 21 ``Commission"), for the purpose of developing 22 recommendations to increase the compecitiveness of United 23 States industry by encouraging investments in research, the 24 development of new process and product technologies, and the 25 production of those technologies. TB081 30 1 (b) ISSUES.-The function of the Commission shall be to 2 address the following issues: 3 (1) How has the overall cost of capital paid by 4 United States companies differed during the past decade 5 from that paid by companies in other industrial economies 6 such as Germany, Japan, and the United Kingdom? 7 (2) To what extent has the cost of capital faced by 8 technology companies differed from the overall cost of 9 capital in each of these nations during the same period? 10 (3) To what extent do high capital costs in general 11 inhibit investment in projects with long-term payoffs, 12 such as the development and commercialization of new 13 technology? 14 (4) To what extent does the structure of the 15 financial services industry in the United States affect 16 the flow of capital to advanced technology investment, 17 and to what extent do current practices in the equity 18 markets raise the cost of capital and inhibit the 19 availability of capital to fund research and development, 20 purchase advanced manufacturing equipment, and fund other 21 investments necessary to commercialize advanced 22 technology? 23 (5) In what ways to Government regulations influence 24 the cost of capital in the United States? 25 (6) To what extent have national differences in TB081 31 1 capital costs facilitated the foreign acquisition of 2 technology-based United States companies? 3 (7) What macroeconomic and other policies would 4 promote greater investment in advanced manufacturing 5 techniques, in research and development, and in other 6 activities necessary to commercialize and produce new 7 technologies? 8 (8) What specific policies should the Federal 9 Government follow in order to reduce the cost of capital 10 for United States companies to levels that are near 11 parity with those faced by the Nation's principal trading 12 partners? 13 (c) MEMBERSHIP.- (1) The Commission shall be composed of 14 9 members who are eminent in such fields as advanced 15 technology, manufacturing, finance, and international 16 economics and who are appointed as follows: 17 (A) 3 individuals appointed by the President, one of 18 whom shall be the Vice President and shall chair the 19 Commission. 20 (B) 3 individuals appointed by the Speaker of the 21 House of Representatives, 1 of whom shall be appointed 22 upon the recommendation of the minority leader of the 23 House of Representatives. 24 (C) 3 individuals appointed by the President pro 25 tempore of the Senate, 2 of whom shall be appointed upon TB081 32 1 the recommendation of the majority leader of the Senate 2 and 1 of whom shall be appointed upon the recommendation 3 of the mincrity leader of the Senate. 4 (2) Each member shall be appointed for the life of the 5 Commission. A vacancy in the Commission shall be filled in 6 the manner in which the original appointment was made. 7 (d) PROCEDURES. (1) The chairman shall call the first 8 meeting of the Commission within 90 days after the date of 9 enactment of this Act. 10 (2) Recommendations of the Commissions shall require the 11 approval of three-quarters of the members of the Commission. 12 (3) The Commission may use such personnel detailed from 13 Federal agencies as may be necessary to enable it to carry 14 out its duties. 15 (4) Members of the Commission, other than full-time 16 employees of the Federal Government, while attending meetings 17 of the Commission while away from their homes or regular 18 places of business, shall be allowed travel expenses in 19 accordance with subchapter I of chapter 57 of title 5, United 20 States Code. 21 (e) REPORTS. The Commission shall, within 1 year after 22 the date of enactment of this Act, submit to the President 23 and Congress a report containing legislative and other 24 recommendations with respect to the issues addressed under 25 subsection (b). TB081 33 1 (f) CONSULTATION. The Commission shall consult, as 2 appropriate, with the Commission on Technology and 3 Procurement established by section 504 of this Act. 4 (g) TERMINATION The Commission shall terminate 6 months 5 after the submission of its report under subsection (e). 6 (h) AUTHORIZATION OF APPROPRIATIONS. There are 7 authorized to be appropriated to carry out this section such 8 sums as may be necessary for the fiscal years 1991 and 1992. 9 TITLE V--STUDIES AND REPORTS 10 SEC. 501. HIGH-RESOLUTION INFORMATION SYSTEMS ADVISORY BOARD. 11 (a) ESTABLISHMENT AND PURPOSE The Director of the 12 Office of Science and Technology Policy shall establish 13 within that office a High-Resolution Information Systems 14 Advisory Board (hereafter in this section referred to the 15 ``Board'') to monitor and, as appropriate, foster the 16 development of United States-based high-resolution 17 information systems industries. 18 (b) DEFINITION. As used in this title, the term `high- 19 resolution information systems means the equipment and 20 techniques required to create, store, recover, and play back 21 high-resolution images and accompanying sound. 22 (c) FUNCTIONS. The Board shall-- 23 (1) collect and analyze information on the range of 24 factors which will determine whether United States-based 25 high-resolution information systems industries will TB081 34 1 develop and become competitive, including such factors as 2 technology policies, specialized financial problems, 3 international standards and foreign trade practices, 4 Federal regulations and procurement policies, and 5 licensing practices; 6 (2) identify areas where appropriate cooperation 7 between the Federal Government and the private sector, 8 including Government support for industry-led joint 9 research and development ventures, would enhance United 10 States industrial competitiveness in this area, and 11 provide advice and guidance for such cooperative efforts; 12 (3) provide guidance on what Federal policies and 13 practices, particularly in such areas as procurement and 14 the transfer of federally-funded research, are necessary 15 to help establish United States-based high-resolution 16 information systems industries; 17 (4) provide advice on the coordination of Federal 18 defense and civilian activities to maximize and assist -19 with the transfer of technologies in the field of high- 20 resolution information systems into commercial products; 21 and 22 (5) generally develop recommendations for guiding 23 Federal agency activities related to the development of 24 United States-based high-resolution information systems 25 industries. TB081 35 1 (d) MEMBERSHIP AND PROCEDURES.-- (1) (A) The Board shall be 2 composed of 13 members, 7 of whom shall constitute a quorum. 3 (B) The Director of the Office of Science and Technology 4 Policy, the Secretary, the Director of the Defense Advanced 5 Research Projects Agency, and the Administrator of the 6 National Aeronautics and Space Administration, or their 7 designees, shall serve as members of the Board. 8 (C) The President, acting through the Director of the 9 Office of Science and Technology Policy, within 90 days after 10 the date of enactment of this Act, shall appoint as 11 additional members of the Board-- 12 (i) 5 members from the private electronics 13 manufacturing sector, drawn from such sectors as 14 semiconductors, display equipment, computers, consumer 15 electronics, and telecommunications, with 1 member also 16 representing labor; 17 (ii) 3 members from the private nonmanufacturing 18 sector, including 1 representative from the transmission 19 delivery systems sector and 2 representatives drawn from 20 such areas as the software industry, the entertainment 21 industry, and the investment community; and 22 (iii) 1 member from academia. 23 At least 1 member appointed under this subparagraph shall be 24 from small business. 25 (2) The Director of the Office of Science and Technology TB081 36 1 Policy or the Director's designee shall chair the Board. 2 (3) The chairman shall call the first meeting of the 3 Board within 30 days after the appointment of members is 4 completed. 5 (4) The Board may use such personnel detailed from 6 Federal agencies as may be necessary to enable it to perform 7 its functions. 8 (5) Members of the Board, other than full-time employees 9 of the Federal Government, while attending meetings of the 10 Board or otherwise performing duties of the Board while away 11 from their homes or regular places of business, shall be 12 allowed travel expenses in accordance with subchapter I of 13 chapter 57 of title 5, United States Code. 14 (6) The Board shall submit to the President and Congress 15 a report of its activities once every year after its 16 establishment. 17 (e) AUTHORIZATION OF APPROPRIATIONS. There are 18 authorized to be appropriated to carry out this section such 19 sums as may be necessary for the fiscal years 1991 and 1992. 20 SEC. 502. MAJOR SCIENCE AND TECHNOLOGY PROPOSALS. 21 (a) REPORT. The National Science and Technology Policy, 22 Organization, and Priorities Act of 1976 is amended by adding 23 at the end of title II the following new section: 24 MAJOR SCIENCE AND TECHNOLOGY PROPOSALS 25 ``SEC. 209. The Director shall monitor and report TB081 37 1 annually to Congress on each major science and technology 2 project in which more than one country is participating and 3 which has a total estimated cost greater than 4 $1,000,000,000. 5 SEC. 503. BIENNIAL NATIONAL CRITICAL TECHNOLOGIES REPORT 6 AMENDMENTS. 7 Section 603 of the National Science and Technology 8 Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 9 6683) is amended-- 10 (1) in subsection (a), by inserting , but shall 11 include the most economically important emerging civilian 12 technologies during the 10-year period following such 13 report, together with the estimated current and future 14 size of domestic and international markets for products 15 derived from these technologies after may not exceed 16 30 ; 17 (2) in subsection (b), by striking national 18 security and and inserting in lieu thereof national 19 security or ; 20 (3) by redesignating subsection (d) as subsection 21 (e); and 22 (4) by inserting after subsection (c) the following 23 new subsection: 24 (d) Each such report shall include-- 25 ``(1) an identification of the types of research and TB081 38 1 development needed to close any significant gaps or 2 deficiencies in the technology base of the United States, 3 as compared with the technology bases of major trading 4 partners; and 5 (2) a list of the technologies and markets targeted 6 by major trading partners for development or capture. 7 SEC. 504. RESEARCH, DEVELOPMENT, TECHNOLOGY UTILIZATION, AND 8 GOVERNMENT PROCUREMENT POLICY. 9 (a) ESTABLISHMENT OF COMMISSION. The Secretary, in 10 consultation with the Administrator of the Office of Federal 11 Procurement Policy, shall establish a Commission on 12 Technology and Procurement (hereafter in this section 13 referred to as the Commission for the purposes of 14 analyzing the effect of Federal Government procurement laws, 15 procedures, and policies on the development of advanced 16 technologies within the United States and making 17 recommendations on how Federal policy could be changed to 18 promote further the development of advanced technologies. 19 (b) ISSUES. The Commission shall address the following 20 issues: 21 (1) To what extent, if any, should Federal Government 22 technology purchase strategies be used to give domestic 23 suppliers a competitive advantage in new generations of 24 existing technologies and in initial market penetration 25 for new technologies? TB081 39 1 (2) Under what conditions can Federal Government 2 purchases of advanced technology-based products be based 3 on performance specifications rather than on product 4 specifications? Should Federal Government procurement 5 first look to the commercial markets for products that 6 will meet performance specifications before purchasing a 7 unique product that has to be developed? 8 (3) How can the Federal Government procurement laws, 9 practices, and procedures be used as a strategic tool to 10 foster the use of emerging technologies? 11 (4) How can the Federal Government ensure that its 12 suppliers adopt the principles embodied in the Malcolm 13 Baldrige National Quality Award? 14 (5) Should Federal Government procurement practices 15 include cooperative efforts between the supplier and the 16 Federal entity to develop products so as to be more 17 easily marketed on a commercial basis? Should a program 18 for the exchange of technical personnel to foster 19 innovation in product development be part of such 20 practices? 21 (6) To what extent, if any, should Federal Government 22 documents specify standards that are beneficial to 23 domestic suppliers, aid the compatibility of advanced 24 technologies, and speed the commercial acceptance of 25 those technologies, and what would be the role of the TB081 40 1 Institute in such an effort? 2 (7) To what extent should worldwide, state of the art 3 technology be required in Federal Government procurement? 4 (c) MEMBERSHIP AND PROCEDURES. (1) The Commission shall 5 be composed of 15 members, 8 of whom shall constitute a 6 quorum. 7 (2) The Secretary, the Administrator of the Office of 8 Federal Procurement Policy, the Director of the Office of 6. Science and Technology Policy, the Secretary of Defense, and 10 the Administrator of General Services, or their designees who 11 serve in executive level positions, shall serve as members of 12 the Commission. 13 (3) The Secretary shall appoint as members of the 14 Commission, from among individuals not employed by the 15 Federal Government-- 16 (A) 4 members who are eminent in advanced technology 17 businesses representing manufacturing and services 18 industries, including at least 1 member representing 19 labor; " 20 (B) 3 members who are eminent in the fields of 21 technology and international economic development; and 22 (C) with the concurrence of the Administrator of the 23 Office of Federal Procurement Policy, 3 members who are 24 eminent in the field of Federal Government procurement. 25 (4) The Secretary shall appoint a Commission chairman TB081 41 I from among the members of the Commission. The chairman shall 2 call the first meeting of the Commission within 90 days after 3 the date of enactment of this Act. 4 (5) The Secretary and the Administrator of the Office of 5 Federal Procurement Policy shall provide such staff as may be 6 required by the Commission to carry out its responsibilities. 7 (6) Members of the Commission, other than full-time 8 employees of the Federal Government, while attending meetings 9 of the Commission or otherwise performing duties of the 10 Commission while away from their homes or regular places of 11 business, shall be allowed travel expenses in accordance with 12 subchapter I of chapter 57 of the title 5, United States 13 Code. 14 (d) REPORTS. (1) The Commission shall, within 1 year after 15 the date of enactment of this Act, submit to the Secretary, 16 the Administrator of the Office of Federal Procurement 17 Policy, the President, and Congress a report containing 18 preliminary recommendations with respect to the issues 19 addressed under subsection (b). 20 (2) The Commission shall, within 2 years after the date 21 of enactment of this Act, submit to the Secretary and 22 Congress a final report containing final recommendations with 23 respect to the issues addressed under subsection (b). 24 (e) CONSULTATION. The Commission shall consult, as 25 appropriate, with the National Commission on Reducing Capital TB081 42 1 Costs for Emerging Technology. 2 (f) TERMINATION. The Commission shall terminate 6 months 3 after the submission of its final report under subsection 4 (d) (2). 5 (g) AUTHORIZATION OF APPROPRIATIONS. There are 6 authorized to be appropriated to carry out this section such 7 sums as may be necessary for the fiscal years 1991, and 1992, 8 and 1993. 9 SEC. 505. REPORT ON INFORMATION COLLECTION AND DISSEMINATION. 10 (a) REPORT. Within 270 days after the date of enactment 11 of this Act, the Secretary shall report to the Committee on 12 Science, Space, and Technology of the House of 13 Representatives and the Committee on Commerce, Science, and 14 Transportation of the Senate on the feasibility of 15 establishing and operating a Federal Online Information 16 Product Catalog (FEDLINE) at the National Technical 17 Information Service which would serve as a comprehensive 18 inventory and authorizative register of information products 19 and services disseminated by the Federal Government and 20 assist agencies and the public in locating Federal Government 21 information. Information protected from public disclosure 22 shall not be included. In studying the concept, the 23 Secretary, acting through the Under Secretary and the 24 Director of the National Technical Information Service, shall 25 consult with officials from appropriate Government agencies, TB081 43 1 including the Office of Management and Budget, the National 2 Archives, the Government Printing Office, and the Institute, 3 and with representatives of the public, for their views on 4 the optimal composition and format of FEDLINE. Such report 5 shall contain cost estimates and possible funding sources for 6 establishing and operating FEDLINE and shall list any changes 7 in law and regulation that would be required if FEDLINE were 8 to be implemented. 9 (b) FUNDING. The Director of the National Technical 10 Information Service may retain and use all monies received, 11 including receipts, revenues, and advanced payments and 12 deposits, to fund obligations and expenses through the end of 13 fiscal year 1992. 14 (c) ELECTRONIC FORMAT. Section 212(e)(5) of the National 15 Technical Information Act of 1988 (15 U.S.C. 3704b (e) (5)) is 16 amended by inserting o including producing and 17 disseminating information products in electronic format 18 after engineering information 19 SEC. 506. REPORT ON ADVANCED MANUFACTURING AND QUALITY. 20 Within 1 year after the date of enactment of this Act, 21 the Secretary shall submit to Congress a report on the 22 feasibility and advisability of establishing, in affiliation 23 with the Institute, a Quality Institute and a privately- 24 funded foundation to support that Quality Institute. As part 25 of such report, the Secretary shall consider whether it is TB081 44 1 feasible and advisable for such Quality Institute to-- 2 (1) conduct workshops and company tours to share with 3 managers, engineers, and production employees in the 4 United States advanced techniques for improving 5 manufacturing and service organization, quality, and 6 productivity, including team-oriented organizational 7 approaches to managing production and service technology 8 and corporate research and development; 9 (2) help develop and disseminate model curricula on 10 quality which might be used by educational institutions 11 to provide training to students and manufacturing and 12 service company employees; and 13 (3) carry out such other purposes as the Secretary 14 may recommend. 15 SEC. 507. FUNCTIONS OF COUNCIL. 16 (a) INTERAGENCY RESEARCH PLANS.--Section 102(a)(6) of the 17 National Science and Technology Policy, Organization, and 18 Priorities Act of 1976 (42 U.S.C. 6602(a) 6602 (a) (6)) is amended to 19 read as follows: 20 (6) The development and implementation of long- 21 range, interagency research plans to support policy 22 decisions regarding identified national and international 23 concerns, and for which a sustained and coordinated 24 commitment to improving scientific understanding or 25 technology will be required. TB081 45 1 (b) COUNCIL.--Section 401 of the National Science and 2 Technology Policy, Organization, and Priorities Act of 1976 3 (42 U.S.C. 6651) is amended to read as follows: 4 MEMBERSHIP AND FUNCTIONS OF COUNCIL 5 ''SEC. 401. (a) The Federal Coordinating Council for 6 Science, Engineering, and Technology (hereafter in this Act 7 referred to as the Council') shall be composed of the 8 Director, who shall be Chairman of the Council, and 1 9 representative of each of the Federal departments and 10 agencies which the President shall designate. Each such 11 representative shall be an official of policy rank appointed 12 by the head of the Federal department or agency designated. 13 (b) The Council shall consider problems and 14 developments in the fields of science, engineering, and 15 technology and related activities affecting more than 1 16 Federal agency, and shall recommend policies and other 17 measures designed to-- 18 ``(1) provide more effective planning and 19 administration of Federal scientific, engineering, and 20 technological programs; 21 ``(2) identify research needs, including areas 22 requiring additional emphasis; 23 (3) achieve more effective utilization of the 24 scientific, engineering, and technological resources and 25 facilities of Federal agencies, including the elimination TB081 46 1 of unwarranted duplication; and 2 (4) further international cooperation in science, 3 engineering, and technology. 4 (c) The Council may be assigned responsibility for 5 developing long-range and coordinated plans for scientific 6 and technical research which involve the participation of 7 more than 2 Federal agencies. Such plans shall-- 8 (1) identify research approaches and priorities 9 which most effectively advance scientific understanding 10 and provide a basis for policy decisions; 11 (2) provide for effective cooperation and 12 coordination of research among Federal agencies; and 13 (3) encourage domestic and, as appropriate, 14 international cooperation among government, industry, and 15 university scientists. 16 (d) The Council shall perform such other related I7 advisory duties as shall be assigned by the President or by 18 the Chairman of the Council. 19 (e) For the purpose of carrying out the provisions of 20 this section, each Federal agency represented on the Council 21 shall furnish necessary assistance to the Council. Such 22 assistance may include-- 23 (1) detailing employees to the Council to perform 24 such functions, consistent with the purposes of this 25 section, as the Chairman of the Council may assign to TB081 47 1 them; and 2 (2) undertaking, upon request of the Chairman, such 3 special studies for the Council as come within the scope 4 of authority of the Council. 5 (f) For the purpose of developing interagency plans, 6 conducting studies, and making reports as directed by the 7 Chairman, standing committees and working groups of the 8 Council may be established. 9 (c) CONFORMING AMENDMENT. Section 207 (a) (1)) of the 10 National Science and Technology Policy, Organization, and 11 Priorities Act of 1976 (42 U.S.C. 6616 6616(a)(1)) is amended by 12 striking established under title IV'. . 13 SEC. 508. STUDY OF TESTING AND CERTIFICATION. 14 (a) CONTRACT WITH NATIONAL RESEARCH COUNCIL. Within 90 15 days after the date of enactment of this Act and within 16 available appropriations, the Secretary shall enter into a 17 contract with the National Research Council for a thorough 18 review of international product testing and certification 19 issues. The National Research Council will be asked to 20 address the following issues and make recommendations as 21 appropriate: 22 (1) The impact on United States manufacturers, 23 testing and certification laboratories, certification 24 organizations, and other affected bodies of the European 25 Community s plans for testing and certification of TB081 48 1 regulated and nonregulated products of non-European 2 origin. 3 (2) Ways for United States manufacturers to gain 4 acceptance of their products in the European Community 5 and in other foreign countries and regions. 6 (3) The feasibility and consequences of having mutual 7 recognition agreements between testing and certification 8 organizations in the United States and those of major 9 trading partners on the accreditation of testing and 10 certification laboratories and on quality control 11 requirements. 12 (4) Information coordination regarding product 13 acceptance and conformity assessment mechanisms between 14 the United States and foreign governments. 15 (5) The appropriate Federal, State, and private roles 16 in coordination and oversight of testing, certification, 17 accreditation, and quality control to support national 18 and international trade. 19 (b) MEMBERSHIP. In selecting the members of the review 20 panel, the National Research Council shall consult with and 21 draw from, among others, laboratory accreditation 22 organizations, Federal and State government agencies involved 23 in testing and certification, professional societies, trade 24 associations, small business, and labor organizations. 25 (c) REPORT. --A report based on the findings and TB081 49 1. recommendations of the review panel shall be submitted to the 2 Secretary, the President, and Congress within 18 months after 3 the Secretary signs the contract with the National Research 4 Council. 5 SEC. 509. REPORT ON A STRATEGY TO STIMULATE COMPETITIVE 6 RESEARCH. 7 (a) IN GENERAL. No later than 120 days after the date of 8 enactment of this Act, the Director of the Office of Science 9 and Technology Policy shall submit to Congress a report 10 presenting a proposed strategy for improving the university 11 research capabilities of those States which historically have 12 received relatively little Federal research and development 13 funding. The report shall particularly discuss the 14 feasibility and advisability of using the National Science 15 Foundation s Experimental Program to Stimulate Competitive 16 Research as a model for similar programs in other Federal 17 departments and agencies which fund research and development. 18 (b) ANALYSIS AND DISCUSSION. The report shall include an 19 analysis and discussion of-- 20 (1) the geographic distribution of Federal research 21 and development grants and contracts; 22 (2) current Federal efforts to stimulate competitive 23 research; and 24 (3) the feasibility and advisability of new Federal 25 programs to stimulate competitive research. TB081 50 1 SEC. 510. INTERAGENCY COORDINATION. 