# Presentation: 505050

## Economic Development Summit 2000

- Joseph Bordogna
- National Science Foundation
- http:// www.nsf.gov/bordogna

**February 14, 2000**
**Washington, D.C.**

**Economic Development Summit 2000**

**Notes:**
1
Thanks to:  Art Drell for inviting.  Met through AURRP.

NSF -- at an economic development summit??
Would not have been expected so long ago.

I’m very glad to be here.  

Hope it’s the first of many interactions.

## Something special has happened to the American economy in recent years.  

- . . .a remarkable run of economic growth that appears to have its roots in ongoing advances in technology.

*Alan Greenspan*
*June 14, 1999*
*Joint Economic Committee*

**Notes:**
2
Close:
Record setting request.
Driver  was economic. 
Greenspan helped wake up Washington (and the nation) to the importance of S&T.

That’s why it makes sense for NSF to be part of an economic development summit.  We hope we continue to be part of them for many years to come.

## The Process of Creative Destruction

- 	Business leaders usually visualize a market economy in the context of how capitalism administers existing structures, whereas the wiser approach is to understand how it creates and destroys them.

**Paraphrased from J. Schumpeter**
***Capitalism, Socialism, and Democracy***
**Chapter VII, page 84**

## 	“I never predict.  I just look out the window and see what’s visible -- but not yet seen.”

- 	**“****I never predict.  I just look out the window and see what’s visible -- but not yet seen.”**
- 			Peter Drucker
- 			Forbes Magazine
- 			March 10, 1997

**Notes:**
4
Now we are ready to begin looking ahead – to the NSF of the next 50 years.

This look to the future will follow Peter Drucker’s approach to making predictions.  In an interview some years back with Forbes magazine, he was asked about his reputation as a futurist and forecaster.

He quickly corrected his questioner:

“I never predict.  I just look out the window and see what’s visible -- but not yet seen.”

When we’re trying to imagine the NSF of the next 50 years, the best place to start is with what is visible today.

## Innovation System

- Concurrent Integration

**Innovation**
**Wealth Creation**
**Sustainable Development**

**Analysis**
**Reduction**

**Discovery of**
**  ****New Knowledge**
**  ****& Basic Laws**

**Societal Needs **
**The Public Good **
**Natural Capital**

**Devices **
**Processes**
**Systems**

**Ideas**
**Information**

**Capital Formation **
**& Investment**

**Synthesis**
**Integration**

**Design**
**Manufacture**
**Maintenance**

**Science**

**Policy Context**

**Engineering**

**Economic Context**

## New Capabilities

- Terascale
- Nanoscale
- Complexity

**Notes:**
6
Let me bring the initiatives together.
Tera – you may have heard that NSF will be investing in a new terascale computing system for use by academic researchers.  The solicitation was just posted on our web site in December.
This will take us three orders of magnitude beyond present general purpose and generally accessible computing capabilities.
We have also been examining ways to enhance our investment in nano-scale science and engineering.  This will take us three orders of magnitude smaller than any human-made devices today.
Finally, we know that complexity is a defining characteristic of many systems.  You may have heard about our initiative in biocomplexity.
Together, these advances will lay out the capacity for an integrated design field that is far beyond what is imaginable with today’s technology.  
We’ll be able to handle both complexity and the human-machine interface in ways that are friendlier and universally-useable.  That in turn will enable complete connectivity among all people.

## The NSF Vision

*	**Enabling the Nation’s future through discovery, learning, and innovation...*

**Notes:**
7
That brings us to the present day.  This is the vision statement we’ve drafted for the new NSF strategic plan.

“Enabling the nation’s future through discovery, learning, and innovation.”

By design, this vision captures the dynamism that has shaped NSF’s history.  It’s no accident that terms like discovery, learning, and innovation are all resting side-by-side in the same set of words. 

## NSF’s Strategic Goals

- People - *A diverse, internationally competitive and globally-engaged workforce*
- Tools - *Accessible, state-of-the-art information bases and shared tools*

**NSF’s Strategic Goals**

**Notes:**
8
The three goals outlined in the plan also highlight this historical dynamic.
They are summed up by three key words: People, Ideas, and Tools.

We continually help break new ground through the research and education we support, but we can’t let the new knowledge generated lie fallow.

NSF is as much about preparing a world-class workforce as it is about discovery.  That’s a primary benefit from our support of academic research... and that’s been the intent for NSF since its start.

And the tools -- the research platforms, telescopes, databases, and user facilities -- open up the new vistas and frontiers for learning and discovery.

## National R&D Funding by Source:  1953 - 1999

**National R&D Funding by Source:  1953 - 1999**

**Notes:**
9
Why is this investment needed?
We can start with the latest data for National R&D spending.  The recent trend continues: total dollars are up, but the Federal share is down.  
Total national R&D funding has never been higher.  It now amounts to more than $240 billion.
But, its character has changed:
Private sector investment is increasing and is increasingly product focused.
Federal sector investment is decreasing as a share of the total -- and investments in research at the frontier are waning.
Both are increasingly more development than research.
In 1999, the federal government provided only 27 percent of all R&D funds in the US.
That’s the lowest level since we started collecting the data!  
A decade ago, the federal share was 46 percent.
Three decades ago, the federal share was 60 percent.

## Science/Technology Linkage 

**Academe**
**52.1%**

**Govt. Labs**
**10.2%**

**Non-profit**
**11%**

**Industry**
**26.7%**

- Source: National Science Board,
*Industry Trends in Research Support and Links to Public Research.*

- Patents granted in the US patent system are increasingly linked to public research.
- Two-thirds of the cited papers were published by organizations primarily supported by public funding.

