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Oak Ridge [TN] 2/19/92 [OA 7568] [3]
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Oak Ridge [TN] 2/19/92 [OA 7568] [3]
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Speech Backup Chronological Files
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Originally Processed With FOIA(s):
FOIA Number:
S
S
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:
Speechwriting, White House Office of
Series:
Speech File Backup Files
Subseries:
Chron File, 1989-1993
OA/ID Number:
13799
Folder ID Number:
13799-002
Folder Title:
Oak Ridge [TN] 2/19/92 [OA 7568] [3]
Stack:
Row:
Section:
Shelf:
Position:
G
26
22
3
3
THE WHITE HOUSE
WASHINGTON
February 14, 1992
MEMORANDUM FOR THE CHIEF OF STAFF
DIANE LIMO
DEB ANDERSON
TONY MAURO
PAUL BATEMAN
TIM MCBRIDE
TONY BENEDI
LAURA MELILLO
PHILLIP BRADY
HENSON MOORE
MICHAEL BUSCH
JANE MOORE
SANDY BUSHUE
ROGER PORTER
NICK CALIO
PATTY PRESOCK
LINDA CASEY
SHERRIE ROLLINS
BILLY DALE
SUSAN PORTER ROSE
DAVID DEMAREST
BRENT SCOWCROFT
BILL FARISH
SICHAN SIV
CAM FINDLAY
DORRANCE SMITH
LAURIE FIRESTONE
TONY SNOW
MARLIN FITZWATER
GOVERNOR SUNUNU
BOYDEN GRAY
KATHY SUPER
EDE HOLIDAY
PEGGY SWIFT
CONSTANCE HORNER
RICHARD TREFRY
TOM HUFFORD
DAVID VALDEZ
RON KAUFMAN
ROSE ZAMARIA
BOBBIE KILBERG
USSS/PPD OPS
WILLIAM KRISTOL
WHCA OPERATIONS
MEDICAL UNIT
AIRLIFT OPS
THROUGH:
SIG ROGICH
ASSISTANT TO THE PRESIDENT FOR
PUBLIC EVENTS AND INITIATIVES
FROM:
JAY PARMER
aly Parmer
SPECIAL ASSISTANT TO THE PRESIDENT AND
DIRECTOR OF PRESIDENTIAL ADVANCE
SUBJECT:
TRIP OF THE PRESIDENT TO KNOXVILLE,
TENNESSEE, FEBRUARY 19, 1992
For your use and planning purposes, the attached is a preliminary
outline schedule for the Trip of the President to Knoxville,
Tennessee, February 19, 1992. Please keep in mind the following
information has not been finally approved and is subject to
change.
Attachments
PRELIMINARY OUTLINE SCHEDULE
Wednesday, February 19, 1992
GUEST AND STAFF INSTRUCTIONS:
7:15 am Vans depart West Basement en
route Andrews Air Force Base.
7:35 am
Guests and Staff with own
transportation should arrive
Distinguished Visitor's Lounge.
Andrews Air Force Base, at this
time for check-in.
8:00 am
MARINE ONE departs White House en route
Andrews Air Force Base.
(Flying Time: 10 Minutes)
8:10 am
MARINE ONE arrives Andrews Air Force Base.
8:20 am
AIR FORCE ONE departs Andrews Air Force Base
en route Knoxville, Tennessee.
(Flying Time: 1 Hour 20 Minutes)
(Time Change: None)
(Interchange: No)
9:40 am
AIR FORCE ONE arrives McGhee Tyson Air Base,
(E.S.T.)
Knoxville, Tennessee.
9:50 am
MARINE ONE departs McGhee Tyson Air Base en route
Oak Ridge National Laboratory Landing Zone.
(Flying Time: 15 Minutes)
10:05 am
MARINE ONE arrives Oak Ridge National Laboratory
Landing Zone.
10:10 am
MOTORCADE departs Oak Ridge National Laboratory
Landing Zone en route High Flux Isotope Reactor
Facility.
(Drive Time: 5 Minutes)
10:15 am
MOTORCADE arrives High Flux Isotope Reactor
Facility.
*
TOUR OF REACTOR FACILITY
- Closed Press
- Walking Tour
(10:20 am - 10:30 am)
*
BRIEFING ON HIGH FLUX ISOTOPE REACTOR
- Expanded Pool
(10:35 am - 10:45 am)
10:55 am
MOTORCADE departs High Flux Isotope Reactor
Facility en route Oak Ridge National Laboratory
Landing Zone.
(Drive Time: 5 Minutes)
11:00 am
MOTORCADE arrives Oak Ridge National Laboratory
Landing Zone.
11:05 am
MARINE ONE departs Oak Ridge National Laboratory
Landing Zone en route McGhee Tyson Air Base.
(Flying Time: 15 Minutes)
11:20 am
MARINE ONE arrives McGhee Tyson Air Base.
11:25 am
MOTORCADE departs McGhee Tyson Air Base en route
Knoxville Auditorium-Coliseum.
(Drive Time: 15 Minutes)
11:40 am
MOTORCADE arrives Knoxville Auditorium-Coliseum.
*
ADDRESS KNOXVILLE COMMUNITY
- Open Press
- Remarks/Teleprompter
- 1000 Attendees
(11:45 am - 12:15 pm)
Page Two
12:20 pm
MOTORCADE departs Knoxville Auditorium-Coliseum
en route McGhee Tyson Air Base.
(Drive Time: 15 Minutes)
12:35 pm
MOTORCADE arrives McGhee Tyson Air Base.
12:40 pm
AIR FORCE ONE departs Knoxville, Tennessee
(E.S.T.)
en route Andrews Air Force Base.
(Flying Time: 1 Hour 10 Minutes)
(Time Change: None)
(Interchange: No)
1:50 pm
AIR FORCE ONE arrives Andrews Air Force
(E.S.T.)
Base.
2:00 pm
MARINE ONE departs Andrews Air Force Base en
route White House.
(Flying Time: 10 Minutes)
2:10 pm
MARINE ONE arrives White House.
Page Three
National Technology Initiative
Event date Wednesday, February 19, 1992
Contacts: Steve Skinner, Energy Department, 586-5500.
Steve Olson, Office of Science and Technology Policy,
White House, x2734.
Mat Heyman, NIST Chief of Public Affairs, 301-975-2762
Event site: Oak Ridge National Laboratory
See file for details, plus Bob should be calling in from the
road.
**Call Steve Skinner if you need event guidance. When I spoke
with him this morning, they were still scrambling to put the
event together. He did say they would be happy to submit
talking points. They should be here by the end of the day.
I have enclosed some quotes on technology. Those circled in blue
are the best ones, I think.
Other Technology Quotes:
"We now stand in the vestibule of a vast new technological age."
-- Dwight D. Eisenhower
1959
"A different world cannot be built by indifferent people"
-- Anonymous
From Mat Heyman: The three top points of NTI
1) Improve industry awareness of what federal government has
to offer in terms of R&D and new policies which will
help develop new technologies.
2) Raise awareness of Companies working together with other
companies and share technological advances.
3) Improve feedback and dialogue between the government and
the private sector; work together.
**Mat will be faxing additional materials, such as success
stories and examples of what this means in real terms, as
well as how our economic proposals can be tied in.
BUDGET
OF THE
UNITED STATES
STATES MANAGEMENT AND 30 EXECUTIVE, OFFICE BUDGET UNITED THE OFFICE 30 OF THE OF THE PRESIDENT
GOVERNMENT
ENHANCING RESEARCH AND
DEVELOPMENT AND
FISCAL YEAR 1993
EXPANDING THE HUMAN FRONTIER
ENHANCING RESEARCH AND
DEVELOPMENT AND EXPANDING THE
HUMAN FRONTIER
Reprint of Pages One-87 through One-146 of Part One,
Chapter 6, of the Budget of the United States Government,
Fiscal Year 1993
6. ENHANCING RESEARCH AND
DEVELOPMENT AND EXPANDING THE
HUMAN FRONTIER
It is by now widely recognized that a
et continues that pattern of aggressive invest-
key to enhancing long-term economic growth
ment in both basic and applied R&D. Today
in America is improving productivity. Pro-
new frontiers are emerging in science, space
ductivity growth will enable our economy
and technology, including new materials, ad-
to grow faster than our population-thus
vanced computing, manufacturing methods,
making possible improvements in America's
space exploration, and biotechnology. By help-
standard of living.
ing to expand America's knowledge base in
these and other areas, and by advancing
The Bush Administration has proposed,
the development of new technologies, the
over the past three fiscal years, a pattern
budget lays the groundwork for growth.
of investment in areas of research and develop-
ment that will help to boost productivity
This chapter discusses a range of Federal
and improve economic performance. This budg-
research and development programs and is-
Table 6-1. ENHANCING RESEARCH AND DEVELOPMENT AND
EXPANDING THE HUMAN FRONTIER-HIGHLIGHTS
(Dollar amounts in millions)
Dollar
Percent
1989
Budget Authority
1992
1993
Change:
Change:
Actual
Enacted
Proposed
1992 to
1992 to
1993
1993
Applied Research:
High Performance Computing and Communications
N/A
655
803
+148
+23%
Advanced Materials and Processing
N/A
1,659
1,821
+162
+10%
Biotechnology Research
N/A
3,759
4,030
+271
+7%
Energy R&D
397
774
914
+140
+18%
Moving Fusion Energy from Science to Engineering
347
337
360
+23
+7%
Advanced Manufacturing R&D (non-defense)
N/A
252
321
+69
+27%
Transportation R&D
802
1,224
1,433
+209
+17%
Protecting the Public Health
3,482
4,757
4,849
+92
+2%
Expanding R&D at the National Institute of Standards and
Technology
159
247
311
+64
+26%
Space Technology
256
273
305
+32
+12%
Basic Research:
Doubling the NSF Budget by 1994
1,923
2,572
3,026
+454
+18%
Support for Individual Investigators (HHS, NSF, DOE)
5,884
7,273
7,939
+666
+9%
Human Genome Project
N/A
164
175
+11
+7%
Superconducting Super Collider
98
484
650
+166
+34%
U.S. Global Change Research Program
N/A
1,110
1,372
+262
+24%
Astronomy and Astrophysics
617
836
890
+54
+6%
National Research Initiative (USDA)
N/A
98
150
+52
+53%
Maintaining National Security: Defense R&D:
Defense
38,031
40,043
40,509
+466
+1%
Energy
2,321
2,668
2,640
-28
-1%
Expanding the Geographic Frontier:
Improving Access to Space
4,411
5,312
5,412
+100
+2%
Space Exploration
1,433
2,646
2,836
+190
+7%
Part One-87
Part One-88
THE BUDGET FOR FISCAL YEAR 1993
sues, including space and defense, that are
and strengthening of initiatives in high per-
related to these frontiers. The budget proposes
formance computing and communications and
to invest over $76 billion for research and
global change research. In addition, the budget
development, including R&D facilities, in 1993.
proposes to expand the initiative to improve
This represents an increase of nearly $2
mathematics and science education at all
billion, or 3 percent over 1992. Within this
levels, as discussed in Chapter 4, "Reforming
total, Federal civilian R&D would increase
American Education and Investing in Human
by 7 percent, while defense-related R&D
Capital."
would increase by 1 percent. The budget
proposes over $14 billion for basic research,
The budget proposes to provide support
an increase of over $1 billion, or 8 percent,
for several important civil space programs,
over 1992. The budget also proposes over
including Space Station Freedom, space
$17 billion for civilian applied research and
science missions such as the Advanced X-
development, an increase of over $1 billion
ray Astrophysics Facility and the Earth Ob-
or 6 percent.
serving System, and new initiatives such
The budget proposes several crosscutting
as the new launch system, the National
investments that will build the base for
Aerospace Plane, and technology related to
the continuing expansion of the frontier of
exploration of the Moon and Mars. Because
knowledge: a new initiative to improve the
of the President's desire to constrain the
synthesis, processing and performance of both
overall growth of Federal spending, however,
new and traditional materials; a new initiative
and in response to Congressional directives,
to increase funding for biotechnology research,
the total increase for civil space programs
especially in applications; and continuation
is only $738 million, or 5 percent.
HIGHLIGHTS
APPLIED RESEARCH
Advanced Materials and Processing.-
The budget proposes $1,821 million, an in-
These initiatives help to spur innovation
crease of 10 percent over 1992, for a 10-agency
and the movement of new products and
program intended to improve the manufacture
processes from the laboratory to the market-
and performance of materials. This new Presi-
place.
dential Initiative is intended to achieve ad-
High Performance Computing and Com-
vances in materials that will enable improve-
munications.-The budget proposes an in-
ments in a wide range of other technologies.
crease of $148 million, or 23 percent, to a total
Emphasis will be placed on research on mate-
of $803 million for the second year of an inter-
rials synthesis and processing, two areas criti-
agency program to help establish American
cal to developing new materials and to improv-
pre-eminence in the fields of high performance
ing the quality of all materials.
computing and communications. This Presi-
Biotechnology Research-The budget pro-
dential Initiative initiative, involving nine Fed-
poses $4,030 million, an increase of $271 mil-
eral agencies (in addition to the private sector),
lion or 7 percent over 1992, for biotechnology
will focus on the underlying research and the
research programs in 12 agencies. This new
academic training needed to accelerate signifi-
Presidential Initiative capitalizes on the cur-
cantly the availability of the next generation
rent U.S. leadership in biotechnology, and rec-
of high performance computing systems and
ognizes the key role biotechnology plays in en-
digital communications networks. The goal is
hancing the Nation's technological strength,
to assist in the development of computing ca-
economic growth, and the health and quality
pability with roughly 1,000 times improvement
of life of its people. The program will empha-
over current systems by 1996 and communica-
size potential new applications of bio-
tions systems 100 times faster than those cur-
technology in health, manufacturing/
rently in use.
bioprocessing, and the environment; will
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-89
strengthen research and infrastructure for
trains. For aeronautics R&D in NASA, not in-
structural biology; and will expand inter-
cluding high-performance computing, the budg-
disciplinary training at the interfaces of biol-
et proposes $855 million, an increase of $98
ogy, chemistry, physics, mathematics, com-
million or 13 percent. The increase will sup-
puter science, materials science, and engineer-
port continued high-priority R&D on environ-
ing.
mental issues associated with supersonic flight
Energy Technology R&D.-The budget
and on high-temperature propulsion materials.
proposes $914 million, an increase of $140 mil-
The budget also includes $80 million for con-
lion, or 18 percent, for investments in targeted
tinued technology development for the joint
high-payoff technologies and strategies to in-
NASA/DOD National Aerospace Plane pro-
crease the efficiency of energy use, to develop
gram, leading to a future decision on a flight
cost-effective alternatives to petroleum and to
research vehicle.
advance new electricity technologies, including
Protecting the Public Health-Bio-
battery technology. This investment is guided
medical Research: The budget proposes $4.8
by the National Energy Strategy which was
billion for applied research and development
announced by the President in February, 1991.
at the Department of Health and Human Serv-
Fusion R&D.-The budget proposes $360
ices, an increase of $92 million, or 2 percent.
million, an increase of $23 million or nearly
The budget includes a total of $10.6 billion
7 percent for the development of energy from
for basic and applied research and develop-
nuclear fusion. This National Energy Strategy
ment at the Department of Health and Human
initiative maintains the strong national com-
Services. Women's Health Initiative: The budg-
mitment to the International Thermonuclear
et includes an 80 percent increase for a re-
Experimental Reactor (ITER) engineering de-
cently-launched NIH study on women's health,
sign activity. The ITER experiment is carried
which is designed to answer difficult questions
out in partnership with Japan, the European
about how best to prevent deaths from cancer,
Community, and Russia.
heart disease, and the bone fractures common
Advanced Manufacturing R&D.-The
with advancing age in women. HIV/AIDS: The
budget includes over $1 billion for R&D on
budget proposes a 4 percent increase to over
$1.2 billion for biomedical and behavioral re-
advanced manufacturing technologies. This in-
cludes an increase of 27 percent for
search on Human Immunodeficiency Virus/Ac-
nondefense-related manufacturing R&D. In ad-
quired Immune Deficiency Syndrome. (The
dition, the budget proposes an increase of $25
budget proposes a total increase of $565 mil-
million to a total of $105 million for the Na-
lion, or 13 percent, for HIV/AIDS research,
tional Science Foundation for a new initiative
treatment, prevention and income support.)
in manufacturing research. The budget also
Expanding R&D at the National Insti-
proposes $27 million for manufacturing R&D
tute of Standards and Technology.-The
at the National Institute of Standards and
budget proposes a 26 percent increase to a
Technology.
total of $311 million for NIST. The 1993 pro-
Transportation R&D.-The budget pro-
posal will continue an effort begun in 1991
poses $1,433 million, an increase of 17 percent,
to expand NIST's ability to perform generic
for transportation R&D, funded primarily by
applied research and technology development
the Department of Transportation (DOT) and
and to address a growing number of important
standards and measurement issues. In addi-
the National Aeronautics and Space Adminis-
tration (NASA). The increase will support con-
tion, the budget proposes $68 million for the
tinued high-priority R&D on aviation and
Advanced Technology Program, an increase of
high-speed rail projects. For R&D in DOT, the
36 percent over 1992.
budget proposes $498 million, an increase of
Creating Technology for Space and
12 percent, for research programs to improve
Earth-The budget proposes $305 million, an
air traffic management, to increase the use of
increase of 12 percent, for NASA space tech-
satellites for aviation navigation and commu-
nology development. This increase recognizes
nications, for improved intelligent vehicle/high-
the central role of new technology in the future
way systems and for magnetically levitated
of the U.S. space program. Strengthening cur-
Part One-90
THE BUDGET FOR FISCAL YEAR 1993
rent investments in technology will later pay
Superconducting
Super
Collider
off in new capabilities for scientific research,
(SSC).-The budget proposes an increase of
communications, robotics, launch vehicles, and
$166 million for the SSC to a total of $650
other space-related areas.
million. This will support continued work to-
ward the transition from prototype
BASIC RESEARCH
superconducting magnets to production and
continued construction of support facilities. It
These initiatives lead to the creation of
will also provide for the construction of a tun-
new knowledge which will enable future inno-
nel segment for testing purposes. The funding
vation.
level maintains the 10-year design and con-
Doubling the National Science Founda-
struction schedule approved last year. The
tion (NSF) Budget by 1994.-The budget
total cost of slightly over $8 billion assumes
proposes an increase of 18 percent overall for
one-third non-Federal contributions including
NSF, including a 21 percent increase for basic
$233 million in 1993.
research. This will continue the Administra-
U.S. Global Change Research Program
tion's commitment to double NSF's budget by
(USGCRP).-The budget proposes an overall
1994. This increase is targeted toward invest-
increase of $262 million, or 24 percent, to a
ments in the people, equipment and unique
total of $1,372 million for this Presidential
research facilities that underpin the U.S. sci-
Initiative-the most advanced program on glob-
entific enterprise.
al change research issues in the world. The
Increasing Support for Individual Inves-
proposed increase will assist efforts to under-
tigators.-The budget proposes nearly $8 bil-
stand more fully the earth's climate system.
lion for the support of individual investigators
That understanding will facilitate development
funded by the Departments of Health and
of sound policies concerning global environ-
Human Services and Energy and the National
mental issues such as ozone depletion and
Science Foundation. This is an increase of over
global warming.
9 percent over 1992. Individual investigators
Astronomy and Astrophysics.-The budget
are the backbone of the U.S. scientific and en-
proposes a total of $890 million for these two
gineering enterprise. These researchers, lo-
closely related disciplines which are funded
cated primarily at the Nation's colleges and
primarily by the National Science Foundation
universities conduct most of the fundamental
and the National Aeronautics and Space Ad-
research on which technological progress is
ministration. The objective of these programs
founded. In addition, and perhaps more impor-
is to increase our understanding of the uni-
tantly, they educate and train the next genera-
verse. The budget proposals are consistent
tion of scientists and engineers.
with the recommendations of a recent report
Human Genome Project.-The budget pro-
of the National Research Council ("The Decade
poses an increase of $11 million, or 7 percent,
of Discovery in Astronomy and Astrophysics")
to a total of $175 million in the Departments
concerning ground- and space-based astronomy
of Energy and Health and Human Services
and astrophysics research for the next decade,
(National Institutes of Health). The goal of the
including increased operations and mainte-
project is to analyze within 15 years the entire
nance support for existing facilities, increased
complement of human genetic material at the
support for individual investigators, and the
molecular level. The Departments are develop-
development of small and medium-sized in-
struments.
ing capabilities and tools, constructing maps,
sequencing human chromosomes, developing
National Agricultural Research Ini-
accessible data bases, and characterizing dis-
tiative.-The budget continues the commit-
ease-related genes. Both agencies are also ad-
ment to the National Research Initiative
dressing ethical, legal, and social issues sur-
(NRI), first proposed in the 1991 budget, by
rounding the uses of knowledge about the
proposing $150 million, an increase of $52 mil-
human genome and are developing educational
lion, or 53 percent, over 1992. In 1991, $100
activities on genome issues for the general
million was proposed as the initial installment,
public.
to be increased by $50 million each year to
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-91
the extent that funds were awarded competi-
Encouraging R&D by Multinational
tively and not earmarked for specific sites or
Companies.-The budget proposes a 18-
institutions. Six categories of research will con-
month extension in the rules for allocation of
tinue to be funded: natural resources and the
foreign and domestic expenditures for compa-
environment; nutrition, food quality and
nies with foreign operations.
health; plant systems (including mapping of
plant genomes); animal systems; markets,
trade, and policy; and processes antecedent to
EXPANDING THE GEOGRAPHICAL
adding value and developing new products.
FRONTIER: SPACE
MAINTAINING NATIONAL SECURITY
Improving Access to Space-The budget
proposes $5.4 billion, an increase of 2 percent,
Defense R&D.-The budget proposes a total
for civil space transportation. Plans for the
of over $43 billion for R&D for national secu-
Space Shuttle include improving its oper-
rity activities, an increase of $438 million, or
ational efficiency, updating key components to
1 percent over 1992. This amount includes
protect against obsolescence, and using the
more than $40 billion for R&D supported by
new, commercially-developed SpaceHab mod-
the Department of Defense, and almost $3 bil-
ule to carry more experiments for microgravity
lion for defense-related R&D supported by the
research. In the area of expendable launch ve-
Department of Energy.
hicles, NASA and the Department of Defense
will jointly develop a new launch system to
IMPROVING TECHNOLOGY TRANSFER
reduce the cost of access to space, improve reli-
Accelerating the Pace of Technology
ability, increase operability and flexibility, and
Transfer.-The budget projects a continuing
extend U.S. launch capability to support heav-
significant increase in the level of technology
ier payloads. First launch of this new system
transfer activities, including almost 1,700 Co-
is planned for 2002. The two agencies will also
operative Research and Development Agree-
sponsor research that can lead to improve-
ments, an increase of 40 percent over the two
ments in existing launch systems. The govern-
years since 1991; about 3,300 new invention
ment will continue to procure commercial
disclosures; 1,500 patent applications; and al-
launch services, including use of the new Com-
most 500 technology licenses awarded.
mercial Experiment Transporter (COMET) sys-
tem.
Expanding the Role of the National Lab-
oratories.-The budget assumes that the Na-
Space Exploration-The exploration of
tional Laboratories will play an increasing role
space continues to excite and capture the
in high priority areas of civilian applied re-
imagination of people all over the world. Build-
search and development, including high per-
ing on three decades of robotic and manned
formance computing, space exploration, ad-
missions of discovery, the budget proposes a
vanced materials research, and others. The
total of $2.8 billion, a 7 percent increase, for
laboratories could play an important role in
programs leading to exploration of the Moon
helping to form R&D consortia and other col-
and the planets. Plans for 1993 include con-
laborative R&D arrangements led by industry
tinuing work on Space Station Freedom, ana-
and universities.
lyzing data from ongoing planetary missions,
designing and constructing new exploration
STIMULATING PRIVATE SECTOR R&D
spacecraft, and advancing key technologies
INVESTMENTS
needed for future robotic and manned missions
to the Moon and Mars. The budget proposes
R&E Tax Credit.-The budget proposes to
about $15 billion for the National Aeronautics
make the Research and Experimentation tax
and Space Administration, an increase of 5
credit permanent.
percent over 1992.