2 The Secretary shall, within 180 days after the date of 3 enactment of this Act, submit to the Committee on Science, 4 Space, and Technology and the Committee on Energy and 5 Commerce of the House of Representatives and the Committee on 6 Commerce, Science, and Transportation of the Senate, a plan 7 for coordination of Commerce Department efforts with other 8 Federal agencies for activities related to high-resolution 9 information systems, including research and development 10 activities. 11 TITLE VI--LEAD EXPOSURE HAZARDS 12 SEC. 601. FINDINGS. 13 The Congress finds that-- 14 (1) lead is a naturally occurring element which has 15 been used in a variety of industrial applications 16 including radiation shields, storage batteries, paint, 17 and gasoline; 18 (2) 1 in 6 United States children are victims of lead 19 poisoning, according to the Agency for Toxic Substances : 20 and Disease Registry; 21 (3) lead poses a significant environmental health 22 problem since adverse effects have been conclusively 23 demonstrated at relatively low exposures; 24 (4) lead exposures to children under age 7 are of 25 greatest concern because of its association with TB081 51 1 significant neurotoxic effects, including reduction in 2 intelligence, attention span deficits, and reading and 3 learning disabilities; 4 (5) a primary cause of childhood lead poisoning is 5 lead-based paint and dust in homes; 6 (6) past efforts to abate lead-based paint have 7 relied on methods which endangered workers and often 8 resulted in more available lead dust for the occupants; 9 and 10 (7) improving methods for testing and abating 11 lead-based paint offers a highly cost effective means of 12 reducing exposures and thus preventing childhood lead 13 poisoning. 14 SEC. 602. LABORATORY ANALYSIS STANDARDIZATION. 15 The National Institute of Standards and Technology shall, 16 within 18 months after the date of enactment of this Act, 17 recommend to the Administrator of the Environmental 18 Protection Agency technical criteria and implement a 19 voluntary accreditation program with respect to laboratory 20 analysis of lead in paint films, soil, and dust. Funds 21 required for implementing such a voluntary accreditation 22 program shall be provided to the National Institute of 23 Standards and Technology by the Administrator of the 24 Environmental Protection Agency. Funds received through fees 25 and other charges for accreditation services under such TB081 52 1 program may be used by the National Institute of Standards 2 and Technology for operating costs of the program. 3 SEC. 603. DETECTION TECHNOLOGY STANDARDIZATION. 4 Subject to the availability of funds, the National 5 Institute of Standards and Technology shall, within 2 years 6 after the date of enactment of this Act, recommend to the 7 Administrator of the Environmental Protection Agency 8 protocols, criteria, reference materials, and minimum 9 performance standards to be used in the evaluation of 10 emerging products and techniques for detecting lead in paint 11 films and dust, including x-ray fluorescence devices, on-site 12 chemical spot testers, and laboratory methods, and to ensure 13 reliable, accurate, and effective lead detection 14 technologies. 15 SEC. 604. STANDARDIZATION OF ABATEMENT PRODUCTS. 16 Subject to the availability of funds, the National 17 Institute of Standards and Technology shall recommend to the 18 Administrator of the Environmental Protection Agency 19 performance criteria and standards for lead paint 20 encapsulants and for strippers within 2 years after the date 21 of enactment of this Act. AMENDMENTS 1. RITTER AMENDMENT: Establishes a National Quality Council which would set national goals and priorities for Quality in business, education, and government, and requires an annual report to the President and Congress. (Replaces Sec. 506 - Report on Advanced Manufacturing and Quality) 2. MINETA AMENDMENT: Requires the Secretary of Commerce to identify critical industries to U.S. economy and develop a IO year plan to ensure growth of those industries with an annual report due to Congress. 3. VALENTINE AMENDMENT: Returns language for pilot program for standards assistance to the language reported by the Committee on Science, Space, and Technology in 1990. RITTER195 AMENDMENT TO THE SUBCOMMITTEE PRINT OFFERED BY MR. RITTER Page 43, line 19, through page 44, line 14, amend section 506 to read as follows: 1 SEC. 506. NATIONAL QUALITY COUNCIL. 2 (a) ESTABLISHMENT AND FUNCTIONS. There is established a 3 National Quality Council (hereafter in this Act referred to 4 as the Council' The functions of the Council shall be-- 5 (1) to establish national goals and priorities for 6 Quality performance in business, education, government, 7 and all other sectors of the nation; 8 (2) to encourage and support the voluntary adoption 9 of these goals and priorities by companies, unions, 10 professional and business associations, coalition groups, 11 and units of government, as well as private and nonprofit 12 organizations; 13 (3) to arouse and maintain the interest of the people 14 of the United States in Quality performance, and to 15 encourage the adoption and institution of Quality 16 performance methods by all corporations, government 17 agencies, and other organizations; and 18 (4) to conduct an annual White House Conference on 19 Quality Performance in the American Workplace that would RITTER195 2 1 bring together in a single forum national leaders in 2 business, labor, education, professional societies, the 3 media, government, and politics to address Quality 4 performance as a means of improving United States 5 competitiveness. 6 (b) MEMBERSHIP. The Council shall consist of not less 7 than 17 nor more than 20 members, appointed by the President 8 of the United States by and with the advice and consent of 9 the Senate. Members shall include-- 10 (1) at least 2 but not more than 3 representatives 11 from manufacturing industry; 12 (2) at least 2 but not more than 3 representatives 13 from service industry; 14 (3) at least 2 but not more than 3 representatives 15 from national Quality not-for-profit organizations; 16 (4) two representatives from education, one with 17 expertise in elementary and secondary education, and one 18 with expertise in post-secondary education; 19 (5) one representative from labor; 20 (6) one representative from professional societies; 21 (7) one representative each from local and State 22 government; 23 (8) one representative from the Federal Quality 24 Institute; 25 (9) one representative from the National Institute of RITTER195 3 1 Standards and Technology; 2 (10) one representative from the Department of 3 Defense; 4 (11) one representative from a civilian Federal 5 agency not otherwise represented on the Council, to be 6 rotated among such agencies every 2 years; and 7 (12) one representative from the Foundation for the 8 Malcolm Baldrige National Quality Award. 9 (c) TERMS. The term of office of each member of the 10 Council appointed under paragraphs (1) through (7) of 11 subsection (b) shall be 2 years, except that when making the 12 initial appointments under such paragraphs, the President 13 shall appoint not more than 50 percent of the members to 1 14 year terms. No member appointed under such paragraphs shall 15 serve on the Council for more than 2 consecutive terms. 16 (d) CHAIRMAN AND VICE CHAIRMAN. The President shall 17 designate one of the members initially appointed to the 18 Council as Chairman. Thereafter, the members of the Council 19 shall annually elect one of their number as Chairman. The 20 members of the Council shall also annually elect one of their 21 members as Vice Chairman. No individual shall serve as 22 Chairman or Vice Chairman for more than 2 consecutive years. 23 (e) EXECUTIVE DIRECTOR AND EMPLOYEES. The Council shall 24 appoint and fix the compensation of an Executive Director, 25 who shall hire and fix the compensation of such additional RITTER195 4 1 employees as may be necessary to assist the Council in 2 carrying out its functions. In hiring such additional 3 employees, the Executive Director shall ensure that no 4 individual hired has a conflict of interest with the 5 responsibilities of the Council. 6 (f) FUNDING. There is established in the Treasury of the 7 United States a National Quality Performance Trust Fund, into 8 which all funds received by the Council, through private 9 donations or otherwise, shall be deposited. Amounts in such 10 Trust Fund shall be available to the Council without further 11 appropriation for the purpose of carrying out the functions 12 of the Council under this Act. 13 (g) CONTRIBUTIONS. The Council may not accept private 14 donations from a single source in excess of $25,000 per year. 15 Private donations from a single source in excess of $10,000 16 per year may be accepted by the Council only on approval of 17 two-thirds of the Council. 18 (h) ANNUAL REPORT The Council shall annually submit to 19 the President and the Congress a comprehensive and detailed 20 report on-- 21 (1) the progress in meeting the goals and priorities 22 established by the Council; 23 (2) the Council's operations, activities, and 24 financial condition; 25 (3) contributions to the Council from non-Federal RITTER195 5 I sources; 2 (4) plans for the Council's operations and activities 3 for the future; and 4 (5) any other information or recommendations the 5 Council considers appropriate. MINETA009 AMENDMENT TO THE Subcommittee PRINT OFFERED BY MR. MINETA Page 38, after line 11, insert the following new section: 1 SEC. 504. CRITICAL INDUSTRIES. 2 (a) IDENTIFICATION OF INDUSTRIES AND DEVELOPMENT OF 3 PLAN. The Secretary shall-- 4 (1) identify those civilian industries in the United 5 States that are necessary to support a robust 6 manufacturing infrastructure and critical to the economic 7 security of the United States; 8 (2) list the major research and development 9 initiatives being undertaken, and the substantial 10 investments being made, by the Federal Government, 11 including its research laboratories, in each of the 12 critical industries identified under paragraph (1); and 13 " (3) develop a 10-year plan outlining the major public 14 and private efforts, including research and development, 15 needed to ensure the growth and stability of each 16 critical industry identified under paragraph (1). 17 (b) INITIAL REPORT. The Secretary shall submit a report 18 to the Congress within 1 year after the date of enactment of 19 this Act on the actions taken under subsection (a). MINETA009 2 1 (c) ANNUAL UPDATES.- The Secretary shall annually submit 2 to the Congress an update of the report submitted under 3 subsection (b). Each such update shall-- 4 (1) describe the status of each identified critical 5 industry, including the advances and declines occurring 6 since the most recent report; 7 (2) identify any industries that should be added to 8 the list of critical industries; and 9 (3) recommend measures, including research and 10 development, necessary to ensure the continued successful 11 development of each identified critical industry. Redesignate subsequent sections accordingly. Amendment by Mr. Valentine On page 9, lines 15 through 17, strike the last sentence of paragraph (e) and insert in lieu thereof: "Such funds shall be made available for such purpose only to the extent that matching funds are received by the National Institute of Standards and Technology from sources outside the Federal Government." Justification - The sentence being replaced by the amendment was written to make the statute match existing practice with regard to matching funds for the pilot program. In the opinion of some committee members, it does not accomplish its stated goal. Therefore, my amendment would return this section to the universally accepted language our committee reported last year. The amendment is offered without prejudice and if more appropriate language can be developed by full committee, it will be offered at that time. BUDGET SUMMARY: TECHNOLOGY ADMINISTRATION AUTHORIZATION (In Thousands of Dollars) Administration Subcommittee Budget Activity FY 1990 FY 1991 FY 1992 FY 1991 FY 1992 APPROP. APPROP. REQUEST AUTH. AUTH. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY (NIST) Intramural Program (Scientific & Technical Research & Services) Electronics & electrical engineering 16,197 21,273 33,595 21,273 34,000 Manufacturing engineering 6,233 8,266 12,617 8,266 13,500 Chemical science and technology 16,914 18,617 20,822 18,617 22,000 Physics 24,752 25,522 26,475 25,522 27,000 Materials science & engineering 23,157 26,495 28,671 26,495 30,000 Building & fire research 11,271 9,821 10,632 9,821 12,300 Computer systems 9,440 11,819 15,048 11,819 16,000 Applied math & scientific computing 5,599 5,847 6,088 5,847 6,500 Technology assistance 7,379 8,978 10,094 8,978 11,000 Research support activities 24,306 29,590 37,798 29,590 38,700 SUBTOTAL 145,248 166,228 201,840 166,228 211,000 Extramural Program (Industrial Technology Services) Advanced Technology Program 9,892 35,900 35,900 100,000 100,000 Manufacturing Technology Centers 7,419 11,900 10,300 15,000 25,000 State Technology Extension Program 1,286 1,300 l 2,000 2,500 SUBTOTAL 18,597 49,100 46,200 117,000 127,500 TOTAL NIST APPROPRIATIONS 163,845 215,328 248,040 283,228 338,500 Other Technology Admin.Programs: Office, Under Secretary Technology 3,297 3,500 4,236 4,000 5,000 Japanese Technical Literature Prog. 328 400 400 1,000 1,500 Clearinghouse on Productivity, Technology and Innovation 250 300 300 1,000 1,000 National Technical Information Service 0 0 0 500 1,500 NIST (from above) 163,845 215,328 248,040 283,228 338,500 GRAND TOTAL 167,720 219,528 252,976 289,728 347,500 fro" S&T REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN SEMICONDUCTORS * * FIBER OPTICS * SUPERCONDUCTING MATERIALS & * * * ADVANCED MANUFACTURING REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, & ADVANCED MANUFACTURING I. INTRODUCTION A. Federal R&D Funding Policy The Omnibus Trade and Competitiveness Act The President's fiscal year 1991 budget re- of 1988 mandated this report by the President to the quest includes the following comprehensive Congress on policies and budget proposals re- statement of R&D funding policy which bears garding Federal research in semiconductors and directly on the issue of Government support for semiconductor manufacturing technology, fiber the four technologies covered in this report: optics and optoelectronic technology generally, superconducting materials, and advanced manu- "Traditionally, the Federal Government has facturing technologies. supported R&D in two areas, first, to meet its own direct needs-where it is the principal The Federal Government's role in research user (e.g., defense-related R&D)-and, sec- and development of technologies, like the four ond, to meet broader national needs (e.g., covered in this report, is evolving. For example, basic research in all areas, measurements in December, 1989, the Administration published and standards R&D, health-related R&D). In The National Action Plan on Superconductivity instances where the Federal Government is Research and Development (hereafter referred the ultimate market for the R&D results, to as The Superconductivity Plan). This plan R&D funding decisions must be made on the outlines the special steps that the Executive basis of Government needs and requirements. Branch will take to coordinate superconductiv- Thus, funding levels for defense R&D and ity activities. The President's FY 1991 budget civil space R&D activities are determined in request included a budget cross-cut of research the context of their respective national secu- and development on robotics, high performance rity and civil space objectives and require- computing, semiconductors, advanced imaging ments. The actual R&D activities, however, technologies, and superconductivity. These two should be managed in such a way as to documents - the President's Budget and the encourage commercial applications of the Superconductivity Plan - articulate the evolv- R&D as well. The second category of R&D, ing government role in technologies through for which the Government is not the princi- Federal funding of R&D, coordination of research pal market, includes both basic research and activities, and creation of policies to ensure an generic applied research. Federal invest- economic environment in which firms can com- ment in such R&D is warranted to capture mercialize technologies developed by industry, the public good benefit. The Administration universities, Federal laboratories, or other believes that Federal support for this type of sources. This report reflects the logic of those R&D should be based on several fundamen- two documents and adds a discussion of the tal criteria: management and organizational challenge to the private sector of these technologies, as well as there should be "externalities" associ- a description of the program activities by Federal ated with the R&D (e.g., pollution clean- agencies in the four technologies. up, basic research); there should be benefits to broad seg- II. THE FEDERAL ROLE IN R&D ments of the economy simultaneously The evolution of the four technologies cov- (e.g., health research, agricultural re- search); and ered in this report is today driven predomi- nantly by commercial applications. Nonethe- the private sector is without sufficient less, the Federal Government has an important incentives to capture enough of the ben- role to play. The Superconductivity Plan cited efits to make such R&D investments three areas where there is a role for the Federal worthwhile. In such cases there should Government: R&D funding, coordination of be private support (e.g. joint ventures or R&D, and R&D-related policies. cost-sharing) commensurate with the ex- pected benefits to the private parties." 1 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN Federal agencies fund R&D to meet their own mission on Superconductivity plans to publish a direct needs where they are the principal user. In report containing its assessment and recommen- other cases, Federal support is for pre-competitive dations for a Federal approach to superconduc- research that meets all the criteria established for tivity. direct Federal funding, specifically, that the re- OSTP, through the Federal Coordinating search is in the interest of the public welfare and Council for Science, Engineering and Technol- the private sector is unable to capture sufficient ogy (FCCSET), is considering a similar role for benefits to make private investment economic. the other three technologies in this report- Most research necessary for technological semiconductors, fiber optics and opto-electronics, advance, however, is funded by the private sector and advanced manufacturing. Such a coordi- and is not pre-competitive. Firms may be un- nating role will aid the early R&D stages of the willing to share their research results with their innovation process, when corporate proprietary competitors, and they may be able to protect interests are at a minimum. their technology from unauthorized use through The government can also act as a catalyst in patents or other intellectual property protection. bringing together the expertise of the Federally Nonetheless, firms may still want to cooperate funded laboratories, universities, and industry with some competitors or with their suppliers or customers in order to share the costs and risks of in partnership for the creation of new technology. Where the technology has potential impact on developing a new product or process. The Federal several industries, this coordinating role can also Government has other policies to foster such help the private sector organize itself for timely private sector cooperation, in particular, the utilization of the technology. As The Supercon- policies that reduce the antitrust uncertainties ductivity Plan notes, "This new catalytic role regarding R&D joint ventures. derives from the very nature of this technology." B. Coordination of Federal R&D The Nation's success in commercializing technologies ultimately depends on the private The Federal Government can play an im- sector to make the critical decisions on how portant coordinating role in technologies in which much capital, time, and effort to invest. The several Federal agencies actively fund R&D to Government's ability to help coordinate appro- meet their own direct needs as well as to meet priate R&D at pre-competitive stages will be broader national needs. In exercising its coor- enhanced by private sector leadership in orga- dinating role for technologies with broad com- nizing itself for effective teamwork. Without mercial application, however, the Government private sector initiative, government involvement needs to be careful about imposing its own in the process risks introducing time delays and judgments about competing technical alterna- weakening incentives for firms to commercialize tives. For example, the Government's pro- the technology. In addition, where Government grammatic needs may represent only a small funding focuses on pre-competitive technology, and specialized segment of the potential market domestic firms that are actively involved in the for a technology. Federal policies must also process will be able to exploit it sooner and more respect the prudence of taking diverse ap- effectively. At present, it appears that domestic proaches to the same goal. firms have shown less interest in acquiring tech- The Superconductivity Plan establishes a nologies supported by Federal funds than foreign coordinating role for the Office of Science and firms. Technology Policy (OSTP). OSTP will provide leadership in the national superconductivity ef- C. Other Policies Affecting Technological fort. The OSTP Director will work to assure that Innovation all parts of the Government program form a coherent whole, well balanced between basic In addition to its responsibilities in the fund- and applied research. Also, the National Com- ing and conduct of Federal R&D programs, the Government has continuing responsibility for ? SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING fostering an economic and business climate that cally self-sufficient. Some analysts believe self- will remove unnecessary obstacles to the com- sufficiency is impractical even for a single nation. mercialization of technologies. Government While the normal functioning of science bodies policies affecting technological innovation are provides for information exchange among sci- mainly generic rather than technology specific, entific investigators, it is appropriate for the U.S. because they are intended to encourage inno- Government to foster that exchange by estab- vation in a broad range of areas. Technologies lishing close contact with basic research efforts are so dynamic that it is difficult, especially for in the rest of the world, particularly Japan and non-commercial parties, to predict in advance Europe. The U.S.-Japan Agreement in Coop- which ones will succeed. Even for the applica- eration in Science and Technology, for example, tion, there are sometimes competing technolo- provides a framework for new relationships for gies. For example, there is competition among cooperation on research and development in advanced materials-composites, advanced ce- coming years. The Agreement includes provi- ramics, and polymers-to perform the same sions to establish a balanced and equitable functions. A specific example is the battle over partnership in joint undertakings, to assure the relative merits of, and trade-offs among, comparable access to facilities and activities silicon, gallium arsenide, and diamond material supported or sponsored by the government, and for certain uses of semiconductors. to provide for adequate and effective protection of intellectual property rights. The Federal 1. Current Policy Initiatives: Several policy government, through a variety of programs, is initiatives under current consideration would encouraging U.S. scientists and engineers to foster a conducive economic environment for participate in R&D efforts in Japan and to take technological innovation. Appropriate action Japanese language training. on these policy initiatives would provide a basis C. Science and Technology Base: Developing for consistent and stable research in the private and maintaining a science and technology base is sector by reducing the inherent risks and un- vital to the future of our Nation. In order to certainties in these activities, promoting the ex- maintain this base, steady, predictable support is change of information across national bound- needed. A more stable research environment aries, providing consistent Government R&D would be created by multi-year authorizations support, and protecting the environment. These and two-year appropriations cycles. Such an initiatives include: approach would help researchers devote more of their time to research, and less of their time to a. Research and Experimentation Tax Credit: satisfying paperwork requirements. The public Administration initiatives in support of tax credit and private sectors should work cooperatively law reform will aid the commercialization of in both basic and applied research, each pursu- technologies. The President has proposed ing their legitimate goals. This cooperation will, changes to the present tax credit to encourage if successful, shorten the cycle of innovation. A U.S. industry to invest in long-term research. shortened innovation cycle would allow earlier The changes include making the R&E tax credit market entry which is a major factor in competing permanent, thereby providing some degree of in international markets. certainty in making long-term resource commit- ments; extending the credit to cover expenditures 2. Other Related Policy Initiatives: In addition to by startup firms, which will help encourage these five initiatives, President Bush recently venture capital investment in these enterprises; announced his support for legislation to reduce and establishing a two-tier structure for the tax the antitrust uncertainty that may unnecessarily credit, thus encouraging both rapid growth in discourage some joint production ventures and R&D expenditures as well as sustained com- to reform our cumbersome and expensive mitments. product liability system. Also, the Administra- b. International Cooperation: It is difficult, if tion will encourage the conduct of R&D by not impossible, for a single firm to be technologi- transnational companies by proposing to make 3 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN permanent the rules for allocation by such com- and potentially joint manufacturing, by panies of R&D expenditures and will propose groups of companies, whichshould have changes in those rules. procompetitive benefits as markets be- come increasingly globalized. 