America, We Have a ProblemAddressing US competitiveness through basic research investment

A Presentation to The Blue Dog CoalitionUnited States House of Representatives

2

USACM

Task Force on the Future of American Innovation

3

Big Changes in Global Competitive Landscape

191 countriesin the world

15131 9

InOn trackOut2008

Source: WTO

GATT

WTO

Today

WTO Members

WTO Observers

96128

151

31

1989 1995 2008

} Over 95%

Market Economies The Internet

4

The Innovation Economy

ArticlesPatents

Research Investment

Need to capitalize on new product before it becomes a commodity and is outsourced.

Scientists/Engineers

5

Example: the role of basic research in the iPod . . .

6

Input for Knowledge Base: Research Investment

7

US performance in STEM below our competitors

8

How should the US respond? -- Compete through Innovation

NASULGC

Broad Consensus – multiple reports

9

Recommendations to Legislation

• Ensign / Lieberman & Alexander / Bingaman legislation (2005-06)

• Rep. Pelosi’s Democratic Innovation Agenda (Nov. 2005)

• President Bush’s American Competitiveness Initiative (Feb. 2006)

• The America COMPETES Act (August 2007)

10

Increase Request vs. Appropriated

454

105 300

49

917

365 504

480

200

400

600

800

1000

1200

1400

Total NSF DOE NIST Total NSF DOE NIST

FY2007 FY2008

Actual Requested

($ m

illio

ns)

11

What happened in 2008? A partial list . . .

• Layoffs for 625 scientists, students, technicians and staff at national labs and universities

• An additional 760 Ph.D.s and graduate students not hired at labs or supported in universities

• No funding for 700 peer-reviewed energy research grants

• 230 fewer graduate research fellowships

• 1,000 fewer basic research projects

• Cuts supercomputing, nanotech and climate change programs

• 300 new scientists and engineers will not be hired

• Eliminates work on advanced nanotech tools for materials, healthcare, electronics, chemical and aerospace industries

• Cuts computing research needed by national defense and financial services communities

source: DOE, NSF, NIST

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These are important issues in Kansas

Rep. Dennis Moore (KS-3), Blue Dog Co-Chair for Policy

Economic Development Strategy of Kansas calls for: Research in alternative energy sources and technologies Joint industry-institution research incentives Federal funding for strategic research like that at U. of Kansas Using technology assets available through regional, national and global

networks Aerospace research and training Agriculture research in genetic engineering, environmental solutions and

conservation technologies Bioscience research and start-up assistance STEM skills and entrepreneurial/innovation training for service professions

www.kansasinc.org/pubs/working/2007StrategicPlanExSumm.pdf

Kansas

University of Kansas – Wichita State University – Kansas State University

13

Perspective

FY08 Shortfall,

918

FY09 Total Innov

Budget, 12,214

Stimulus Bill, 168,000

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

Comparing Cost of Stimulus Bill vs.Competitiveness funding

(dollars in millions)

Background Slides

A Presentation to The Blue Dog CoalitionUnited States House of Representatives

15

0 25 50 100 125 150

Automobile

75Years

0

50

100TelephoneElectricity

Radio

Television

VCR

PC

Cellular

Inte

rnet

% G

loba

l Pen

etra

tion

Innovation Cycles Faster – Will USA capture high margin jobs and growth?

16

Industry investment in Research and Development

17

Input for Knowledge Base: Undergrad and Grad Degrees

18

Measures of Knowledge Base Output