Part One-92
THE BUDGET FOR FISCAL YEAR 1993
ENHANCING RESEARCH AND DEVELOPMENT
Research and development (R&D) yields
The Bureau of Labor Statistics (BLS) pre-
new knowledge, products and processes that,
pares and publishes official measures of pro-
over the long term, result in economic growth
ductivity growth and carries out research
and an improved quality of life for all
to improve them. The results of a study
Americans. Investment in research and devel-
by Sveikauskas (BLS, 1989) suggest that
opment is a top priority for an Administration
privately-funded R&D in the non-farm busi-
that believes in investing in the future.
ness sector has resulted in average annual
Investments in research and development
productivity improvements of 0.15 percent
form the foundation for the exploration of
between 1948-1973 and 0.14 percent from
all of the new frontiers of today and tomorrow.
1973-1987. The contribution of R&D to pro-
ductivity calculated by BLS appears to account
for roughly 14 percent of the total multifactor
INVESTMENTS IN R&D PROVIDE
productivity growth over these time periods.
LARGE BENEFITS TO THE NATION
Significantly, the BLS study also noted that
the direct influence of R&D on productivity
The Federal Government has a long history
growth was greatest in manufacturing, ac-
of funding R&D with the goal of spurring
counting for an average annual productivity
innovation. Examples can be found as far
growth of 0.49 percent between 1948-1987.
back as research sponsored by the Navy
in the late 1700's. Other examples include
Other studies (Levy and Terleckyj, 1983;
the establishment in the 1860's of the land-
Griliches, 1986) have provided evidence that
grant college system with its emphasis on
Federally-financed R&D also has a positive
direct impact on productivity, albeit somewhat
research to improve agricultural productivity,
smaller and more difficult to find with consist-
and the 50-year history of support for aero-
ency.
nautics research and technology, an effort
which has contributed to today's large positive
In addition, empirical evidence from as
balance of trade in the aerospace sector.
far back as the 1950's indicates that increased
Since World War II, the Federal Government
governmental R&D funding can result in
has been a major sponsor of R&D performed
increased private R&D funding. Recent work
by industry, either directly or indirectly such
(Leyden and Link, 1991) offers some evidence
as through the tax code.
that not only is there a complementary
relationship between governmental and private
It is widely accepted that R&D investments
R&D, but that governmental R&D affects
lead to new knowledge and innovation, which,
the behavior of private performers of R&D,
in turn, leads to economic growth. For exam-
i.e., it stimulates more sharing of technical
ple, recent work (Romer) has emphasized
knowledge, and thus contributes to the greater
this relationship by showing that new knowl-
social benefit of the Nation.
edge is as important an investment as capital
All of the scholarly work has identified
and labor in determining the output of the
R&D as a major positive influence on pro-
economy. Romer asserts that increased knowl-
ductivity. But much remains to be learned
edge, like increased capital, raises the return
about this phenomenon, particularly with re-
on investment, and, in turn, more investment
spect to: (1) the differences between direct
spurs the creation of new knowledge. There
benefits (i.e., to the financing firm or sector)
is also strong analytical evidence that R&D
and indirect benefits (i.e., to firms down-
is an important contributor to productivity
stream); (2) between product and process
growth. Studies by Griliches (1973), Sherer
R&D; (3) the mechanisms and the time
(1982), Terleckyj (1982), Sveikauskas (1982)
frame over which R&D (and even different
and Mansfield (1984), inter alia, have shown
types of R&D) depreciate; and (4) the most
that R&D tends to be the strongest and
accurate way to deflate research expenditures
most consistent positive influence on pro-
over time. BLS, NSF and others will support
ductivity growth.
research on these problems during 1993.
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-93
THE NEED FOR INCREASED R&D
made to GDP, it shows that R&D as a
INVESTMENTS
share of GDP declined through the 1970's
and most of the 1980's. Since 1989, R&D
The goals of R&D are to generate new
has been steadily increasing as a share
knowledge; train the future skilled workforce;
of GDP. The budget provides increases and
and to provide a catalyst for economic activity.
incentives designed to continue to increase
Taken together, these goals provide the most
R&D investment as a percent of GDP.
compelling rationale for increased Federal
support for R&D.
THE FEDERAL R&D BUDGET:
The combination of public and private na-
OVERVIEW AND TRENDS
tional investments in R&D have contributed
to the unprecedented advance of human
The budget proposes to allocate $76.6 billion
knowlege and improvement in the quality
for R&D, including R&D facilities. This is
of life for much of the world. All of the
an increase of nearly $2 billion, or 3 percent,
available empirical evidence suggests that
over 1992. Within this total, $14.3 billion
"more is better" in that (1) increased total
will be allocated for basic research, an increase
R&D investment adds to the productivity
ofover $1 billion, or 8 percent, and over
of the Nation, and (2) Federal R&D invest-
$59 billion for applied research, an increase
ments are important. Thus, there is ample
of about $1.5 billion, or 3 percent, over
justification for increased Federal investment
1992. Federal civilian R&D will increase
in R&D as well as for Federal action to
by 7 percent while defense-related R&D (in
increase the levels of private R&D investment.
the Departments of Defense and Energy)
will increase by 1 percent.
One measure that historically has been
used to gauge the appropriate level of R&D
As a percentage of total Federal domestic
is the total size of the national R&D invest-
discretionary spending, total civilian R&D
ment relative to the Gross National Product
has declined from a peak of 26 percent
(GNP). Using this measure, R&D as a share
in the Apollo years to a trough of 10
of GNP stood at about 2.7 percent in the
percent in 1983. It has begun to increase
early 1960's, fell during the decade of the
again to about 14 percent in recent years.
1970's, and returned to that level in the
The President proposed to increase this share
1980's. Total U.S. R&D investments have
to 15 percent in 1992, but Congress cut
increased in absolute terms over that period.
this request. The budget seeks to increase
Compared with our major trading partners,
this share once again to 15 percent in
U.S. R&D as a percent of GNP is less
1993.
than that of Japan and Germany, but larger
The Federal Government currently accounts
than France or the United Kingdom.
for about 44 percent of the total U.S. invest-
Over the past decade, the ratio of Federal
ment in R&D. Industry, academia, and non-
R&D outlays to GNP has hovered at about
profit organizations make up the remaining
1.2 percent. In each of the past three budgets,
56 percent. In 1991, it is estimated that
President Bush has proposed increases that
total U.S. R&D expenditures, Federal and
would have increased this share. Congress
non-Federal, were $151.6 billion, an increase
has not fully funded these requests.
of over 4 percent over 1991. In total, the
U.S. investment in R&D is about 2.7 percent
Recently, the Federal Government has
of GDP. Trends in industry R&D funding,
begun to use the Gross Domestic Product
and initiatives to spur increased industry
(GDP) as an indicator of the overall strength
investment through making permanent the
of the economy, rather than the more tradi-
tax credit for research and experimentation,
tional GNP. When a similar comparison is
are discussed later in this chapter.
Part One-94
THE BUDGET FOR FISCAL YEAR 1993
Table 6-2. THE BUDGET PROPOSES AN INCREASE OF $2.5 BILLION
IN FEDERAL INVESTMENT IN RESEARCH AND DEVELOPMENT
(Dollar amounts in millions)
Budget Authority
Outlays
Department or Agency
Dollar
Percent
Dollar
Percent
1989
1992
1993
Change:
Change:
1989
1992
1993
Change:
Change:
Actual
Enacted
Proposed
1992 to
1992 to
Actual
Enacted
Proposed
1992 to
1992 to
1993
1993
1993
1993
Government-wide totals:
Conduct of R&D:
Basic Research
10,615
13,254
14,322
+1,068
+8%
10,255
12,491
13,405
+914
+7%
Civilian
9,650
12,053
13,086
+1,034
+9%
9,312
11,325
12,142
+817
+7%
Defense 1
965
1,201
1,236
+35
+3%
943
1,166
1,263
+97
+8%
Applied Research and
Development
51,298
57,839
59,302
+1,463
+3%
50,626
53,890
56,253
+2,363
+4%
Civilian
11,620
16,257
17,313
+1,056
+6%
11,030
15,132
15,958
+826
+5%
Defense
1
39,678
41,582
41,988
+406
+1%
39,596
38,758
40,295
+1,538
+4%
Subtotal, Conduct of
R&D
61,913
71,093
73,624
+2,531
+4%
60,881
66,381
69,658
+3,277
+5%
R&D Facilities
2,293
3,498
2,933
-565
-16%
2,054
3,286
3,189
-96
-3%
Total, Conduct of
R&D and Facili-
ties²
64,206
74,592
76,557
+1,965
+3%
62,935
69,666
72,847
+3,181
+5%
Conduct of R&D by Agency:
Defense-military
38,031
40,043
40,509
+466
+1%
37,545
37,175
38,847
+1,672
+4%
Health and Human Serv-
ices
7,894
10,216
10,649
+433
+4%
7,486
9,468
10,199
+731
+8%
Energy
5,362
6,514
6,578
+65
+1%
5,692
6,195
6,219
+23
-
National Aeronautics and
Space Administration
5,303
7,706
8,673
+967
+13%
4,975
7,272
7,710
+438
+6%
National Science Founda-
tion
1,671
1,967
2,375
+408
+21%
1,557
1,840
2,056
+216
+12%
Agriculture
1,050
1,328
1,332
+4
1,021
1,245
1,285
+40
+3%
Interior
467
583
552
-31
-5%
478
580
546
-34
-6%
Environmental Protection
Agency
389
496
525
+29
+6%
345
454
495
+41
+9%
Commerce
417
580
614
+34
+6%
363
542
582
+40
+7%
Transportation
313
446
498
+52
+12%
322
410
457
+47
+11%
Agency for International
Development
261
322
325
+3
+1%
379
314
303
-11
-4%
Veterans Affairs
212
230
245
+15
+7%
187
247
262
+14
+6%
Other Agencies³
542
662
750
+88
+13%
532
639
699
+60
+9%
1 Includes the military-related programs of the Departments of Defense and Energy.
2 Components may not add to totals because of rounding.
8 Includes the Departments of Education, Justice, Housing and Urban Development, Labor, the Treasury, the Nuclear
Regulatory Commission, Tennessee Valley Authority, Smithsonian Institution, and the Corps of Engineers.
APPLIED R&D: EXPANDING THE FRONTIER OF
TECHNOLOGICAL DEVELOPMENT
Federal investments in applied research
and new jobs. In total, the budget proposes
and development provide a strong foundation
about $59.3 billion, an increase of about
for the development of new technologies,
$1.5 billion or nearly 3 percent to support
which, when successfully applied by the pri-
R&D investments across a wide range of
vate sector, can yield large benefits in terms
technology areas.
of productivity improvements, economic growth
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-95
RATIO OF FEDERAL CIVILIAN R&D OUTLAYS TO GROSS DOMESTIC PRODUCT
PERCENT
1.2
1
0.8
0.6
0.4
0.2
0
1962
1967
1972
1977
1982
1987
1992
SOURCE: National Science Foundation, Office of Management and Budget
The Administration has sought to foster
making permanent the R&E tax credit, ex-
technological advancement through a multi-
pansion of the National Cooperative Re-
faceted technology policy that includes:
search Act (NCRA) to include joint produc-
increased Federal investments in high-
tion ventures, and the proposed reduction
payoff applied research and development,
in the taxation rate for capital gains.
including increased emphasis on pre-com-
Elements of this policy are embodied in
petitive, generic technologies;
each of the budget initiatives in applied
research and development.
increased government-industry collabora-
tion, including both formal consortia ar-
Overview of Applied Research and
rangements (such as the Advanced Battery
Development
Consortium) and informal interaction
(such as the Computer Systems Policy
The principal strategy for the Federal ap-
plied civilian R&D programs is to invest
Project);
in areas of R&D that support agency mission
accelerated technology transfer from gov-
requirements, but also have potentially broad
ernment laboratories;
applications in the private sector, even though
the commercial applications themselves would
greater emphasis on investments in new
not be funded by the government. In such
technologies as part of several National
cases, the Government's role is to support
Strategies to address transportation and
the development of generic or enabling tech-
energy issues, and to advance the U.S.
nologies at the pre-competitive stage of R&D:
space program;
generic or enabling technologies have the
support for incentives to encourage greater
potential to be applied to a broad range
private sector R&D investments including
of products or processes across many firms
Part One-96
THE BUDGET FOR FISCAL YEAR 1993
RATIO OF FEDERAL CIVILIAN R&D OUTLAYS
TO DOMESTIC DISCRETIONARY SPENDING
PERCENT
30
25
20
ALL CIVILIAN
15
10
5
WITHOUT SPACE
0
1962
1967
1972
1977
1982
1987
1992
SOURCE: Office of Management and Budget
or industrial sectors; and, because the ben-
superconductivity. The Federal Government
efits are not necessarily appropriable to
has invested in many of these "critical"
individual firms, the private sector is like-
technologies for many years, e.g., bio-
ly to underinvest;
technology, computer hardware and software,
pre-competitive R&D is the stage of the
rocket propulsion.
R&D process where the results can be
shared widely within and between indus-
Mechanisms for Government-Industry-
trial sectors, without reducing the incen-
University R&D Collaboration
tive for individual firms to develop and
There are a number of different mechanisms
market commercial products and processes
that the Federal Government may use to
based upon the results.
support generic applied research and tech-
Many of these generic technologies have
nology development. These include: cost-shar-
been identified as "critical" technologies that
ing of individual projects; formation of R&D
consortia (often involving government, indus-
are important to a number of industries.
try and university laboratories); and more
Lists of these technologies have been compiled
informal government/university/industry col-
by both Federal agencies (Defense, Commerce),
laboration.
by private groups (Council on Competitive-
ness), and by the National Critical Tech-
Industrial R&D Collaboration.-Strategic al-
nologies Panel. These lists provide a useful
liances and partnerships among industries are
benchmark, but should not necessarily be
not new. Individual firms have often looked
viewed as definitive. Technology break-
to other companies for new technology, innova-
throughs can occur in new fields long before
tion and new markets to complement their
such areas are widely recognized as "critical
own efforts. But in order to be successful over
technologies",
e.g.,
high-temperature
the longer term, such alliances must provide
6. *ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-97
mutual, and generally comparable, benefits to
The National Aerospace Plane joint-ven-
the partners. The National Cooperative Re-
ture partnership merged the best ideas of
search Act (NCRA) of 1984 enabled private
five contractors into a single design and
companies to form research alliances (con-
permitted the sharing of advances in ma-
sortia, joint ventures, partnerships) among
terials and propulsion technology and
themselves without the fear of per se antitrust
violations. As of December 1991, a total of 263
aerospace design. It also has helped en-
sure that there will be a broad U.S. indus-
private sector consortia had been registered
with the Justice Department.
trial base for future operational hypersonic
and aerospace vehicles.
The Administration has supported legisla-
tion to expand the NCRA to include joint
In Energy R&D, the Administration has
production ventures. In addition, the Depart-
pursued several R&D consortia. For exam-
ment of Commerce has proposed an initiative,
ple, the Administration recently initiated
the Strategic Partnerships Initiative, to pro-
the Advanced Battery Consortium with the
mote voluntary R&D collaboration among pri-
major U.S. auto companies, battery manu-
vate firms for the development and application
facturers and electric utilities. Over the
of large-scale enabling technologies, with no
past several years, the Administration has
direct Federal funding.
supported a collaborative R&D program in
In recent years, a number of authors (Ouchi;
photovoltaics technology, including both in-
Coase; Porter; Badaracco; Dertouzos, Lester
dividual cost-shared contracts as well as
and Solow) have written extensively on indus-
a consortium arrangement. In addition,
trial R&D cooperation and consortia. These
the Administration proposed funding in
authors have noted the potential benefits
the 1991 budget to establish an R&D con-
of increased R&D collaboration, particularly
sortium for geosciences research in support
where the industrial technologies are not
of advanced oil and gas recovery, but Con-
fully "appropriable" to individual firms, or
gress did not support the request.
where there are generic problems or agreed-
Because U.S. R&D consortia are relatively
on multiple research paths which must be
new, there is no firm track record to measure
explored to enable new technologies to be
developed.
success. There is continuing debate about
the role of R&D consortia in innovation
They have also noted the limitations of
and economic growth.
R&D collaboration. Consortia may not be
beneficial if allowed to extend to product
For example, in an informal survey of
development, or if the collaboration is not
a number of senior industry officials conducted
well-defined in advance, or if excessive reliance
in 1990 by the National Research Council,
on collaboration results in inhibiting com-
many of these officials expressed doubt that
petition. The Federal Government has had
generic research conducted in consortial ar-
limited involvement in consortia, but generally
rangements with other companies and univer-
has had success in those consortia in which
sities would offer significant commercial ad-
it has participated. For example:
vantage, since the results would have to
be shared broadly and are too remote from
The Concurrent Supercomputing Consor-
the marketplace. These officials were much
tium acquires computers with unprece-
more enthusiastic about the benefits of more
dented capabilities and uses them to en-
informal researcher-to-researcher collabora-
able member scientists to tackle new class-
tions.
es of computational problems. This consor-
tium, which consists of numerous govern-
In addition, several articles have questioned
ment agencies (Defense, Energy, NSF,
the effectiveness of the Sematech consortium,
NASA), and academic and industrial insti-
and recently two of its member companies
tutions, has combined its resources to ac-
have withdrawn. However, many of the issues
quire the Intel Touchstone Delta System,
surrounding Sematech appear to be unique
the world's first general-purpose computer
to it, and cannot be extrapolated to all
with a peak speed of 30-gigaflops.
consortia.
Part One-98
THE BUDGET FOR FISCAL YEAR 1993
There are attributes of joint research alli-
nical contributions in a variety of the applied
ances that may increase the likelihood of
R&D areas discussed in this chapter. In this
long-term success. In the case of Federally-
way the U.S. economy may benefit and receive
supported consortia, such attributes would
additional return from the investments which
include the following:
have been made developing defense tech-
The private sector participants should
nology.
agree to share at least half of the total
The National Laboratories already have
costs of the R&D.
a solid base of expertise in a number of
The area of interest for the consortium
critical technology areas, including bio-
should be supportive of Federal missions,
technology, advanced materials including both
and should complement Federal R&D pro-
semi- and superconductors, advanced manufac-
grams.
turing, high performance computing including
massively parallel processing, and advanced
The R&D itself should use existing Fed-
optical technologies, including flat panel dis-
eral, private or university laboratories and
plays. The R&D programs of the National
research expertise.
Laboratories are discussed further in the
The R&D should not involve technologies
section on "Maintaining National Security"
where one or more of the private sector
later in this chapter.
participants has a strong proprietary posi-
Other Technology Policy Activities.-The
tion or existing commercial production.
technology policy principles embodied in the
The setting of R&D priorities within the
1991 budget are, in part, an outgrowth of the
area of interest should be led by the pri-
U.S. Technology Policy statement issued in
vate sector participants.
September, 1990 by the Office of Science and
Technology Policy. To further assist in the de-
The R&D should be focused on generic or
velopment and implementation of this policy,
enabling technologies which have the po-
the budget proposes $1 million for the Critical
tential to benefit a broad range of compa-
Technology Institute (CTI). The CTI, a new
nies, processes or products.
Federally-funded research and development
These attributes are clearly embodied in
center, will undertake studies and analyses
the most recent Federally-supported R&D
that can assist Federal agencies in determin-
consortium, the U.S. Advanced Battery Con-
ing whether increased investments in these
sortium, and can be found in other Federal
technologies will serve both agency mission
R&D consortia as well. Because consortial
needs and broader national needs. Together
R&D arrangements are new, it will be nec-
with funding provided in prior years, a total
essary to experiment with different forms
of $7.6 million will be available to the CTI
of collaboration, and the performance of each
in 1992 and 1993.
will need to be continuously assessed.
In addition, the budget proposes $6 million,
The Role of the National Laboratories in Co-
an increase of 32 percent, for the Technology
operative R&D.-As a result of the major
Administration within the Department of Com-
changes now taking place in the world, there
merce. This Administration was established
are new opportunities to redeploy the Nation's
in 1990 in recognition of the importance
national security R&D assets in support of
of technology to the Nation's long-term com-
broader objectives. In particular, the govern-
petitiveness and the need to integrate and
ment's National Weapons Laboratories, which
manage numerous Department of Commerce
have historically been at the forefront of the
technology functions. The enhanced budget
development of advanced defense-related tech-
will allow the Technology Administration to
nologies, could make significant contributions
pursue more aggressively its efforts to coordi-
to advanced generic technologies for a broader
nate Federal programs and actitivies which
range of government and commercial applica-
facilitate commercial application of existing
tions. The National Laboratories could serve
and emerging technologies. In addition, it
as catalysts in the formation of new, industry-
will allow the Technology Administration to
led consortia that could make important tech-
enhance its efforts to stimulate greater co-
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-99
operation among private sector entities with
casting severe weather events; solving the
the aim of fostering better quality and higher
molecular riddle of the genome; predicting
productivity in U.S. manufacturing.
new superconducting materials; minimizing
air pollution; designing better aircraft; improv-
Budget Initiatives in Applied Research
ing energy conservation; designing and packag-
and Development
ing new computer chips; understanding and
High Performance Computing and Com-
predicting global change.
munications.-The budget proposes $803 mil-
Achieving this goal will require a 1,000-
lion for the second year of the High Perform-
fold improvement in computing capability and
ance Computing and Communications (HPCC)
100-fold improvement in communications.
program. Planning and execution for this pro-
These advances will also permit the private
gram has proceeded through nine participating
sector to "leap frog" over the otherwise incre-
Federal agencies working under the Federal
mental improvements in supercomputers and
Coordinating Council on Science, Engineering
networks.
and Technology (FCCSET). The HPCC pro-
gram focuses on the underlying research and
Investments in research and technology
the human talent needed to develop and apply
development are planned in four HPCC pro-
the next generation of supercomputer systems
gram components:
(including hardware, software, and networks).
High Performance Computing Systems
The goal of the HPCC initiative is to
(Hardware): Development of the underly-
meet, by 1996, the needs of Federal research
ing technology required for scalable par-
agencies to investigate and understand a
allel computer systems capable of sustain-
wide range of fundamental scientific and
ing trillions of operations per second on
engineering "grand challenge" problems: fore-
large projects (a thousand-fold improve-
FEDERAL CIVILIAN APPLIED RESEARCH AND DEVELOPMENT BUDGET AUTHORITY
1991 $ BILLIONS
7
6
SPACE
5
ALL OTHER
4
3
HEALTH
2
1
ENERGY
0
1978
1980
1982
1984
1986
1988
1990
1992
SOURCE: National Science Foundation, Office of Management and Budget
Part One-100
THE BUDGET FOR FISCAL YEAR 1993
Table 6-3. THE BUDGET INCLUDES INITIATIVES IN SEVERAL KEY
AREAS OF APPLIED R&D
(Dollar amounts in millions)
Dollar
Percent
1989
1992
1993
Initiative
Change:
Change:
Actual
Enacted
Proposed
1992 to
1992 to
1993
1993
High Performance Computing and Communications
N/A
655
803
+148
+23%
Advanced Materials and Processing
N/A
1,659
1,821
+162
+10%
Biotechnology Research
N/A
3,759
4,030
+271
+7%
Energy R&D
397
774
914
+140
+18%
Moving Fusion Energy from a Science to Engineering
347
337
360
+23
+7%
Advanced Manufacturing R&D (non-defense)
N/A
252
321
+69
+27%
Improving the Efficiency of the Transportation Sector
through Technology
802
1,224
1,433
+209
+17%
Protecting the Public Health: Health Research and
Disease Prevention
3,482
4,757
4,849
+92
+2%
Expanding R&D at the National Institutes of Stand-
ards and Technology
159
247
311
+64
+26%
Space Technology
256
273
305
+32
+12%
ment in computing capability). These sys-
research, increase the number of students
tems will be the bases for the commercial
in computational science, and transfer
supercomputers and workstations of to-
technology for industrial grand challenge
morrow.
applications.
Advanced Software Technology and Algo-
In the first year of operation, the HPCC
rithms (Software): Development of generic
program has realized several notable technical
software technology and algorithms for
and programmatic achievements. Major new
grand challenge research applications to
scalable high performance computing systems
realize the performance potential of high
have been announced and delivered. New
performance computing systems in a
software applications have been developed
networked environment. This component
for emerging high performance systems. Traffic
recognizes that software improvements
on the network has doubled in the past
have increased computational performance
year, as has the number of interconnected
much more than have hardware compo-
local and regional networks. Participating
nents.