3. Existing Policies to Encourage Innovation: A number of recent legislative and executive ac- The Small Business Innovation Develop- tions either directly or indirectly affect the cli- ment Act (1982)-established the Small mate for the development and commercializa- Business Innovation Research (SBIR) tion of technology. These are: program to provide seed funding to launch innovations which have short- The President's Superconductivity Ini- term prospects for commercialization. tiative (1987)-an eleven point directive to bring focus to the Federal actions in The Title V Report (1989); The OECD support of superconductivity, some of General Framework of Principles for In- which, like the proposal to expand the ternational Cooperation in Science and National Cooperative Research Act of Technology (1988); and the Head of State 1984 to include some types of joint pro- Agreement for Science and Technology duction ventures, would apply to all Cooperation (1988)-established a technologies. framework for equitable, balanced in- ternational technology cooperation in- The National Superconductivity and cluding protection of intellectual prop- Competitiveness Act of 1988-directs a erty. number of actions related to the develop- ment and commercialization of super- The Council on Competitiveness (1989) conductivity. and The Economic Policy Council Work- ing Group on Research, Development, The Omnibus Trade and Competitive- Technology and Innovation (1989)-led ness Act of 1988-a wide ranging law by the Vice President and Secretary of which includes among many other things Commerce respectively, these two provisions for the oversight of super- mechanisms were established by Presi- conductivity and semiconductors and to dent Bush to improve competitiveness strengthen generally the contribution of and technological innovation. technology to competitiveness. The Science and Technology Centers The Federal Technology Transfer Act Program (1989); The Regional Centers (1986) amending the Stevenson-Wylder for the Transfer of Manufacturing Tech- Act (1980); Executive Order 12591 (1982) nology (1988); and The Engineering Re- Facilitating Access to Science and Tech- search Centers Program (1985)-have nology; The University and Small Busi- created twenty-eight university-based ness Patent Procedure Act (1980) centers to develop new knowledge and (amended by the Trademark Clarifica- to transfer advanced technology to in- tion Act (1984); and The National Com- dustry. petitiveness Technology Transfer Act (1989)-which taken together constitute Department of Defense Funding for a system to encourage the commercial- SEMATECH and the National Center for ization of Federally-funded research. Manufacturing Sciences-encourage ctor-ledcooperativeapproaches The National Cooperative Research Act to semiconductor manufacturing tech- of 1984; the Antitrust Enforcement nology and advanced manufacturing Guidelines for International Operations technology. (1988); and the proposed Cooperative Production Act of 1990-reduces the uncertainty related to collaborative R&D, SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING D. Federal Technology Research Budgets: Fiscal jections during the 1989 fiscal year. For this reason Years 1988 through 1990: The following tables these numbers do not track with, nor should they summarizing Federal funding for R&D for the four be compared to, the budget crosscuts prepared for technologies, by agency, for fiscal years 1988 through subsequent budgets. Funding for research for fiber 1990. The budget data collected for this report were optics (and photonics generally), superconducting based on a unique set of definitions, a unique materials, and ad vanced manufacturing R&D show process for data collection, and on the budget pro- steady growth. TABLE 1. Funding of semiconductor, fiber optics, superconducting materials, and advanced manufacturing research and development (dollars in millions) by agency: Agency 1988 1989 1990 Semiconductor R&D Energy 48 48 48 Defense 404 416 423 NSF 32 34 36 NASA 3 4 4 Commerce 3 3 3 Semiconductor Total $490 $505 $514 Fiber Optic and Optoelectronic R&D Energy 9 10 10 Defense 80 118 116 NSF 13 14 16 NASA 7 4 4 Commerce 2 2 5 Fiber Optic Total $111 $148 $151 Superconducting Materials R&D Energy 69 138 165 Defense 60 73 72 NSF 20 26 29 NASA 4 6 6 Commerce 3 3 4 Superconducting Total $156 $246 $276 Advanced Manufacturing R&D Defense 154 170 173 Commerce 3 3 3 Advanced Manufacturing Total $157 $173 $176 Note: The budget numbers shown in the table for advanced manufacturing do not include funding for robotics, and therefore do not show several agencies which have budgets in that area. The President's FY 1991 budget request contains a complete crosscut on robotics funding. A data collection for advanced manufacturing R&D funding, including robotics, is planned for the President's FY 1992 budget request. The budget data collected for this report were based on a unique set of definitions, a unique process for data collection, and on the budget projections during the 1989 fiscal year. For this reason these numbers do not track with, nor should they be compared to, the budget crosscuts which have been prepared for subsequent budgets. A description of the Federal programs for each technology, by agency, is included in the Appendices. 5 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN It is important to note that the agency pro- duction which is reflected as a $100 million in- grams are responsive to agency missions. In the crease (or 46 percent) in the SSC budget. case of program agencies like Defense, this often The 1991 budget request included funds for translates into support for specialized needs two programs at the Department of Commerce's which would not be met by industry in the National Institute of Standards and Technology normal course of business. These budget figures to encourage the development and transfer to and the programs which they represent should the private sector of a wide range of advanced not be viewed as comprehensive or integrated technologies. The budget proposed $10 million R&D strategies for the technologies. However, for the new Advanced Technology Program agency programs are designed by scientists and (ATP) to support a number of ventures doing engineers with an awareness of work being done generic, pre-competitive research in promising by others. Also, there is increasing interaction technologies. The budget also proposed $5 between government laboratories and the private million for grants to the Regional Manufacturing sector. Currently, there are more than 500 co- Technology Centers that will transfer advanced operative agreements in effect which are en- manufacturing technologies to medium and couraged by the Federal Technology Transfer small-sized businesses. Act of 1986, Executive Order 12591 (1987), and the National Competitiveness Technology The budget request also included an increase Transfer Act (1989). These include the Depart- of $222 million (or 26 percent) for science and ment of Energy's Superconductivity Pilot Pro- engineering education in five agencies. gram which is partially supported by the private sector. III. PRIVATE SECTOR'S ROLE IN INNOVATION 1. Related Fiscal Year 1991 Budget Initiatives: The The private sector has the principal role in President's current technology budget crosscut innovation and in identifying and utilizing was a one-time survey that covered a different technologies for commercial products and pro- set of technologies than those in this report. cesses. Even in meeting the Government's own Where similar technologies were included, the direct needs, the Government relies principally R&D crosscut and this report generally used on the private sector to undertake the develop- different definitions. The numbers, therefore, ment process and encourages these activities to are not comparable with the figures in this report. be managed in such a way as to allow commer- The proposed FY 1991 R&D expenditures for cial applications of the R&D as well. The Federal related crosscut technologies were $537 million Government and the private sector share the for semiconductor technology, $215 million for responsibility for supporting appropriate pre- superconductivity, $469 million for high-per- competitive research on generic enabling tech- formance computing, $118 million for dvanced nologies. However, the Administration believes imaging technologies whose reporting excluded that it is not an appropriate role for the Federal most fiber-optic and optoelectronic R&D), and Government to develop specific commercial $192 million for robotics (which is excluded from products whether they are based on technolo- the current report's definition of advanced gies developed with Federal R&D support or manufacturing technology). These amounts re- not. Moreover, where appropriate the private flect percentage increases over estimated FY 1990 sector must take an active role in directing inno- spending of 2 percent for semiconductors, 5 vation process from the outset to ensure that percent for high-performance computing, and R&D fits market needs. As stated in the back- 28 percent for robotics. No change in spending ground materials to The Superconductivity Plan: for advanced imaging technologies was pro- posed. The proposal included a 6 percent drop in "The multidisciplinary nature of the tech- R&D funding for superconductivity due to the nology and the fact that the benefits from progress of the Superconducting Super Collider commercialization will accrue over such a (SSC) magnet from research into prototype pro- long term may make it difficult for individual 6 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING firms to justify capitalizing the basic R&D some cases investments may only be re- expenses required for commercialization. couped - if the results are used in sev- Generic technical advances cut across in- eral applications, often in different in- dustrial sectors and markets. With fierce dustries. international competition, time will be criti- Different firms address these innovation and cal in transferring the technology into mar- commercialization challenges differently. Some ketable products-with successful commer- firms view the traditional linear, sequential in- cialization dependent on concurrent research, novation management practice as the best for- design, manufacturing, and marketing mula. Some other firms have begun to look at "Because of the time pressure for concur- alternative forms of innovation. One alternative rent effort across the spectrum from research that is receiving increased attention is a systems to applications, and the diversity of industries management approach that integrates the inno- involved, the management challenge is great. vation and commercialization stages. These two The Nation's success in commercializing su- approaches are illustrated in Figure 1 for opto- perconductivity ultimately depends on the electronics devices. private sector, which must make the critical In the sequential model, R&D precedes decisions on how much capital, time, and product design. After product design, manufac- effort to invest." turing processes are established at which point The firm that can be first to the market with the product is marketed. Through marketing, new products based on developments in one of the firm begins to receive feedback from current these areas can reap major commercial rewards. and/or potential users and redesign of the Innovation and commercialization have become product or design of the next generation of time critical. Time criticality, combined with products begins. Under this model, the firm high cost and long lead-time, technical com- often approaches a single application at a time, plexity, and the potential for multiple uses in rather than looking simultaneously at multiple many industries, may have important implica- applications. tions for the management of innovation. In Using the systems approach in the optoelec- many high-technology areas: tronics device example, a firm would simulta- Technological advances may not be spe- neously work on chip design, materials, pro- cific to one industry; cessing technology, and manufacturing equip- ment in conjunction with its suppliers. At the Existing products and technologies are same time, the firm would work with multiple made obsolete before their useful life is applications and users. Suppliers and users - over, as firms shorten product life cycles whether internal or external to the firm- become to compete in international markets; "stakeholders" in the commercialization process. Increasingly the private sector has to In a systems approach, the firm may under- identify specific products to meet specific take a multi-industry, multifirm joint venture of market opportunities before undertak- noncompetiting firms to develop, manufacture, ing R&D; and use the new product(s). The systems ap- Successful and timely innovation may proach will allow initial design input from the require the capabilities of many firms several users, planned parallel tracks of R&D, from different industries and other orga- parallel development of applications in con- nizations combined in coordinated, con- junction with the R&D, and early and simulta- current efforts. neous entry into many markets. Some American firms such as Xerox, AT&T, Motorola, and Returns on expensive investments in ge- Hewlett-Packard which have switched to this neric enabling technologies by firms of- model of managing innovation inside the firm, ten can only be maximized - and in have created new products in approximately 7 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN half the time and at half the cost of those using Greater materials purity required as the the sequential model. This approach allows the feature sizes of integrated circuits are developmental costs to be shared by all the reduced, stakeholders. Also, the users represent an initial Better computer models for predicting market for the product, potentially allowing the the solid-state effects of the boundaries of producer to achieve economies of scale and price competitiveness more rapidly. In short, it can regions within the devices, and reduce risk for all members of the joint venture. Better ways of dealing with heat dissipa- This approach may offer a means for firms to tion. collaborate where large investments associated with high-technology products may exceed in- Five agencies carry out selected research and dividual firm resources. development programs in the general area of semiconductor technology to meet their specific Many American firms are unfamiliar with missions. this systems model. Although it is commonly associated in the U.S. only with single application, The Department of Energy carries out re- government-led, defense and space projects, it is search on semiconductors and semiconductor being used by many foreign firms for multiple manufacturing technology which are important application, private sector-led, innovation efforts to several of its missions including solar energy, aimed primarily at commercial markets. the weapons program, basic energy sciences re- search, and high energy physics research. IV. OVERVIEW OF TECHNOLOGIES The Department of Defense programs fo- A. Semiconductors and Electronics cus on many special manufacturing problems, Technologies one of the most important of which involves microcircuit reliability in hostile (i.e., combat) environments. Recently SEMATECH, an indus- Semiconductors are the basic component of try consortium to rebuild U.S. excellence in semi- the electronics Industry. They are integral to the conductor manufacturing was established. It electronic systems which make possible parts of will spend $250 million per year for a minimum the nation's defense, communication systems, of five years and is funded by 14 member compa- transportation, medical care, banking, manufac- nies, the U.S. Government through the Depart- turing, etc. The world market for semiconductor ment of Defense, and the State of Texas. devices is $50 billion and for semiconductor manufacturing, test, and assembly equipment is The National Aeronautics and Space Ad- $8.6 billion. U.S. production of semiconductor ministration addresses problems unique to its devices was $20 billion in 1988 and is presently mission. For example, the objective of its gallium growing at 8 percent annually. U.S. production arsenide (GaAs) technology development pro- of semiconductor production equipment was gram is to develop GaAs digital integrated circuit $3.8 billion in 1988. technology for its unique, high data rate, signal processing applications such as: robotic vision, Advanced semiconductor technology is high resolution imagery spectrum and the evolving toward even more complex semicon- geodynamic laser ranging system instruments. ductor devices with smaller feature sizes. The evolving technology is resulting in changes in The Semiconductor Metrology Program in processing and quality control, in materials tech- the Department of Commerce's National Insti- nology, in device design, and in packaging, es- tute of Standards and Technology provides pecially: needed generic measurement methods and ser- vices, national reference standards, carefully Improvements in processing and quality evaluated reference data, and technical consul- control necessary for new processing tation on measurement technology and theory. technologies like x-ray lithography, These support research, development, and 8 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING manufacturing; promote equity in domestic and ation for computing applications. Several basic international markets; and aid international devices necessary for a completely photon-based competitiveness of the Nation's manufacturers system are either not yet available, or are not and users of semiconductor materials, fabrication cost-effective. However, many laboratories equipment, and devices. worldwide have strong R&D efforts on photonic computer devices and components. The National Science Foundation provides funding to universities to conduct basic research The world market for optical fiber communi- and to train students in the field of semiconductor cation systems components reached $3.2 billion technology. Among the research areas supported per year in 1989 and has been growing at about are packaging materials technology, dielectrics, 25 percent per year. The world market for sys- silicon technology and devices, compound semi- tems is considerably greater. For example, the conductor technology and devices, device pro- world wide investment in undersea lines alone is cessing techniques, and integrated electronics. expected to reach $8.5 billion for the eight-year period 1988-1996. B. Fiber Optics and Optoelectronics Five agencies carry out selected research and Technologies development programs in the general area of Photonics is the name given to the genera- fiber optics and optoelectronic technologies to tion, control and use of photons (light); it is the meet their specific missions. optical analog of electronics. Photonic or electro- The Department of Energy conducts re- optic devices and systems can have a large search under its weapons program which in- bandwidth which means that huge amounts of cludes the synthesis, characterization and pro- data can be quickly switched and transmitted. cessing of glasses; investigations of non-linear Photonic devices could replace many elec- optical properties of materials; and the effects of tronic devices but are currently not nearly as impurities on the optical properties of disordered well developed or cost-effective. The main com- materials. The goals are to improve the perfor- mercial applications for photonics are for infor- mance of these materials for use as components mation transmission and optical sensing. A third, in diagnostic instrumentation to do real-time optical computing, is in the exploratory stage. monitoring of complex experiments for weap- ons testing. Photonic-based systems are becoming the system of choice for many high-data-rate uses The Department of Defense's programs are like long distance telephone and data networks. aimed primarily at the proliferation of defense Even such short-haul uses as communication systems which will rely on fiber optics in the next between racks of equipment in a large switching decade. Today's fiber optics research will provide system or computer and between components of ships, aircraft, and undersea communications in-home high fidelity stereo systems are being with higher band width capabilities at lower cost taken over by photonic systems. than metallic cable approaches. In addition, fiber optical sensors will provide a new class of A photonic information transmission system gyroscopes as well as acoustic, magnetic sensors has three basic components: an electro-optic for inertial navigation and antisubmarine war- input device, a transmission medium and an fare. electro-optic output device. While the transmis- sion technology is mature, dvances in the tech- The National Science Foundation supports nology used in electro-optic input and output university research efforts in optical fiber tech- devices can be important to key devices proposed nology for communications, sensing, and for high definition television receivers and for switching applications; a number of academic many advanced displays. research projects on optical phenomena for ap- plications in optical computing, processing, logic, The high speed and high noise immunity of displays, imaging, and others; and on semicon- photonic systems make them a natural consider- ductor devices that exhibit photoelectric or op- 9 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN toelectronic properties. This support is intended In the electric power industry, supercon- to advance the basic science and to educate stu- ducting magnetic energy storage (SMES) is a dents in electro-optic technology. potential near term application of superconduc- tivity with important economic benefits. The National Aeronautics and Space Ad- ministration has several programs in fiber-optic Five agencies carry out selected research and and electro-optics research and development for development programs in the general area of su- applications in space and aeronautics. perconductivity to meet their specific missions. The Department of Energy carries out research and The Department of Commerce's R&D pro- development on high temperaturesuperconductors gram, which is carried out in the laboratories of primarily in support of three program missions: NIST, provides the base of consistent physical Basic Energy Sciences, Conservation and Renew- measurements and standards required to sup- able Energy, and Defense Programs. The port the development and utilization of optical Department's research program in low-tempera- fiber telecommunications. In addition, the pro- turesuperconductivity is needed primarily because gram encompasses the measurement of the superconducting magnets are required to advance special characteristics of fibers used for sensors the performance of expensive experimental devices and evaluation of prototype sensors for current, utilized in magnetic fusion energy and high energy voltage, magnetic field, and other quantities. and nuclear physics. C. Superconducting Material The Department of Defense's program in high temperature superconductivity involves Superconductivity is a material property synthesis, processing and fabrication of materi- characterized by zero electrical resistance and als; pre-commercial manufacturing science is- other related phenomena. One of the most sig- sues; and conceptual device development. Large- nificant scientific breakthroughs of recent de- scale, low-temperature superconductivity tech- cades, the achievement of high temperature su- nology is relatively mature, but there has been perconductivity, was made in 1986, when ce- only modest application in military systems. ramics, based on perovskite systems, were found Research and development is continuing to to exhibit superconductivity at temperatures support such applications as sensors, analog which were significantly higher than was ever electronics, digital electronics, electric observed in earlier work. Because superconduc- drivesystems for ships (and possibly land vehicles tivity has the potential for application in a wide and aircraft), electric generators, electric energy variety of products, it has attracted a great deal of storage systems for directed energy weapons, and interest. directed energy weapons. The most notable commercial success to date The National Science Foundation supports is the magnet used for Magnetic Resonance Im- research in universities to bring a wide variety of aging (MRI), which with other medical applica- experimental techniques to the study of new high- tions of superconductivity have great market temperature superconductors; to bring experience potential. in chemistry to the synthesis of solid state oxide The development of high energy particle superconductors; to understand bulk properties, accelerators has led to the construction of many thin films, and superconducting devices; to un- large and successful superconducting bending derstand physical limitations of superconductors and focusing magnets. The Tevatron, at the such as critical temperatures and fields; to under- Fermi Laboratory, features a ring of supercon- stand metallic and structural behavior of supercon- ducting magnets 5 km in circumference. The ductors and the microscopic behavior of super- Superconducting Super Collider (SSC) will be conducting properties; to expand knowledge of similar but ten times bigger. Perhaps the most superconductor processing, modification, and significant potential application of large super- synthesis and characterization of superconducting conducting magnets is to controlled thermo- ceramic oxides; and to apply both low-temperature nuclear fusion. and high-temperature superconductors. 10 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING The National Aeronautics and Space Ad- engineering design changes, 40 to 60 percent in ministration has instituted a program in high- the manufacturing costs, and 75 percent in the temperature superconductivity for applications scrap and re-work of manufactured products. in space and aeronautics. The high-temperature This last effect is particularly significant because superconductor program includes benefit stud- some surveys have shown that, in the U.S., one- ies of typical aerospaceapplications. The research third of the work force in manufacturing indus- is directed at characterization of new high-tem- tries is engaged in re-work; that is, correcting perature superconducting materials for unique out-of-tolerance parts made by the other two- aeronautics and space applications including thirds. the effects of vacuum and space radiation. Two agencies carry out selected research and The Department of Commerce (NIST) pro- development programs in the general area of vides measurement technology and data in su- advanced manufacturing to meet their specific perconductor electrical and mechanical proper- missions. The Department of Defense's primary ties, composition and structure analysis, pro- goal in its research and development programs cesses, and superconducting electronics. Earlier in advanced manufacturing is to improve the work in superconducting electronics has led to productivity and responsiveness of the defense the national standard for voltage being based on industrial base. The primary Department of the performance of superconducting devices. Defense program in this area is its MANTECH program. While the Department of Defense D. Advanced Manufacturing Technologies funds R&D in advanced technology, the con- tractors are normally expected to invest in the Historically, design, manufacturing, and capital equipment necessary to implement that measurement have been separate processes. technology. Conceptually, a designer would design a system and reduce its individual parts to drawings, or The Department of Commerce (NIST) has blueprints, to communicate the essential fea- two principal goals for its advanced manufac- tures of the design to the machinist who would turing program. One is to supply U.S. industry make the parts. The machinist would cut a part with this radically new way of making precisely on a milling machine, stopping periodically to machined parts with dimensions that can be check dimensions with calipers and gauges. As referenced to national measurement standards manufacturing techniques became more and which are maintained at the NIST. The second is more efficient, the measurement process con- to support the modernization of American sumed an ever-greater percentage of the total manufacturing by providing the technical infor- work required to produce a part. In addition, mation necessary to develop standardized inter- retooling to respond to design changes became faces between various types of equipment. NIST increasingly expensive. is also using its laboratories as a test bed for research on the next generation of knowledge- The development of modern computer sys- based manufacturing systems and is carrying tems has stimulated the beginning of a funda- out technology transfer activities in the area of mental change in the manufacturing process advanced manufacturing. which affects the design, fabrication, and the measurement of the part. This change, which has been called "concurrent engineering" is, in its simplest terms, the development of the product and its manufacturing, quality control, distri- bution, and repair process simultaneously. For a selected application in the Department of Defense's acquisition of a weapons system, it has been estimated that concurrent engineering pro- duced reductions of 50 percent in the number of 11 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN V. CONCLUSION private sector must take an active role in direct- ing the innovation process from the outset to The Administration continues to support ensure that R&D fits market needs. New alter- R&D to meet direct Government needs as well as natives such as systems management may offer research on pre-competitive enabling technolo- a means for firms to share costs and risks where gies in most current high-technology areas, in- large investment associated with high-technol- cluding semiconductor, opto-electronics and fi- ogy products may exceed individual firm re- ber optics, superconducting materials, and ad- sources and to manage the innovation process vanced manufacturing. The Administration's more efficiently. policies with respect to technological innovation identify appropriate roles for the Government The Administration is undertaking continu- and for the private sector. ing efforts to improve coordination of Federal R&D funding and improve the environment for Traditionally, the Federal Government has innovation and development of commercial supported R&D for two reasons, as stated in the products by the private sector, including, inter President's FY 1991 Budget: first, to meet its own alia, the Administration's proposal to make the direct needs- where it is the principal consumer research and experimentation tax credit perma- - such as defense and civilian space R&D; and nent. second, to meet broader national needs such as new and better means of diagnosis and treatment of disease, agricultural productivity, and pollu- tion clean-up. In the first case, where the Federal Govern- ment is the ultimate consumer for the R&D re- sults, funding levels and decisions are made on the basis of Government programmatic objec- tives, needs and requirements. The Government relies principally on the private sector to un- dertake the development process and encour- ages these activities to be managed in such a way as to allow commercial applications of the R&D as well. The second category of R&D requires Federal support in the interests of public welfare where the private sector is unable to capture sufficient benefits to make private R&D investments eco- nomic. Federal support of fundamental scientific research is the prototypical, essential investment in the Nation's scientific and technological future. This fundamental research is a necessary part of the knowledge base required for the Federal Government to meet its own direct needs and objectives in the future and for the private sector to create new products and processes. However, the Administration believes that it is not an appropriate role for the Federal Gov- ernment to develop specific commercial products, even where based on technologies developed with Federal R&D support. Commercial deci- sions are best left to the private sector. The - 12 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING VI. APPENDICES in device design, and in packaging. Improved processing and quality control 1. Semiconductors and Electronic requires new processing technologies, x-ray Technologies lithography as an example, which can pro- duce finer structures and productivity im- 1.1 Introduction provements using existing technologies. The process of making an integrated circuit re- Semiconductor products are critical ele- quires up to 500 steps. Most of these steps ments of most high technology products and cause irreversible changes so that a single a basic element of the information technology processing error can render an entire wafer age. useless. Measurements are usually not pos- sible after every processing step, only some 1.2 Introduction to the Technical Issue of them. The result is that additional, ex- pensive processing steps are often applied to Semiconductor manufacturing is a com- a wafer that has already become scrap. plex, multi-step process that simultaneously Two principal classes of materials go into creates hundreds to thousands of copies of the manufacture of integrated circuits: (1) an integrated circuit on a semiconductor the starting silicon and compound semicon- wafer that is ten to twenty centimeters in ductor materials on which integrated circuits diameter. Each integrated circuit is com- or individual transistors are formed, and (2) posed of active semiconductor devices the materials introduced during subsequent (transistors) and passive devices (resistors processing steps to form layers and intercon- and capacitors). During the manufacturing necting lines. For both classes of materials, process, millions of these devices are con- greater purity is required as the feature sizes structed simultaneously in each integrated of integrated circuits are reduced. In some circuit. The integrated circuits are composed cases impurity levels less than one part in a of multiple layers of materials. These layers trillion are required. The seriousness of the are configured to make up the devices in the problem is reflected in reports from U.S. circuit as well as the millions of conducting manufacturers that sophisticated integrated lines needed to interconnect the various de- circuit manufacturing processes that work vices in the circuit. More than one hundred with materials supplied by Japan sometimes meters of such interconnections may be cre- do not work with U.S. materials; yet U.S. ated within each of the integrated circuits on measurement methods are unable to detect a wafer. The resulting integrated circuits are the differences between the two sets of mate- cut from the wafer. Each is mounted in a rials. plastic or ceramic package and is wired to tens to hundreds of "pins" which extend Particles that were specks at larger feature outside of the package. The pins of the sizes are boulders to smaller feature sizes, package are later soldered to wired patterns and cause catastrophic flaws in the chips. embedded in printed circuit boards to form Particles arrive in both gases and process functioning products. chemicals, and are generated by process equipment, material handling, and the people Advancing semiconductor technology is who work in the process area. evolving toward even more complex semi- conductor devices with smaller feature sizes. As the size of semiconductor devices de- The evolution is driven by the need for more creases, the solid-state effects of the bound- powerful semiconductor products and for aries of regions within the devices become reduced cost and size. The evolving tech- significant. These effects were negligible at nology is resulting in changes in processing larger feature sizes. Computer models used and quality control, in materials technology, in engineering design no longer correctly REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN predict the behavior of the devices, leading program, basic energy sciences research, and to serious difficulties in creating new inte- high energy physics research. In addition, basic grated circuits that work properly. research to understand the properties and be- havior of semiconductors is conducted both to As integrated circuits become more com- broaden the knowledge base and to support the plex, so do the design requirements on their solar energy and weapons programs. The packages. More heat must be dissipated in semiconductor program includes advanced smaller packages, more pins must be accom- processing of semiconductors, surface property modated, and the sensitivity of integrated measurements, research on developing new circuits to thermal stresses increases. compound materials, and theoretical studies. Compound semiconductors are necessary for 1.3 Funding Levels for Semiconductor Research the integration of optical and electronic functions, and Development and for high speed and microwave devices. Research is also directed toward development of The Federal funding for research and devel- subnanosecond, gallium arsenide, linear, photo- opment in semiconductor technology is summa- conductive switches, and picosecond x-ray and rized in Table 1. gamma-ray radiation detectors. DoE meets with the semiconductor industry to exchange infor- TABLE 1. Funding of semiconductor research and mation, to make industry aware of DoE activi- development (dollars in millions) by agency. ties, and to take industry concerns into account. A workshop was held to develop a plan for the Agency 1988 1989 1990 development of x-ray lithography, a process for imprinting finer features on semiconductors. The Energy 48 48 48 Department of Defense has provided funds to Defense 404 416 423 DoE's ookhaven National Laboratory to design NSF 32 34 36 and build a compact synchrotron for this process. NASA 3 4 4 Industry has also expressed interest in DoE capa- Commerce 3 3 3 bilities in compound semiconductor expertise, clean room technology, and advanced process- Total $490 $505 $514 ing. DoE has funded development of a syn- chrotron at Louisiana State University to coordi- The budget data collected for this report was nate government efforts on x-ray lithography. based on a unique set of definitions, a unique process for data collection, and on the budget 1.5 Department of Defense Semiconductor projections during the 1989 fiscal year. For this Program reason these numbers do not track with, nor should they be compared to, the budget cross- 1.5.1 Silicon and Gallium Arsenide Inte- cuts which have been prepared for subsequent grated Circuits. The Department of Defense budgets. (DoD) semiconductor technology program encompasses a range of fabrication technolo- The agency programs are summarized in the gies used to manufacture miniaturized elec- following sections. tronic devices mainly on silicon or gallium arsenide substrates. The components of mi- 1.4 Department of Energy Semiconductor croelectronics fabrication technology may be Program divided into the following categories: Wafer Preparation: The technology used for The Department of Energy (DoE) carries out mass-production of high quality semicon- research on semiconductors and semiconductor ductor wafers, including crystal growers, manufacturing technology related to several DoE slicers, polishers, and preliminary dopant missions including solar energy, the weapons equipment. 14 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING DoD has extensive microfabrication tech- Wafer Fabrication: The body of technologies nology development efforts underway. Per- used to fabricate integrated circuits on the haps best known is the DoD Very High Speed prepared wafer, including lithography sys- Integrated Circuits (VHSIC) program. Now tems, ion-implantation machinery, thin film in its final phase, the VHSIC program cur- deposition and removal technology, clean rently is focused upon refining the tech- room technology, etc. nologies required to achieve submicron (0.5 micron) feature sizes. This capability will Mask Making and Design: The "off-line" allow fabrication of extremely dense and technology used to make "camera ready" high-speed integrated circuits. In addition circuit masks (used by lithography and to the VHSIC program, DoD is also engaged doping processes), circuitry design (e.g., in other silicon-based microfabrication computer-aided design hardware and soft- technology R&D. In 1989, DoD agreed to ware), and device technology. support SEMATECH, an industry consor- Assembly and Test: The so-called "back- tium formed to focus on advanced technol- end" of the microelectronic production pro- ogy development. SEMATECH's specific cess encapsulates the semiconductor die (or program is still undergoing evaluation. DoD "chips") into a ceramic or plastic package is also pursuing advanced lithography (housing). This category includes the asso- technology (ultra-violet, x-ray, and electron ciated bonding equipment (wire bonders and beam), and is developing radiation-hardened die bonders) and the test machinery used for semiconductor devices (for both metal oxide die-on-wafer testing as well as final pack- and bipolar device types). aged circuit testing. DoD is also developing microelectronics Radiation Hardening: Hardening micro- circuits on gallium arsenide (GaAs) substrates electronics against damage caused by high as well as on other compound semiconduc- energy electrons, neutrons, protons, heavy tors. DoD's Microwave and Millimeter-Wave particles, x-rays, and gamma radiation is Monolithic Integrated Circuit Program vital to system performance in hostile radia- (MIMIC) is focused upon the development tion environments. Techniques used to ac- and production of affordable, reliable, ana- complish that goal include special circuit log circuits for use as sensors and signal designs, application of silicon-on-insulator processors in the front-ends of electronic warfare, radar, smart munitions, and com- (SOI) and silicon-on-sapphire (SOS) tech- munication systems. These circuits, fabri- nology, and processing techniques to reduce cated primarily from gallium arsenide, op- radiation sensitivity of the silicon/silicon erate at frequencies from 1 to 100 GHz. De- dioxide interface. vices being used include High Electron Mo- This fabrication technology has widespread bility Transistors (HEMTs), and Hetero- use in both military and commercial appli- junction Bipolar Transistors (HBTs). Other cations, including computing, communica- programs develop millimeter wave power tions, and digital electronics. Many special devices, wafer-scale technology, molecular manufacturing problems remain from a beam epitaxy, and superlattice technology. military point of view, however. The most important of them involves microcircuit reli- 1.5.2 GaAs/Compound Semiconductor Ma- ability in hostile (i.e., combat) environments. terials. Gallium arsenide and other com- Reliability problems caused by hostile envi- pound semiconductors (such as indium ronments often demand specialized manu- phosphide, indium antimonide, and mer- facturing solutions that may not be available cury-cadmium-telluride) have historically from U.S. industry. Solving these problems played important roles in microwave and remains a critical aspect of DoD fabrication millimeter wave circuit devices as well as efforts. roles at other frequencies (eg., infrared and 15 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN optical). While these materials have well niques, and thin film deposition processes known potential for still other applications and equipment. (such as high speed, radiation resistant, in- GaAs now is used in solid-state active-aper- tegrated circuits), fabrication difficulties ture-antennas (phased arrays). The same prevented the realization of these potential integrated circuit elements will appear more applications. Since 1980, major technology commonly in equipment for communica- advances have led to greatly improved GaAs tions, electronic warfare, and electronic in- materials. Preparation at the molecular level telligence, avionics, missile guidance and has recently permitted fabrication of the first control, and surveillance from space in the truly microelectronic integrated circuits on 1990s. non-silicon substrates. GaAs technology is expected to become competitive with silicon- Work is in progress to develop a high-pres- based microelectronics, and promises sig- sure liquid encapsulated Czockralski nificant advantages especially for military (HPLEC) crystal puller fitted with a variety applications. of sensors to allow the reproducible pro- duction of larger diameter, larger overall GaAs circuits could have significant techni- size (20-25 kg) boules, of gallium arsenide cal advantages over their silicon-based substrate material with the electrical prop- counterparts because of two intrinsic ad- erties and uniformity necessary to provide vantages GaAs has over silicon, namely, a starting materials for microwave and milli- faster electron drift velocity and inherently meter wave devices. better resistance to radiation damage. GaAs has an electronic drift velocity nearly seven Work is also in progress to improve the con- times faster than silicon, a significant ad- trol and uniformity of epitaxial gallium ar- vantage which can now be exploited. Thus, senide layers. Techniques being developed a GaAs integrated circuit may be many times include Metal Organic Molecular Beam faster than a silicon-based counterpart of Epitaxy (MOMBE), Molecular Beam Epitaxy similar design and complexity. Gallium ar- (MBE), and Metal Organic Chemical Vapor senide materials are also inherently less Deposition (MOCVD). Strategies for theshort susceptible to damage caused by ionizing term are primarily directed toward improv- radiation (e.g., that experienced in routine ing the quality and reproducibility of wafers space operations or in a nuclear blast envi- grown one at a time. Longer range plans call ronment) than silicon. for development of equipment which would Despite its recent breakthroughs, GaAs de- allow simultaneous epitaxial growth on vice fabrication technology remains relatively multiple gallium arsenide wafers. undeveloped compared to more than two 1.6 National Science Foundation decades of research and development in fab- Semiconductor Program rication technology for silicon devices. De- velopment and incorporation of GaAs tech- 1.6.1 Semiconductor Physics and Materials nology into new or existing microfabrication Sciences. The National Science Foundation techniques is believed to be critical if DoD is (NSF) support for this area has the objective to keep pace with materials preparation ad- of providing a fundamental understanding vances now occurring worldwide. Such of the mechanical, thermal, electrical, mag- developments would also significantly affect netic, optical, and other properties of semi- existing applications of GaAs technology, conductor materials and other materials used especially in millimeter and microwave in making semiconductor devices. This systems. Materials preparation technologies knowledge is the cornerstone of semicon- include advanced III-V compound semicon- ductor technology. ductor epitaxy, II-VI compound semicon- ductor epitaxy, materials handling tech- 16 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING 1.6.2 Semiconductor Chemistry. NSF sup- 1.6.7 Compound Semiconductor Technol- ports research on photochemistry for li- ogy and Devices. NSF supports research on thography, which remains the basic tech- devices with applications in signal genera- nology for mass production of integrated tion, signal processing, chemical sensing, circuits. Basic research in both surface frequency conversion, and power process- chemistry and inorganic chemistry is sup- ing with an emphasis on investigations into ported with the objective of yielding im- fundamental physical phenomena. The proved techniques for depositing or etching emphasis is on experimentally based research circuits on chips. New types of semiconduc- and on devices with long-range future im- tors made from polymers may emerge soon pact and/or areas with a lack of fundamental from basic research in organic chemistry. understanding of device operation. NSF supports work on molecular beam epitaxial 1.6.3 Semiconductor Mathematics. NSF growth of compound semiconductors and supports academic research on theoretical growth and characterization of semiconduc- mathematics such as Boolean algebra, which tor quantum wells and superlattices. NSF formed the basis for the design of the first provides support for academic researchers digital computers. Today, such semiconduc- to use the semiconductor fabrication and tor-related areas as device design and mod- processing facilities of the Electronics Tech- eling depend on advanced mathematics. nology and Devices Laboratory operated by 1.6.4 Packaging Materials. Materials used in the Department of the Army. packaging integrated circuits have a pro- 1.6.8 Device Processing Techniques. NSF found effect on the performance and reli- supports investigations of advanced pro- ability of finished semiconductor products. cessing techniques that permit fabrication of Packaging materials technology becomes in- improved and novel solid state electronic creasingly critical in modern devices with devices, with emphasis on fundamental very small circuit dimensions and high power studies of processes that have promise in dissipation. NSF supports basic research in device fabrication. New resists, ion implan- ceramic packaging. tation, transient processing techniques using 1.6.5 Dielectrics. Various dielectric (non- lasers, and the development of x-ray lithog- conducting or insulating) materials are raphy are some examples. NSF supports the needed in semiconductor devices for such Cornell National Nanofabrication Facility, functions as providing electrical capacitance. which is a user facility for making small- New or enhanced dielectric materials could feature-size semiconductor devices for re- increase the capability or reduce the cost of search and development. such semiconductor devices. NSF supports 1.6.9 Integrated Electronics. The ability to research in this area. design integrated circuits that incorporate 1.6.6 Silicon Technology and Devices. NSF many circuit elements onto one chip draws supports basic research in semiconductors on a wide range of engineering disciplines. with an emphasis on projects that may result NSF-funded research in this area focus on in new technologies, devices, or processes. maintaining circuit quality, performance, and NSF supports the Semiconductor Research reliability as circuits are designed on a pro- Corporation, which develops programs to gressively smaller scale. Improving the in- strengthen the U.S. industrial position in terconnections and contacts between circuit semiconductor manufacturing. In addition, elements is also of critical importance. the NSF provides funding for several indi- vidual investigator grants for silicon devices, 1.7 National Aeronautics and Space Adminis- development, processing and device mod- tration (NASA) elling. Semiconductor activities within NASA are focused on gallium arsenide (GaAs) technology. 