Federal agencies have begun solicitation to
fund high performance computing research
National Research and Education Network
groups, centers, and consortia on various
(Networks and Communications): Upgrade
grand challenge problems, and a large number
of the existing federally supported net-
of researchers, scholars, students, scientists,
works to provide distributed computing ca-
and engineers have been trained to use
pability to research and educational insti-
these emerging new technologies.
tutions and further advanced research on
Moreover, additional substantial advice and
very high speed gigabit (billion bit per sec-
recommendations have come from various
ond) networks and applications. Ulti-
industrial, professional, and scientific organi-
mately, this technology will be the founda-
zations such as Educom, representing numer-
tion for sophisticated commercial net-
ous universities, and the Computer Systems
works.
Policy Project (CSPP), representing leading
Basic Research and Human Resources (Re-
U.S. computer companies. As an example
search/Training): Support long term basic
of the dynamism and flexibility of the HPCC
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-101
program, many of the CSPP recommendations
technology transfer, the Department of
presented in December 1991 are already
Energy is supporting the development of
being incorporated into the program. The
a model Cooperative Research and Devel-
CSPP has noted that the HPCC program
opment Agreement (CRADA) that will
is a significant, critical and necessary under-
ease significantly the exchange of comput-
taking by the Federal Government, and have
ing technology between private industry
provided four valuable recommendations:
and government laboratories.
Expand the vision of the HPCC to include
Reorder the HPCC budget priorities to
research on generic, enabling technologies
achieve a more balanced program. In re-
to support a wider range of applications
sponse to this recommendation, the budget
such as better health care, lifelong learn-
proposes the largest dollar increase ($68
ing, improved services for senior citizens,
million) of any of the HPCC program com-
enhanced industrial design, and broad ac-
ponents for software research. The pro-
cess to public and private databases. In
gram will continue to support basic re-
recognition of the importance of these ap-
search, generic technologies, and broad ap-
plications, the program is investing in
plications, but will work in the coming
many of the supporting advanced tech-
year to achieve the appropriate funding
nologies such as open scalable systems,
balance between software research and
portable software, mass data storage, and
computer equipment and facilities.
advanced network protocols. In addition,
the HPCC program is also providing op-
The HPCC effort received added impetus
portunities for industry and academia to
in 1991 with the enactment of a multi-
propose specific grand challenge applica-
year authorization, the High Performance
tions such as those listed above.
Computing Act of 1991 (Public Law 102-194).
Passage of this legislation is yet another
Establish a technology and policy founda-
example of the broad national support for
tion for an information and communica-
this program.
tions infrastructure for the future. To, ad-
dress this issue, the Federal Networking
Advanced Materials and Processing Pro-
Council, an interagency coordination group
gram.-The budget proposes $1,821 million,
that supports the National Research and
an increase of 10 percent, for a new inter-
Education Network, has formed a policy
agency program to improve the synthesis, proc-
committee to address critical network is-
essing and performance of materials.
sues such as security and privacy, intellec-
Everything is composed of materials. Faster,
tual property rights, and network access,
smaller semiconductor chips; flexible concrete
interoperability, and technology transfer.
skyscrapers; a biomaterial artificial hip; and
Improve management and governance of
strong, lightweight aircraft and spacecraft
the HPCC program and increase opportu-
are but a few of the advances made possible
nities for industry participation. To im-
through improved materials. New methods
prove management in the near term, the
of preparing materials, virtually atom by
HPCC program will strengthen its current
atom, have become available in the past
management structure. This should pro-
few years, which offer unprecedented opportu-
vide a clearer emphasis on implementation
nities for tailoring materials to meet the
of policies and plans, enable monitoring
needs of society.
of progress towards goals and objectives,
The Federal Government has long played
better satisfy Congressional reporting re-
a supporting role in materials science and
quirements, and serve as a single point-
engineering. The importance of strengthening
of-contact for industry, academia, and
the Federal commitment to materials R&D
other government agencies. Over the com-
to take advantage of the unique scientific
ing months, the Administration will be ex-
opportunities now present has been widely
ploring new management approaches that
recognized. The National Critical Technologies
might bring better coordination and ac-
Panel identified materials technology as one
countability to the program. To improve
of six broad technology areas, and materials
Part One-102
THE BUDGET FOR FISCAL YEAR 1993
Table 6-4. THE BUDGET PROPOSES A 23 PERCENT INCREASE FOR
ALL ASPECTS OF HIGH PERFORMANCE COMPUTING
(Dollar amounts in millions)
Budget Authority
Dollar
Percent
Description
1992
1993
Change:
Change:
Enacted
Proposed
1992 to
1992 to
1993
1993
Program Components
High Performance Computing Systems
152
178
+26
+17%
Advanced Software Technology and Algorithms
278
346
+68
+24%
National Research and Education Network
92
123
+30
+33%
Basic Research and Human Resources
132
156
+24
+18%
Agency
Defense (DARPA)
232
275
+43
+18%
National Science Foundation
201
262
+61
+30%
Energy
92
109
+17
+18%
National Aeronautics and Space Administration
71
89
+18
+25%
Health and Human Services
41
45
+4
+8%
National Oceanic and Atmospheric Administration
10
11
+1
+10%
Environmental Protection Agency
5
8
+3
+60%
National Institute of Standards and Technology
2
4
+2
+95%
Total, All agencies
655
803
+148
+23%
figure prominently in lists of key technologies
for enhancement through a FCCSET inter-
prepared independently by the Departments
agency coordination and evaluation process.
of Defense and Commerce
The evaluation criteria used in that process
To address these opportunities and needs,
included technical merit, environmental/social
a multi-year program involving 10 Federal
merit, readiness, costs, and linkages to exist-
agencies has been initiated within FCCSET
ing programs.
to enhance R&D efforts in materials science
Over the course of the next year, the
and technology. The Advanced Materials and
Federal agencies plan to work closely with
Processing Program (AMPP) will also focus
the private sector to identify in more detail
increased attention on the interfaces between
specific R&D priorities and to develop specific
universities, government laboratories and in-
collaborative R&D programs.
dustry, and on transferring technology from
basic research to application.
Many of the programs cannot be assigned
solely to specific classes of materials. Nonethe-
The program targets four areas of materials
less, the classes of materials that will receive
science and technology for enhancement. The
budget proposes to increase funding for: Syn-
the largest increases in the budget proposal
thesis and Processing of Materials by $65
are: polymers ($10 million or 12 percent
million (9 percent); Theory, Modeling, and
over 1992), ceramics ($18 million or 14 percent
Simulation by $30 million (13 percent); Mate-
over 1992), composites ($24 million or 13
rials Characterization by $29 million (6 per-
percent over 1992), biological materials ($21
cent); and funds for Education and Human
million or 13 percent over 1992), and electronic
Resources in materials science and engineering
materials, including semiconductors ($15 mil-
by about $6 million. (27 percent). Specific
lion or 9 percent over 1992).
programs within these areas were selected
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-103
Table 6-5. THE BUDGET PROPOSES A 10 PERCENT INCREASE FOR
A NEW INITIATIVE IN ADVANCED MATERIALS AND PROCESSING
(Dollar amounts in millions)
Budget Authority
Dollar
Percent
Description
1992
1993
Change:
Change:
Enacted
Proposed
1992 to
1992 to
1993
1993
Program Component
Synthesis and Processing
683
748
+65
+9%
Theory, Modeling and Simulation
224
253
+30
+13%
Materials Characterization
474
503
+29
+6%
Education/Human Resources
21
27
+6
+27%
National User Facilities
257
291
+33
+13%
Agency
Energy
603
678
+75
+12%
Defense
449
432
-17
-4%
National Science Foundation
266
319
+53
+20%
National Aeronautics and Space Administration
125
154
+29
+23%
Health and Human Services
77
82
+5
+7%
Agriculture
57
66
+9
+16%
Commerce
46
48
+2
+4%
Interior
25
24
-1
-4%
Transportation
9
16
+7
+76%
Environmental Protection Agency
3
4
+1
+33%
Total, All agencies
1,659
1,821
+163
+10%
Biotechnology Research-Biotechnology is
techniques have enabled the development of
a set of powerful tools that can ultimately lead
a new generation of methods for disease
to products for conquering disease, easing
diagnosis including the genetic causes of
world hunger and reducing pollution. Broadly
disease.
defined, biotechnology includes any technique
Nationwide, hundreds of companies rep-
that uses living organisms to make or modify
resenting every industrial sector from agri-
products, to improve plants or animals, or to
culture to energy and manufacturing are
develop microorganisms for specific use (Office
using biotechnology to develop products and
of Technology Assessment, 1984). New bio-
processes. Central to U.S. efforts in bio-
technology involves recombinant DNA, DNA
technology is Federal support for research
transfer techniques, macromolecular structure,
in scientific and engineering disciplines that
and bioprocessing, among other fields.
will underpin future advances.
If projected technical advances are realized,
In early 1991, the President's Council on
the effect of biotechnology on society and
Competitiveness issued its "Report on National
the economy is likely to be dramatic. In
Biotechnology Policy." The report described
1991, according to a report by Ernst and
three areas of concern: (1) science and tech-
Young, sales of biotechnology products ap-
nology; (2) risk-based regulation; and (3)
proached $4 billion and sales are expected
a flourishing free market for biotechnology.
to increase to over $50 billion during the
The budget proposals are responsive to the
next ten years. Not only are new vaccines
Council's recommendations on science and
and drugs being developed, but biotechnology
technology. In the area of regulatory policy,
Part One-104
THE BUDGET FOR FISCAL YEAR 1993
the Council's Biotechnology Working Group
Environment.-Biotechnology products
considers proposals to remove unnecessary
hold great promise for environmental res-
regulatory burdens by improving interagency
toration and protection. The budget pro-
coordination, streamlining the regulatory agen-
poses $83 million for research on environ-
cies' evaluation processes, and reevaluating
mental biotechnology, a 20 percent in-
regulations. Descriptions of Federal policies
crease over 1992. Environmental bio-
for the commercialization of food, animal,
technology research has a direct and fun-
plant and microbial products will be published
damental role in developing applications
soon.
like bioremediation, biorestoration and de-
velopment of other environmental
The budget proposes a total of about $4
diagnostics. Examples of recent develop-
billion for biotechnology research, an increase
ments in this field include the engineering
of $271 million or 7 percent over 1992.
of microorganisms that degrade specific
These resources will be contributed by 12
toxic organic chemicals and others that
Federal agencies with biotechnology programs
emit visible light signals when they en-
in a number of research areas as part
counter specific chemicals in the environ-
of a set of FCCSET coordinated programs.
ment.
A number of these programs are new and
their various foci provide evidence of the
Manufacturing/Bioprocessing.- Industry
growing and diverse applications of different
is just beginning to apply biotechnology to
biotechnology techniques. Examples of these
a wide spectrum of manufacturing proc-
esses. Biotechnology research in manufac-
programs include: biological sensor technology
turing/bioprocessing is likely to have in-
(funded by Defense) to improve threat detec-
creasingly important applications to the
tion at sea and drug interdiction efforts;
manufacture of pharmaceuticals, food-re-
conservation and renewable energy research
lated products, chemical feedstocks, fuels,
(funded by Energy) to develop cost-effective
and a variety of novel products such as
biofuels; forensic DNA analysis for identifica-
biomolecular materials. Modern
tion and testing (funded by Justice) to develop
bioprocessing is able to achieve economi-
reliable and valid methods for conducting
cally efficient manufacture of many desir-
DNA profiling; and engineering research in
able products by using renewable re-
the areas of bioprocessing and applied bio-
sources and biocatalysts that minimize en-
technology (funded by NSF).
ergy consumption and reduce waste prod-
Coordination of agency programs maximizes
ucts. The budget proposes $124 million for
the effectiveness of the total Federal effort.
manufacturing/bioprocessing research, an
increase of 25 percent over 1992.
For example, nine agencies have existing
programs in environmental biotechnology and
Health.-The basic science and health
eight have existing programs in manufactur-
components of biotechnology represent a
ing/bioprocessing. These programs have been
powerful driving force in health care tech-
developed in response to individual agency
nologies today. Earlier basic research on
missions and, although they are largely com-
recombinant DNA (rDNA) has already
plementary rather than duplicative, their inde-
come to fruition. The first generation of
pendent existence indicates the need for en-
rDNA drugs included proteins such as in-
hanced interagency coordination.
sulin and white blood cell stimulators. The
near future may see the use of animals
While the first effects of biotechnology
as factories to produce large quantities of
R&D have been felt in the areas of human
these proteins at lower cost. It is now pos-
health and disease, the impact of biotechnology
sible to use these techniques to make
will also soon be felt in many areas besides
biomaterials such as synthetic collagen to
health. The next decade will see unprece-
preserve liver cells in a matrix, thus creat-
dented applications of different biotechnology
ing alternatives to whole organ trans-
to agriculture and aquaculture, the restoration
plants for liver failure. A better under-
and protection of the environment, and the
standing of the molecular basis of disease
production of chemicals and fuels.
will lead to the identification of specific
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-105
targets for disease intervention. The budg-
poised to exploit the promise of biotechnology.
et proposes nearly $1.7 billion in this area,
During 1993, the Federal Government will con-
an increase of $86 million or 5 percent.
tinue to coordinate and encourage research
Agriculture.-Agricultural biotechnology
into unexplored areas and identify areas of op-
research is applicable to food, feed, fiber
portunity for Federal investment.
and forestry production. While USDA has
Advancing New Energy Technologies.-
the primary responsibility within the Fed-
A major element of the Administration's Na-
eral Government, seven other agencies
tional Energy Strategy (NES) continues to be
support agricultural biotechnology re-
increasing investment in energy technology
search. Traditional biotechnologies have
R&D. The budget proposes $914 million, an
been practiced in agriculture since the be-
increase of $140 million or 18 percent, for in-
ginning of civilization to improve plants
creased investments in R&D in support of the
and animals. New techniques vastly ex-
Administration's NES R&D initiatives.
pand this potential. However, the knowl-
edge base for application of modern bio-
The Department of Energy's (DOE) NES
technology to plants, animals and mi-
related R&D strategy is intended to foster
crobes of agricultural significance has not
a results-oriented approach, based on the
been put to commercial use to the same
following key elements:
degree as that for human health and med-
icine. Agricultural techniques now exist to
an emphasis on R&D areas that, if suc-
produce better quality food and fiber, foods
cessful, could lead to significant reductions
with higher nutrient content, crops and
in U.S. oil vulnerability;
animals with greater tolerance to stresses,
selection of R&D areas based on high R&D
and better soil productivity and waste
payoff potential, i.e., the potential to
management. The budget proposes $208
achieve significant cost and performance
million in this area, an increase of $17
improvements;
million or 9 percent.
a comprehensive, interagency R&D pro-
Energy.-Decreasing petroleum reserves,
coupled with increasing consumption, have
gram that includes both technology en-
made this country increasingly dependent
hancements, e.g., more efficient engines,
on imported oil. The National Energy
and more fundamental system changes,
Strategy promotes conservation and the
e.g., the potential for high speed rail and
development of alternative energy re-
Maglev systems to displace automobile
sources. Biotechnology offers one key to
and air travel (rail and highway transpor-
such development through the use of prod-
tation systems are discussed later in this
ucts from plants and microorganisms. En-
chapter in the section on Transportation
ergy-related biotechnology research is
R&D);
aimed at developing methods to produce
a collaborative, cost-shared approach to re-
and convert biomass (cell wall material of
search in applied areas where private in-
plants) to liquid fuels and chemical feed-
dustry ultimately will be responsible for
stocks, enhance petroleum recovery, and
the commercialization of the technology.
convert coal into environmentally benign
This approach is intended to involve in-
fuels. The increased use of biological sys-
dustry more in R&D planning and man-
tems for energy will maximize the efficient
and economic use of both renewable and
agement to obtain significant cost sharing,
fossil resources. The budget proposes $107
with the research performed by industry
million, an increase of $27 million or 33
or universities (except in situations where
Government labs, such as DOE's National
percent.
Laboratories, have unique research and
The Future.-The Federal investment in bio-
testing capabilities). DOE encourages Gov-
logical research of the past thirty years has
ernment-assisted R&D consortia when
contributed to the foundation for today's strong
they meet the criteria outlined earlier in
biotechnology enterprise. The U.S. is currently
this chapter.
Part One-106
THE BUDGET FOR FISCAL YEAR 1993
Table 6-6. THE BUDGET PROPOSES A 7 PERCENT INCREASE IN
FEDERAL INVESTMENTS IN BIOTECHNOLOGY
(Dollar amounts in millions)
Budget Authority
Description
Dollar
Percent
1992
1993
Change:
Change:
Enacted
Proposed
1992 to
1992 to
1993
1993
Program Component
Research Areas
3,759
4,030
+271
+7%
Agriculture
191
208
+17
+9%
Energy
80
107
+27
+33%
Environment
69
83
+14
+20%
Manufacturing/Bioprocessing
99
124
+25
+25%
Health
1,594
1,680
+86
+5%
General/Foundations
1,418
1,500
+82
+6%
Social Impact Research
9
9
-
-
Infrastructure
301
320
+19
+6%
Agency
Health and Human Services
2,963
3,125
+162
+6%
(National Institutes of Health)
(2,801)
(2,944)
(+143)
(+5%)
Agriculture
179
168
-11
-9%
National Science Foundation
174
206
+32
+18%
Energy
182
243
+61
+34%
Veterans Affairs
86
90
+4
+5%
Defense
81
87
+6
+7%
National Aeronautics and Space Administration
37
45
+8
+22%
Agency for International Development
21
31
+10
+48%
Environmental Protection Agency
16
18
+2
+13%
Commerce
13
13
-
-
Interior
5
5
-
-
Justice
2
2
-
-
Total, All agencies
3,759
4,030
+271
+7%
DOE estimates that the NES R&D Initiative
improved batteries could improve the prac-
can be expected to lead to reductions in
ticality of electric cars by extending their
oil consumption by the year 2030 of 5-8
range up to 120-200 miles. In 1993, pro-
million barrels per day, depending on the
posed DOE funding for the second year
success of the proposed R&D programs.
of the USABC and supporting battery re-
The NES initiatives include:
search is increased by 56 percent to nearly
$42 million. The Federal investment will
Electric and Hybrid Vehicles. On October
be matched on a 50:50 basis by the private
25, 1991 the President and members of
sector.
the U.S. Advanced Battery Consortium
The budget also proposes funding for the
(USABC) announced a jointly-funded, four
creation of a new Government-industry
year, $260 million research effort to de-
R&D consortium for hybrid vehicle propul-
velop a new generation of batteries that
sion technology. This new generation of ve-
would enable electric vehicles to be widely
hicles would use combinations of battery
available within the next 10 years. These
technology with other systems such as fuel
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-107
Table 6-7. THE BUDGET PROPOSES AN 18 PERCENT INCREASE FOR
NATIONAL ENERGY STRATEGY R&D INITIATIVES
(Dollar amounts in millions)
Dollar
Percent
Initiative
1989
1992
1993
Change:
Change:
Actual
Enacted
Proposed
1992 to
1992 to
1993
1993
Displacing Oil in the Transportation Sector
171
326
464
+138
+42%
Surface and Air Transportation Efficiency
121
226
299
+73
+32%
Electric/Hybrid Vehicles R&D
14
43
75
+32
+74%
Improved Vehicle Propulsion Technology
33
40
44
+4
+10%
Intelligent Vehicle/Highway Systems R&D
0
28
38
+10
+36%
High Speed Rail/Magnetic Levitation
0
20
28
+8
+40%
Energy Efficient Air Traffic Control R&D
24
32
46
+14
+44%
Energy Efficient Aeronautics R&D
50
63
68
+5
+8%
New Fuel Sources
50
100
165
+65
+65%
Fuels from Biomass
13
35
46
+12
+35%
Alternative Fuel Utilization
2
17
32
+15
+88%
Advanced/Enhanced Oil Recovery
24
37
47
+10
+27%
Natural Gas R&D
11
12
40
+28
+233%
Increased Energy Efficiency in Buildings and In-
dustry
64
146
160
+14
+10%
Targeted Industrial Energy Efficiency R&D
30
97
105
+8
+8%
Targeted Buildings Energy Efficiency R&D
34
49
55
+6
+12%
Advanced Electricity Technology
162
302
290
-12
-4%
Photovoltaics
35
60
64
+4
+7%
Superconductivity R&D
22
21
22
+1
+5%
Advanced Light Water Reactor R&D
26
63
59
-4
-6%
Advanced Reactor Concepts R&D
79
158
145
-13
-8%
Total, All activities
397
774
914
+140
+18%
Total, Energy
323
626
725
+99
+16%
cells or gas. turbines. The effort will be
feedstocks, including woody materials, to
aimed at producing technologies which
produce alcohol fuels on a scale which can
lead to economical, environmentally
verify the technology and its commercial
friendly vehicles by the end of the century.
costs. The production of ethanol from food
If successful, it could also contribute to
crops is currently not cost effective with-
a technological and economic rejuvenation
out substantial Federal tax subsidies. The
of the U.S. auto industry.
goal of this R&D initiative is to get the
Improved Vehicle Propulsion Technology
production cost of ethanol from non-food
through research on high temperature die-
crops down to levels that are competitive
sel engines and gas turbine engines. Con-
with current fuels. In 1993 DOE will ex-
ventional spark-ignited and diesel engines
pand its research effort to include more
have efficiencies of up to 31 percent. Tech-
industry involvement in order to study ad-
nologies are being developed, such as gas
vanced conversion technologies. Addition-
turbines, which could achieve efficiencies
ally, DOE has signed a cooperative re-
approaching 40 percent.
search and development agreement
(CRADA) with a major oil company to
Advanced Transportation Fuels from Bio-
demonstrate the economics of ethanol pro-
mass research programs will demonstrate
duction from industrial waste.
use of industrial and agricultural waste
Part One-108
THE BUDGET FOR FISCAL YEAR 1993
Alternative fuels utilization will continue
advanced technologies in lighting, heating
vehicle testing activities that will provide
and cooling, e.g., solar heating and light-
the information to facilitate greater use
ing, advanced heat pumps, and more effi-
of alternative fuels. In addition to this
cient lights, as well as to assist industry
testing program, in 1993 the Department
in developing advanced industrial proc-
of Energy is requesting $15 million for the
esses which reduce both waste streams
purchase of alternative fuel vehicles by
and energy use. Building and industry-re-
Federal agencies. These funds will be used
lated R&D is proposed to increase to $160
to pay for the incremental cost of the vehi-
million, or 10 percent over 1992.
cles. Several thousand vehicles for Govern-
ment use are expected to be purchased,
Photovoltaic Research will continue to ad-
thus helping to create "market pull" for
vance efforts to increase the cost-competi-
U.S.-manufactured, alternative-fueled ve-
tiveness of photovoltaic (PV) systems. Past
hicles.
research by industry and DOE has en-
abled today's PV systems to compete suc-
Advanced/Enhanced Oil Recovery Tech-
cessfully with primary batteries, small en-
nologies research will improve reservoir
gine generators, and utility line extensions
understanding to better target oil drilling
in many remote applications. In 1993, $64
and develop better instrumentation, chem-
million is requested, an increase of 7 per-
ical injectants and reservoir interpretation
cent over 1992, to help U.S. industry de-
techniques. Currently, up to two-thirds of
velop photovoltaic technology and systems,
oil resources remain in the ground after
particularly those materials and devices
conventional production is completed. It is
that will reduce electricity generation costs
estimated that up to 3 million barrels per
and serve a growing energy market in the
day in incremental production could be re-
process.
covered through advanced/enhanced recov-
ery techniques by the year 2010. In 1993,
Advanced Light Water Nuclear Reactors
DOE will increase NES-related advanced
research will continue in 1993 to develop
oil recovery research to nearly $47 million,
passive safety features in a standardized
more than 25 percent over 1992.
design. This will reduce the time needed
to license new plants, while assuring that
Natural Gas Research and Development
safety issues are adequately addressed.
will increase substantially in 1993, empha-
The Department of Energy is also using
sizing advanced production and extraction
existing funds to continue first-of-a-kind
from conventional reservoirs and improved
engineering work that will assist compa-
utilization technologies. The NES con-
nies in their efforts to achieve safety of
cluded that expanded use of domestically
new standardized designs that will meet
abundant and environmentally acceptable
the requirements of the Nuclear Regu-
natural gas resources could increase en-
latory Commission.
ergy security and improve the environ-
ment. The new gas program will speed
Advanced Reactor Concepts will have safe-
achievement of these goals by focusing on
ty features that go beyond the standard-
the recovery of the resource and develop-
ized designs currently before the Nuclear
ing ultra high efficiency technologies for
Regulatory Commission. High Tempera-
its consumption. DOE will increase fund-
ture Gas Cooled Reactors use specially-
ing for gas-related R&D to $40 million,
coated fuel elements that will not fail even
over 230 percent above 1992.
under the high temperatures that could
occur during an accident. Liquid metal re-
Energy Efficiency in Buildings and Indus-
actors use liquid sodium as the heat ex-
try can be improved by developing ad-
change medium. Researchers have dem-
vanced technologies. The industrial and
onstrated that both reactor types can shut
building sectors account for about two-
themselves down safely under conditions
thirds of all U.S. primary energy consump-
that would be extremely serious for
tion. DOE's R&D efforts are aimed at as-
present-day reactors. The Department of
sisting the building sector in developing
Energy continues R&D support for both
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-109
of these advanced concepts. In addition,
power source is an important part of the Na-
the budget provides funding for DOE to
tional Energy Strategy.
continue its assistance to university nu-
clear engineering departments and stu-
The budget proposes $360 million for fusion,
dents by providing fellowship and scholar-
an increase of nearly 7 percent over 1992.
ship support.
Funding is included for conceptual design
and R&D on a small tokamak experiment
The NES R&D initiatives are supported
at Princeton University to understand basic
by increased investments in related areas
physical principles of fusion. Much of the
of basic research. Basic research in areas
increase will support the strong U.S. commit-
such as advanced materials, superconductors,
ment to the International Thermonuclear Ex-
geo- and biosciences, and catalysis research
perimental Reactor. This 6-year collaboration
will be continued in 1993.
among four equal partners (U.S., European
The NES R&D initiatives encompass a
Community, Japan, and Russia) is a model
broad range of new technologies that would
for international cooperation in science and
permit the more efficient use of energy,
technology. Such a joint project has the
or the substitution of petroleum with other
advantages of sharing knowledge and person-
energy sources. While these advances have
nel, reducing the financial burden for each
the potential to make significant improve-
party, and optimizing the use of special
ments in the Nation's energy secruity, it
facilities and capabilities for the common
should be recognized that other significant,
goal of achieving energy from fusion.
even larger, improvements can be achieved
Enabling New Products and Processes-
through more fundamental system changes
Advanced Manufacturing R&D.-The budg-
in the transportation sector. Several of these
et proposes $1.1 billion for advanced manufac-
changes, such as development of maglev and
turing R&D, a key enabling technology. This
high speed rail as an alternative to air
includes an increase of over 27 percent for non-
and surface transportation and improvement
defense related manufacturing R&D. For the
in airspace management are discussed else-
purposes of this initiative, advanced manufac-
where in this chapter and in Chapter 7,
turing R&D includes activities within two
"Improving the Transportation Infrastructure."
broad areas: (1) efforts designed to use tech-
In addition, other changes, such as
nology to improve the efficiency or quality by
telecommuting, offer great energy savings
which a product is brought from design to com-
potential. The Federal Government, and oth-
pletion; and (2) activities directed at expanding
ers, such as the State of Washington, are
the technical capability to bring a product
experimenting with the use of telecommuting
(which is new and fundamentally different in
centers as alternative worksites to reduce
character from existing products) from design
commuting. Currently, about 50 percent of
to completion.
total U.S. vehicle miles traveled (VMT) is
In an effort to focus on those programs
work-related, and there are estimates that
which are exclusively devoted to manufactur-
telecommuting may be possible for about
ing R&D, the budgetary resources shown
46 million persons. The energy savings poten-
for Advanced Manufacturing R&D exclude
tial of telecommuting is enormous. For exam-
funding for projects included in other cross-
ple, a 50 percent reduction in the miles
cutting efforts (e.g., Advanced Materials and
traveled by a single individual represents
Processing). As a result, these resources can-
the equivalent of a doubling of the fuel
not be directly compared to resources reported
efficiency of his or her vehicle.
for Advanced Manufacturing in the 1992
Moving Fusion Energy From Science to
budget (which included all manufacturing-
Engineering.-Fusion energy offers the po-
related R&D).
tential to be a clean, plentiful fuel for the pro-
Improvements in U.S. manufacturing tech-
duction of electricity for the longer term. Fu-
nology can increase productivity and quality,
sion is expected to be more environmentally
leading to new or more competitive products.
benign relative to fission or fossil sources of
While industry has the central role in R&D
electricity. The development of fusion as a
to improve manufacturing technology, an ap-
Part One-110
THE BUDGET FOR FISCAL YEAR 1993
propriate role in such R&D exists for the
with stimulating transportation technologies
government as well. The Federal role in
that can alleviate the burdened infrastructure.
advanced manufacturing R&D lies in support-
In addition, new transportation technologies
ing (1) generic manufacturing technologies
offer significant opportunities to move people
which have broad applications and (2) those
and goods more efficiently, reducing petroleum
technologies which are directly applicable to
consumption.
the procurement needs of government pro-
Two agencies, the Department of Transpor-
grams.
tation (DOT) and the National Aeronautics
The budget proposes increases for several
and Space Administration (NASA), support
agencies, including a $25 million increase,
the majority of transportation-related R&D.
to a total of $105 million, for the National
DOT's programs span the modes of transpor-
Science Foundation for a new manufacturing
tation, both ground and air. NASA's aero-
R&D effort that will focus on the next
nautics program focuses on research and
generation of manufacturing systems. The
technology for both civilian and military air-
results of this research will shift the present
craft. The budget proposes a total of $1,433
focus on automating and linking separate
million for both agencies, $498 million for
mechanical components to integrating entire
DOT and $855 million for NASA, an overall
new systems based on advanced computers
increase of 17 percent, for transportation
and information technologies (e.g., sensors,
R&D activities.
visualization, information management sys-
tems, artificial intelligence, networks). This
Department of Transportation-The budget
research will be conducted in concert with
proposes $498 million, an increase of 12
industry and other Federal agencies and
percent, for all of DOT R&D. The Federal
will develop several state-of-the-art manufac-
Aviation Administration (FAA) funds research
turing experimental testbeds for research,
to improve airport and airspace utilization.
education, and training. The budget also
FAA research includes projects to explore
proposes a $27 million increase for manufac-
and define the next-generation of aviation
turing R&D at the National Institute of
technologies, including the use of satellites
Standards and Technology. This increase will
in aviation navigation and communications.
be devoted to generic manufacturing R&D
Nearer-term projects include research to deter-
such as development of standards for electroni-
mine if the separation between two heavy
cally communicating the design of products.
class aircraft from the current 4 miles can
In addition, a portion of the increase for
be reduced to 3 miles to increase efficiency
NIST will provide matching funds for industry-
without a degradation of safety. FAA is
led and performed R&D projects.
also conducting research aimed at improving
communications with oceanic aviation traffic.
In addition, the Federal agencies have
With better oceanic communications, air traffic
undertaken a new initiative to exchange
controllers could allow more wind efficient
manufacturing R&D information with indus-
traffic patterns, saving time and fuel and
try, and to improve coordination of govern-
improving safety. FAA will also emphasize
ment-industry efforts. The initial step was
energy-efficient air traffic control R&D as
a conference held in December, 1991 on
a part of the national effort to modernize
Intelligent Processing Equipment. Other con-
the air traffic control system. The budget
ferences are planned for 1992 in flexible
proposes $254 million for FAA R&D.
computer integrated manufacturing; micro-
and nanofabrication; and systems management
Intelligent Vehicle/Highway Systems (IVHS)
technologies.
are intended to increase highway safety,
reduce congestion and decrease highway fuel
Improving the Efficiency of the Trans-
consumption. IVHS uses state-of-the-art elec-
portation Sector through New Tech-
tronics, communications, and computer tech-
nologies.-With increasing demands on the
nology to improve traffic control systems,
nation's highways and at airports, and with
warn drivers of dangerous situations, and
the high cost of building or expanding new
generally make more efficient use of the
facilities, the Federal Government is concerned
existing road system. IVHS can reduce conges-
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-111
tion, improve traffic flow, reduce idling at
expand its emphasis on enabling propulsion
traffic signals, and allow drivers to choose
materials necessary to develop future aircraft.
more efficient routes to their destination.
In addition, the budget proposes increased
The Department of Energy National Energy
funding for a program focused on advanced
Strategy analysis showed that actual on-
subsonic aircraft. This program will develop
the-road fuel economy can be significantly
nondestructive evaluation technology to help
lower than the theoretical potential due to
ensure the safe operation of aging transport
congestion. A study by Mobility 2000, an
aircraft now in operation and will also provide
expert group of Federal and State highway
the technology base for application by industry
officials and corporate and academic technical
and certification by the FAA of fly-by-light
experts, estimated that IVHS has the potential
and power-by-wire control systems.
to save up to 20 million gallons per day
of gasoline. The budget proposes a total
In addition to the work proposed above,
of $138 million including $38 million for
the budget proposes $80 million as NASA's
R&D, and $100 million for demonstration
share of the joint NASA/Defense National
projects in this area.
Aerospace Plane Program (NASP). Defense
will provide $180 million in 1993. This pro-
High speed rail and Magleu systems offer
gram is focused on development of hypersonic
opportunities to displace automobile and air
technology, leading to a future decision on
travel with a concomitant increase in effi-
a flight research vehicle, the X-30 that
ciency. A particularly promising technology
is magnetic levitation trains, or "maglev."
can demonstrate airbreathing single-stage-to-
Current efforts include investigations into
orbit performance. The NASP industry con-
the economic and technical feasibility of
tractors are uniquely organized under a joint-
maglev and the safety of maglev and high-
venture partnership that will permit technical
speed rail. Maglev trains move above a
innovation to be shared and will ensure
guideway, supported and guided by powerful
a broad industrial base for future hypersonic
magnets and can achieve speeds of up to
programs. This singular focus has permitted
300 miles per hour. In 1992, $20 million
relatively fast-paced advances in key enabling
was provided to DOT and the Army Corps
technologies such as air-breathing propulsion,
of Engineers for maglev and high-speed rail
advanced materials, actively cooled structures,
R&D. The budget proposes $28 million ($15
dense fuel, and computational fluid dynamics.
million for DOT and $13 million for the
Corps of Engineers), an overall increase of
Protecting the Public Health Through
40 percent, for maglev and high-speed rail
Biomedical and Behavioral Research
R&D.
Federally supported research has helped
National Aeronautics and Space Administra-
Americans live longer, healthier lives by
tion-The goal of NASA's aeronautics research
improving the quality of medical practice
and technology program is based on a strategy
and by developing new preventive measures.
that calls for developing a broad technology
The U.S. leads the world in biomedical re-
base in support of the commercial aviation
search. Both the pace of new discoveries
industry; enhancing the safety and capacity
and America's continued dominance of sci-
of the national airspace system; and helping
entific Nobel prizes attest to that pre-emi-
assure U.S. aeronautical superiority for na-
nence.
tional security. Aeronautics R&D has tra-
ditionally been a highly successful close coop-
The budget assures that the next generation
erative effort between the Federal Government
will reap similar benefits by seeking substan-
and the private sector.
tial increases in the country's investment
in basic and applied biomedical and behavioral
The budget proposes $855 million for aero-
research and development. In the Department
nautics R&D (excluding High Performance
of Health and Human Services alone, this
Computing and Communications), an increase
increase amounts to $433 million, or 4 percent,
of 13 percent over the 1992 enacted level.
over 1992 funding levels to a total of $10.6
Work in focused high-speed research will
billion.
Part One-112
THE BUDGET FOR FISCAL YEAR 1993
Advances in biomedical and behavioral re-
NIH-sponsored research. Broad public input is
search can improve the quality of health
being sought on the Plan.
care while helping to control health care
costs. One example is the research-induced
The Plan is not intended to direct the
changes in medical practice which reduced
details of NIH-supported research, but rather
coronary heart disease death rates and the
to provide an overarching corporate frame-
duration of heart diseases-related hospital
work-one that is dynamic and that can
stays-saving hundreds of thousands of lives
be changed in response to the extraordinary
and billions of dollars. Current path-breaking
promise of future opportunities in biomedicine.
research, such as the human gene therapy
It will help ensure that the promise of
a healthier future for the citizens of tomorrow
experiments conducted at the National Insti-
tutes of Health (NIH), proffers the hope
can be fully realized.
of similar advances in human health and
Women's Health Initiative. Three of the lead-
cost efficiency in the future. Research at
ing causes of death among women are cardio-
the Alcohol, Drug Abuse, and Mental Health
vascular disease, cancer and fractures related
Administration (ADAMHA) into the causes
to osteoporosis. NIH has initiated a decade-
of human addiction to drugs and alcohol
long clinical trial to test three preventive ap-
offers hope of finding ways to reduce the
proaches to reducing this toll through the
human and societal toll caused by substance
adoption of low-fat dietary patterns, hormone
abuse.
replacement therapy, and calcium and Vitamin
The Federal investment in basic and applied
D supplementation. The budget proposes to in-
biomedical and behavioral research is large.
crease this initiative by $20 million, or 80 per-
cent over 1992.
In total, the budget proposes $10.6 billion
for the Department of Health and Human
In addition to testing the effectiveness
Services, an increase of 4 percent over 1992.
of these therapies, the study will include
While $5.8 billion of this research is basic,
an observational component to study the
$4.8 billion is invested in applied research
predictors of disease and a community trial
and development. The applied research and
to test strategies for organizing community
development helps ensure that basic research
resources to help individuals achieve healthy
discoveries are translated into marketable
behaviors of established value, including smok-
therapies. Indeed, NIH funding of clinical
ing cessation and prevention, improved diet,
trials, through which promising new therapies,
increased physical activity, and early cancer
preventive interventions and cures are exam-
detection.
ined for safety and efficacy, will total over
$830 million in 1993. For example, since
The study, which will include a cross-
pharmaceutical companies traditionally have
section of American women of all races and
been slow to develop medications for substance
economic levels, will give us scientifically
abuse, the budget contains a $64 million
validated advice for women, their physicians,
initiative for medications development in
and public health care workers concerning
ADAMHA, a 13 percent increase over 1992.
healthy behaviors and treatments, and ways
of achieving these behaviors.
This Federal investment in biomedical and
Relating Research Investments to Selected
behavioral research has increased as a propor-
tion of GDP from 0.12 percent in 1970
Diseases.-Although most HHS research funds
are utilized for basic research which advances
to an estimated 0.17 percent in 1993.
knowledge for combatting many diseases, some
NIH Strategic Plan. During the past year,
research can be loosely classified as related
NIH has begun to develop its first long-range
to one specific disease or another, as shown
Strategic Plan, to be completed in the Spring
on Table 6-8. By comparing these data with
of 1992. The Plan is focused on 15 promising
the data in Table 5-14 in Chapter 5, it can
areas of science that hold exceptional opportu-
be seen that this investment by disease rough-
nities for future breakthroughs. The Plan will
ly corresponds to the toll these afflictions take
also address the major policy issues that relate
in terms of death, illness, and human suffer-
to the efficient and responsible conduct of
ing.
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-113
Some have argued that a disproportionate
better treatments, or even a cure or vaccines,
share of health-related research dollars is
for HIV/AIDS will come from advances in
being devoted to HIV/AIDS. It is true that
knowledge, the budget continues to place a pri-
spending per death from HIV/AIDS is high
ority on maintaining our investment in bio-
compared to that for heart disease, cancer,
medical and behavioral research related to
and stroke, the three leading causes of death
HIV/AIDS. As shown in table 6-9, gov-
in the country. HIV, however, often strikes
ernmentwide HIV/AIDS funding will increase
early in life. More than 45 percent of AIDS
by $565 million or 13 percent. This includes
sufferers are younger than 35, and a growing
a 4 percent increase for research and a 20
number are children. As a result, some
percent increase for treatment.
suggest that research spending per year of
potential life lost before age 65 for HIV
The budget would enable the Nation to
and the three killer diseases is more com-
continue making progress in the battle against
parable than that for spending per death,
HIV/AIDS. Additional candidate therapies will
as shown in the following chart. In addition,
be screened and tested, education programs
a comprehensive assessment of relative fund-
will continue to discourage behaviors that
ing levels must consider other factors, such
lead to transmission of the virus, and treat-
as morbidity and quality of life. The chart
ment and income support funds will continue
also shows substantial investments in diabe-
to be made available to those already afflicted.
tes, a disease that is a major contributor
Indeed, the largest increase related to HIV/
to disability as well as the Nation's eighth
AIDS will come from Federal spending for
leading cause of death.
Medicaid and Medicare, which are projected
to increase by a total of 23 percent over
Deaths and years of potential life lost
1992. Additional research and education are
attributable to the three major killers and
the best methods for ensuring that future
diabetes are projected to grow, individually
generations will not bear so heavy a burden,
and collectively, by less than 5 percent over
and the budget, therefore, makes substantial
the 4 years between 1990 and 1993. In
efforts in these areas.
contrast, deaths and years of potential life
lost due to HIV will increase much more
Expanding Civilian Applied R&D at the
quickly, rising by 30 to 80 percent. These
National Institute of Standards and Tech-
projections further support the priority given
nology (NIST).-The budget proposes $311
to HIV research in the budget.
million, an increase of 26 percent over 1992,
for NIST. The R&D supported by NIST in-
The Budget Includes a Major Investment to
cludes standards development and advanced
Confront Human Immunodeficiency Virus/Ac-
measurement techniques, both of which are
quired Immune Deficiency Syndrome (HIV/
critical to improving product quality, enabling
AIDS).-Since the greatest hope for devising
the effective use of new technologies, and en-
Table 6-8. HHS RESEARCH FUNDING ATTRIBUTED TO SELECTED
CAUSES OF ILLNESS
(In millions of dollars)
Budget Authority
Cause of Illness
1992 Enacted
1993 Proposed
Cancer
1,984
2,042
Heart Disease
729
772
Stroke
94
100
Diabetes
279
292
Injuries
162
168
HIV/AIDS
1,164
1,211
Part One-114
THE BUDGET FOR FISCAL YEAR 1993
RESEARCH INVESTMENT IN SELECTED DISEASES
(BUDGET AUTHORITY)
DOLLARS
DOLLARS
25,000
2,000
1992 HHS RESEARCH FUNDING PER 1992 DEATH (LEFT SCALE)
1992 HHS RESEARCH FUNDING PER YEAR OF POTENTIAL
LIFE LOST IN 1992 (RIGHT SCALE)
20,000
1,500
15,000
1,000
10,000
500
5,000
0
0
CANCER
STROKE HEART DISEASE DIABETES
HIV
SOURCE: PHS STAFF ESTIMATES AND PROJECTIONS
Table 6-9. THE BUDGET PROPOSES A 13 PERCENT INCREASE IN
FEDERAL FUNDING FOR HIV AND AIDS 1
(Dollar amounts in millions)
Dollar
Percent
1989
1992
1993
Change:
Change:
Actual
Enacted
Proposed
1992 to
1992 to
1993
1993
HIV/AIDS:
Research
892
1,189
1,238
+49
+4%
Treatment
737
2,096
2,507
+411
+20%
Prevention
483
594
621
+27
+5%
Income Support
153
492
570
+78
+16%
Total
2
2,265
4,371
4,936
+565
+13%
1 These are preliminary estimates for programs in the Departments of Health and Human Services, Defense,
Veterans Affairs, Education, Justice, State, Labor, and independent agencies. Total also includes estimated
obligations for the Social Security Administration.
2 In addition to the spending identified above, the budget includes other initiatives, most notably those related to
drugs and infant mortality, that contribute to the fight against HIV and AIDS.
hancing public health and safety. In addition,
posal continues an effort begun in 1991 to ex-
NIST supports generic applied research and
pand NIST's ability to provide for generic ap-
technology development, often in collaboration
plied research and technology development
with industry, which has the potential to bene-
and to address a rapidly growing number of
fit the U.S. economy broadly. The budget pro-
important standards and measurement issues.
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-115
The R&D performed at NIST facilities
The budget also includes $68 million, a
covers a wide range of technologies including
36 percent increase, for the Advanced Tech-
electronics, manufacturing, materials science,
nology Program (ATP). This program provides
chemistry, physics and information systems.
matching funds to U.S. business and R&D
The budget includes $202 million, a 16 percent
joint ventures for industry-led, generic, pre-
increase, for this in-house R&D. The research
competitive R&D. Projects must have the
community and industry depend on NIST
potential for a broad-based economic impact.
R&D for the precision measurement bases
In a broad sense, the goal of the program
which form the foundation of R&D projects
is to help make the transition between fun-
and industrial quality control. NIST transfers
damental research and the more applied
its metrology R&D to practical use through
research and technology development that
several means including sales of products,
will enable commercialization of products and
data and services. In 1991 NIST performed
processes by the private sector. Many studies
more than 11,000 calibration services and
have suggested that, for a variety of reasons,
sold over 47,000 standard reference materials
U.S. industry often fails to make this transi-
and 1700 standard reference databases (used
tion effectively, and, thus, is often unable
by researchers and industry as a bench-
to commercialize technology as rapidly as
mark to calibrate their equipment). In addi-
competitors. While the ATP is still experi-
tion, in 1991 NIST accredited 934 private
mental, it is intended to stimulate increased
laboratories to carry out specific types of
R&D at the generic, pre-competitive stage,
tests in key areas of commerce, health and
and, thus, holds promise for improving the
safety.
ability of U.S. firms to compete in global
Due to the broad applicability to U.S.
markets. The increase will allow NIST to
industry of NIST's metrology and other generic
fund approximately 25 to 35 new projects
R&D, NIST often performs its research coop-
in 1993 while continuing to monitor closely
eratively with industry. Through 1991 NIST
and evaluate the program's impact.
has signed over 150 cooperative research
The NIST Manufacturing Technology Cen-
and development agreements and in 1991
ters are intended to enhance U.S. competitive-
received approximately $65 million in in-
ness by transferring manufacturing tech-
kind contributions from industry. Over 25
nologies to small and medium-sized business.
of NIST's agreements are with industry con-
The budget proposes $18 million to support
sortia that further increase the impact of
the continuation of the seven centers planned
NIST's R&D expenditures and highlight the
by the end of 1992. During 1992 NIST
generic nature of its research. While NIST
will contract for an in-depth study which
emphasizes widespread dissemination of its
will focus on how the centers should be
research results, protection of intellectual
structured to obtain the greatest leverage
property resulting from NIST R&D is fre-
for Federal expenditures. Any decision on
quently needed in order to facilitate commer-
initiating new centers will be deferred until
cialization of its research results through
this study is completed.
licensing agreements. Since 1989 NIST R&D
has resulted in over 40 patent disclosures
Creating New Technology for Space and
per year.
Earth: Space Technology. -A vigorous pro-
gram to improve existing technologies and cre-
The budget proposes $23 million to maintain
ate new ones is essential for long-term
and refurbish NIST facilities, as well as
progress in any major technological endeavor,
to plan for the facility needs of the future.
but is particularly important in the space pro-
As a result of the technical obsolescence
gram. Reasons for this include the continuing
of many NIST facilities, experiments are
need for new capabilities to support new mis-
often delayed or subject to costly reworking,
sions and the long lead times needed to de-
and scientists often must accept levels of
velop a new technology before it can be used
precision and accuracy below those desired.
with confidence in space. Consequently, the fu-
The budget provides for initiation of an
ture success of the U.S. space program de-
architectural and engineering study and imme-
pends in part on near-term investments in a
diate amelioration of safety-related problems.
number of technological disciplines.