17 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN The objective of this program is to develop GaAs support research, development, and manu- digital integrated circuit technology for onboard facturing; promote equity in domestic and high data rate signal processing applications international markets; and aid international suchas: Robotic Vision, High Resolution Imagery competitiveness of the nation's manufactur- Spectrum and the Geodynamic Laser Ranging ers and users of semiconductor materials, System (GLRS) instruments. The technology fabrication equipment, and devices. The development plan is structured to build on the program does not include development of previous development of Depletion Mode (D new commercial device designs, new pro- Mode) transistor devices to develop High Elec- cessing or assembly techniques, or new tron Mobility Transistor (HEMT) low power manufacturing equipment, except as these devices. may arise logically as the outcome of the basic metrology mission. The D Mode development was initiated in FY83 after three studies identified GaAs as the 1.8.2 Technical Activities. Integrated circuit most promising technology to meet NASA's manufacture is a measurement-intensive onboard processing requirements for high data process. Roughly a quarter of the cost of the rate processing, low power, high reliability and product is due to the cost of measurement. radiation tolerance. In fiscal year 1983, a project Only the most essential problems with sig- was initiated to develop an Advanced Adaptive nificant impact potential ("high leverage" Processor (AAP) chip set. The AAP chip set is issues) can be addressed by NIST's relatively structured around a general purpose processor. small program. Other devices in the chip set are the random access memory and gate array which were de- Projects are selected in response to measure- veloped by DoD. During 1987, a general purpose ment needs expressed by industry, particu- processor, with controller, was fabricated using larly those that relate to the NIST missions of DoD's GaAs pilot line. Initial testing of the wa- improving U.S. competitiveness and pro- fers show a good yield of fully functional devices. moting equity in domestic and international trade. The dissemination mechanisms enu- These two devices were integrated in 1988 and successfully applied to image data compression. merated below frequently establish industry contacts that contribute substantively to in- The present effort has a goal of developing a put for planning. The extraordinarily dy- general purpose processor using the Minimum namic character of the industry demands Instruction Processing Set (MIPS) architecture these close ties if the NIST program is to be by 1992. In 1989, NASA continued a program responsive to industrial measurement needs. initiated the Office of Naval Research to enhance Most of the technical concerns of the indus- the yield of random access memory devices with try are considered in the formal planning an access time of 1.0 nanosecond utilizing the process. HEMT devices. This device will be utilized as a memory in high data rate applications. Program work ranges across the metrologi- cal research and development board, from basic investigations of the behavior of ma- 1.8 Department of Commerce Semiconductor terials and structures to the development Program of special circuits used in characterizing per- 1.8.1 Program Objectives. The Semicon- formance limits of devices and processes. ductor Metrology Program (SMP) in the Special measurement methods are required Department of Commerce's National Insti- to determine the levels of dopants, defects, tute of Standards and Technology (NIST) impurities, and structural imperfections in provides generic measurement methods and semiconductor materials. Many of these services, national reference standards, care- measurement methods also support process fully evaluated reference data, technical development and control. Resistivity mea- consultation on metrology, and theory. These surements of dopant density in silicon wa- - 18 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING fers continue to be supported and improved. now foreseen, using electron microscopy. Methods for measuring oxygen and carbon Work continues on the very difficult problem in silicon wafers using non-destructive in- of measuring these small scale features on frared optical techniques are being devel- wafers in the production process. oped. Expertise with compound semicon- ductors continues to be advanced. A variety 1.8.3 Dissemination of Results to Indus- of x-ray techniques for characterizing semi- try. The accomplishments of the program conductor materials and structures are being are disseminated through a special NIST developed using a recently completed beam publication series for major reports of pro- line at the Brookhaven National Synchrotron gram research (about 80 have been issued); Light Source. quarterly progress reports; other NIST-pub- lished reports; and about 800 journal and Work continues on developing integrated conference papers. All are referenced in an circuit test structures as a major tool for annual NIST List of Publications in semi- verifying the performance of fabrication conductor technology. processes and the reliability of completed The program also targets information to those circuits. Activity is focused on the analysis of who need it through seminars and workshops test structure data using machine learning on special topics; talks at professional meet- algorithms and expert systems analyses. The ings; videotapes; visits to industry sites; visits algorithms digest historical data on fabrica- to NIST by engineers and researchers in in- tion processes to derive rules for use in ex- dustry; consultations; industrial organiza- pert systems. The expert systems provide tions such as the Semiconductor Industries real-time diagnosis of difficulties arising Association (SIA), Semiconductor Equipment during subsequent processing and generate and Materials International (SEMI), and the prioritized lists of candidate corrective ac- Electronic Industries Association (EIA); and tions. Test structures can also be used for standards development in committees of the reliability determination by examining fail- American Society for Testing and Materials, ure mechanisms such as electromigration EIA, the Institute of Electrical and Electron- and time-dependent dielectric breakdown. ics Engineers, and SEMI, for example. Dis- Models and measurements to support both semination is also accomplished through the integrated circuits and power transistors are sale of standard reference materials, the being developed. For integrated circuits, provision of computer codes on magnetic theoretical studies of the quantized electron tapes, and informal consultations. states in silicon and compound semiconduc- tors are being conducted to understand de- 1.8.4 Collaboration with Industry. Collabo- vice performance better. For power transis- ration ranges from industry's provision of tors, measurements for characterizing per- materials or technical services not otherwise formance continue to be developed. A key available to NIST through NIST participation aim is to provide measurements that can in interlaboratory round-robin experiments determine non-destructively the safe oper- to participation in cooperative research ating conditions for new types of power projects. Frequently, researchers in industry transistors, including those based on mixed and at NIST will characterize the same set of technologies. specimens as part of the process of developing a new measurement method. Standards for feature-size measurements on wafers are in constant demand from the in- 1.8.5 Services for Other Agencies. Semicon- dustry for controlling the dimensions of in- ductor expertise and technical advice are tegrated circuit patterns. Past calibration frequently needed by other government tools for use with photomasks are being ex- agencies for a variety of reasons including tended to the smaller range of dimensions export controls, antitrust and merger issues, 19 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN antidumping matters, etc. Program staff with Photonic devices like electronic devices have appropriate expertise are made available as diverse uses. However, photonic devices are not needed on a reimbursable basis. Measure- nearly as well developed as electronic devices, ment problems of concern to other agencies and many uses are not, at present, cost-effective. are undertaken at their expense, subject to The main commercial application for photonics mutual agreement on topics, costs and is for information transmission. A second major deliverables. National security matters are use, optical computing, is in the exploratory generally addressed by the program only stage. when specifically targeted to the semicon- Photonic-based systems are becoming the ductor industry, such as is the case with system of choice for many high-data-rate uses. DoD's Very-High-Speed Integrated Circuits For example, the long distance telephone and (VHSIC) and Microwave Monolithic Inte- data network is rapidly converting to photonic grated Circuits (MIMIC) programs, and based systems. Even such short-haul uses as SEMATECH. communication between racks of equipment in a 1.8.6 Formal Evaluation of Program Effec- large switching system or computer and between tiveness. The activities of the program are components of in-home high fidelity stereo reviewed in detail annually by a panel of systems are being taken over by photonic sys- tems. experts from industry and academic institu- tions selected and administered by the Na- The vanced state of photonic transmission tional Academies of Science and Engineering. systems and their reliability can be gauged by The panel reports candidly both informally the fact that the trans-Pacific and trans-Atlantic and in writing. These evaluations provide cables recently put into service are photonic valuable guidance and have a major influence systems capable of carrying the equivalent of on the conduct of the program. 40,000 voice transmissions simultaneously; the Formal studies have examined the effective- previous coaxial cable system has a capacity of ness of the SMP in assisting industry from an 10,000 voice channels. In addition, photonic econometric point of view. These studies systems are proposed for distributing data and concluded that from 1973 to 1977 the NIST high definition television (HDTV) signals to the program increased the overall industry pro- home, a potentially huge consumer market. ductivity level by approximately 1 percent. Photonic systems are being developed and [Independent evidence indicates that this evaluated because they promise some potential amounted to 5 percent of the increase in advantages over electronic systems: semiconductor industry productivity during that period.] The value of these productivity a) They have gigabit wide bandwidths and benefits was from $30 to $50 million per year so can carry a large volume of data. over this period. Benefit:cost ratios for those b) They are immune to many forms of elec- NIST semiconductor projects which have tromagnetic interference. been studied range from 5:1 to 110:1. c) They are difficult to intercept and tap 2. Fiber Optics and Optoelectronic and so give better security. Technologies A photonic transmission system has three basic components: 2.1 Introduction a) Electro-optic input device-the input Photonics is the name given to the genera- device changes the electronic input sig- tion, control and use of photons (light). It is the nal to a photonic (optical) output. optical analog of electronics. Photonic or electro- optic devices and systems can have a large band- Present day technology uses an electri- width. This means that huge amounts of data cally switchable semiconductor laser. It can be quickly switched and transmitted. was the invention of the laser in the late 20 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING 1950's that ushered in the photonics age. system are either not readily available, or Because a laser generates a coherent al- are not cost-effective. For example, there most single frequency output, the design is no cost-effective photonic analog to the of low attenuation, non-dispersive sys- transistor or integrated circuit. So pres- tems are made much easier. Semicon- ently, high speed electronic devices made ductor lasers are small, complex devices with silicon or gallium arsenide are used made primarily of the III-V elements such to do the switching, amplification and as gallium, arsenic, and phosphorus. The memory functions, with photonics being processing technology used in produc- confined to data bussing. However, many tion is extremely complex. Presently, laboratories world wide have strong R&D molecular beam epitaxy, liquid phase efforts on photonic computer devices and epitaxy, and vapor phase epitaxy, are the components. predominant technologies. The Department of Defense (DoD), via b) Transmission Medium-theinformation- the Defense Advance Research Programs bearing photons are transmitted over an Agency (DARPA), has funded a program optical fiber. An optical fiber is usually a aimed at providing key gallium arsenide thin fiber of silica glass about the diam- technology devices. Also, DoD, via the eter of a human hair; i.e., about 75 mi- Air Force and in partnership with New crometers that can be made in unbroken York State and several universities, is lengths of many kilometers. Fibers, even forming a photonics center of excellence when in bundles, can be readily spliced covering all aspects of photonics. In ad- in the field. dition, several government laboratories are doing R&D in photonic based systems. The fibers have extremely low attenua- tion and dispersion, and signals need 2.2 Introduction to Technical Issue only be amplified after many kilometers. The low attenuation and dispersion Low loss fibers, capable of supporting very characteristics are obtained by making high data rates were theoretically predicted in the fiber of several layers of extremely 1968 and demonstrated by U.S. industry only a pure glasses of different refractive indi- couple of years later. By the end of the 1970's ces. these new carriers of information were already being implemented in the Northeast corridor c) Electro-Optic Output Device-the output device converts the modulated photon telephone system from Boston to New York to stream at the end of the optical fiber to an Washington, D.C. This first demonstration was with multimode fibers transmitting laser pulses electronic signal. The device is usually a semiconductor photo-diode. The tech- operating at wavelengths of 0.8 to 0.9 microme- ters and capable of transmitting information over nology used for its manufacture is simi- three channels of 90 megabits/s/channel. Since lar to that used for the input devices described above. this very early demonstration the industry has moved rapidly to single mode fibers carrying laser The technology used in electro-optic in- pulses at 1.3 micrometers, where the losses are put and output devices may be critical much less, and usually operate in excess of 1 gigabit/ for key devices proposed for many ad- second. vanced displays. High data rate single mode optical fiber net- The high speed and high noise immunity works now encompass the entire U.S. and reach of photonic systems make them a natural to both Europe and Japan. This rapid deployment consideration for computing applica- of fiber optic telecommunication systems has tions. However, several basic devices required very significant developments in basic necessary for a completely photo-based and applied research and component manufac- 21 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN turing. The necessary components include laser ronments, material properties, and general mar- diodes operating at 1.3 micrometers, fiber con- ketable product development. They hold sig- nectors, couplers, detectors, modulators, optical nificant promise for future markets. waveguides, optical multiplexers and demultiplexers, low loss fiber operating near the 2.3 Procurement Policies theoretical limits, and all the supporting spe- cialized instrumentation. Thesystems will soon be Existing Federal procurement policies and operating at wavelengths of 1.55 micrometers where regulations for items incorporating fiber optics even lower losses in the fibers are possible. and optical electronic technologies are the same as they are for all other items. The policies and The fibers themselves are capable of carrying regulations emphasize widespread dissemina- much higher data rates than at present, even in tion of announcements for bid competitions excess of 100 gigabit/second, and in the future followed by competition and bid evaluation more sophisticated modulation schemes will based on lifecycle costs and performance. Pro- realize this potential. Also coherent communi- curement decisions are based on agencies' pro- cations are being extensively researched and grammatic needs and not on the promotion of may be implemented in a few years. Coherent specific technologies. Specific procurement communications have the potential of enhanced regulations can be found in the Federal Acqui- signal-to-noise ratios and thus greater distances sition Regulations. between repeaters where the signal must be detected, reconstructed, and again transmitted. 2.4 Funding Levels for Fiber Optic and Coherent communication also holds the promise Optoelectronic Research and Development of enabling very large numbers of channels oper- ating at different wavelengths to be transmitted The Federal funding for fiber optic and opto- through a single fiber. electronic research and development is summa- rized in Table 2. The next major thrust in fiber optic telecom- munications is the transmission of information TABLE 2. Funding of photonic research and devel- to homes and business places connected through opment (dollars in millions) by agency. subscriber loops and local area networks (LANs). These implementations are likely to depend Agency 1988 1989 1990 heavily on integrated optics, especially modula- Energy 9 10 10 tors, wavelength-division multiplexing and Defense 80 118 116 demultiplexing, and optical-to-electronic inter- NSF 13 14 16 faces. These new developments will require NASA 7 4 4 extensive basic and applied research and prod- Commerce 2 2 5 uct development. Total $111 $148 $151 Optical fiber sensors are another major po- tential application of photonics. These sensors The budget data collected for this report was can measure temperature, pressure, electrical based on a unique set of definitions, a unique current, and many other phenomena. Important process for data collection, and on the budget products being developed include hydrophones projections during the 1989 fiscal year. For this and fiber-optic gyros. These sensors are often reason these numbers do not track with, nor very important for special situations such as should they be compared to, the budget cross- chemical processes, shipboard and space appli- cuts which have been prepared for subsequent cations. They hold much promise for medical budgets. applications. For the most part these products are in the applied research stage and require The agency programs are summarized in the further work in the manufacturing process, en- following sections. gineering the components to work in harsh envi- SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING 2.5 Department of Energy Fiber Optic Program applications as well as optical components, fiber optic cabling, and fiber coatings. The DoE conducts research and develop- ment that is intended to contribute to the Ultra-low-loss fiber optics technology is an knowledge base used to advance the state of the area of great importance to DoD. This tech- art in fiber optics and optical electronic technolo- nology consist of optical fibers fabricated with gies and the uses of fiber optics and electro- zirconium fluoride glasses. These glasses are optical components in new applications. Re- the lowest scatter material ever produced search under the weapons program includes the and represent a major advance in glass synthesis, characterization and processing of chemistry. This technology is crucial to such glasses; investigations of non-linear optical systems as large aperture, high-gain, acous- properties of materials; and the effects of impu- tic arrays (thousands of acoustic sensors in- rities on the optical properties of disordered terconnected over tens of kilometers), and materials. The goals are to improve the perfor- long-range command guided anti-ship mis- mance of these materials for use in diagnostic siles. Continued integrations of electronic instrumentation for real-time monitoring of shock processors and controllers with fiber optical waves, lasers and weapons testing. Research is devices, improved interconnects, switches also underway on the possible applications of and multiplexers, and higher power, fre- fiber optics and electro-optical technologies to quency tunable optical sources are important sensors, detectors, modulators, and switches with elements of this technology. their associated electronic drivers and amplifiers. The superiority of fiber optic communica- The work is expected to make possible the tion over copper-based systems can be implementation of new and unique diagnostics measured by information-carrying capacity and to increase the capabilities for down-hole (four orders of magnitude greater for optical control and monitoring of complex experiments. systems), energy loss in signal transmission Other research is on infrared photocathodes and (two orders of magnitude lower), error rate a microchannel plate intensifier. (one order of magnitude lower), and resis- tance to electromagnetic interference (EMI). 2.6 Department of Defense Fiber Optic Program Future developments in semiconductor lasers 2.6.1 Fiber Optic Communications and Sen- promise still greater improvements in data sors. During the past decade, fiber optics has rate capacity and link margin. been incorporated DoD communication and Ultra low-loss fiber optics will support a sensor systems. The next decade will see a number of critical military capabilities: proliferation of DoD systems which rely on fiber optics to perform their functions. Wide area surveillance, Today's fiber optics will provide ships, air- Undersea and tactical missile guidance craft, and undersea communications with (low-cost, target and aimpoint selection), higher bandwidth capabilities at lower cost and than cable approaches. Ultra low-loss fluo- ride fibers, with their theoretical loss of 0.001 Remote surveillance and tele-operated dB/km, will permit transoceanic repeaterless weapons platforms (removing the re- links which could revolutionize undersea quirement for personnel to enter high- surveillance, long distance communications, threat areas). and tethered vehicles such as fiber guided Fiber optic communication links will add a missiles. Fiber optical sensors will provide a whole new range of capabilities for weapon new class of gyros as well as an acoustic, guidance since they provide for wideband, magnetic sensor for inertial navigation, non-line-of-sight, two-way communication. antisubmarine warfare, and commercial ap- The Fiber-Optic-Guided Missile (FOG-M) is plications. DoD's research and development a prototype which provides a television or efforts in fiber optics support all of these 23 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN infrared image to the gunner, who guides it devices that use light (photons) and electron- to the target while staying in a safe location. ics (electrons) to perform functions that are Advances made in fiber optics technology now typically performed by electronic de- will provide future local area voice and data vices. The next 20 years will see the emer- communications networks with more reli- gence of photonic devices in sensor, commu- ability and survivability. The tactical fiber nication, and information processing sys- optic local area networks can satisfy the need tems. Photonics developments can provide to distribute command posts by providing major improvements in tactical and strategic high capacity interconnection. systems. The DoD advanced technology developments in photonics include optical Fiber optical sensors support major im- memories, optical signal processing, optical provements in Anti-Submarine Warfare computing networks, optical control of (ASW) surveillance as well as providing the phased arrays, integrated opto-electronic basis for autonomous underwater vehicle networks, and nonlinear optical processing. guidance. Future acoustic to wed arrays from Integrated optical computing offers order- surface ships and submarines require at least of-magnitude improvements in processing 10 times the number of acoustic channels in speed resulting from the natural parallel ar- either multi-line or extra long arrays. Fiber chitecture and high switching speeds of op- acoustic sensor arrays appear to offer the tical devices. In addition, integrated optical best approach for this application. High- circuits eliminate many potentially trouble- performance, high-gain planar fiber acoustic some connectors and increase reliability. New arrays offer significantly increased capabili- distributed processing architectures will ex- ties. Bottom-mounted acoustic fiber sensor ploit the absence of metallic wires and con- arrays connected by fiber optic telemetry comitant electromagnetic interference prob- cables will play a key role in enhancing lems. DoD's capability to counter advanced sub- marine threats. The processing rates for emerging electro- optical and infrared sensors, electronic war- There are a number of DoD programs in fiber fare and undersea surveillance are surpass- optics, fiber optic sensors, and semiconduc- ing the capabilities of electronic processing tor lasers of various types. Applications (1-10 Gbit/s). Dedicated integrated optical likely to be ready for full scale engineering by processors will soon be needed which act as the year 2000 include fiber guided missiles, sensor front ends to reprocess the data and fiber optic local area networks for land and reduce data rates to those compatible with sea with bandwidths in excess of 20 GHz, current and projected electronic processors. high speed computer interconnects using Dedicated special purpose integrated optical fiber optics, phased array control by an op- processors are now in use within DoD in tically-fed harness to the transmit/receive such front end applications. elements, and intrusion detection systems made with optical fibers. 2.7 National Science Foundation Fiber Optics Program Ultra low-loss fiber optic technology is being pursued by DoD in its technology base and 2.7.1 Fiber Optics. The NSF supports uni- advanced technology demonstration pro- versity research efforts in optical fiber tech- grams, and can be expected to be available nology for communications, sensing, and for incorporation in engineering develop- switching applications. The projects involve ments by the mid- to late-1990s. DoD is also fundamental research and vary widely from developing a rugged, non-kinking fiber op- investigations into the transmission of data tic cable for the FOG-M. to the creation of devices for integrated op- 2.6.2 Integrated Optics. Integrated optics tics and the investigation of nonlinear optics (photonics) encompasses the technology for 24 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING phenomena for possible use in optical than 1.2 Tbit capacity. Potential applications switching devices. include buffering and management of high resolution sensor data. This random file 2.7.2 Optical Computing. The NSF supports access recorder system will support selective a number of academic research projects in transmission of high priority scene segments the use and exploitation of optical phenom- and provide data storage for higher level, ena for possible applications in optical com- non-real time processing. This activity in- puting, processing, logic, displays, imaging, cludes development of flight prototype 14 and others. Current research indicates that inch media and diode laser arrays. Test bed these functions, carried out by light rather demonstrations are planned with an early than electricity, offer greater speed via faster flight demonstration of a drive brassboard. switching capability and more massive par- allelism, much greater information flow, and 2.8.2 Fiber Optic Rotation Sensor Program. freedom from electronic interference. The objective of the FORS program is to 2.7.3 Photoelectric and Optoelectronic De- develop a 10-year-lifetime, low cost, light vices and Systems. The NSF supports aca- weight, highly reliable, and high performance demic research on semiconductor devices navigation grade optical gyroscope as part of that exhibit photoelectric or optoelectronic the spacecraft inertial reference unit (IRU). properties. This research is aimed at yielding The technology for the development of an optoelectronic logic devices with theoretical IRU with these characteristics is key to future switching speed orders of magnitude greater NASA missions such as the Comet Rendez- than possible with electronic logic devices. vous and Asteroid Flyby (CRAF), Mars Or- biter, and Earth Orbiting platforms. 2.8 Fiber Optics and Electro/Optics Programs at The thrust of this activity includes develop- NASA ment of state of the art integrated optics The NASA has several key programs in fi- technology using lithium niobate substrates, ber-optic and electro-optics research and devel- semiconductor lasers, and fiber optic opment for applications in space and aeronautics. waveguides operating with 1.3 micrometer The key programs are: wavelength light. Test bed and brassboard demonstrations are planned. (1) Spaceflight Optical Disk Recorder (SODR), 2.8.3 Fiber Optic Control System Integration (2) Fiber Optic Rotation Sensor Program The goal of the fiber optic control system integration program is to design, develop, (FORS), test, and flight demonstrate a fiber optic in- (3) Fiber Optic Control System Integration tegrated propulsion/flight control system (FOCSI), for an advanced supersonic aircraft. The program consists of three phases. The first (4) Multi-Purpose Fiber Optic Transceiver phase was to conceptualize an all fiber optic (MFOX), integrated control, define the sensor envi- (5) Optical Communications, and ronment, evaluate the status of optical sensor readiness in industry, and as final output, (6) Photonics Research. provide a milestone chart for developing the technology to the point where it could be 2.8.1 Spaceflight Optical Disk Recorder High incorporated into production aircraft. The rate (300 Mbps), high capacity (80 Gbit) results of this study phase indicated that rewriteable optical disk drive and controller fiber optic/passive optical sensor technol- demonstration units will be developed to ogy was feasible and desirable. Additionally support an expandable system concept pro- it showed that this technology will improve viding up to 1.8 Gbps data rate and greater reliability through electromagnetic immu- 25 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN nity while providing weight reduction for Acousto-Optic Spectrum Analysis - The the aircraft. The second phase of the program objective of this research is to develop and is aimed at the selection, fabrication and demonstrate the technology for real time testing of the preferred electro-optic archi- wideband, high resolution, acousto-optic tecture and its integration with a set of repre- spectrum analysis of RF signals. Acousto- sentative sensors for both the propulsion optic spectrum analysis has potential appli- and the flight control system. The third phase cations in radio astronomy, radar astronomy, of the program will be a flight test in which and any other application where a wideband the electro-optic architecture and sensor RF signal or a narrowband RF signal in a system will be installed on an aircraft to run large analysis band width is to be analyzed in as a piggyback experiment. Flight tests of real time. representative sensors and associated electro- Spatial Light Modulator - This task will optic architecture will be conducted in the FY exploit new quantum well devices to arrive 1993-1994 timeframe. at high performance optically or electrically 2.8.4 Multi-Purpose Fiber Optic Transceiver addressed spatial light modulators. The The objective of this program is to provide a approach focuses on a specific SLM based on space qualified 0.05-4 Gbits/s fiber optic modulation (switching) of the gain in optical transceiver for space data systems, for use on amplifiers. Space Station, Earth Orbiting platforms, and Image Processing System - This research planetary missions. This will require the focus on the development of an intelligent development of an all integrated circuit optical vision system that is able to perform transceiver that is fully military and space optical pattern recognition and feature ex- qualified. This activity also includes the traction. A new real-time updatable holo- development of high speed semiconductor graphic writer will be developed for use in lasers. An initial model of this high speed this vision system to accommodate NASA's fiber opticspace data system will be fabricated planetary and outer space exploration needs. and evaluated in 1991. 2.9 The Department of Commerce Optical Fiber 2.8.5 Optical Communications The optical Program communications program develops the technology base required for the optical The Department of Commerce R&D program transmission of high resolution data from is carried out in the laboratories of the National deep space planetary bodies for both robotic Institute of Standards and Technology (NIST). and piloted exploration missions; and for The objective of the optical fiber program at geostationary-to-geostationary, and geosta- NIST is to provide the base of consistent physical tionary-to-low-earth orbit missions. This measurements and standards required to support program will develop the required compo- the development and commerce of optical fiber nents for optical communications such as: telecommunications. high power and long lifetime lasers, high speed optical modulators, high speed detec- This program has been in operation for about tors, ultrastable oscillators, and ground base 12 years in close collaboration with the industry receivers. through the Electronics Industry Association (EIA), its new subsidiary the Telecommunica- 2.8.6 Photonics Research The photonics re- tions Industry Association (TIA), and other stan- search program consists of the following dards organizations. It has developed, refined, tasks: acousto-optic spectrum analysis, spa- tested and established 28 standard measurement tial light modulator development, and image techniques for characteristics of optical fibers processing system development. such as: attenuation, bandwidth, refractive in- dex profile, core diameter, numerical aperture, 26 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING mode field diameter, cut-off wavelength, bire- measurement of the special characteristics of fringence, Verdet constant, OTDR calibration, these fibers and the development and evaluation etc. of prototype sensors for current, voltage, mag- netic field, and other quantities. This work is The initial emphasis of the program was on complementary to that on telecommunication the characteristics of the optical fibers themselves fibers. because these were the major limitations on tele- communication technology. After much devel- 3. Superconducting Material opment, single mode fibers evolved to the extent that they now have potential channel capacity 3.1 Low Temperature Superconductors - that is several orders of magnitude greater than Introduction to the Technical Issue can be used with the comparatively primitive terminal equipment in use today. Now, there are 3.1.1 Low temperature superconductivity, government and private sector efforts world- as represented by conductors for large wide to develop faster transmission, wavelength magnets used in high energy physics, ex- division multiplexing, optical switching, coher- periments in fusion energy, and magnetic ent communication, and other techniques to make resonance imaging research, is a viable full use of the potential channel capacity of op- American industry. Superconducting wire tical fibers that are already installed. The program and cable are produced by a number of at NIST is expanding to give full support of companies in this country and magnets in measurements and standards for these new varying sizes are also made here. However, technologies. it is believed that the requirements for so- The expanded program includes establish- phistication of the wire composite will in- ing methods to measure the characteristics of crease as the demands of new applications optical waveguides in a variety of substrates. increase. This is a basic technology for many of the new 3.1.2 The low temperature superconductor devices under development. A calibration ser- industry developed in the U.S. over the past vice has been established for optical fiber power 20 years. All of the methods now considered meters, using standards already established for as "standard" for the production of these laser power meter calibration (improved stan- materials were developed slowly as the dards are under development). Two measure- commerce developed. Such concepts as: a) ment systems are being developed to measure dividing the superconductor into many fine the response of laser diodes, detectors, modula- filaments within a conducting matrix in or- tors, and other devices to very fast pulses. A der to stabilize the magnets against flux mo- system has been developed to measure the tion, b) the wind-and-react technique for the wavelength emitted by laser diodes to support manufacture of magnets from the brittle wavelength division multiplexing. Ultimately niobiumtin intermetallic superconductor, or the means to make consistent and reliable mea- c) the use of thin film superconductor layers surements of the engineering characteristics of on a strong tape, came from the national all components of advanced optical telecommu- laboratories and the industrial laboratories nications systems will be established. working together on problems ranging from Another application of optical fibers with high basic physics to industrial production. In the commercial potential is to sensors. This requires final analysis, however, widespread com- fibers with certain characteristics that differ from mercialization of these products remains those of telecommunication fibers, particularly unlikely because they must be operated at or with respect to the preservation of polarization near the temperature of liquid helium. The and sensitivity to external conditions such as technology of producing and handling this magnetic field, temperature, strain, etc. The very cold and expensive liquid is complex. optical fiber program at NIST encompasses the 27 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN 3.1.3 There are no technical barriers to com- 3.1.6 The technical problems blocking more mercialization of NbTi conductor and there widespread application include integrated is, in fact, a significant market for these wires circuit manufacturability and reliability al- and cables. Other, higher field materials though substantial progress has been made such as Nb3Sn and V3Ga present some prob- recently. The requirement for cooling with lems although they are available commer- liquid helium inhibits simple applications, cially ona limited scale because of the limited but in high value applications such as ultra- number of uses. In both cases, the brittle high-speed computing, refrigeration is an nature of the superconducting filaments engineering problem which can be overcome. creates problems manufacturing long lengths. There are other superconducting materials 3.2 High Temperature Superconductors - known with unique and desirable properties Introduction to the Technical Issue for some applications such as NbN, Nb₃Aland PbMoS which may lead to commercial 3.2.1 Commercialization of high tempera- ture superconductivity has been the subject products. of numerous studies and the goal of several 3.1.4 Superconducting electronic devices major consortia. These materials offer great have demonstrated outstanding speed, promise because they bypass the constraints bandwidth, and sensitivity. However, imposed by operation in liquid helium, an commercial devices are limited to simple expensive substance that is difficult to handle. magnetic field sensors (SQUIDs) for use in The possibility of materials that are super- medical and other scientific studies. A high conducting in the range of conventional re- speed sampling system has not sold well. frigeration methods is real, but not yet While superconducting microwave mixers achieved. Several problems exist with the are the detector of choice for high temperature materials that must be re- radioastronomers, the market is very small. solved before commercialization can be More complex devices include a voltage considered on any large scale. They are standard developed at NIST and used in 17 complex materials that are not well under- laboratories around the world. A very high stood. They are brittle ceramics, which makes speed microprocessor developed in Japan the production of wires difficult (although offers great promise but is still in laboratory Nb₃Sn and other low temperature supercon- development. Military applications have ductors are also brittle and have been suc- been under investigation for several decades cessfully made into very long lengths). They but none are yet in actual use. have widely different superconducting properties depending on direction through 3.1.5 The development of high transition the crystal structure which makes large, temperature superconductors has produced polycrystalline conductors with good prop- a renewed interest in low transition tem- erties very difficult to create. There is no perature superconducting electronics. For good theory for this type of superconductiv- many military applications the added cost of ity, something which is essential for rapid cooling with liquid helium is not significant, progress in the development of new materials. although added weight of refrigeration re- mains a problem. Ultra-high-speed micro- 3.2.2 High-transition-temperature super- processors could be of considerable impor- conducting electronics offers potential ad- tance. Just as reduced instruction set com- vantages like those of low temperature su- puters are making major advances in con- perconductors to electronic applications: ventional integrated circuits, the astonishing speed, bandwidth, and sensitivity. Refrig- speed of a superconducting microprocessor eration should be much simpler with an could be of significance. The quality of su- operating temperature near that of liquid perconducting electronics for scientific ap- nitrogen. In cases where extreme sensitivity plications continues to increase and these is needed, cooling with liquid helium may should produce a small market. continue to be required. 28 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING 3.2.3 High transition temperature supercon- 3.4 Department of Energy Superconductivity ductors are difficult to form into integrated Program circuits. Their sensitivity to precise control of chemical composition makes high quality 3.4.1 Low Temperature Superconductivity. thin films difficult to fabricate. The heating, This research is conducted primarily because which is often used in such processes, can superconducting magnets are required to change the composition, damaging super- advance the performance of expensive ex- conducting properties. Fabrication of mono- perimental devices utilized in magnetic fu- lithic layered structures such as electrically sion energy and high energy and nuclear insulated crossings or tunnel junctions (the physics. Such magnets also reduce the sub- superconducting counterpart of the transis- stantial electric power cost of these accel- tor) has never been demonstrated. Other erators, detectors, and experi-mental plasma technologies do not offer much guidance to fusion reactors. In fusion, the emphasis has the likelihood of eventual success, although shifted to development of high-field steady it is clear that a massive amount of educated state and pulsed magnets. For accelerators trial and error will be required. and detection devices, research and devel- opment focuses on the development of su- 3.3 Funding Levels for Research and perconducting wire, materials, and magnets. Development in the Area ofSuperconducting 3.4.2 High Temperature Superconductors. Materials. DoE carries out research and development The Federal funding for research and develop- on high temperature superconductors pri- ment in the area of superconducting materials is marily in support of three program missions: summarized in Table 3. Basic Energy Sciences, Conservation and Renewable Energy, and Defense Programs. Table 3. Funding of research and development in the area of superconducting materials (dollars in The Basic Energy Sciences research empha- millions) by agency sizes synthesis, measurement of properties, determination of properties, theory, charac- Agency 1988 1989 1990 terization, processing, investigation of novel electronic devices, and instrumentation that Energy 69 138 165 might benefit from incorporating the unique Defense 60 73 72 properties of these new materials. Much of NSF 20 26 29 the work is on fundamental questions re- NASA 4 6 6 garding how materials become supercon- Commerce 3 3 4 ducting, the parameters of critical tempera- ture, critical magnetic field and current, and Total $156 $246 $276 synthesis of new materials to expand these parameters. The budget data collected for this report was based on a unique set of definitions, a unique In Conservation and Renewable Energy, the process for data collection, and on the budget emphasis is on applications in motors, gen- projections during the 1989 fiscal year. For this erators, transmission lines, and other elec- reason these numbers do not track with, nor trical equipment. The goal is to reduce the should they be compared to, the budget cross- amount of electricity used by such devices, cuts which have been prepared for subsequent and the cost of running them. An extensive budgets. technology transfer effort includes three pi- lot centers at DoE laboratories; a series of The agency programs are summarized in the interlaboratory meetings with university and following sections. industry participation telecast over the Na- tional Technology University network; a newsletter of world-wide research preprint titles; and database and information centers. 29 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN Under Defense Programs, the research is on feasible. High temperature materials are in theory, materials characterization and ma- their infancy and are difficult to process. A terials synthesis to gain a scientific under- heavy investment in R&D will be required if standing of the fundamental properties re- their apparent potential is to be realized. The sponsible for superconductivity. There are course of development will probably proceed many possible applications to the Inertial from electronic transmission lines to sensors Fusion Program, the Nuclear Weapons to analog and digital electronics to a variety Technology Program, and the Strategic De- of supermagnet applications. fense Initiative. This includes research on Superconductivity applications, some of fast-opening switches, levitation bearings, which have already been tested in prototype solenoids, and electo-magnetic shielding. form, include more compact, higher-effi- 3.5 Department of Defense Superconductivity ciency, electric drive systems for ships (and possibly land vehicles and aircraft), electric Program generators, electric energy storage systems 3.5.1 Low Temperature Superconductivity. for directed energy weapons, supercon- Superconductivity technology encompasses ducting-cavity-particle-accelerator directed both traditional metallic low-temperature energy weapons, electromagnetic sensors superconductors (transition temperature be- from dc through infrared, infrared focal plane low 23 K) and the new high-temperature arrays, ultra-high-speed, ultra-compact sig- superconductors (transition temperature as nal processors and computers, high-perfor- high as 125 K). Of concern are issues related mance low-noise communications and sur- to their basic properties, their fabrication veillance systems, superconducting antennas, into usable configurations, and their unique and superconducting gyroscopes, inertial device and systems applications. Potential sensors, and gravimeters. In all cases, the applications capitalize on the ability of su- performance advantages of such systems perconductors to support lossless dc currents must compensate for the necessary refrigera- and low-loss ac currents, to levitate, to shield tion penalties. Many of these systems are magnetic and electromagnetic fields, to sense unique with no normal-conductor counter- magnetic and electromagnetic fields with parts, e.g., superconducting magnetic energy unmatched sensitivity, to transmit electronic storage systems. In other instances new ca- signals with extremely little distortion, and pabilities can be brought to platforms inca- to fulfill analog and digital electronics func- pable of supporting conventional semicon- tions at speeds 10 to 20 times faster than and ductor counterparts, e.g., with supercon- at power dissipation 1,000 times less than is ducting electronic technology it should be possible with semiconductors. Critical to all feasible to place ultra-high-speed such applications are efficient and reliable supercomputing capabilities onboard aircraft refrigeration systems. and space craft, a capability not feasible with semiconductor technology because of its large Large-scale, low-temperature superconduc- input power requirements (200 kilowatts) tivity technology is relatively mature. Liter- and associated massive cooling system re- ally thousands of supermagnets are in rou- quirements. tine use, but there has been only modest exploitation in military systems. Sensors DoD programs in low temperature super- and analog electronic devices are also highly conductivity research are coordinated developed, while digital electronics systems through a wide number of intra-service and are at an earlier stage of development, at least inter-departmental coordinating mecha- in the United States. This technology prom- nisms, including working groups, annual ises high utility not only in its own right, but program reviews, and special review panels. also for pioneering systems to be executed The coordinating vehicles help insure against later with higher temperature supercon- duplication of effort and keep focus on topics ducting materials at such time as that proves of importance. 30 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING 3.5.2 High Temperature Superconductivity. strength). Manufacturing issues include un- Future U.S. military electronics will require derstanding process control for reproduc- significant increases in signal processing ca- ible quality and quantity of HTSC compo- pability as the number and accuracy of nents, scale-up issues, and cost-effectiveness. various sensors (infrared, acoustic, radar, Device demonstrations will provide data for etc.) exceeds the ability of existing signal checking improvements in system perfor- processing hardware to translate this infor- mance while development aspects are ori- mation in to usable form. To address this, ented toward near-term retrofit of present DoD's first priority in high temperature su- systems and longer term design of new HTSC perconductivity is the development of high devices that may require changes in present temperature superconducting analog-to- systems technology. The DARPA program digital converters. These devices will be is designed to develop technology for military considerable faster than existing converters systems, however, these technologies may and will consume far less power. Also of have commercial applications. high priority are various analog devices, particularly of the passive microwave type. 3.6 The National Science Foundation These will be developed in the near-term and Superconductivity Program will probably be the first superconducting components utilized in military systems. 