Part One-116
THE BUDGET FOR FISCAL YEAR 1993
There is considerable evidence that the
is based on the results of the first cycle
funding of space technology activities has
of this planning process.
not kept up with the rest of the space
program. Recent spending on space technology
Experience shows that technologies and
has fallen to 2 percent of the NASA budget
products developed for the space program
in 1992 from the level of over 4 percent
often find useful applications here on Earth
that was sustained throughout the 1960's.
in a wide variety of fields. Medical Magnetic
This trend was viewed with concern in the
Resonance Imaging uses image-processing
report of the Advisory Committee on the
techniques originally developed for analyzing
Future of the U.S. Space Program: unfor-
data from earth observation satellites. Some
tunately, NASA has not been permitted to
health monitoring equipment in hospitals uses
sustain an adequate level-of-effort program
technology developed for monitoring crew
in space technology due in recent years
health in manned space missions. A low
to externally imposed budget reductions. We
temperature laser that opens clogged arteries
believe that this is a consequence of a
without surgery is based on technology devel-
lack of appreciation of the key role that
oped for satellite-based atmospheric studies.
technology development plays in enabling fu-
A tornado detector for homes was derived
ture missions, reducing future systems' costs
from NASA electronics research. Fire resistant
and increasing America's competitiveness."
materials originally developed for astronaut
To help remedy this deficiency, the budget
garments have found uses ranging from sheets
proposes $305 million, an increase of 12
and furniture in pressure chambers to protec-
percent, for NASA space technology develop-
tive clothing for race car drivers and their
ment that is not directly related to space
pit crews. A lightweight shock-absorbing mate-
exploration. The 1993 program emphasizes
rial now used in some athletic shoes was
such areas as advanced materials, electronics
originally developed for astronaut moon boots.
and sensors, communications, life support,
A new oil-saving seal for automobiles uses
power, propulsion, and robotics. In addition,
synthetic rubber material developed for inter-
NASA is implementing a new strategic plan-
planetary spacecraft. A highly accurate ice
ning process to address more effectively space
detection system to prevent aircraft accidents
technology needs foreseen by potential users
and some scratch-resistant coatings for eye-
within NASA as well as in other government
glasses and cameras are also based on NASA
agencies and industry. The budget proposal
research.
EXPANDING THE FRONTIER OF KNOWLEDGE THROUGH
BASIC RESEARCH
Future innovation, productivity growth and
tions can insure our health, prosperity, and secu-
economic performance depend on the constant
rity as a nation in the modern world." 1
creation of new knowledge.
Basic research provides new knowledge that
As Vannevar Bush stated in "Science: The
leads to new products and processes. Basic
Endless Frontier":
research, especially at universities, is an
essential investment in the Nation's scientific
"New products, new industries, and more jobs re-
quire continuous additions to knowledge of the
and technological future, including its future
laws of nature, and the application of that knowl-
scientists and engineers. For this reason,
edge to practical purposes. Similarly, our defense
against aggression demands new knowledge 80
the budget places a high priority on increasing
that we can develop new and improved weapons.
basic research. In total, the budget proposes
This essential, new knowledge can be obtained
only through basic scientific research.
an increase of 8 percent, or $1 billion,
above 1992 for Federal basic research support.
Science can be effective in the national welfare
only as a member of a team, whether the condi-
tions be peace or war. But without scientific
progress no amount of achievement in other direc-
Vannevar Bush. Science, the Endless Frontier: A Report to the
President. U.S. GPO, July, 1945, p. 1.
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-117
The strength of U.S. investment in basic
tained, and that there is a sufficient research
research is illustrated by several recent
work force of the highest caliber to do the job."2
achievements:
Measuring the Direct Economic Bene-
Researchers at Stanford University have
fits.-Most basic research is performed in uni-
developed a miniaturized process using la-
versities. Until recently, there has been no way
sers to produce small-diameter fibers of
to gauge reliably the impact of academic re-
high-temperature superconducting mate-
search on industrial innovation.
rial. These fibers may be the precursor to
Research (Mansfield, 1991) carried out over
superconducting wire needed for motor
the past two years has found that a significant
and magnet applications of high-tempera-
proportion of new products or processes in
ture superconductors.
several important sectors, including informa-
Using a recently purified, naturally-occur-
tion processing, drugs, and instruments, would
ring bone growth factor, scientists have
not have reached the market when they
succeeded in using muscle exposed to this
did without the contribution of academic
factor to form bone in a mold. This opens
research. Thus, the benefit of academic re-
the possibility, long dreamed of, that re-
search appears to be considerable, even apart
placement bones in the precise shape
from its more traditional benefits to the
needed by patients may one day be grown
education of students and to the acquisition
from muscle or other specialized tissues.
of knowledge for its own sake.
Following on last year's success with the
Mansfield (1991) has estimated that the
first-ever human gene therapy on a child
average annual social rate of return to past
with a severe genetic immune deficiency,
investments in academic R&D is about 28
NIH scientists have now used gene trans-
percent. This finding, however, does not nec-
plantation to initiate the first experi-
essarily imply that investing more money
mental gene therapy for cancer. A gene
in academic R&D will yield similarly high
for a natural tumor-killing substance was
returns. Factors such as geographical proxim-
inserted into white blood cells that are
ity of interested industries and the strength
known to seek out tumors as a way of
of the research faculty in individual depart-
increasing the concentration of this
ments on individual campuses appear to
antitumor substance at the tumor site.
play an important role, as noted in more
recent unpublished work by Mansfield. A
The Vitality of Basic Research
discussion of the specific contribution of aca-
Funding Trends.-The historical trend in
demic institutions to the national R&D infra-
Federal support for basic research shows that
structure appears later in this chapter.
during the 1980s such support increased over-
Although support for university researchers
all by 50 percent in real terms, with signifi-
is most often cited as the key indicator
cantly larger increases in health-related basic
of the health of overall Federal support
research. Real support for basic research has
for basic research, a number of other measures
continued to climb in the early 1990's, as a
have traditionally been used to measure re-
result of the increases recommended by the
search output (new knowledge). None of these
Bush Administration.
are, by themselves, definitive indicators of
But as the Office of Technology Assessment
the vitality of research, and none are univer-
(OTA) notes:
sally accepted as an adequate output measure,
since the "amount" of new knowledge con-
"Given the extraordinary strength of the U.S. re-
search system and the character of scientific re-
tained in a research finding has no natural
search, there will always be more opportunities
unit of measure. Taken together with informa-
than can be funded, more researchers competing
tion on support for researchers, these meas-
than can be sustained, and more institutions seek-
ing to expand than the prime sponsor-the Fed-
ures provide some insight into the overall
eral Government-can fund. The objective, then,
strength of the national research enterprise.
is to ensure that the best research continues to
Several such measures are (1) numbers of
be funded, that a full portfolio of research is main-
2Office of Technology Assessment, Federally Funded Research:
Decisions for a Decade. U.S. GPO, May, 1991.
Part One-118
THE BUDGET FOR FISCAL YEAR 1993
publications, (2) "quality" of publications as
Budget Initiatives in Basic Research
measured by citation indices, (3) patents
and (4) Nobel and other prizes.
The budget proposes a number of major
increases or new programs reflecting the
By all of these measures, the U.S. continues
President's support for basic research. These
to lead the world in the generation of knowl-
increases are intended to bolster basic research
edge. For example:
funding, especially that which supports indi-
vidual investigators, and to provide those
The number of science articles published
researchers with state-of-the-art equipment
by U.S. academic researchers (which
and specialized world-class research facilities.
produce about two-thirds of all U.S.
Overall, the budget proposes over $14 billion
science and engineering articles in major
for basic research, an increase of over $1
journals) has increased markedly. By this
billion, or 8 percent, over 1992.
measure, the U.S. is maintaining its large
share of world scientific and engineering
Doubling the Budget of the National
literature.
Science Foundation by 1994.-The President
remains committed to doubling the budget of
The influence of publications as measured
the National Science Foundation (NSF) by
by the level of citation of U.S. papers by
1994. The budget proposes $3,026 million, an
foreign researchers suggests that U.S. re-
overall increase of $454 million, or 18 percent,
searchers continue to exert a substantial
over 1992. Over 70 percent of NSF's budget
impact on foreign research, and thus on
supports basic research, primarily at univer-
the world's store of scientific knowledge.
sities and colleges. These funds provide sup-
U.S. universities received 2 percent of pat-
port for individual investigators and small
groups ($1,581 million), research centers ($148
ents awarded to U.S. inventors in 1988,
more than double the share in 1978, thus
million) and research instrumentation and spe-
cialized research facilities ($483 million), in-
new ideas that have potential value in the
cluding the National High Field Magnet Lab-
marketplace are flowing from universities
oratory, the Laser Inferometer Gravity Wave
in even greater numbers.
Observatory, and two matched 8-meter optical
The U.S. continues to dominate the Nobel
telescopes. Each of these elements are keys
lists, and Americans often win other
to maintaining the preeminent U.S. position
major, internationally-recognized prizes
in science and basic research.
such as the Fermi, the Wolf and the
The budget proposes $33 million for NSF's
Lasker. This provides evidence of the
instrumentation initiative. This initiative,
strong and consistent support for basic re-
funded at about $17 million in 1992, will
search over the last 30 years.
continue to provide state-of-the-art instrumen-
This lead can be lost without adequate
tation, costing from $200,000 to $4 million,
investment in knowledge. The Administration's
to university researchers through a merit-
strategy of investing in basic research is
based competitive process. The Federal fund-
designed to maintain and strengthen America's
ing will be matched 50:50 from non-Federal
leadership in scientific innovation.
sources.
The budget recognizes that the level of
NSF also plays a significant role in the
support for individual and small groups of
government-wide initiative to improve the
investigators, primarily at academic institu-
quality of science, mathematics, and engineer-
tions, is an important indicator of the vitality
ing education, particularly at the precollege
of the Nation's basic research effort. These
level. These education activities are high-
"individual investigators" are the wellspring
lighted in Chapter 4, "Reforming American
of many of the Nation's discoveries and
Education and Investing in Human Capital".
inventions and they form the backbone of
Increasing the Support for Individual
American science. Therefore, the Administra-
Investigators.-The budget proposes a signifi-
tion has proposed significant 1993 increases
cant increase for individual investigators lo-
for this group.
cated primarily at universities and colleges.
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-119
Table 6-10. THE BUDGET INCREASES FUNDING FOR BASIC RESEARCH¹
(Dollar amounts in millions)
Budget Authority
Outlays
Department or Agency
Dollar
Percent
Dollar
Percent
1989
1992
1993
Change:
Change:
1989
1992
1993
Change:
Change:
Actual
Enacted
Proposed
1992 to
1992 to
Actual
Enacted
Proposed
1992 to
1992 to
1993
1993
1993
1993
Health and Human Services
4,413
5,459
5,800
+341
+6%
4,234
5,143
5,541
+398
+8%
(National
Institutes
of
Health)
(4,052)
(5,019)
(5,328)
(+309)
(+6%)
(3,988)
(4,748)
(5,109)
(+361)
(+8%)
National Science Foundation
1,563
1,839
2,221
+382
+21%
1,455
1,730
1,917
+187
+11%
Energy
1,383
1,789
1,859
+70
+4%
1,377
1,695
1,771
+76
+4%
National Aeronautics and
Space Administration
1,385
1,860
2,068
+208
+11%
1,346
1,715
1,851
+136
+8%
Defense-military
951
1,170
1,203
+33
+3%
929
1,134
1,230
+96
+8%
Agriculture
486
611
639
+28
+5%
477
576
589
+13
+2%
Other Agencies²
434
526
532
+6
+1%
438
498
505
+7
+1%
Total
10,615
13,254
14,322
+1,068
+8%
10,256
12,491
13,405
+914
+7%
1 Amounts reported in this table are included in totals for conduct of R&D.
2 Includes the Departments of Interior, Commerce, Veterans Affairs, Education, Labor, the Treasury, Justice, the Smithsonian
Institution, Environmental Protection Agency, Tennessee Valley Authority, Agency for International Development, and the Corps of
Engineers.
Three agencies support the majority of individ-
will enable future life-extending and life-en-
ual investigators: the National Science Foun-
hancing therapies to be developed. By focusing
dation, and the Departments of Health and
these additional resources on basic biomedical
Human Services and Energy. In total, the
research, the budget helps to ensure that con-
budget proposes over $7.9 billion, an increase
tinued advances against disease will take
of over 9 percent, for these investigators.
place.
For HHS, the budget proposes $5.9 billion,
Unlocking the Secrets of Human Hered-
an increase of $389 million, or 2 percent
ity-the Human Genome Project.-The
real growth, for investigator-initiated research.
budget proposes a 7 percent increase, to a total
This sizeable increase will allow a record
of $175 million, for the fourth year of this 15-
total of 24,600 grants to be supported, an
year effort to decode the information locked
increase of 500 over 1992's record levels.
in the chemical building blocks that form
For NSF, $1,581 million is being proposed
human genetic inheritance.
in this area, an increase of $230 million
or 17 percent over 1992. For Energy, the
The Project is being conducted jointly by
budget proposes a total of $482 million,
the Departments of Energy and Health and
an increase of 11 percent, for support of
Human Services. The budget proposes a total
university-based basic research by the Office
of $175 million for the project, $65 million
of Energy Research.
at Energy and $110 million at Health and
Human Services. These funds are also included
Increasing Basic Research in HHS.-HHS is
in the totals for the broader Biotechnology
the largest supporter of both government basic
Research Initiative involving many other Fed-
research and individual investigators in the
eral agencies.
Federal Government. The budget continues to
focus on basic biomedical and behavioral re-
DOE and HHS are working together to
search at HHS, and proposes $5.8 billion in
develop capabilities and tools, to construct
1993. Building on the record levels reached
gene "maps", to discern the chemical sequence
in 1992, this $341 million, or 6 percent, in-
of human chromosomes, and to characterize
crease will allow HHS research agencies to fur-
disease-related genes.
ther extend the frontiers of knowledge which
Part One-120
THE BUDGET FOR FISCAL YEAR 1993
Concurrent with the project's efforts to
of on-site facilities and other SSC systems,
advance the state-of-the-art in genetic "map-
as well as the land required for the SSC
ping," the project is also exploring safeguards
laboratory.
that may be necessary as new genetic informa-
tion is put to practical uses, addressing
Foreign partners are expected to contribute
issues related to privacy of such information
substantially to the construction and operation
and fairness in its use.
of the SSC, as well as to the experimental
program. During 1993, follow-up delegations
Recent advances include completion of map-
will continue discussions already underway
ping of several large chromosome segments,
with Canada, Europe, India, Japan, Korea
isolation of genes for several genetic diseases,
and Russia.
and establishment of an international Genome
Data Base for maintaining and distributing
The SSC holds the potential for new break-
genome data to researchers all over the
throughs in science, technology and education.
world.
Although the primary purpose of the SSC
Future generations will benefit greatly from
is to acquire new knowledge, such knowledge
the knowledge gained through this investment.
has always resulted in developments in tech-
Future scientists will have tremendous
nology and practical products which profoundly
amounts of new information about the molecu-
affect the quality of life for all Americans
lar basis of human inheritance available
and which enhance the economic competitive-
to assist them in their search for therapies
ness of the Nation. U.S. world leadership
and cures for disease. The budget ensures
in high energy physics will be maintained
that this project is able to forge ahead
far into the next century by the scientific
expeditiously.
and technological advances emanating from
Unlocking the Secrets of Matter and En-
the SSC. For example, the SSC will introduce
ergy-The Superconducting Super Collider
the first massive, U.S. industrial manufacture
and High Energy and Nuclear Physics:
of superconducting accelerator magnets. The
experience gained will help in the development
The Superconducting Super Collider.-The
of magnetically levitated, high-speed trains,
Superconducting Super Collider (SSC) will pro-
energy storage systems for fuel conservation
vide a collision energy 20 times greater than
and low loss electrical power systems.
the current capability, resulting in new fun-
damental knowledge of matter and energy. The
High Energy and Nuclear Physics.-Re-
SSC Laboratory, under construction in Ellis
search in high energy and nuclear physics is
County, Texas, will comprise a 54-mile circular
directed at understanding the nature of matter
tunnel in which superconducting magnets will
and energy at the most fundamental level and
accelerate counter-rotating proton beams. The
the basic forces which govern all processes in
SSC will employ 2,500 scientists, engineers,
nature. Much of the research program is aimed
and technicians, and host an additional 500
at verifying and explaining the particles, or
visiting scientists.
"building blocks", that comprise the interior of
The budget provides $650 million for the
atoms and the forces acting on them.
SSC, an increase of $166 million over 1992.
Research is conducted at universities and
Much of the current effort focuses on research
national laboratories. Most university funding
and development of the superconducting
goes to individual investigators for support
magnets. Work on other SSC components
of graduate students and research at univer-
is also progressing. A segment of tunnel
sity facilities or at the national laboratories.
which will be used for magnet testing will
Funding provided to the national laboratories
be under construction by the end of 1992.
allows construction and operation of large
The total cost of the SSC has been estimated
accelerator and collider facilities which are
at slightly over $8 billion. One-third of the
open to researchers from other national or
total is expected to be contributed by non-
international sites. Industry also uses the
Federal sources. The State of Texas has
national laboratory facilities for non-propri-
committed up to $875 million for construction
etary testing and development.
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-121
The budget proposes $1 billion for High
warming). This FCCSET interagency research
Energy and Nuclear Physics programs (other
effort (eleven agencies) promises not only the
than the SSC), an increase of 2 percent
information to aid today's policy decisions, but
over 1992. The budget reflects planned de-
also to maintain the strong foundation of
creases as construction projects such as the
multi-disciplinary science required to address
Continuous Electron Beam Accelerator Facility
the unanticipated issues of tomorrow.
(Newport News, VA) for nuclear physics are
completed, and as other research facilities
The budget proposes $1,372 million for
are phased down. Support for ongoing nuclear
the USGCRP, an increase of $262 million
physics projects such as the Relativistic Heavy
or 24 percent over 1992. The USGCRP ad-
Ion Collider (Brookhaven National Laboratory,
dresses three parallel but interconnected
NY) increases as these projects continue on
streams of activities: 1) documenting global
schedule.
change through the establishment of long-
term monitoring programs; 2) enhanced under-
The budget proposes for high energy physics
standing of key physical, chemical, biological,
(other than the SSC) a new Main Injector
and social processes that influence and govern
Ring at Fermilab which is currently planned
the Earth's evolution, and 3) predicting global
for completion in 1996. Scientists are confident
change through the development of predictive
that this new capability will enable them
Earth system models.
to discover evidence of the "top quark",
the elusive final particle in verifying the
Planning for the USGCRP has been shaped
theoretical model that predicts the interaction
by a strategic and scientific priority framework
between matter and energy. The budget pro-
that has been extensively reviewed by the
vides total funding of $246 million for all
scientific community. Over the past two years,
high energy physics programs at Fermilab,
this framework has been extended to include
an increase of $18 million, or 8 percent.
a set of integrating themes that address
the scientific uncertainites identified by the
Understanding the Earth: The U.S. Glob-
U.N.-sponsored Intergovernmental Panel on
al
Change
Research
Program
Climate Change, and the economics research
(USGCRP).-The USGCRP is designed to as-
and important policy questions identified as
sist efforts to understand more fully the
a result of the 1990 White House Conference
earth's climate system in order to support na-
on Science and Economics Research Related
tional and international policymaking activi-
to Global Change. The further integration
ties associated with global and regional envi-
of economics research into the USGCRP is
ronmental issues (e.g., ozone depletion, global
particularly important since an understanding
Table 6-11. THE BUDGET PROPOSES A 12 PERCENT INCREASE FOR
A BALANCED PROGRAM IN HIGH ENERGY AND NUCLEAR PHYSICS
(Dollar amounts in millions)
Budget Authority
Dollar
Percent
1989
1992
1993
Change:
Change:
Actual
Enacted
Proposed
1992 to
1992 to
1993
1993
Superconducting Super Collider
98
484
650
+166
+34%
High Energy and Nuclear Physics
815
988
1,003
+15
+2%
Relativistic Heavy Ion Collider
-
77
96
+19
+25%
Continuous Electron Beam Accelerator Facility
45
78
76
-2
-3%
Fermilab Main Injector Ring
-
15
30
+15
+100%
Other High Energy and Nuclear Physics
770
818
801
-17
-2%
Total
913
1,472
1,653
+181
+12%
Part One-122
THE BUDGET FOR FISCAL YEAR 1993
of the relationship between global change
sition of Landsat-type data. The Administra-
and the economy is fundamental both to
tion proposes to operate the Land Remote
assessing the magnitude of the potential
Sensing Satellites (Landsats 4 and 5) until
impact on human society and to developing
Landsat 6 is launched; to complete the pro-
effective responses.
curement and launch of the next satellite
During the past year, and in response
(Landsat 6); and to initiate the procurement
to the recommendations of an independent
of the next follow-on satellite (Landsat 7).
Earth Observing System Engineering Review
Several agencies will provide a total of
Committee, NASA has restructured the Earth
$17 million to cover the operation of Landsats
Observing System (EOS) to fly remote sensing
4 and 5 through the end of 1992. Landsat
instruments on a series of intermediate and
6 is expected to become operational by early
small spacecraft, in contrast to the original
1993. Landsat 6 will be operated by, and
plan for a series of large spacecraft. This
at the expense of, the Earth Observing Sat-
reconfiguration will maintain the scientific
ellite Company. NASA and the Department
objectives of the EOS program and will
of Defense are proposing a total of $111
allow important scientific data to be acquired
million for Landsat 7, which is planned
earlier than otherwise would have been the
to succeed Landsat 6. The budget proposes
case. At the same time, the program's flexibil-
$86 million for DOD, which will be responsible
ity to respond to changes in data requirements
for the acquisition and launch of the space-
and advances in technology will be greatly
craft, and $25 million for NASA, which
increased and will reduce risks associated
will be responsible for ground support for
with single large platforms. This reconfigura-
data acquisition and distribution of Landsat
tion has resulted in a different temporal
7 data. These data will be used to support
sequence of measurements as well as potential
global change research and will be incor-
changes in the volume of data. The National
porated into the EOS Data and Information
Academy of Sciences has been asked to
System (EOSDIS).
examine the EOS Data and Information Sys-
One area within global change research
tem (EOSDIS) to ensure that its architecture,
that has received special emphasis is Arctic
management and distribution schemes are
research, although U.S. activities in the Arctic
compatible and complementary to the restruc-
go well beyond the range of programs included
tured EOS program.
in the USGCRP.
The ultimate success of the USGCRP re-
U.S. policy in the Arctic consists of four
quires progress and integration of data collec-
elements: protection of essential security inter-
tion, process studies, and modeling across
ests; support for sound, rational development
all the various disciplines. Central to this
of the region; promotion of scientific research
strategy is a balance between ground- and
contributing to knowledge about the Arctic;
space-based research activities. Ground-based
and promotion of mutually beneficial inter-
observations and theoretical process studies
national cooperation in the Arctic. Federal
will be complemented by a comprehensive
Arctic research is guided by a 5-year research
space-based program to provide global observa-
plan developed by the Interagency Arctic
tions of key environmental parameters. For
Research Policy Committee (IARPC) in con-
example, while NASA's Mission to Planet
sultation with the Presidentially-appointed
Earth (including the Earth Observing System)
Arctic Research Commission and other inter-
is a major contributor to the USGCRP, many
ested groups. The most recent biennial revision
of the ground-based data sets will be used
of the plan was published in July 1991.
to calibrate the complementary Mission to
Planet Earth satellite data sets.
The budget includes $147 million for Arctic
research, an increase of about $4 million
Landsat.-Acquisition of data from land re-
over 1992. Within the total for 1993, $58
mote sensing satellites is an important ele-
million is proposed to implement the four
ment in understanding global change and for
integrated programs covering the western
national security purposes. The Administration
Arctic: oceans research, geodynamics, studies
is committed to a policy of the continued acqui-
of the Bering Sea and land mass, and
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-123
Table 6-12. U.S. GLOBAL CHANGE RESEARCH PROGRAM
(Dollar amounts in millions)
Budget Authority
Description
Dollar
Percent
1992
1993
Change:
Change:
Enacted
Proposed
1992 to
1992 to
1993
1993
Program Component
Ground-based
733
915
+182
+25%
Oceans
62
85
+23
+37%
Modeling
33
51
+18
+55%
Land Processes
80
92
+12
+15%
Human Dimensions
7
9
+2
+29%
Economics
4
13
+9
+225%
Other
547
665
+118
+22%
Space-based
378
457
+80
+21%
Earth Observing System (NASA)
188
308
+120
+64%
Other Programs (NASA)
190
139
-51
-26%
Energy
-
10
+10
I
Agency
National Aeronautics and Space Administration
756
891
+135
+18%
National Science Foundation
109
163
+54
+50%
Energy
77
113
+36
+47%
Commerce (NOAA)
47
78
+31
+66%
Agriculture
44
48
+3
+7%
Interior
40
36
-4
-9%
Environmental Protection Agency
24
26
+2
+8%
Smithsonian
6
11
+4
+68%
Defense
6
7
+1
+5%
Health and Human Services
1
1
-
I
Tennessee Valley Authority
*
*
-
-
Total
1,110
1,372
+262
+24%
*Less than $500 thousand.
monitoring and data collection activities. Ap-
Science Foundation, the National Aeronautics
proximately $6 million of this amount is
and Space. Administration, and the Smithso-
for ship and aircraft support in five agencies,
nian Institution. The budget proposes $890
NSF, Transportation, NOAA, Interior, and
million, an increase of $54 million or about
DOD/Navy. These programs support bilateral
6 percent, for astronomy and astrophysics in
and multilateral environmental, space, oceans,
the three agencies.
and social science agreements and cooperative
activities.