3.6.1 Solid State Physics. The National Sci- Gyroscopes, accelerometers, digital devices ence Foundation supports research to bring and meters also have high research priority. a wide variety of experimental techniques to the study of new high temperature super- There are critical scientific problems, how- conductors. Areas of research focus include ever, which may inhibit the realization of electronic and crystal structure, and elec- DoD research goals. These barriers are: (1) tronic, magnetic, spectroscopic, and thermo- imperfect thin film deposition techniques, dynamic properties. (2) lack of a superconductive transistor-like (or three-terminal) device, (3) inadequate 3.6.2 Solid State Chemistry. The NSF sup- material capabilities, and (4) incomplete un- ports research to bring experience in chemis- derstanding of the mechanism of high tem- try to the synthesis of solid state oxide su- perature superconductivity. DoD is well perconductors. aware of these technical barriers and its 3.6.3 Low Temperature Physics Research in program, by necessity, includes multiple low temperature physics has long had su- contractors addressing each (particularly in perconductors as a focus. The NSF currently film deposition and materials development). supports research on bulk properties, thin DoD's program in high temperature super- films, and superconducting devices. conductivity is focused at the Defense Ad- 3.6.4 Condensed Matter Theory. The NSF vanced Research Projects Agency (DARPA). supports solid state theorists to develop It addresses high temperature supercon- models, computer simulations of physical ductors and is a technology-driven program behavior to understand physical limitations rather than basic research. The program of superconductors such as critical tempera- comprises three areas: (1) synthesis, pro- tures and fields. cessing and fabrication of materials, (2) pre- commercial manufacturing science issues, 3.6.5 Metallurgy. The focus of NSF support and (3) conceptual device development. Since in the area of metallurgy includes under- high temperature superconducting materi- standing of metallic and structural behavior als are brittle ceramics, the first task is fabri- of superconductors, and the microscopic cation into engineering forms such as wires, behavior of superconducting properties. coils, and thin films, each with optimized 3.6.6 Ceramics and Electronic Materials. material properties (e.g., mechanical Current high temperature superconductors - 31 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN are ceramics. This area of research seeks to 3.7.1 Communication and Data Systems. This expand knowledge of superconductor pro- technology thrust area is complimentary to cessing, modification, and synthesis and an on-going base program in OAST in com- characterization of superconducting ceramic munications and data technology. Space oxides. data technology is key to the on-board pro- cessing of space generated data, which can 3.6.7 Polymers. Research supported by NSF exceed a gigabit per second. This massive in this area involves the synthesis of polymeric computational rate is key to future NASA superconductors. missions, such as the Mars Rover and Sample 3.6.8 Superconducting Applications. The Return Mission, where some degree of au- NSF supports research leading to applica- tonomy is a critical mission requirement. In tions of both low temperature and high addition, space-based communication is temperature superconductors. Research on critically important for both geostationary- high temperature superconductivity includes to-geostationary, geostationary-to-low-earth- microwave and strip-line applications. orbit and deep-space-to geostationary mis- Support is also provided for power applica- sions. High speed microwave components tions. and ultrastable oscillators are critical to en- able these missions. The following is a par- 3.7 National Aeronautics and Space tial list of areas of study, research, and de- Administration Superconducting velopment in this area: Materials Program High speed switches The Office of Aeronautics and Space Tech- Ultrastable oscillators nology (OAST) of the National Aeronautics and Microwave components Space Administration (NASA) has instituted a Low noise receivers program in high temperature superconductivity 3.7.2 Sensor and Cryogenic Systems. This for applications in space and aeronautics. The technology thrust area is complimentary to program centers around four technology thrust an on-going base program in OAST in Sensor areas: Technology whose main focus is remote I. Communication and Data Systems sensing of galactic, planetary, and terrestrial phenomena. However, the HTS thrust cov- II. Sensor and Cryogenic Systems ers this and in situ sensing applications for III. Propulsion and Power Systems both space and aeronautics application ar- eas. Cryogenic technology which revolves IV. Space Materials Technology around the cooling of focal planes for the The high-temperature superconductor pro- various remote observations instruments is gram includes benefit studies of typical aero- key to future NASA missions, such as the space applications. The research is directed at Large Deployable Reflector, a 10 to 15 meter characterization of new high-temperature su- reflector for observations from the submilli- perconducting materials for unique aeronautics meter to far infrared portions of the electro- and space applications including the effects of magnetic spectrum. The following is a par- vacuum and space radiation. Selected thin film tial list of areas of study, research, and devel- and bulk device research will be supported for opment in this area: the most promising aerospace applications Accelerometers for space and identified from the applications studies in data, aeronautics applications communications, sensors, cryogenics, propul- Magnetometers sion, and power. Gyroscopes Mixers Local oscillators Bolometers Magnetic refrigeration 32 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING 3.7.3 Propulsion and Power Systems. This 3.8.2 Superconductor Properties. Low tem- technology area is complimentary to ongoing perature superconductors are already de- base programs in OAST in space power and veloped into engineering materials with propulsion technology. Propulsion technol- several technically successful applications, ogy is key to future NASA missions. The but their characteristics present unique mea- proposed manned mission to Mars and the surement problems that have been the sub- return to the moon for a permanent manned ject of research at NIST for over two decades. station are just a few areas where this tech- These include the measurement of critical nology is a prerequisite. Space power tech- current and its variation with magnetic field, nology is key to future NASA missions, such temperature, mechanical strain and other as the Mars Rover and Sample Return Mis- test conditions; the measurement of ac loss sion, where the mission science requirements and other magnetic characteristics; the de- is heavily dependent on available power and termination of the limits of stability; and the storage. Concepts and technologies in these measurement of basic superconductor char- areas have obvious spinoffs in the aeronautics acteristics such as the energy gap, the isotope area. The following is a partial list of areas of effect, etc. These measurement problems are study, research, and development in this area: of equal importance in ceramic and metal superconductors. Standards activities in- Magnetic bearings clude technical contributions to the devel- Magnetoplasmadynamic thrusters opment standards adopted by the private Electromagnetic launchers sector, a standard reference material for Energy storage critical current measurements, and interna- Power transmission tional coordination. 3.7.4 Space Materials Technology. This 3.8.3 Composition and Structure Analysis. technology thrust area is directed toward Systematic development of ceramic high developing materials or processes which will temperature superconductors must be result in high-temperature superconducting guided by reliable determination of chemi- materials which are stable in the space envi- cal composition and physical structure of ronment. test specimens. NIST has established a wide range of test facilities for this purpose. These 3.7.5 Low Temperature Superconductivity. include neutron scattering (both elastic and Low-temperature superconductivity work inelastic); x-ray diffraction (including a includes device research utilizing supercon- catalog of diffraction patterns); photoemis- ducting insulating-superconducting (SIS) sion spectroscopy; micro-Raman spectros- junctions for remote sensing applications, copy; electron and ion microprobe analysis; superconducting quantum interference de- neutron activation analysis; isotope dilution vices (SQUIDS) for magnetic sensing and mass spectrometry; and ultrasonics. Apply- gravity gradiometer instrument applications, ing all these techniques to one specimen superconducting cavities for precise time and enables a comprehensive analysis of struc- frequency determination, and magnets for ture and composition to be made at a wide detector applications. range of scales. 3.8 Superconductor Research at the Department 3.8.4 Process Data. The design of fabrication of Commerce processes for ceramics depends upon infor- mation relating process variables to product 3.8.1 Introduction. The Department of materials. Research to establish such data for Commerce carries out its superconductivity the high temperature superconductors is in research at its National Institute of Standards progress in NIST. This includes the estab- and Technology (NIST). The technical pro- lishment of phase equilibrium diagrams; de- gram may be described in four parts as fol- vising and testing process conditions to lows. 33 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN promote grain orientation; preparation of ever-greater percentage of the total work re- starting materials in optimum form; and the quired to produce a part. The development of establishment of processes to fabricate thin automated "coordinate-measuring machines" films of high quality. (CMMs) in the 1970s helped somewhat, but measurement still used up about 50 percent of 3.8.5 Superconducting Electronics. There has the total time required to produce a precision been a program in superconducting elec- part. tronics at NIST for over two decades, with the objective of developing the next genera- It would be many times more efficient if the tion of techniques, instrumentation, and machining process could be made to produce physical standards for a variety of electrical accurate parts without being interrupted by the and magnetic measurements. There is a measuring process. Not only would it take less fabrication facility for superconducting mi- time, but fewer parts would have to be scrapped crocircuits that has produced SQUID mag- for being out-of-tolerance. (Some surveys have netic detectors, an analog-to-digital converter, shown that in the U.S. one-third of the work force a fast counter, millimeter wave mixers, and a in manufacturing industries is engaged in re- voltage measurement system that incorpo- work; that is, correcting out-of-tolerance parts rates the basic national standard. All these made by the other two-thirds.) Research suggests are based on thin films of low temperature that the problem can be solved by use of today's super-conductors and Josephson junctions. computer-controlled machine tools, because the Present work includes further development position of the cutting edge of the tool is known of a power standard for infrared and micro- and controlled at all times, at least in theory, by wave radiation based on a kinetic inductance the computer. The computer can be programmed bolometer. Research to extend the fabrica- to compensate for known errors in the machine's tion of microcircuits to high temperature movement, using sensors that feed back informa- superconductors is in progress. This includes tion on the machine's condition. the establishment of processes to fabricate This concept of feedback and process control high quality thin films and perform lithogra- is being broadly applied in advanced manufac- phy. The greatest challenge is to fabricate turing and affect materials handling, quality reproducible Josephson junctions. Some control, design, and support as well as fabrica- progress has been made in this area. tion. This trend stimulates the need for a variety of new technologies including robotics, sensors, 4. Advanced Manufacturing Technologies and advanced control technology. Data han- dling and communication are also becoming 4.1 Introduction more important in manufacturing. Flexibility in manufacturing, especially the Even for the largest firms the lack of agreed- ability to make incremental improvements to upon standards for "interfacing" complex products and process technologies, contributes equipment is a difficult-and costly- problem. to competitiveness. Various studies have docu- For close to 90 percent of the discrete parts indus- mented the need for U.S. firms to improve in this try - about 100,000 firms - - the problem is area, relative to foreign competitors. worse. These are much smaller companies (fewer than 50 employees) without great financial re- 4.2 Introduction to the Technical Issue sources. Discrete parts producers, those who make products in small batches, are responsible Historically, manufacture and measurement for about 75 percent of the total U.S. trade in have always been two separate processes. A manufactured goods. machinist would cut a part on a milling machine and stop periodically to check dimensions with If they choose to automate, the smaller com- calipers and gauges. As manufacturing tech- panies frequently prefer to buy automated ma- niques became more and more efficient, the mea- chinery in stages, one or two machines at a time, surement part of the operation consumed an and slowly build up to an integrated system. The 34 . . . SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING effectiveness of this approach would be enhanced 4.4 Department of Defense Advanced by the flexibility to buy from different manu- Manufacturing Program facturers at different times with the assurance that the machines they buy will work together DoD established the DoD Manufacturing properly without expensive, custom-designed Technology Program (Man' Tech) in the late 1950's interfaces. This is the same flexibility that one in response to a growing need for advanced can now find when buying the parts of a home production processes. Each military department stereo system from several different manufac- has a mature ManTech program. The Defense turers, knowing that they will all plug together. Logistics Agency recently established one. Inter- These firms also would benefit from a system organizational coordination is accomplished via flexible enough to switch from the production of the Manufacturing Technology Advisory Group one part to another quickly and without expen- (MTAG). It consists of an executive committee and six technical committees which meet at sive reprogramming. various times throughout the year. Once a year, 4.3 Funding Levels for Advanced the MTAG holds a plenary meeting for the entire Manufacturing Research and Development DoD ManTech community. Attendance has grown to over well over 600 (a high of 1100) during the past several years — two-thirds from The Federal funding for research and devel- the private sector. The meeting includes Service opment in advanced manufacturing is summa- overviews, industry panels, and numerous rized in Table 4. technical sessions where the results of ManTech projects are discussed. TABLE 4. Funding of advanced manufacturing re- search and development (dollars in millions) by The ManTech program has produced many agency. success stories. One example involves the devel- opment of a laser welder for producing tank Agency 1988 1989 1990 engine components. The new welding process is more productive and produces higher quality Defense 154 170 173 welds than previous methods. It is estimated Commerce 3 3 3 that the $1 million ManTech investment pro- duced a cost avoidance of $3.5 million. Another Total $157 $173 $176 project successfully established a more efficient method of producing gallium arsenide integrated The budget data collected for this report was circuit substrate material. It has been estimated based on a unique set of definitions, a unique that the new process paid for the ManTech in- process for data collection, and on the budget vestment in less than the first month of produc- projections during the 1989 fiscal year. For this tion. All three Military Departments are ben- reason these numbers do not track with, nor efiting from this project. should they be compared to, the budget cross- cuts which have been prepared for subsequent ManTech's primary goal is to improve the productivity and responsiveness of the defense budgets. industrial base by engaging in initiatives which The budget numbers shown in this table do not develop advanced manufacturing technology include funding for robotics, and therefore do which will permit DoD and its contractors to not show several agencies with which have produce DoD material more efficiently by using budgets in that area. The President's FY 91 less production resources. While DoD invests in budget request contains a complete crosscut on the establishment of advanced technology, DoD robotics funding. A data collection for advanced contractors normally are expected to invest in manufacturing, including robotics, is planned the capital equipment necessary to implement for the President's FY 92 budget. that technology. The agency programs are summarized in the following sections. - 35 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN Man Tech program results are distributed via precision welding. Expand effort to en- numerous methods. Technical reports are dis- hance current production methods for tributed by the sponsoring organization and/or medium duty landing mats and heavy the contractor involved. The reports are also duty membrane materials. deposited centrally at the Defense Technical In- Continue to develop production meth- formation Center (DTIC) which provides sec- ods for heat stable enzymes used in de- ondary distribution. DTIC's services were aug- tection devices for chemical and biologi- mented in June 1984 by the establishment of a cal agents and toxins. Manufacturing Technology Information Analy- sis Center (MTIAC). MTIAC serves as a focal Continue investigating gaps in precision point for DoD's manufacturing technology in- gear manufacturing technology. formation. It also answers queries on various technology subjects and prepares technical as- Complete robotized wire harness effort sessment reports such as: 1) higher order lan- with definition and specification of ge- guages for robots; 2) artificial intelligence and neric equipment for a variety of wire expert systems applications in manufacturing; types and characteristics. 3) evaluation of finite capacity scheduling and Continue machine tool tasks on: improv- simulation systems; and 4) automated inspection ing product quality by computerizing in- systems for flexible machining systems. process tool wear monitoring and control; The Man Tech Program uses other vehicles to computerizing measurement of product's distribute program results - one of the most surface finish, straightness, roundness, effective means is the end-of-contract briefing. and cylindricity in order to map defect Many (about 100 per year) ManTech contracts areas; and computerizing metal finish- require the performing organization to summa- ing bath process control in order to main- tain correct chemical balance. rize the contract accomplishments for its peers. While attendance is by invitation only, the Continue work on a variety of ammuni- sponsoring agency will accommodate others if tion production investments such as: au- they have a valid reason to send a representative. tomating stick propellant blending; safely These briefings give the attendees the opportu- sampling nitroglycerine; mechanizing the nity to review the results first hand with the assembly of mine clearing line charges; expectation that they will be applied to local and automated testing of high volume problems. production of infrared transducers for Some ManTech funds are used internally in seeker type munitions. DoD activities but most of the nominally 200 Enhance various technologies required projects funded each year are awarded to private to modernize/automate repair and re- sector contractors. build of tactical vehicle engines. The following is a partial list of DoD's planned 4.4.2 Department of the Navy. FY90 ManTech investments. FY 1990: 4.4.1 Department of the Army. Utilize the Automated Manufacturing FY 1990: Research Facility (AMRF) to demonstrate Initiate efforts to improve crystal growth the architecture and concepts necessary and manufacturing capability for basic for the "seamless" processing of part integrated circuit materials. description data through process plan- ning, NC code generation, robot path Continue to develop alternate process to creation, inspection plan generation, and manufacture access and egress mats and material handling. bridge decks with smaller extrusions and o 36 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING Demonstrate the technology for quality 4.4.4 Defense Logistics Agency (DLA). control in the unmanned small batch size FY 1990: environment by developing technology for deterministic metrology. Continue work on establishing three Demonstrate advanced casting technol- apparel manufacturing research centers. ogy for 16" and 5" projectiles. Develop in-process quality control sys- Initiate project to develop technology for tems, computer simulation of apparel refurbishment of engine parts (turbine manufacturing models, ergonomic re- blades/vanes and static components). search, and real-time data collection. Demonstrate improved manufacturing Establish dvanced technology for com- process for ausrolling gears. bat rations manufacturing. Develop technology for automated tape Establish advanced technology for pro- laying of complex shapes. ducing gears by initiating acquisition of equipment for "center for excellence" and Develop shape melting technology for begin work on spiral bevel gear cutting fabrication of ship and submarine com- machine technology. ponents. Establish advanced technology for pro- Develop improved manufacturing tech- ducing bearings by awarding contract nology for thermoplastic secondary air- for "center of excellence" for bearing pro- craft structures. duction. 4.4.3 Department of the Air Force. Initiate activities to establish DLA's In- dustrial Modernization Incentives Pro- FY 1990: gram through eight investments in bearing and apparel industries. In FY 91 Complete financial support of the Na- tional Center for Manufacturing Sciences. begin application engineering for four factories of the eight factories. Continue work on producibility of elec- Note: In addition to the ManTech program tronic subsystems, flexible micro-elec- tronic manufacturing systems, and ad- funding, many other DoD development pro- vanced radar modules. grams produce advances in manufacturing that are targeted toward specific programs. The re- Continue efforts to implement vanced sults, however, may be used in many other prod- technologies in repair depots while con- ucts as the techniques are disseminated through tinuing efforts on flexible repair center personal contacts, technical contacts, or confer- and Computer Aided Acquisition and ences. There is no reliable way to estimate the Logistics Support. manufacturing R&D funding attributable to such programs, but the total could easily exceed that Continue activities to provide economi- in the ManTech Program. manufacturing methods for composite airframe components. 