In 1991, the National Research Council
commissioned a group of astronomers and
Observing the Universe: Astrophysics
astrophysicists to survey these fields and
and Astronomy.-The programs of these two
make recommendations concerning ground-
disciplines increase our understanding of the
and space-based astronomy and astrophysics
origin and evolution of the universe, the forma-
for the next decade. This report, "The Decade
tion of stars and planets, and the fundamental
of Discovery in Astronomy and Astrophysics",
laws of physics. Astronomy and astrophysics
was the third in a series of decadal reviews
are currently supported by the National
of these two disciplines. It recommended
Part One-124
THE BUDGET FOR FISCAL YEAR 1993
Table 6-13. UNDERSTANDING THE ARCTIC
(Dollar amounts in millions)
Budget Authority
Dollar
Category
Percent
1989
1992
1993
Change:
Change:
Actual
Enacted
Proposed
1992 to
1992 to
1993
1993
Resource development¹
43
50
54
+4
+8%
Arctic as laboratory²
42
69
69
-
-
National security 3
23
24
24
-
-
Total
108
143
147
+4
+3%
1 Includes the Departments of Commerce, Agriculture, Energy, the Interior, Transportation, State, and the
Environmental Protection Agency.
2 Includes the Department of Health and Human Services, and the National Aeronautics and Space
Administration, the National Science Foundation, and the Smithsonian Institution.
3 Includes the Department of Defense. The 1992 enacted level includes a one-time increase for Defense of about
$5 million specifically for upper atmosphere research and associated facilities including the High Frequency Active
Auroral Research Program. For purposes of comparison with 1993 levels, this funding has been excluded.
as the highest priority increased support
some technical problems. All of these
for operations and maintenance of existing
space-based observatories have presented
astronomical facilities and individual grant
significant technical and budgetary chal-
programs. The report also recommended a
lenges. The budget includes $257 million
balanced program of space-based observations
for operations, servicing, and data analysis
and offered a prioritized list of future projects,
for the Hubble Space Telescope. The first
consolidated from both space- and ground-
servicing mission is planned for late 1993.
based candidates. The budget addresses many
The NRC Report recommended the initi-
of the Report's recommendations and these
ation of the fourth Great Observatory, the
are highlighted below.
$1 billion Space Infrared Telescope Facil-
The National Aeronautics and Space Ad-
ity (SIRTF), as its highest priority for a
ministration (NASA) is the principal agen-
new start in the "large project" category.
cy supporting space-based astronomy.
While the budget supports the NRC Re-
NASA supports a broad range of astron-
port's recommendations for other large
omy and astrophysics missions, including
projects (i.e., AXAF and the 8-M telescopes
instruments flown on large free-flying
mentioned under NSF), it defers a decision
spacecraft, smaller Explorer spacecraft,
on SIRTF, while providing an increased
the Space Shuttle, small sub-orbital rock-
emphasis on small and moderate missions.
ets, balloons and aircraft. The budget pro-
The budget proposes a 10 percent increase
poses $732 million for NASA activities, an
over 1992 to a total of $138 million for
increase of $42 million or 6 percent over
support for individual investigators.
1992. This will support continued develop-
The National Science Foundation (NSF) is
ment of the Advanced X-Ray Astrophysics
the principal agency supporting ground-
Facility (AXAF). AXAF is the third of four
based astronomy. NSF supports a broad
NASA Great Observatories and is sched-
range of astronomy programs and facili-
uled for launch in 1999. To date, AXAF
ties, including the National Radio Astron-
has met or exceeded all of its design cri-
omy Observatory, the National Optical As-
teria. The first two Great Observatories,
tronomy Observatories, and the National
Hubble Space Telescope (launched in
Astronomy and Ionosphere Center. The
1990) and the Gamma Ray Observatory
budget proposes $137 million for NSF's
(launched in 1991), continue to provide
programs, an increase of about $13 million
significant scientific breakthroughs despite
or 10 percent over 1992. This increase ad-
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-125
dresses most of the priorities enumerated
long history of private and state support,
in the NRC report. Within this total, sup-
including large philanthropic donations for
port for individual investigators will in-
the construction of major instruments,
crease by nearly $4 million or 9 percent.
e.g., Hale 5-m telescope at the Palomar
Funding will also increase for operations
Observatory and the Keck 10-m telescope
and maintenance of existing facilities and
at Mauna Kea Observatory. The Keck tele-
for research on adaptive optics. Work will
scope is the world's first computer-con-
continue on research leading to the design
trolled segmented mirror telescope and
of a millimeter array for radio astronomy,
embodies state-of-the-art technology in
and construction of matched 8-meter opti-
mirror design and computer alignment.
cal telescopes in Hawaii and Chile and the
Currently, it is estimated that private
new radiotelescope at Greenbank, WV will
sources and the states provide about $190
all proceed on schedule. In 1993, the Very
million annually for astronomy. The Keck
Long Baseline Array (VLBA) will com-
Foundation is planning to provide funding
mence operations. VLBA is a coordinated
for a second 10-m telescope adjacent to
set of radiotelescopes located from Maine
the first. When operated together, these
to Hawaii, which is expected to open new
two telescopes will provide the resolution
vistas to radioastronomers and to contrib-
of an 85-m telescope, making it possible
ute to other fields such as geodesy and
to search for planets around nearby stars.
theoretical physics.
International Efforts.-Astronomy and as-
Smithsonian Institution.-The Smithso-
trophysics have long been characterized by
nian Astrophysical Observatory (SAO) con-
extensive international collaboration. Eu-
ducts fundamental research in astronomy
rope, Canada, and Japan all support major
and astrophysics cooperatively with the
astronomical facilities that are often used
Harvard College Observatory at the Cen-
in conjunction with similar instruments in
ter for Astrophysics located in Cambridge,
the U.S. For example, the Very Large
Mass. SAO also operates the Oak Ridge
Array Radiotelescope in New Mexico is
Observatory in Massachussets and Fred
often linked to other radiotelescopes in
Lawrence Whipple Observatory at Mt.
Britain for observations of extremely dis-
Hopkins, Arizona. NASA has selected SAO
tant quasars and pulsars. In these cases,
to plan, develop, and operate an inter-
essentially the entire Earth becomes one
national center for AXAF data. The budget
large radiotelescope. Both Europe and
proposes $21 million for SAO activities, es-
Japan are currently constructing major op-
sentially the same as in 1992. Work will
tical telescopes embodying the newest
continue on the development of a
technology.
submillimeter telescope array and the con-
version of the Mt. Hopkins Multiple Mir-
Improving the Productivity of the Na-
ror Telescope to a single 6.5-m mirror.
tion's Agriculture (The National Research
SAO will also continue to work with NASA
Initiative).-The budget continues the Admin-
istration's commitment to the National Re-
in planning the AXAF data center.
search Initiative by proposing $150 million, a
Federal Funding for Related Areas.-Apart
$52 million, or 53 percent, increase over 1992.
from these three agencies, there is support
With the creation of the NRI in 1991, a $50
for astronomy and astrophysics within the
million increase each year was proposed to the
Departments of Defense and Energy for
extent that funds were awarded competitively
activities that complement the programs
and not earmarked for specific sites or institu-
of NSF, NASA and the Smithsonian.
tions.
These include research on astrometry, op-
tical interferometry, sensor development
The National Research Initiative competitive
(especially in the infrared region), and
grants program addresses research areas
cryogenic and adaptive optics.
which are known to possess unique opportuni-
ties for improving agriculture in concert with
Non-Federal Support for Astronomy and
social, economic and environmental needs.
Astrophysics.-Astronomy has enjoyed a
In 1991, the first year of the program,
Part One-126
THE BUDGET FOR FISCAL YEAR 1993
74 percent of the funding for NRI was
plant systems (including mapping of plant
directed toward the basic, fundamental end
genomes); animal systems; markets, trade,
of the research spectrum. The remaining
and policy; and processes antecedent to adding
funding was directed to mission-oriented re-
value and developing new products. In 1993,
search-research that bridges the basic and
increased emphasis will be placed on the
applied sciences, resulting in practical out-
areas of human nutrition research and re-
comes. Of the $73 million appropriated for
search to find new non-food, non-feed uses
the NRI in 1991, 11 percent of total program
for agricultural products. Human nutrition
funds were directed toward attracting new
research will be expanded to include the
scientists into careers in high priority areas
areas of food choices and food survey methodol-
in agriculture. These funds provide support
ogy. Within the increase for new uses, research
for postdoctoral fellows and new faculty and
on alcohol fuels made from agricultural and
strengthen research capabilities of individuals
forestry feedstocks and conversion technologies
at small and mid-sized institutions. The same
will expand.
pattern of distribution is expected for 1993.
The Administration is especially concerned
Each of the six categories of research
about the amount of special project earmarks
funded in 1992 will continue. Those areas
within the USDA budget, and believes that
include natural resources and the environ-
the NRI is a more effective mechanism to
ment; nutrition, food quality and health;
address the national needs of agriculture.
MAINTAINING NATIONAL SECURITY: DEFENSE R&D IN
THE BUDGET
For all defense-related R&D, including R&D
prise 59 percent of overall Federal R&D
supported by the Departments of Defense
funding in 1992.
and Energy, the budget proposes $43 billion,
an increase of over $438 million, or 1 percent,
above 1991. Defense-related R&D will com-
Table 6-14. MAINTAINING NATIONAL SECURITY
(Dollar amounts in millions)
Budget Authority
Department
Dollar
Percent
1989
1992
1993
Change:
Change:
Actual
Enacted
Proposed
1992 to
1992 to
1993
1993
Defense-military functions
38,031
40,043
40,509
+466
+1%
Basic research
951
1,170
1,203
+33
+3%
Applied research
2,541
2,995
3,056
+61
+2%
Total, Technology Base
3,492
4,165
4,259
+94
+2%
Development
34,540
35,878
36,251
+372
+1%
Energy-atomic energy defense programs
2,321
2,668
2,640
-28
-1%
Weapons Research and Development
1,050
1,183
1,143
-40
-3%
Weapons Testing
518
458
430
-28
-6%
Naval reactors
555
600
634
+34
+6%
Arms Control Research
146
181
188
+7
+4%
Environmental Restoration Technology
52
246
245
-1
-
Total, Conduct of R&D
40,352
42,711
43,149
+438
+1%
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-127
Department of Defense
Department of Energy
A strong defense R&D program is a key
The budget proposes $2,640 million for
element of national security strategy. As
conduct of R&D in support of Department
was shown in Operation Desert Shield/Desert
of Energy (DOE) Atomic Energy Defense
Storm, the deployment of advanced weapons
Programs, a decrease of $28 million, or
can save lives and lead to decisive victory.
about 1 percent below 1992, but $319 million
The Defense R&D program also provides
or 14 percent above the 1989 level. This
important benefits to the nation's technology
total is comprised of several program compo-
generally. In this budget, funding for conduct
nents, including:
of DOD R&D totals $40.5 billion in 1993.
Weapons Research and Development.-
Technology Base.-The budget proposes
This activity includes a wide range of basic
$4.3 billion for the technology base, an in-
and applied R&D that is related to new weap-
crease of $94 million over the 1992 level. Basic
ons systems. Almost all of these R&D activities
and applied research programs provide options
are performed by the three DOE National Lab-
for future military capabilities and guard
oratories: Los Alamos, Sandia and Lawrence
against technological surprise by potential ad-
Livermore. The budget proposes $1,143 million
versaries. The basic research portion of the
for this activity, a decrease of $40 million, or
DOD technology base supports a wide range
3 percent from 1992. Within this total, there
of scientific disciplines, including mathematics,
is increased emphasis on improving the safety
chemistry, biochemistry, meteorology and
of nuclear weapons.
solid-state physics. It is essential for the U.S.
to develop and exploit advanced technologies
Weapons Testing.-This activity involves
to maintain superiority in fielded weapon sys-
the testing of nuclear weapons devices. The
tems as force levels decline. The weapon sys-
budget proposes $430 million for these activi-
tems used in Operation Desert Storm were
ties, a decrease of $28 million, or 6 percent
from the 1992 level.
made possible by technology programs started
decades ago in the areas of precision guidance
Naval Reactors.-This activity involves
and navigation, night vision and stealth.
R&D related to reactor systems for nuclear-
DOD technology-base R&D programs have
powered submarines. The budget includes
also led to many civilian applications. These
$634 million in 1993, an increase of $34 mil-
include navigation systems used by civilian
lion or 6 percent over 1992.
aircraft and ships, advanced structural mate-
Arms Control Research-The budget pro-
rials used in commercial aircraft and such
poses $188 million, an increase of $7 million
common devices as cellular radios and comput-
for research related to verification of arms con-
ers. Defense R&D plays a lead role in
trol agreements.
developing technology to increase computer
Environmental Restoration Tech-
performance dramatically. This continues the
pioneering efforts of the Department of De-
nology.-The environmental cleanup of atomic
energy defense facilities is one of the fastest
fense that led to today's advanced parallel
growing programs in the Federal Government.
processors and digital communications net-
works.
Technology development activities play a
major role in the clean-up effort, resolving
Development-The budget proposes $36.3
major technical issues related to effective
billion for development programs. This cat-
waste management and cleanup and advanc-
egory includes funding to develop advanced
ing technologies to attain and maintain compli-
systems for production and to improve existing
ance with current laws and regulations. The
systems. There will be special emphasis on
budget proposes to maintain this investment
technology development efforts and the fab-
in technology development at $245 million in
rication of prototype systems.
1993.
Part One-128
THE BUDGET FOR FISCAL YEAR 1993
The Changing Role of the National
ing from the domestic programs as direct
Weapons Laboratories.-The decreases in
funding from the Atomic Energy Defense
funding for nuclear weapons research, develop-
programs decreases.
ment, and testing are consistent with the de-
clining number and types of nuclear weapons
Two initiatives now underway include:
in the U.S. stockpile and reduced requirements
High Performance Computing-Energy is
for new nuclear weapons. This decline, how-
developing a model Cooperative Research
ever, could adversely affect the DOE National
and Development Agreement (CRADA)
Laboratory system, principally the three weap-
with the Computer Systems Policy Project
ons laboratories. These labs have historically
(CSPP) to enable CSPP member compa-
received 40-50 percent of their funds for nu-
nies (e.g., IBM, Cray, Apple) to cooperate
clear weapons research, development and test-
with the National Laboratories on R&D
ing. The laboratories possess a core set of
projects in high performance computing
unique scientific and technical capabilities that
technology.
could be applied to a wide variety of civilian
R&D needs.
Space Exploration-Defense, NASA and
Energy are developing cooperative R&D
Over the past year, an effort has been
programs at the Laboratories to develop
underway within the Administration to assess
nuclear power and nuclear propulsion
the laboratories' capabilities and to examine
technologies to support space exploration.
expanded civilian missions for them. In par-
The Energy Laboratories have recognized
ticular, it appears likely that the National
competency in nuclear propulsion, radi-
Laboratories can play a key role in a number
ation-hardened microelectronics and robot-
of civilian R&D initiatives, including materials
ics, which are all key technologies for
research, advanced manufacturing R&D, bio-
space exploration missions.
technology and space exploration. The specific
roles to be performed by the laboratories
It is likely that the laboratories will play
in each technology area would be determined
an important role in other applied civilian
based on: (1) the unique technical capabilities
R&D initiatives, including advanced materials
offered by the laboratories (so as to avoid
and processing, advanced manufacturing, and
duplication with work that better can be
other critical technologies. In addition, the
performed in industry or universities) and
laboratories are continuing to move aggres-
(2) industry-led proposals, so as to ensure
sively to transfer new, non-sensitive, dual
that the results of the R&D will be applied
use technologies, funded by Atomic Energy
by the private sector in new products and
Defense programs, to commercial use. The
processes. In particular, the National Lab-
budget includes $91 million, an increase of
oratories could serve as catalysts to form
$41 million, or 82 percent, for technology
R&D consortia with industry and universities,
transfer activities in DOE defense programs.
following the general criteria discussed earlier
This funding will support cost-shared, collabo-
in this chapter. Under this approach, the
rative technology transfer activities with the
laboratories would be receiving increased fund-
private sector.
IMPROVING TECHNOLOGY TRANSFER TO INCREASE THE
RETURN ON FEDERAL R&D INVESTMENTS
During the past decade there has been
As new policies have been put in place
increasing public concern about U.S. scientific
to promote technology transfer, the Adminis-
and industrial strength and competitiveness
tration's emphasis has shifted to implementa-
in the world economy. One consequence of
tion. This section reports on progress to
this concern has been enhanced efforts to
date in technology transfer by Federal agen-
encourage the transfer of technology developed
cies. The Aministration plans to intensify
in Federal laboratories to the private sector.
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-129
its efforts in technology transfer over the
the data for the same year between subsequent
coming months.
budgets may show significant differences. Over
OMB has begun a comprehensive effort
time, however, these data should yield an
historical database that can be used to meas-
to measure the extent of Federal technology
transfer activities. By collecting data on tech-
ure the impact of government policies to
nology transfer on an annual basis. For
enhance the value of government technology
purposes of collecting this data, technology
to the private sector.
transfer has been defined as those efforts
Funding for Technology Transfer Activi-
and activities intended to result in the applica-
ties.-In general, the data show significant in-
tion or commercialization of Federal lab-
creases in all aspects of technology transfer
oratory-developed innovations by the private
from 1992 to 1993. The budget proposes to
sector, State and local governments, and
allocate about $579 million to direct support
other domestic users. These activities may
of technology transfer activities in 1993, up
include, but are not limited to:
3 percent over 1992, but 16 percent over 1991.
Technical/cooperative interactions (direct
Funds allocated to departmental and agency
technical assistance to private sector users
Offices of Research and Technology Applica-
and developers; personnel exchanges; and
tions are projected to rise 19 percent from
cooperative research and development
1992 to 1993 to a total of about $32 million.
agreements);
Cooperative Research and Development
Commercialization activities (patenting
Agreements.-Cooperative Research and De-
and licensing of innovations and identify-
velopment Agreements (CRADAs) are con-
ing markets and users, including payment
tracts between one or more Federal lab-
of royalties and cash awards to inventors);
oratories and one or more non-Federal parties
and
under which a laboratory provides personnel,
services, facilities, equipment or other re-
Information exchange (dissemination to
sources to conduct specific R&D efforts that
potential technology users of technical in-
are consistent with the missions of the lab-
formation: papers, articles, reports, semi-
oratories. All agencies were given the author-
nars, etc.).
ity to use CRADAs in the Technology Transfer
Twelve Federal agencies provided data on
Act of 1986, although some agencies, e.g.,
technology transfer activities undertaken and
NASA, already had statutory authority to con-
proposed for 1991, 1992 and 1993. The agen-
duct research and technology development co-
cies submitting data include: the Departments
operatively with industry.
of Agriculture (Agricultural Research Service
Since 1986, the use of CRADAs has been
and Forest Service), Health and Human Serv-
on the rise. In the Department of Health
ices (National Institutes of Health, Centers
and Human Services, the National Institutes
for Disease Control, Public Health Service,
of Health has entered into over 400 with
Food and Drug Administration), Housing and
private industry, primarily in biotechnology.
Urban Development, Transportation (Federal
In addition, the National Institute of Stand-
Aviation Administration), Commerce (National
ards and Technology has entered into over
Institute of Standards and Technology), Inte-
150 agreements in a broad range of technical
rior, Energy, and Defense (Army, Navy and
areas.
part of Air Force); NASA (Office of Commercial
The actual number of active CRADAs is
Programs), the Environmental Protection
Agency, the Tennessee Valley Authority and
projected to grow by 10 percent from 1992
the Army Corps of Engineers.
to 1993 to a total of 1,689. The number
of CRADAs with small business is projected
It should be noted that most of the data
to reach 389 in 1993, an increase of 20
for 1992 and 1993 are projections that are
percent, which accounts for 44 percent of
inherently difficult to make since they are
the total increase in numbers of active
based, in part, on inventions, patents, etc.
CRADAs. The dollar value of active CRADAs
that are "in the pipeline" but not yet fully
is projected to grow 22 percent from 1992
realized. As a consequence, comparison of
to 1993, to $466 million.
Part One-130
THE BUDGET FOR FISCAL YEAR 1993
Table 6-15. TECHNOLOGY TRANSFER ACTIVITIES ARE INCREASING
IN 1993
(Dollar amounts in millions)
1991
1992
1993
Change:
Percent
Enacted
Proposed
1992 to
Change:
Actual
1993
1992 to
1993 1
Direct funding for technology transfer activities:
Funds allocated to technology transfer
498
561
579
+18
+3%
Funds allocated to ORTAs
22
27
32
+5
+19%
Cooperative Research and Development Agree-
ments:
Number of active CRADAS
1,215
1,538
1,689
+151
+10%
Number with small businesses
203
323
389
+66
+20%
Dollar Value (cash and non-cash) of all
CRADAs
283
380
466
+85
+22%
Measures of Productivity:
Number of invention disclosures
3,275
3,128
3,313
+185
+6%
Number of patent applications
1,423
1,515
1,546
+31
+2%
Number of licenses (exclusive and non-exclu-
sive) awarded
283
358
446
+88
+25%
Royalties and other income from all licenses
9
11
13
+2
+24%
Royalties and cash awards paid to federally-
employed inventors
1
2
2
-
+19%
Royalties and cash awards paid to non-federal
employee inventors
8
9
10
+1
+15%
Number of new companies formed
24
31
35
+4
+13%
1 Percent change is calculated on dollar amounts in thousands.
Measures of Productivity.-There are sev-
progress listings. In 1991 alone the five largest
eral indicators of the productivity of govern-
Federal R&D performing agencies (DOD, DOE,
ment researchers and the value of government
NASA, NIH and USDA) generated well over
inventions. Productivity can be measured by
150,000 STI items. This information rep-
the numbers of invention disclosures and num-
resents one of the most identifiable "products"
bers of licenses of existing patents. The value
of Federal R&D and acts as a conduit for ena-
of government inventions can be measured by
bling the private sector to use the results of
the amounts of royalties collected from licens-
Federal R&D more effectively.
ing activity and, to a lesser extent, cash
awards paid to government-employed and con-
The scientific and technical knowledge base
tractor inventors. By all these measures, the
made available by the five largest R&D
technology transfer process is a healthy one,
agencies together with the National Technical
with projected increases in patents, licenses,
Information Service is impressively large.
royalties and cash awards.
Through the network of agency databases,
over 23 million summaries of the results
Scientific and Technical Information.-
of R&D can be searched to allow industry
The Federal Government supports the largest
to make informed decisions based upon what
R&D complex in the world, which, in turn,
is known and where future research may
generates the largest volume of Scientific and
be needed. This includes approximately 5
Technical Information (STI) from any single
million foreign STI items (obtained through
funding source. The information produced
exchange and translation programs) for which
takes numerous forms including technical re-
the Federal Government is virtually the only
ports, journal articles, and research in
domestic source. This knowledge base rep-
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-131
resents the product of a multi-billion dollar
is created, stored and disseminated. A world
investment made in the original research.
once firmly linked to paper and microfiche
Access to the STI knowledge base main-
has been rapidly shifting to electronic formats.
tained by Federal agencies has been consider-
For example, two years ago the Federal
able. Nearly 8 million items were disseminated
Government had never disseminated any STI
in 1991 alone. Of those items, almost 6
on CD ROMs, while in 1991 over 1,100
were disseminated. The infrastructure for
million went to non-Federal users in the
U.S. In addition, access through electronic
electronic storage and dissemination of Federal
databases continues to increase dramatically.
STI will be critical to continuing and enhanced
Researchers gained access to references of
access by Federal and non-Federal users
alike. The National Research and Education
over 81 million STI items during searches
of on-line data bases provided by Federal
Network being funded through the High Per-
agencies in 1991-over 10 million more than
formance Computing and Communications Ini-
just three years earlier. Each item referenced
tiative will be an essential part of the
in a search is a potential source of information
future STI infrastructure. With such a vast
which the researcher can either order directly
knowledge base being generated and managed
from the Federal Government or, as is often
by numerous Federal agencies, and with
done, simply obtain a copy from his or
the rapid changes in technology, interagency
her company, university, or public library.
coordination in STI is critically important.
For this reason, the Administration has re-
Advances in information system technology
cently moved to reinvigorate interagency co-
are rapidly changing the way in which STI
ordination of STI.
STIMULATING INCREASED PRIVATE SECTOR R&D
INVESTMENTS
The budget proposes making permanent
due to factors other than a simple reduction
the research and experimentation tax credit
in funding for R&D. These factors could
and an 18-month extension of the tax rules
include greater efficiency in the private R&D
governing the allocation of foreign and domes-
process (embodied in a much greater use
tic R&D expenditures.
of concurrent design and engineering), and
Industry is the largest supporter of R&D,
the shifting of private investment in R&D
providing slightly over 50 percent of the
from products to process technologies.
total national R&D investment. It also per-
The Federal Government can stimulate R&D
forms much of the R&D funded by the
in the private sector directly with increased
Federal Government. In total, over 70 percent
of all R&D is performed by industry.
government R&D spending. The Federal Gov-
ernment can also stimulate R&D in the
From the early 1960s through the mid-
private sector indirectly through tax incen-
1980s, total real industrial R&D expenditures
tives. The use of tax credits for R&D has
increased significantly, mostly in development.
been a net near-term revenue loser to the
Since the mid-1980s, however, the rate of
Treasury. It is anticipated, however, that
growth in industrial R&D spending has leveled
in the longer-term these losses will be more
off, dropping from a rate of more than
than offset by the revenues from new products
7 percent average annual percent real growth
and processes resulting from the private
between 1980-1985 to less than 2 percent
investment stimulated by the credit. However,
between 1985-1991. For 1992, the Industrial
since only the short-term losses can be esti-
Research Institute forecasts that industrial
mated (the long-term benefits are simply
investment in R&D is likely to experience
too diffuse), these incentives are essentially
no growth, and will decline as a percentage
of revenues for the first time since the
a form of increased Federal R&D spending
in areas of greatest potential benefit to
mid-1980s. However, this slowdown may be
Part One-132
THE BUDGET FOR FISCAL YEAR 1993
the economy as identified by the private R&D by 20 percent Bailey and Lawrence
sector.
have estimated that this version of the tax
credit should increase corporate R&D spending
Tax Credit and Allocation Rules
in the 1990s by about 4 percent. Making
The Research and Experimentation (R&E)
the credit permanent would help reverse
tax credit was originally adopted in 1981
the recent trend toward leveling off of cor-
to encourage increased private R&D spending.
porate R&D spending.
The credit was never made permanent, but
The budget proposes two changes in the
was renewed in 1986, 1988, 1989, 1990,
and 1991 (only until Spring, 1992) at a
tax code designed to provide additional incen-
lower rate than originally granted.
tives for industry to increase its investment
in R&D. The budget proposes to make the
Tax credits prior to 1989 reduced the
20 percent tax credit permanent. In addition,
cost of increments to R&D for most qualifying
the budget proposes to extend for 18 months
firms by about 6 to 9 percent. In 1989
the rules, as extended in the Tax Extension
the incentives provided by the credit were
Act of 1991, for the allocation of foreign
improved. The version of the credit enacted
and domestic R&D expenditures for companies
in 1989, and extended in the 1990 Omnibus
with foreign operations. This proposal would
Budget Reconciliation Act, reduces, for most
apply to all tax years beginning after the
M
qualifying firms, the cost of increments to
current rules expire on June 30, 1992.
INDUSTRY SUPPORT FOR R&D
1991 $ BILLIONS
60
50
1960
1970
1980
1989
1992
%
OF
GDP
0.89
1.06
1.17
1.39
1.39
40
DEVELOPMENT
30
APPLIED RESEARCH
20
BASIC RESEARCH
10
0
1960
1965
1970
1975
1980
1985
1990
SOURCE: National Science Foundation, Office of Management and Budget
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-133
THE CONTRIBUTION OF ACADEMIC INSTITUTIONS TO
THE NATIONAL R&D INFRASTRUCTURE
Following the end of World War II, the
world-class research, and the management
Federal Government adopted a set of policies
of R&D at academic institutions.
that propelled academic institutions into the
forefront of the national research enterprise.
The total number of research grants made
These policies (1) identified the Federal Gov-
to individual researchers has been growing
ernment with the primary responsibility for
for two decades. However, the ratio of new
the quantity and quality of basic research
awards made annually to the total number
in the U.S. and (2) identified academic institu-
of proposals ("funded rate for new awards")
tions as the primary performers of basic
by the two largest Federal supporters of
research which would be directly coupled
university research, the Department of Health
to graduate education. Thus, the Federal
and Human Services (National Institutes of
Government invested its future in science,
Health) and the National Science Foundation,
both in terms of discovery and talent, in
has declined over the 1980's from around
universities and colleges.
40 percent to 33 percent in 1991 (adjusted
to exclude both multiple submissions by any
This arrangement has led to nearly 5
one individual and for awards for research
decades of unprecedented success in scientific
centers, which may serve many investigators).
discovery and to world preeminence of the
U.S. academic research and education system.
This decline is due, in part, to the rapid
growth since 1970 in the pool of researchers
Today, however, new questions are being
raised about both the adequacy of academic
seeking funding, which has outpaced the
institutions to carry out forefront fundamental
sizeable, real growth in basic research funding
research and the education of new scientists
to academic institutions. In addition, average
and engineers, as well as the adequacy
award sizes (both direct and overhead compo-
of the special partnership developed between
nents), award lengths, or both, have tended
the Federal Government and universities.
to increase. This trend, while providing in-
These questions include: how big should the
creased stability and productivity for a given
academic research and education enterprise
investigator, tends also, within a relatively
be? How diversified, both geographically and
fixed total, to depress the number of sub-
otherwise, should the enterprise be? What
sequent new awards that can be made.
is the fundamental role of universities in
The increases in the number of staff supported
science and technology in a world of global
on each grant have also affected the number
economic competitors? Should other sectors
of grants that could be made by NIH. At
assume an even greater role in funding
least in the case of NIH, the move to
academic research (based on perceived pay-
longer grants was an explicit choice, made
offs), and, as a corollary, how much should
in response to the biomedical research commu-
the Federal Government actually pay for
nity's calls for more stability.
academic research and training, both directly
Awards to groups of investigators (either
and indirectly?
small groups or larger centers) have also
The answers to these questions are not
been increasing, driven primarily by the need
clear. What is clear is that the nation's
for interdisciplinary approaches to scientific
future in science and engineering continues
problems. Each of these group or center
to be inextricably tied to the vitality of
awards is counted as a single grant, even
academic research and education. This part
though these awards support many research-
of the chapter will discuss the status of
ers. Thus, considering only the absolute num-
funding for and issues surrounding the fund-
bers of awards is misleading. A more appro-
ing of academic R&D, the education of future
priate consideration should be the total num-
scientists and engineers, the provision of
ber of researchers supported. By this measure,
the tools, both equipment and facilities, for
there are more researchers supported by
Part One-134
THE BUDGET FOR FISCAL YEAR 1993
research grants today than at any previous
Modes of Support for Educating the Next
time.
Generation of Scientists and Engineers
The U.S. system of scientific education,
Funding for R&D at Universities and
particularly at the graduate level, continues
Colleges
to be best in the world. Foreign students
Over the past 35 years, academic institu-
flock in increasing numbers to U.S. univer-
tions have assumed a more prominent role
sities seeking degrees in science and engineer-
in basic research within the nation's R&D
ing, many of them choosing to stay for
system. Academic institutions' share of basic
the rest of their professional careers. The
research expenditures (from all sources) has
markets for the "products" of this system,
doubled from about 25 percent in 1953 to
the students, include both industry and aca-
50 percent since the early 1970's. In addition,
demia itself. But these students are important
total academic R&D expenditures as a percent
participants throughout our society.
of the GDP have risen sharply over this
The path from grade school to Ph.D. is
same period, from about 0.07 percent in
commonly referred to as the "pipeline". Today,
1953 to 0.30 percent in 1989. Federal academic
one-third of college graduates earn a bacca-
R&D expenditures have also risen as a
laureate degree in a field of science or
share of the GDP, from 0.04 percent in
engineering. Over the past 15 years, the
1953 to 0.18 percent in 1989.
number of Ph.D.s awarded annually increased
from about 17,000 to over 20,000. However,
The budget proposes $11.5 billion for Fed-
the number of foreign students on temporary
eral support for R&D at universities and
visas earning Ph.D.s has nearly doubled over
colleges. This is an increase of almost $600
that same period, to almost 5,000. Within
million, or 5 percent over 1992, and 31
the total of U.S. nationals awarded degrees
percent over 1989.
in science/engineering fields, the number of
women earning Ph.D.s has increased dramati-
cally and the numbers of Asian and Hispanic
students have also increased, but there has
Table 6-16. THE BUDGET INCREASES FUNDING FOR R&D IN ACADEMIC
INSTITUTIONS
1
(Dollar amounts in millions)
Budget Authority
Department or Agency
Dollar
Percent
1989
1992
1993
Change:
Change:
Actual
Enacted
Proposed
1992 to
1992 to
1993
1993
Health and Human Services
4,584
5,804
6,071
+267
+5%
(National Institutes of Health)
(4,008)
(4,922)
(5,181)
(+259)
(+5%)
National Science Foundation
1,260
1,597
1,917
+321
+20%
Defense
1,329
1,417
1,445
+28
+2%
Energy
507
629
591
-38
-6%
National Aeronautics and Space Administration
434
632
675
+43
+7%
Agriculture
315
425
417
-8
-2%
Other Agencies 2
343
407
387
-20
-5%
Total
8,772
10,910
11,501
+591
+5%
1 Amounts reported in this table are included in totals for conduct of R&D.
2 Includes the Departments of Commerce, the Interior, Veterans Affairs, Education, Labor, the Treasury, Justice,
Transportation, Housing and Urban Development, Environmental Protection Agency, Tennessee Valley Authority,
the Corps of Engineers, Nuclear Regulatory Commission, and Agency for International Development.
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-135
been no gain in the number of Ph.D.s awarded
in computer science, a field once believed
to Black students.
to suffer from serious personnel "shortages".
Since the late 1940's, the Federal Govern-
Part of the problem, at least in many
ment has been the primary supporter of
fields, is that the academic model is the
graduate training. There are three primary
only one that most students are exposed
forms of such support: fellowships (awarded
to in the course of their training. A faculty
to students for study at the institution of
member supports graduate and post-doctoral
their choice), traineeships (awarded to institu-
students in order to launch those students
tions to build capacity for graduate education),
into academic research careers as faculty
and research assistantships (awarded to estab-
members training a second generation of
lished individual investigators as part of
students, and so on. However, over the past
their research grants-the student is "em-
20 years this has had the result of putting
ployed" by the grant). Over the past 35
more and more researchers in competition
years, the balance between these has changed.
for what must necessarily be a limited-
although increasing-supply of research funds.
Today, research assistantships are the domi-
nant form, accounting for 64 percent of
One way that the Federal Government
all students for whom the Federal Government
can respond to this is by encouraging different
is the major source of support.
models of training, such as by increasing
the emphasis on interdisciplinary, team-ori-
There have been conflicting views over
ented research (the industrial model), through
the past several years as to whether the
programs such as the NSF-sponsored Engi-
supply of Ph.D.s entering the workforce, either
neering Research Centers (ERCs). The budget
academic or industrial, will be adequate to
proposes to continue support for ERCs, for
meet future demand. Some have predicted
Science and Technology Centers and for pro-
large "shortfalls" (relative to demand), with
grams in other agencies that encourage this
concomitant "shortages" in many fields, while
interdisciplinary approach to science and engi-
others have projected the supply and demand
neering.
for scientists and engineers to be in rough
balance. However, many experts in the field
Even if the projections of Ph.D. supply
of labor utilization in science and engineering
and demand are inconsistent and, perhaps,
have called into question the wisdom of
flawed, there is no question of the need
using these projections to develop Federal
for a workforce of the future that is highly
skilled, and literate in the language, if not
policies to affect the supply of researchers-
the practice, of science and technology. Thus,
such projections are notoriously unreliable,
it may be more prudent for the Federal
and predicting the demand for scientists/
Government to concentrate its science edu-
engineers is extremely complex.
cation efforts not on increasing the number
There is already some evidence-although
of Ph.D.s, particularly American citizens, but
no firm conclusions-that the production of
rather on increasing the preparedness of
researchers in the biomedical sciences may
the "pipeline" to produce Ph.D.s, i.e., the
have outstripped the demand. Some prelimi-
undergraduate years. This approach would
nary National Institutes of Health estimates
appear to offer the flexibility needed for
indicate that the number of post-doctoral
the market to respond in a timely way
students supported on certain types of re-
to demands for science/engineering skills in
search grants has increased 5-fold since the
all sectors, as well as provide college graduates
early 1980's. While post-doctoral study for
who could offer the perspectives of science
1-2 years is commonplace in these fields,
and technology to other vocations.
the large increase in numbers supported
In any case, there continues to be a
on grants indicates that these young research-
compelling rationale for the Federal Govern-
ers are extending their "apprentice" period,
ment, in concert with the Nation's universities,
perhaps partly because the demand in aca-
to effect changes not so much in the size
demia has lessened. There is also anecdotal
of the pipeline as in its composition. The
evidence that the same situation is developing
objective should be to prepare more of our
Part One-136
THE BUDGET FOR FISCAL YEAR 1993
best graduates, for industrial and non-aca-
support for academic research facilities. There
demic careers. The scientific community and
has been Congressional action in two areas:
the Nation would benefit greatly by the
diversity of research interests that results
"Earmarking" of Federal funds to con-
from continuing to increase the number of
struct new research facilities at particular
new entrants, particularly those from tra-
institutions. The Office of Science and
ditionally underrepresented groups.
Technology Policy, as part of its continuing
evaluation of the state of university re-
Providing the Tools for World-Class
search facilities, estimates that about $276
Research: Equipment and Facilities
million was appropriated for such projects
To sustain a strong national research capa-
in 1991. (The issue of earmarking is dis-
cussed in more detail in a later section
bility and to enable expansion of research
of this chapter.)
capacity, R&D infrastructure must be main-
tained and replenished.
Providing direct grants for academic re-
Federal Support for University Research
search facilities repair and renovation
Facilities.-The Federal Government directly
through the National Science Foundation,
funded at about $17 million in 1992.
funds facilities and equipment necessary for
the conduct of R&D at Federal facilities. Pri-
The budget does not contain funding for
vate industry and universities have primary
either of these practices. Earmarking that
responsibility for the R&D infrastructure
does not involve merit review of any kind
under their respective jurisdictions. However,
is an inefficient use of scarce resources.
since the Federal Government supports basic
Further, it has the effect of weakening the
research at universities, it directly funds uni-
Nation's overall R&D effort. Funds earmarked
versity R&D facilities and equipment where
for academic research facilities by Congress
they are closely related to federally funded re-
in 1992 and previous appropriations bills
search. In 1988-89, the latest period for which
not only were without the benefit of merit-
estimates are available, private institutions
based review, but most often came at the
initiated $738 million of new construction and
expense of needed increases in support for
public institutions initiated $1.73 billion of
academic researchers and in other key activi-
new construction. The Federal Government
ties at Federal laboratories.
provided an estimated 11 percent and 16 per-
cent of these funds, respectively.
For example, the NASA construction of
facilities budget has been burdened in 1992
Expenditures for the repair and renovation
by over $60 million in unrequested,
of research facilities totalled an estimated
unreviewed, earmarked projects. These
$1 billion in 1988-89, with private institutions
projects came at the expense of high priority
accounting for one-third of this total ($311
construction, repair and renovation projects
million). Direct Federal funding accounted
at critical space launch and support facilities.
for 9 percent of repair and renovation activity
In another instance, the 1992 budget proposed
at private institutions, and 4 percent at
$25 million for university research facilities
public institutions. Added to this direct fund-
to be awarded by the Department of Agri-
ing is indirect support for academic research
culture in conjunction with its National Re-
facilities through payments of use allowances,
search Initiative. Instead, the Congress not
depreciation and operations and maintenance
only earmarked all of that money for special
expenses in allocated overhead. This funding
interest projects, but actually increased the
has increased dramatically over the decade
funding to $75 million and earmarked that
of the 1980s to almost $1 billion in 1988.
entire increase, all to projects with little
or no relevance to the NRI.
Even with this large Federal expenditure
for academic research facilities, the perception
The Administration will continue to support
of a large "backlog" of unfilled desires for
direct Federal funding for construction or
research facilities has led to increased calls
renovation of academic research facilities
from the institutions and many members
where such facilities are presented as an
of Congress for an expansion of direct Federal
integral part of merit-based, competitive re-
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-137
search projects. In addition, the Federal Gov-
equipment costing from $200,000 and $4
ernment will continue to provide funds that
million.
universities should invest in new facilities
through payments of allocated overhead.
Managing the Costs of Research at
Academic Institutions
Federal Support for University Research
Equipment.-Forefront research at academic
Few systematic analyses have been done
institutions is increasingly dependent on state-
to elucidate the underlying reasons why the
of-the-art equipment. The most recent tri-
expenses incurred by universities and re-
ennial survey by NSF (1991) indicated that
searchers in conducting academic research
total expenditures (Federal and non-Federal)
have been increasing faster than the rate
for research equipment (costing $500 or more
of inflation. Some justify these increases
per item) increased rapidly over the 1980's
by arguing that the scientific questions that
from about $400 million in 1982 to about $830
must be answered are increasingly complex,
million in 1989. The amount of research equip-
e.g., modelling completely integrated global
ment stock that was Federally-funded in-
climate phenomena instead of just oceans,
creased 46 percent in real terms between 1985
or just atmosphere. Academic institutions also
and 1989. The survey also revealed that there
cite the increased cost of complying with
is substantial turnover in academic research
more layers of regulation, ranging from animal
equipment, with 40 percent of the equipment
care to human subjects protection to hazardous
in use in 1989 had been acquired since 1985.
waste disposal.
The mean time to obsolescence is also decreas-
It is also true, however, that some items
ing.
that previously were high-cost (either the
The NSF survey noted that the mean
item itself or the labor needed for it) have
purchase price of academic research equipment
dropped in unit cost dramatically. The best
has increased modestly. It should be noted,
example is computing resources (both equip-
however, that the mean purchase price for
ment and time), where computer capability
computing equipment has declined, but it
costing tens of thousands of dollars just
has increased for other types of instruments,
a few years ago is now available for a
particularly in life sciences and chemistry.
few thousand or less. Other examples include
Equipment is usually provided for as a
many laboratory chemicals and other reagents
part of research grants. The purchase price
that can now be purchased off-the-shelf in-
of equipment provided by grants, however,
stead of being made laboriously by each
individual researcher.
is generally less than $50,000. In many
fields, notably biological sciences and chem-
The average grant is composed of two
istry, there is an increasing demand for
major categories of expenditures:
state-of-the-art instruments such as electron
microscopes, surface chemistry analyzers, and
Direct costs.-Salaries (principal investiga-
DNA sequencers that are considerably more
tors, student research assistants, techni-
expensive, in the range of $200,000 to $4
cians); equipment; supplies; other direct
million. This is far more than can be provided
costs (travel, services); and
for in the average research grant. In addition,
allocated overhead payments (payments for
the purchase price represents only a part
that portion of grantee overhead that uni-
of the total "cost" of equipment. Expenditures
versities allocate to research supported by
for personnel to operate equipment and main-
the Federal Government, commonly re-
tenance over the life of the instrument now
ferred to as indirect costs).-Facilities de-
represent a significant portion of the total
preciation, operations and maintenance,
"cost" of equipment.
student services, libraries, administrative
Most Federal agencies that support R&D
expenses.
at academic institutions also provide funding
Of these, allocated overhead payments as
for instrumentation. The 1993 budget proposes
a percentage of the total have been rising
$33 million for NSF to continue its initiative
faster than have direct costs, although that
begun last year to provide state-of-the-art
growth has leveled off in recent years. Within
Part One-138
THE BUDGET FOR FISCAL YEAR 1993
direct costs, salaries are, by far, the fastest
to: (1) clarify that a number of items would
growing component. This category has risen
not be eligible for payment, e.g., entertain-
faster than the CPI for several years. In
ment, alumni activities, donations and con-
1988, personnel expenditures accounted for
tributions, civic, community, or social organiza-
an estimated 65 percent of the direct costs
tion memberships; and (2) set an upper limit
budgeted for individual investigator awards
of 26 percent on the administrative expenses
(RO1) at NIH. The result of all of this
portion of allocated overhead payments. This
is that constant dollar expenditures (1988
latter change was made to encourage and pro-
dollars) per FTE investigator (as noted by
vide greater incentives to academic institutions
the Government-University-Industry Research
to examine their adminstrative expenses very
Roundtable in 1989) have risen from about
closely and reduce unnecessary internal bu-
$155,000 in 1980 to about $225,000 in 1988.
reaucracy. This change is consistent with the
spirit of the Federal Demonstration Project,
Allocated overhead payments, both the total
which seeks to reduce the Federal bureaucracy
amounts and the elements, have been a
(and thus expenses) for the administration of
continuing source of controversy and friction
academic research.
between the Federal Government and aca-
demic institutions. Each institution proposes
Future Issues.-There are still a number
and receives a rate for these payments that
of issues regarding allocated overhead pay-
is the result of often long and difficult
ments that will be examined by an interagency
negotiations with the cognizant Federal agen-
group over the next year. Academic institu-
cies. The rates vary widely among institutions
tions and organizations will be consulted dur-
with, on average, higher rates for private
ing this process. The issues include:
and lower rates for public institutions. In
a further examination of administrative
many cases there has not seemed to be
expenses; of current incentives for admin-
an analytic basis for the difference in rates,
istrative efficiency and how these can be
particularly in the administrative expense
strengthened; and, whether differences
category.
among institutions and geographic regions
The controversy over allocated overhead
have a bearing on allocated overhead pay-
has not only caused friction between academic
ment policies;
institutions and funding agencies, but has
whether payments for facilities or equip-
also caused friction between the researchers
ment should reflect different academic
and administrators at the institutions them-
fields of research and/or rates of obsoles-
selves. Researchers argue that higher allocated
cence;
overhead payments increase the total cost
of research but add nothing to the actual
whether there could be a better balance
performance, while reducing the number or
between elements assigned as direct costs
sizes of awards. Administrators assert that
and elements placed in the allocated over-
even at the negotiated rate, the expenses
head pool, i.e., should specific elements be
the institution incurs (whether by choice
reassigned from the allocated overhead
or necessity) in conducting Federally-supported
pool to direct costs?
research are not fully covered by the allocated
The Federal Government and academic insti-
overhead payments. The Federal Government
tutions have together built a research enter-
and academic institutions could both benefit
prise that is without peer in the world.
from a simpler, less contentious system for
This enterprise has been based on the concept
determining allocated overhead.
of a partnership, where each partner contrib-
Current Proposals.-In 1991, the Adminis-
utes and each benefits. But, as in any
tration implemented changes to OMB Circular
partnership, a periodic and thorough reexam-
A-21, which sets out guidelines for determin-
ination is both healthy and necessary, if
only to revalidate the original conditions
ing allocated overhead payment rates for aca-
demic institutions. These changes will be
of the partnership.
phased in over the next year as institutions
To some extent, the issue of allocated
begin their fiscal years. They were designed
overhead is a symptom of the need for
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-139
a more fundamental reexamination of the
marking by Congress has historically been
funding incentives of the academic research
common.
enterprise. The challenge for academic institu-
tions is to consider the future in terms
In other areas, R&D earmarking is on the
rise, with 66 separate actions in Energy
of the prospective funding environment and
and 20 to 40 each in Defense, Interior,
adjust their expectations accordingly. The
Commerce and the Environmental Protec-
challenge for the Federal Government is
tion Agency. Noteworthy in 1992 was the
to understand and cope with rising expendi-
large increase in earmarks for NASA, and
tures while maintaining a strong national
the first appearance in some years of ear-
research capability in academic institutions.
marks in NSF. In fact, the VA, HUD and
The challenge for both partners is to manage
Independent Agencies Appropriations bill
these issues in ways that will strengthen
experienced the greatest increase over
the partnership and expand the future benefits
1991 in dollar value of earmarks (+$187
accruing to each partner. As was noted
million) and nearly the greatest increase
at the beginning of this section, the scientific
in number (+79 percent), second only to
future of the Nation rests with academic
the Commerce, State, Justice and the Ju-
institutions. In continued strong partnership
diciary bill. The NASA example is particu-
with the Federal Government, that future
larly noteworthy since a number of the
should be a bright one.
projects have little or no connection to
space research or technology.