4.5 Department of Commerce Advanced Complete development of computer in- Manufacturing Program tegrated composites manufacturing cen- ter. The core of the Department of Commerce's advanced manufacturing program is the Auto- mated Manufacturing Research Facility (AMRF) at NIST. The AMRF is an engineering laboratory in the Center for Manufacturing Engineering at NIST. The facility provides a basic array of 37 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN manufacturing equipment and systems-a "test- NIST, was adopted by the American National bed"-that researchers from NIST, industrial Standards Institute (ANSI), a private voluntary firms, universities, and other government agen- standards organization. The standard now is cies can use to experiment with new standards supported by all U.S. CAD vendors which have and to study new methods of measurement and at least a 1% market share. quality control for automated factories. NIST has recently established the National The AMRF includes several types of modern PDES Test Bed at the AMRF to support industry automated machine tools, such as numerically and government projects in developing and controlled milling machines and lathes, auto- testing the Product Definition Exchange Specifi- mated materials-handling equipment (to move cation (PDES), the next generation of data in- parts, tools, and raw materials from one "work- terchange standards for automated manufac- station" to another), and a variety of industrial turing. Recent demands for solid modeling, robots to tend the machine tools. The entire configuration control, fully computer-interpret- facility operates under computer control using able data, and interactive access by cooperating an advanced control approach pioneered at NIST. users have led to the need for PDES, one of the The AMRF incorporates some of the most ad- most ambitious standards ever attempted. vanced, most flexible automated manufacturing Implementing the new standard currently techniques in the world. under development by voluntary standards or- NIST, as the nation's primary laboratory for ganizations, industry, and government still re- measurement science and engineering, has two quires serious technical effort. Implementations principal goals for its automated manufacturing must be tested as they are built to uncover program: to supply American industry with a problems and inconsistencies in the various radically new way of making precisely machined definitions. parts-with dimensions that can be referenced to national measurement standards maintained Experienced researchers working in a testbed environment such as the AMRF can identify by NIST-and to encourage the modernization of American manufacturing by providing the potential problems and suggest clarifications and technical information necessary to develop interpretations of the standard. Work in the AMRF on manufacturing data preparation has standardized "interfaces" between various types of equipment. NIST also is using this facility as already developed a product part model which a testbed for research on the next generation of is consistent with the expected PDES standard. AMRF researchers are testing to determine the "knowledge-based" manufacturing systems- automation systems that incorporate artificial effectiveness of this part model as the informa- tion needed by the manufacturing applications intelligence capabilities. in the facility. As PDES is developed, this effort The effective transfer of technical informa- will be expanded. tion requires standardization-standard proce- AMRF research also led to standards for the dures, standard protocols, standard interfaces. The challenge is to develop standards which characterization of computerized coordinate measurement machines, and for a method of support current technology and yet still encour- surface texture measurement. Seven other po- age equipment manufacturers to develop new tential standards are now being considered by and innovative products. These are problems various industrial standards groups. that NIST is solving in the AMRF. The AMRF is a unique government facility Three industrial standards have already been developed based on NIST automation research. for many reasons, including: For example, a standard method for exchanging Its location at the National Institute of graphics data between otherwise incompatible Standards and Technology. As an open computer-aided design (CAD) systems, devel- federal laboratory with no commercial oped by a government-industry coalition led by interests, NIST can make this facility ac- 38 SEMICONDUCTORS, FIBER OPTICS, SUPERCONDUCTING MATERIALS, AND ADVANCED MANUFACTURING cessible to private firms interested in au- The AMRF is not a prototype of the tomation research-firms that individu- "factory of the future." It is extremely ally could not afford such a complex unlikely that any actual factory would research facility. NIST has a long history resemble the AMRF, at least physically. of working with private firms and orga- The AMRF is a laboratory for studying nizations to develop standards and mea- factory automation. Further, the AMRF surement and test methods that benefit is not a demonstration project. Although the entire industry. it does demonstrate several new and potentially important techniques for The active participation in the AMRF by machine control and the integration of industry, universities, and other gov- diverse systems, the AMRF is not a mu- ernment agencies. The AMRF has be- seum piece but rather a working research comea focal point for interactions among facility. all American researchers in automated manufacturing. In addition to NIST funding, the Navy's Manufacturing Technology Program is a The use of a wide variety of commercially major source of support. Private firms available machine tools and robots. This and universities also contribute to AMRF is a direct result of the NIST decision to research through the donation or loan of study the most practical, incremental equipment or by providing personnel route to automation for the small- to through the NIST Research Associate medium-sized firm; it is anapproach that Program. has never been used before. The Research Associate Program is also The flexibility of the system. One of the one of the ways that NIST research re- goals of the AMRF is to create a facility sults are transferred out of the AMRF. that is, in the jargon of the researchers, Another approach to transferring this "data driven"-theactions of the various technology is through the establishment machines and robots should be deter- of the Manufacturing Technology Cen- mined primarily, or solely, by a comput- ters Program at NIST. The objective of erized description of the part to be manu- this program is to accelerate the transfer factured. This stands in contrast to of advanced manufacturing technology modern "flexible manufacturing" cells to small- and medium-sized U.S. busi- which are truly flexible only for a limited nesses to assist these firms in improving "family" of parts for which the machine their manufacturing and process capa- tools are programmed. bilities and market competitiveness. Each Sensory interaction. The AMRF makes center will apply advanced manufactur- use of an unusually versatile robot con- ing techniques to the needs of manufac- trol system in which sensory information turers located within its region. The ad- from, for example, the NIST robot vision vanced technologies transferred will system is fed back to the controller to emphasize those developed at the AMRF. provide a basis for its decisions. This is Each center is expected to communicate important because it enables the system its experience to all interested parties. to react to its environment, eliminating While research is the focus of the AMRF, the need for a lot of rigid programming. the transfer of advanced manufacturing The scope of the facility. Research at the technology is the primary task of the AMRF covers everything from the Manufacturing Centers Program. Ac- preparation of data on a new part to final tivities of each center are expected to automated inspection. include: 1) informing and educating the industrial firms in its region about ad- - 39 REPORT OF THE PRESIDENT TO THE CONGRESS ON FEDERAL POLICIES, BUDGETS, AND TECHNICAL ACTIVITIES IN vanced manufacturing techniques; 2) technological improvements thatcan help demonstrating the applicability of ad- these firms improve productivity. These vanced technology to these firms; 3) ac- centers must serve as more than just tively assisting firms in evaluating their brokers, however. It is also their respon- requirements; 4) assisting with the sibility to help increase the flow of tech- implementation of desired applications; nology out of federal laboratories by 5) supporting work-force training and identifying technologies that can benefit retraining; and 6) communicating tech- industry, and where enecessary, extracting nology transfer experiences to a wide that technology, refining it, packaging it, national audience. fine tuning it, and otherwise making it available and useable to the general One aspect of this new program is that it public. This step is important because it represents the first time the federal gov- is not the mission of the federal laborato- ernment explicitly attempted to establish ries, including NIST, to engage in prod- an intermediary between the federal uct development. This manufacturing laboratories that perform research and Technology Centers Program at NIST is development in new technological areas unique. It builds on the resources of NIST and the small-and medium-sized manu- and other laboratories while establishing facturing firms that hope to benefit from a mechanism to combine the push of new the availability of this technology. technology development with the pull of NIST's successes in transferring technol- manufacturing competition for ogy have generally been a result of coop- marketshare. erative research agreements in which Three organizations have been selected private sector personnel spend up to a to become the first NIST Regional Manu- year working side-by-side with NIST staff facturing Technology Centers: The solving some problem of mutual interest. Manufacturing Technology Center at the Some of these agreements also entail a Cleveland Advanced Manufacturing donation of some piece of equipment to Program in Cleveland, Ohio; The the AMRF. In these cases, the research Northeast Manufacturing Technology program will typically involve incorpo- Center at Rensselaer Polytechnic Insti- rating the equipment into the AMRF. At tute in Troy, New York; and The South the end of these cooperative research Carolina Technology Transfer Coopera- programs, the visiting staff return to their tive based at the University of South organizations, taking with them the Carolina in Columbia, South Carolina. knowledge of advanced manufacturing NIST has established cooperative work- techniques developed in the AMRF. ing arrangements with each of these or- This technology transfer process has ganizations. worked well for NIST over the years. Unfortunately it only works well for large firms, with a large enough staff that they can afford to send one or two staff members to NIST for an extended period of time. Obviously, this is not the case for most of the small- and medium-sized manufacturing firms in this country. This is the motivation for the establishment of regional centers-to serve the needs of the manufacturing firms in their region by working closely with them to identify 40 DRAFT f.6.56t [March 26, 1991] U.S. INDUSTRY ACCESS TO JAPANESE SCIENCE AND TECHNOLOGY D. ALLAN BROMLEY Assistant to the President for Science and Technology Executive Office of the President Conference on U.S. Industry Access to Japanese Science and Technology Washington, D.C. March 27, 1991 1 It is a pleasure to be here to open this conference on "U.S. Industry Access to Japanese Science and Technology." International cooperation and competition in science and technology are issues of vital importance to this country, and that importance is only going to grow as markets and technology transfer become increasingly global. In part, the increasing globalization of economies is a reflection of the widening influence of science and technology in our lives. Science and technology have always been among the most international of all human activities. It is frequently the case that scientists and technologists are on more intimate terms with colleagues on the other side of the globe than they are with those at the other end of the hall. What happens in Japan or Germany in biology is often of more interest to a biologist than what happens across the campus. At an even more fundamental level, the globalization of markets reflects a deeper transition from predominantly resource- driven economies to information-driven economies. As Walter Massey, the new Director of the National Science Foundation, has 2 said, "The resources that are most critical to progress today are no longer mined from the Earth but are created in the mind." Francis Bacon said much the same thing four centuries ago in his Religious Meditation. He wrote, "Nam et ipsa scientia potestas est," which translates as "knowledge itself is power." I might add, by the way, that since coming to Washington I've heard that when Senator Everett Dirksen first heard this quotation, he immediately replied, "particularly if you know it about the right people." This morning I would like to begin by discussing the United States' general policies toward science and technology. I shall then turn specifically to international science and technology, which Bob White and Reggie Bartholomew (or John Boright) will examine in more detail. Importance of Science and Technology in Government Policy Today, science and technology are integral elements of both domestic and international policy in the United States. One place where this can clearly be seen is in the budgets that President Bush has sent to Congress for the past two years. In both of those 3 budgets, science and technology were among the very first items featured, second only to increasing the national savings rate (in the FY 1991 budget) and education and prevention (in the FY 1992 budget). In general, the Bush Administration views science and technology as key investments in the future economic prosperity and national security of this country. The past investments we have made in science and technology have paid great returns in economic growth and an improved quality of life. These returns are going to continue, most likely at an accelerating pace, in the years ahead. In the Fiscal Year 1992 budget, the President proposed a record $75.6 billion for research and development, a 13 percent increase over the amount Congress appropriated for FY 1991. In a year when real growth in the domestic discretionary budget is essentially limited to the rate of inflation, this increase for R&D -- one of the largest in the federal budget this year -- marks a major commitment to science and technology. One area of emphasis in this year's budget is basic research. To take advantage of the countless scientific opportunities available to researchers at our nation's colleges and universities, the budget 4 proposes an 18 percent increase in funding for the National Science Foundation and a 9 percent increase in funding for research project grants awarded to individual investigators at the National Institutes of Health. By focusing on these two agencies, the Administration is seeking to strengthen the individual investigator and small group research that remains the heart and backbone of American science and technology. Yet basic research clearly cannot be the only component of a nation's R&D enterprise. Other nations such as Japan have R&D enterprises that bring great benefits to society yet include very little basic research. The difference is that these systems are able to very efficiently and effectively exploit the results of basic research, no matter where it is done. This is the stage of the innovation process -- the stage between the generation of knowledge and its application in the marketplace -- that poses the greatest challenges to the United States. To help strengthen the latter stages of the innovation process, the budget includes funding for many areas of applied research and technology development, including high performance computing and communications, energy technologies, biotechnology, advanced manufacturing and materials, and aeronautics. To take just one 5 example, the budget includes a special Presidential initiative on high performance computing and communications, which is designed to sustain and extend America's preeminence in this critically important area of technology. This program, which was put together by an interagency committee organized through my office, focuses on the hardware, software, networks, and human resources that will be necessary to increase computing and communications capabilities by several orders of magnitude. In my view, these new capabilities could have the kind of catalytic effect on society, businesses, and universities that the telephone system has had during the twentieth century. The budget emphasizes a number of areas of applied research and development. In fact, it goes so far as to state that it is providing increased funding "for all major civilian applied R&D areas." This is an important measure of the Administration's intentions. In a speech to the recipients of the National Medals of Science and National Medals of Technology last fall, the President said, "Today, our government must help carry [basic] research forward and contribute to the development of generic technologies that build on basic discoveries. If America is to maintain and strengthen our 6 competitive position, we must continue not only to create new technologies, but learn to more effectively translate those technologies into commercial products. In this way, we can help leverage the R&D of the private sector, helping whole industries advance in an increasingly competitive global market." As part of this commitment from the highest levels of government, applied research and technology development are going to be increasingly important federal emphases. Science and Technology Policy in the Executive Branch Let me describe for a moment the institutional structure within the Executive Branch that shapes science and technology policy, because it is important both in developing the budget numbers I have been describing and in considering international science and technology. As science advisor to President Bush, I wear several different hats. First, I am an assistant to the President and therefore part of the White House staff. In my role as assistant, the President has made me a member of the Economic Policy Council, the Domestic Policy Council, and the National Space Council, which 7 are three of the senior policy-making bodies within the White House. I am also the Director of the Office of Science and Technology Policy, which is an office of about 40 people situated within the Executive Office of the President. This office, which was created in 1976, serves several functions. It helps me in the preparation of the information, analysis, and advice that I provide to the President in science and technology policy. It works closely with the Office of Management and Budget in reviewing and shaping R&D budgets within the federal government. And in general it monitors and acts as a source of information for the President and the rest of the Executive Branch on what might be termed policy for science and technology the influence of federal actions on the science and technology enterprise -- and science and technology for policy -- the influence of scientific and technological considerations on broader issues of national and international importance. The same legislation that created OSTP also created an entity called the Federal Coordinating Council for Science, Engineering, and Technology, which goes by the rather unfortunate acronym of FCCSET. FCCSET is a Cabinet-level entity that was established to review and coordinate activities in science and technology that cut across the missions of more than one federal agencies. The 8 members of FCCSET now consist of the Secretaries and Administrators of the agencies and independent agencies involved with science and technology, together with the Assistant Secretaries of the agencies involved with science and technology less directly. With this level of representation, FCCSET is having a major impact on science and technology activities throughout the federal government. Following its reorganization last year, FCCSET formed seven umbrella committees in science and technology. One of these is the Committee on International Science, Engineering, and Technology, which is chaired by Reggie Bartholomew, with Fred Bernthal of the National Science Foundation and Philip Schambra of the National Institutes of Health as Vice-Chairmen. That committee has initiated a number of activities in such areas as the intellectual property protection annexes in science and technology agreements and international cooperation on megaprojects in the basic sciences. It is important to keep in mind when considering FCCSET, however, that all of its members, by law, must be government employees. Obtaining the private sector's input on matters of science and technology was one of the reasons why the President established his Council of Advisors on Science and Technology 9 (PCAST). This is a group of twelve distinguished representatives of industry and academia that meets monthly with the President and with other high members of the White House staff to discuss a broad range of issues in science and technology. Furthermore, PCAST has been setting up panels in specific areas of science and technology, many of which parallel the FCCSET committee structure so that the private sector's views can be used to calibrate the activities of the federal government. International Science and Technology Having described the institutional structure that will be shaping science and technology policy, I want to spend some time addressing the question of international research and development -- and particularly the concern of this conference, access to Japanese science and technology. I believe very strongly in international access to basic science and basic technology, and particularly in the free flow of researchers and ideas. Unlike some other forms of international exchange, science and technology are positive sum games where international 10 cooperation benefits all participants. The question is not whether a country gains or loses from such cooperation. The only question is the magnitude of the gains. To quote my friend and predecessor William Graham, "Science is the rising tide that raises all ships." There is no question that other countries are building on our basic research. But we unquestionably gain much more by maintaining an open system than we could by trying to build barriers. As you know in your own countries, the markets for technology and ideas are global, and anyone who's really interested can gain access to them. We gain not by restricting access to our technology but by developing capabilities greater than our competitors. Thus there is a very strong link between our domestic activities in science and technology and our international efforts. By further developing our own science and technology enterprise, we will inevitably strengthen our international standing in the marketplace. Some individuals, recognizing the link between our national science and technology and international competitiveness, have called for restricting international access to U.S. science and technology. For basic research and the development of precompetitive technologies, I believe these calls to be misguided. 11 After all, in the early years of our development, the U.S. technical community relied heavily on access to European science and technology. But we do need to do a better job of monitoring and drawing on technologies from abroad, including Japan. The Commerce Department has mounted some ambitious, if still underused, programs in this area, and I know you will be discussing them later today and tomorrow. These and similar programs will continue to grow in importance as other countries become even more competitive in science and technology. We must also work to ensure that individual researchers and private sector firms are able to participate in R&D endeavors in the other country's territory to the same extent that domestic researchers in that country can do. Although there may be projects for which these rules do not apply, we should strive to achieve a level playing field for all parties. 12 The Protection of Applied Technology At some point in the continuum between basic research and the development of commercial products, R&D moves from being precompetitive to competitive. Because this point is not always well defined, some countries tend to be overcautious in defining R&D as competitive. I am convinced, however, that the line between competition and cooperation can be sharply drawn. The results of fundamental research are, by their very nature, public knowledge. What can and, in some cases, must be protected are the details of a particular application of the results of this fundamental research. This know- how, in the final analysis, is our only edge in an increasingly competitive world. What this country needs to do is be much more focused on those aspects of technology that we want to protect. Rather than trying to protect a broad range of technologies, we have to focus on the particular technologies -- and particularly on the systems integration inherent in technologies -- and protect those things as firmly as we can. 13 As part of this effort, we have to be much more vigorous in enforcing intellectual property rights than we have been in the past. Of the three sectors of American industry that have remained most successful internationally during the 1980s -- the pharmaceutical industry, the chemical industry, and the aeronautics industry -- two of those have the strongest IPR protection of virtually any American industry. The protection of intellectual property has been a key element in their success. We are reviewing our international science and technology agreements to ensure that research pursued in cooperation with foreign countries is subject to strong IPR protection. As many of you may know, IPR protection is also a major element of the Administration's objectives in the multilateral trade talks convened under the GATT. We also have to identify much earlier than we have in the past exactly what we want to get in return for our technology. All too frequently in the past we have sent representatives to international negotiations without clear instructions on what we wanted to get and what we were prepared to give, and not surprisingly we have sometimes come out of those negotiations without the results that we might have wished. I will be doing my best to make sure that 14 such lopsided negotiations do not happen in the future. Future International Cooperation in Science and Technology In general, I see international cooperation becoming an even greater feature of science and technology policy in the future. For example, we are about to design a program to determine future cooperation with the Japanese and others on Intelligent Manufacturing Systems, and the Japanese have proposed another program on advanced computing. In these efforts, we are taking a number of steps to ensure that openness and international cooperation strengthen the competitiveness of our economy and our nation's science and technology capabilities. The reciprocal benefits of science and technology are the main reason for my being here today, and for OSTP being a cosponsor of this conference. Access to science and technology in Japan and in other countries is going to be vitally important to the continued vitality of American science and technology. If our own science and technology enterprise is to remain health, we must ensure that we know and appreciate what is going on internationally. 15 For many years the United States has had the strongest science and technology enterprise that the world has ever known, but the world situation is now changing. Our overall preeminence is not being challenged. But in specific areas, other countries, by focusing their efforts into particular areas, have moved up to equal, and in some cases surpass, the scientific and technical achievements of this country. We have nothing to fear from these international achievements. Rather, we should view them as opportunities. Still, to take advantage of these opportunities, we must have and take advantage of access to foreign science and technology. Those of you in this room -- as well as scientists, engineers, and managers throughout this country -- must make a concerted effort to look beyond our own borders to the renewed scientific and technological expertise of the world. The development of this expertise should not surprise us. As I said at the beginning of my remarks, science and technology are inherently international activities, and other countries were bound to recognize and emulate the successes that American science and technology has brought to this country. But the great benefit of science and technology is that they can make the world better for 16 everyone. As Louis Pasteur once said, "Science knows no country because knowledge belongs to humanity and is the torch which illuminates the world."