EARMARKING OF R&D FUNDING
Earmarks for facilities at academic institu-
The hallmark of the Federal Government's
tions appear to have increased relative to
support for R&D has been the awarding
1991. Included in the total of $346 million
of R&D grants and contracts through a
is an increase of $95 million, to a total
competitive process. This merit-based approach
of $177 million, for research projects at
is intended to maximize the potential return
academic institutions. This is a dangerous
on these investments by selecting only the
trend because it represents a much more
highest quality research for support.
serious long-term threat to the merit-
based system for selection of research
This merit-based approach, however, has
projects than does earmarking for facili-
been increasingly eroded in recent years due
ties.
to the Congressional practice of "earmarking",
i.e., requiring that funds for R&D and R&D-
OSTP estimates that these R&D earmarks
related facilities be awarded to particular
have put an extra burden of nearly $500
institutions or even to particular researchers.
million on the R&D programs proposed in
This practice is most visible in the area
the President's 1992 budget, because the
of new buildings, particularly those specified
earmarks were made in programs where
for individual academic institutions. However,
the overall funding level was the same or
the practice of earmarking is actually much
less than the President's 1992 request.
more pervasive, reaching down to individual
The most serious impacts appear to be in
research projects.
Defense, NASA, NSF, and some parts of
Agriculture. The other $489 million of
The Office of Science and Technology Policy
R&D earmarks were covered, at least in
recently revised its detailed analysis of ear-
part, by Congressional increases in the af-
marking in appropriation bills and reports
fected R&D accounts, which presumably
to reflect final action for 1992. The major
means that a corresponding reduction was
findings of the analysis and a comparison
taken elsewhere in the budget.
to the results from 1991 follow.
Many of the earmarks appear to establish
The analysis identified 566 "earmarks" for
new centers, institutions, or other organi-
both facilities and research, totaling $993
zations. In most of these cases, continued
million, an increase of 23 percent over
Federal support in future years seems
1991. Of these 334 (totaling $180 million)
clearly implied. Thus, the 1992 earmarks
were in Agriculture, where specific ear-
have put a built-in burden on the 1993
Part One-140
THE BUDGET FOR FISCAL YEAR 1993
and future budgets, an effect that will be
projects from previous years. The report noted
compounded if additional earmarks are
that the projects examined: (1) have supported
made in future years.
R&D, but not the original claims that were
As the Office of Science and Technology
made for them; (2) have changed in response
Policy has noted, its information was based
to technical difficulties encountered; (3) were
simply outright promotion of local interests
only on a review of the often vague informa-
tion in Congressional appropriations bills and
disguised as R&D projects. A more in-depth
reports. Therefore, the analysis does not iden-
case-by-case review of other such projects,
tify the sponsorship of the earmarks and
with agency and Congressional staff directly
does not provide a basis for judgments on
involved, would be helpful in determining
the merits of the earmarked items or on
to what degree each earmark was (1) a
the motivations of the earmarking. However,
response to advocacy by a particular institu-
a recent press report (Science, November
tion; (2) a parochial initiative of the Congress
1991) examined the fate of several earmarked
or a Federal agency; or (3) a recognition
by Congress of a significant national or
programmatic need.
EXPANDING THE GEOGRAPHIC FRONTIER: SPACE
The exploration of space provides tangible
discoveries that will stimulate economic
benefits to the Nation in the form of new
growth and improve life on Earth. Space
materials and other scientific and technological
also provides large intangible benefits to
Table 6-17. CONGRESSIONAL EARMARKING OF R&D FACILITIES AND
RESEARCH IN 1992 APPROPRIATIONS BILLS 1
(Dollars in millions)
1991
1992
Agency
Number
Amount
Number
Amount
Defense
28
253
36
263
Energy
48
186
66
197
Agriculture
325
182
334
180
Commerce
14
14
38
36
Interior
25
18
42
31
Health and Human Services
2
3
1
8
Education
5
8
3
3
General Services Administration
21
61
-
-
Environmental Protection Agency
20
67
24
55
National Aeronautics and Space Administration
4
18
11
191
National Science Foundation
-
-
2
20
Housing and Urban Development
-
-
4
2
Federal Emergency Management Agency
-
I
1
3
Transportation
I
-
3
3
Office of Science and Technology Policy
-
-
1
2
Total, All Agencies
492
810
566
993
Facilities
(111)
(428)
(116)
(402)
Operations
(381)
(382)
(450)
(590)
Academic Institutions
(101)
(348)
(139)
(346)
1 Source: Office of Science and Technology Policy
6.- ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-141
the Nation with activities that lift the spirit
percent over 1992. The budget continues
of people everywhere. The will to explore
to support the strategy laid out by the
the unknown frontier of space, both with
Advisory Committee on the Future of the
robotic probes and manned missions, is one
U.S. Space Program. The budget provides
measure of the vision and maturity of the
increases for space activities, including re-
Nation.
search, development, and operations, to con-
tinue to explore the frontier with both manned
The key to the successful exploration of
and unmanned missions. Resources in the
space is stable and sustainable funding of
budget will improve access to space by sup-
a balanced program of science, applications
porting critical elements of space transpor-
and manned space activities. The budget
tation (which provides the enabling infrastruc-
provides clear evidence of the President's
ture for all other space activities) and by
continued commitment to his long-term space
encouraging innovative commercial ventures
goals, and to active American leadership
that will provide increased access.
in space science and exploration.
The budget proposes to allocate a total
SPACE EXPLORATION
of almost $15 billion for the National Aero-
nautics and Space Administration (NASA).
This part of the space program includes
This represents an increase of nearly 5
Space Station Freedom and activities leading
Table 6-18. THE BUDGET CALLS FOR A 5 PERCENT INCREASE FOR
MAJOR SPACE ACTIVITIES
(Dollar amounts in millions)
Budget Authority
Objective
Dollar
Percent
1989
1992
1993
Change:
Change:
Actual
Enacted
Proposed
1992 to
1992 to
1993
1993
Space Exploration
1,433
2,646
2,836
+190
+7%
Space Station Freedom
900
2,029
2,250
+221
+11%
Exploring the Frontier
533
617
586
-31
-5%
Lunar Exploration
-
-
29
29
-
Planetary Exploration
417
536
487
-49
-9%
Mission Studies
5
5
3
-2
-40%
Technology for Future Exploration
111
76
67
-9
-12%
NASA
23
31
27
-4
-13%
Energy
88
45
40
-5
-11%
Improving Access to Space
4,411
5,312
5,412
+100
+2%
Space Shuttle
4,342
4,965
4,867
-98
-2%
New Launch System
-
93
250
+157
+169%
Expendable Launch Vehicles
67
195
218
+23
+12%
Commercial Programs
2
59
77
+18
+31%
Tracking and Data Acquisition
820
918
921
+3
-
Research and Program Management
1,927
1,578
1,660
+82
+5%
Construction of Facilities
275
525
319
-206
-39%
Other NASA Programs 1
2,192
3,441
4,010
+569
+17%
Total, All Agencies
11,058
14,420
15,158
+738
+5%
Total, NASA²
10,969
14,320
14,993
+673
+5%
1 Includes funding for all other NASA activities including space science and applications, space technology
(excluding exploration), academic programs and aeronautics.
2 Program amounts for 1989 do not reflect revised NASA budget structure instituted in 1992. Program amounts
for 1992 and 1993 include funds for institutional support previously shown in Research and Program Management.
Part One-142
THE BUDGET FOR FISCAL YEAR 1993
to robotic and manned exploration of the
design, focused on providing a quality facility
Moon and planets. Together, these programs
for users, maintained agreements with inter-
support the long-term goal of expanding
national partners, and placed the program
human presence and activity beyond Earth's
on a more sustainable budget path. The
orbit into the solar system. The budget pro-
program is now designed to provide early
poses a total of $2.8 billion, an increase
use with a man-tended capability consisting
of 7 percent, for space exploration. The strat-
of Shuttle visits and free-flyer support, and,
egy for these activities has four major ele-
later, a permanently manned capability with
ments: (1) build and operate Space Station
a crew of four. This phased approach with
Freedom to provide unique capabilities for
a simplified design will better enable Space
life sciences and microgravity research; (2)
Station Freedom to accomplish successfully
continue robotic missions to explore the other
its major objectives as a life sciences and
planets in our Solar System; (3) begin several
materials research facility in space.
small near-term robotic missions to increase
knowledge of the Moon and to provide data
The budget provides $2,250 million for
for planning future exploration activities; and
Space Station. This includes an increase
(4) continue work on "long pole" technology
of 10 percent over the 1992 enacted level
building blocks that will be needed for future
for development, and initial funding for Space
manned and robotic exploration of the solar
Station operations. This amount will support
system.
finalization of detailed designs, and allow
fabrication, qualification, and assembly tests
Space Station Freedom.-This program,
of various critical components in preparation
the largest international R&D project ever un-
for first element launch in 1996, the attain-
dertaken, will enable the performance of life
ment of a man-tended capability in 1997,
sciences and materials research in a premier
and a permanently manned capability in
space laboratory for extended periods. Specific
late 2000.
experiments during the initial operation of
Freedom will lead to new knowledge in semi-
Also included is funding for detailed design,
conductor and biotechnology fields, and may
schedule and cost studies for an Assured
lead to eventual production of unique commer-
Crew Return Vehicle (ACRV). NASA will
cial products from space. When Freedom's crew
examine a wide range of options for providing
is aboard full time, emphasis will shift to life
this capability as an expedient means of
sciences research, necessary for the long-term
returning Space Station crewmembers to
space flights of the next century.
Earth during the permanently manned phase
of the program. In addition to the ACRV
With core Station elements being provided
studies, an independent panel (the Aerospace
by U.S. firms, Freedom will drive advance-
Safety Advisory Panel), will review the jus-
ments in aerospace technology that will main-
tification and requirements for an ACRV
tain U.S. leadership in this important area.
in anticipation of a decision on whether
Technologies and systems that will be ad-
to proceed with development.
vanced as part of Space Station Freedom
development and operations include environ-
Exploring the Frontier.-The President re-
mental control and life support, power genera-
mains firmly committed to his long-term goal,
tion, data storage and management, thermal
articulated in 1989, of manned and unmanned
control, crew health care, data processing
exploration of the solar system. The budget
and distribution, structures and materials,
reflects this commitment by proposing $586
robotics and automation, and operations and
million for exploration activities in NASA and
maintenance techniques and logistics support.
the Department of Energy. For 1993, the budg-
As in the past, many of the advances made
et is based on a strategy of (1) supporting
in the course of this program will be quickly
near-term small missions that will take advan-
used in Earthbound applications.
tage of the unique proximity and characteris-
tics of the Moon; (2) supporting exploration
This past year NASA instituted major ad-
of the near and outer planets in the Solar Sys-
justments in the program as a result of
tem; and (3) supporting research focused on
a restructuring activity that simplified the
key, long-lead technologies that will be nec-
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-143
essary for any future exploration endeavors.
Thus, the budget proposes that development
These technologies include: space nuclear and
of the Cassini mission to Saturn be continued,
conventional propulsion, life sciences and life
but that it undergo a thorough review in
support technologies, and space surface nu-
1992 which will focus on the technical and
clear power.
schedule risk remaining in this program.
Planetary Exploration.-The objectives of
However, the budget proposes to terminate
these programs are to determine the nature
the Comet Rendezvous/Asteroid Flyby mission
because the scientific benefits of this mission
of planets, comets, and asteroids as a means
for understanding the origin and evolution
no longer justify the investment. In order
of the solar system, to examine how the
to contain cost growth, the scope of the
appearance of life is related to the chemical
CRAF mission was recently reduced by delet-
history of the solar system, and to provide
ing the comet penetrator and several other
the scientific basis for the future use of
instruments. Thus, much of the planned
available resources in the solar system.
science was already lost.
U.S. planetary exploration programs are
In the longer term, a robust planetary
guided by recommendations of NASA's sci-
science program should emphasize more,
entific advisory council. These rec-
smaller, and less costly missions. In order
ommendations outline exploration missions
to give the planetary science community an
opportunity to consider its future direction
through the year 2000 (i.e., inner planets,
small bodies, and the outer planets). The
in a structured fashion, the budget proposes
to initiate studies and research on future
Magellan (Venus), Galileo (Jupiter), and Ulys-
ses (Sun) missions have been launched in
small planetary missions (i.e., with total
the last two years and are providing exciting
costs of less than $150 million per mission).
All of these decisions are generally consistent
new scientific information. The Mars Observer
with the recommendations of NASA's scientific
mission designed to examine the geologic
advisory council.
and climatic evolution of Mars will be
launched in late 1992.
Robotic Exploration of the Moon and
Mars.-The budget proposes $99 million, an
For 1993, the budget proposes $487 million
increase of 22 percent, for exploration activi-
for planetary exploration, a decrease of $49
ties that focus on the Moon and Mars. The
million or 9 percent below 1992. Most of
initial emphasis will be on the Moon for sev-
this decrease is due to planned reductions
eral reasons. The Moon is accessible because
in development funding as missions are
of its proximity and will be a useful mid-point
launched. The 1993 funding level will also
in a long-term plan to send people to Mars.
provide for the operation of Mars Observer,
Further lunar exploration is also attractive be-
Galileo, and Magellan and for support of
cause it offers opportunities for scientific re-
university researchers to analyze data from
search, and the possibility that its mineral and
planetary missions.
energy resources could one day be harnessed
In the current constrained budget environ-
for use in the space program or back on Earth.
ment, it is unlikely that multi-billion dollar
The Synthesis Group, an independent advisory
planetary exploration missions, which often
panel on the exploration program chartered by
span a decade or more, can continue to
the Vice President, considered these factors
be sustained over the long-term. This is
last year when it recommended that the U.S.
particularly true because these missions are
plan an active program of robotic and manned
often linked to immutable planetary launch
missions to the Moon before sending people
"windows" in order to achieve their objectives.
to Mars.
Long delays caused by budgetary reductions,
As a first step, the budget proposes to
launch constraints or technical problems, or
start work on two small, low-cost, robotic
all three, often mean that graduate students
exploration missions to the Moon. These space-
are well along in their professional careers
craft, to be launched in 3-4 years, will
before instruments they helped develop actu-
carry instruments for mapping the Moon
ally collect any data.
and surveying lunar resources. NASA and
Part One-144
THE BUDGET FOR FISCAL YEAR 1993
other participating agencies will continue ar-
expendable launch vehicles with a broad
chitecture and mission studies focused on
range of payload capabilities. Many of the
longer-term options for both robotic and
latter are now operated on a commercial
manned exploration of the Moon and Mars.
basis for use by both the government and
Technology for Exploration-Some future
private customers.
robotic exploration missions are feasible using
The budget proposes $5.4 billion, an increase
technology that is already available. However,
of 2 percent, for civil space transportation.
more ambitious missions-particularly manned
The strategy reflected in the budget is founded
exploration of the Moon and Mars-will re-
on three underlying principles: (1) enhance
quire significant improvements and break-
the Space Shuttle's efficiency and schedule
throughs in space transportation and other
predictability while increasing the reliability
areas. Advancing U.S. capabilities in these
and lifetime of the existing fleet; (2) develop
areas will likely require many years of focused
a new launch system to offer operational
research and engineering, so coherent long-
improvements over existing vehicles and to
term technology development efforts should be
reduce the long-term burden on the Shuttle;
implemented as future needs are identified.
and (3) encourage the commercial space sector
Some priorities for exploration-related tech-
to provide goods and services that will increase
nologies have already been identified by NASA
access to space for all sectors.
and the Synthesis Group, which produced
New Launch System.-All sectors of the
a comprehensive report on the Space Explo-
U.S. space program, including scientific, explo-
ration Initiative. The budget proposes $67
ration, national security, and commercial ap-
million to address many of these established
plications, would benefit greatly from reduc-
priorities, particularly "long pole" technologies
tions in launch system operating costs and im-
required to make key exploration missions
provements in reliability, responsiveness, and
feasible, or to significantly reduce their cost.
mission performance. To this end, the budget
One such area is nuclear propulsion, which
proposes $250 million, nearly a three-fold in-
offers shorter travel times and more payload
crease, for the joint NASA/Department of De-
mass compared to conventional propulsion
fense program to develop a new launch system
technologies. Technologies and mission appli-
with several configurations, including a heavy
cations for nuclear propulsion will be ad-
lift capability. The Advisory Committee on the
dressed by both NASA and the Department
Future of the U.S. Space Program rec-
of Energy (DOE) in 1993. In addition, NASA
ommended developing this capability to take
will continue technology development for ad-
pressure off the Space Shuttle and to enable
vanced chemical propulsion, life support and
new types of future space missions. In addi-
radiation protection. The budget proposes a
tion, developing this new family of vehicles
total of $45 million in funding by Energy
will strengthen the technical base for improve-
and NASA for space nuclear reactor power
ments in commercial launch vehicles. The first
system technology (specific allocation of this
launch of this new system is planned for 2002.
funding will be made in the Spring of 1992
Funding for common program elements will be
after a reassessment of potential applications
shared between NASA and DOD on a 50:50
and technology alternatives).
basis. Planned 1993 activities focus on contin-
ued development of a new liquid-fueled rocket
engine for the vehicle. Vehicle design studies
IMPROVING ACCESS TO SPACE
will also continue. During 1992, Defense and
NASA will initiate a review of the NLS pro-
Space transportation is the foundation for
gram plan to identify opportunities to reduce
all U.S. space activities because space missions
the total cost of the program.
require launch vehicles to get off the ground.
Consequently, the Nation's space transpor-
Space Shuttle-The budget proposes $4.9
tation capabilities must be adequate to meet
billion, a decrease of 2 percent, for the Space
both near-term and long-term national needs.
Shuttle, including operations. The Shuttle will
At present, the U.S. has one manned launch
continue to be important to the civil space pro-
system, the Space Shuttle, and a fleet of
gram through at least the next decade because
6. ENHANCING R&D AND EXPANDING THE HUMAN FRONTIER
Part One-145
Table 6-19. THE BUDGET INCLUDES FUNDING FOR 8 SHUTTLE FLIGHTS
AND INVESTMENTS TO IMPROVE THE NATION'S ACCESS TO SPACE
(Dollar amounts in millions)
Budget Authority
Dollar
Percent
1989
1992
1993
Change:
Change:
Actual
Enacted
Proposed
1992 to
1992 to
1993
1993
New Launch System
-
93
250
+157
+169%
NASA
-
38
125
+87
+229%
DOD
-
55
125
+70
+127%
Space Shuttle
4,342
4,965
4,867
-98
-2%
Space Shuttle production and operations
3,549
3,851
3,989
+138
+4%
Advanced Solid Rocket Motor
51
315
-
-315
-100%
Assured Shuttle Availability
68
105
139
+34
+32%
Space transportation capability development
674
694
739
+45
+6%
Expendable launch vehicle (ELV) services
67
195
218
+23
+12%
Commercial Programs
2
59
77
+18
+31%
SpaceHab
-
39
51
+12
+31%
Commercial Experiment Transporter (COMET)
-
18
22
+4
+22%
Other
2
2
4
+2
+100%
Total
4,411
5,312
5,412
+100
+2%
of its unique abilities to retrieve satellites,
while continuing the program's strong commit-
carry people and material to build the Space
ment to safety and mission success. Cost
Station, and serve as a short-term orbiting lab-
reduction targets of 3 percent per year,
oratory for scientific research. However, the
resulting in a 15 percent reduction by 1996,
budget also recognizes that the Shuttle system
have been established to improve the effi-
has proven to be very expensive and complex
ciency, and thus reduce the cost, of Shuttle
to operate, and that development of new
operations, without compromising flight safety
launch systems will be needed to meet long-
or the Shuttle manifest.
term U.S. needs.
Termination of the development of the
Because the Shuttle is a precious resource
Advanced Solid Rocket Motor (ASRM) program
that should be conserved, its use will be
as well as the construction of its production
limited to payloads requiring manned presence
facility is proposed. The ASRM project rep-
or other unique capabilities. The planned
resents major funding requirements, nearly
flight rate has been reduced to 8 missions
$500 million in 1993, over $400 million
per year through 1996, a level that is both
in 1994, with a total of $2.5 billion to
realistic and prudent. The budget also pro-
reach flight status. Unlike other projects
poses $139 million, an increase of 32 percent,
competing for these scarce budget resources,
for the Assured Shuttle Availability (ASA)
alternatives exist to offset the loss of the
program. ASA projects are intended to prevent
ASRM capability. The Redesigned Solid Rocket
component obsolescence and extend the useful
Motor (RSRM), which entered service after
life of the current fleet of orbiters. Taken
the ASRM was initiated, has already flown
together, these measures will reduce the
successfully in 20 Shuttle missions, with
long-term risk exposure of continued use
no safety or reliability problems. The impact
of the Shuttle system.
on the Space Station Freedom program can
be compensated for by adding several Shuttle
Several measures are proposed that will
flights using the current RSRM. It is estimated
reduce the Shuttle's funding requirements
that two additional assembly flights plus
Part One-146
THE BUDGET FOR FISCAL YEAR 1993
one additional utilization flight would be
Production of additional Shuttle orbiters
required to achieve the Permanently Manned
is not planned. However, production of spare
Capability milestone, which would slip 9
parts will continue in the near term to
months (from early 2000 to late 2000).
support the existing Shuttle fleet and to
In recent years the President has requested
help preserve an option to acquire a replace-
significant increases for NASA, including fund-
ment orbiter in the event of orbiter loss
ing for the ASRM program. Congress has
or other demonstrable need.
been unable to fund fully these requests.
Commercial Space.-In the National Space
In the Senate and Conference Reports accom-
Policy and its implementing guidelines, the
panying NASA's 1992 appropriations, Congress
commercial sector is encouraged to provide
directed that increases in the NASA budget
goods and services that will improve access
be limited to 3-5 percent in 1993. ASRM
to space for all sectors. A result of this policy
has been recommended for cancellation, in
part, to accomodate the Congressionally-im-
is that NASA and other agencies are increas-
posed cap. If a higher budget allocation
ing their use of commercial launch services.
were to be provided for NASA in 1993
A noteworthy milestone in late 1992 will be
by the Appropriations Committees, the Admin-
the first launch of the Commercial Experiment
istration would be prepared to work with
Transporter (COMET), which is being procured
the Congress toward the possibility of contin-
through the NASA-sponsored Commercial Cen-
ued support for ASRM.
ters for the Development of Space.
When the ASRM was proposed for develop-
Another important planned milestone in
ment four years ago in the 1989 budget
1993 is NASA's first use of SpaceHab, a
to Congress, its first use was planned for
commercially-developed, reusable module that
early to mid-1994, and the estimated cost
will enable the Space Shuttle to carry more
up to first use was $1.9 billion. According
experiments. NASA has contracted to use
to the most recent plans, first use of ASRM
part of this module for multiple missions,
would occur no earlier than February 1997,
and its developer is marketing the remaining
and estimated cost up to first use including
capacity to commercial customers.
prior year funds would be $3.4 billion. Thus,
The commercial sector can also benefit
ASRM would be available three years later
than originally proposed, at 80 percent higher
from launch technology activities that are
cost.
planned by NASA and DOD for 1993. While
planned technology work is focused on meeting
It should also be noted that when develop-
future needs and objectives identified by
ment funding for the ASRM was proposed
government agencies (e.g., increasing the cost-
four years ago, 14 Shuttle missions per
effectiveness of space launch systems), some
year were planned after the ASRM entered
results of this work will also be applicable
service. The projected Shuttle flight rate
to commercially-operated systems. In addition,
in the late 1990's has since fallen to 9
development of new launch vehicles (such
missions per year. Thus, while it was origi-
as the new launch system being built by
nally thought that more than 70 Shuttle
NASA and DOD) for the government may
missions in the 1990s would use ASRMs,
fewer than 30 would do so now if the
provide new opportunities for commercial oper-
ators in the long term.
program were continued.