**Sources of papers cited**
**on U.S. Patents**

**Notes:**
10
Here’s the paradox:  while federal investment in research wanes, industry is increasingly dependent on publicly supported research at the frontier.
You may be familiar with the now-famous study by Dr. Francis Narin and his colleagues at CHI Research.  It was featured in the National Science Board’s 1998 Report on industry links to publicly funded research.
The study demonstrates the linkage between patents granted in the U.S. system and frontier research published in archival journals.
Where does the knowledge that drives innovation come from?  It comes predominately from publicly-supported research.
Nearly two-thirds of the papers referenced on patents were published by organizations primarily supported by public funding.

## Patent Citations to S&T LiteratureUp 10-fold since ‘88, doubled since ‘96

- Source: NSF/SRS

**Notes:**
11
Even more important is that the rate of these links is increasing dramatically.

The latest data showed that over 100,000 citations on U.S. patents issued in 1998 referred to scientific and technical articles.

That is a ten-fold increase since 1988.
It has doubled in just the past two years.

One clear implication: industry is increasingly dependent on academic research and other publicly-supported research.

## Innovation Partnerships

- “...promote and support increased collaborations among universities and between universities and federal, state and regional organizations and the private sector.”

**Notes:**
12
These trends reinforce a point that has become clear beyond doubt: all of our institutions – in government, in private industry, and in academe – have a shared stake in today’s economy.
Let me mention a still-forming activity at NSF -- Innovation Partnerships.
During the past 30 years, NSF has stimulated and participated in partnerships with academe, industry, other federal agencies, state and local governments and other sectors.
We now have a unique opportunity to stimulate a national system of  Innovation Partnerships.  These would be enabled by strategic alliances among and between universities and colleges, state and regional organizations, state governments and the private sector.
The Congress has given us strong encouragement to pursue this, and we are now exploring the best ways to establish it.

MENTION: MARCH 10 Workshop -- invite participation.

## Innovation Partnerships:The Building Blocks

_**Activity**_

_**Program**_

- State Research
- and Education
- Development

- Industry R&D

- University
- Partnerships

- National R&D
- Centers

- Experimental Program to Stimulate Competitive Research (EPSCoR)
- Rural Systemic Initiatives (RSI)
- State Systemic Initiatives (SSI)

- Grant Opportunities for Academic Liaison with Industry (GOALI)
- Industry/University Cooperative Research Centers (IUCRC)
- Small Business Innovation Research (SBIR)
- Small Business Technology Transfer (STTR)
- Innovation and Organizational Change (IOC)

- Advanced Networking Infrastructure (ANI)
- Centers for Research Excellence in Science and Technology (CREST)
- Partnerships for Advanced Scientific Computing (PACI)

- Engineering Research Centers (ERC)
- Long-Term Ecological Research Sites (LTER)
- Material Research Science and Engineering Centers (MRSEC)
- Science and Technology Centers (STC)

**Notes:**
13
This slide shows a representative sample of programs that fit within this framework.  It’s meant to be hard to read, because the list is a long one.
It’s an alphabet soup of acronyms.
Some are familiar, like SBIR.  Some may seem new to this kind of list -- like our networking infrastructure activities, our long-term ecological research sites, and our program in Innovation and Organizational Change.  
All have state-fed connections and are, more or less, drivers of innovation.
Successful partnerships rest on trust among the partners.  Partnerships also rely on the diversity of contributions that the participants bring to the table.  A partnership of government and industry will move differently than a partnership of government and academe.  When you include all three, you have different goals and outcomes.
We know this won’t be easy – but we know it is a must, if NSF is to continue to thrive in it’s next 50 years.

## NSF Budget RequestBy Initiative

- Info. Technology

- Biocomp. in the Env.

- $126

- $74

- $97

- $50

- $327

- $157

- $217

- $136

- 159%

- 112%

- 123%

- 172%

*Millions of Dollars*

**FY 2000**
**Plan**

**FY 2001**
**Request**

**Percent**
**Change**

- 21st Cent. Workforce

- Nanoscale S&E

**Notes:**
14
Information Technology Research (ITR) - NSF will lead a multi-agency effort in ITR, investing $327 million in broad areas of research and education, focused on computer system architecture, information storage and retrieval, scalable networks, and connectivity, as well as studies of the impact of information technology on society. 

     Biocomplexity in the Environment (BE) - Totaling $136 million, investment for BE in 2001 is more than two-and-a-half times the commitment in year 2000. The enhanced BE initiative will bring together interdisciplinary teams of scientists in an intensified effort to understand dynamic interactions within biological systems and the physical environment.

     21st Century Workforce - The almost $157 million NSF plans in 2001 is more than double its year 2000 investment. Programs such as Centers for Learning and Teaching will address the needs of the American workforce and its transition into a more technology-based, information and knowledge-based workplace. Increased emphasis on Graduate Teaching Fellowships will place many more graduate and undergraduate students into K-12 classrooms as teaching resources. A $10-million initiative for tribal colleges will encourage Native Americans to pursue fields of study in information technology and other     scientific areas.

    Nanoscale science and engineering - NSF will invest more than $216 million in the multi-agency National Nanotechnology Initiative as the lead agency. NSF's research will include work in nanoscale biosystems, structures and quantum control, device and system architecture, processes in the environment and simulations. Interdisciplinary research and education teams will also initiate long-term work in nanostructured materials, manufacturing, electronics, magnetics and health care. The money will support new centers and networks of excellence, research instrumentation and facilities and student felllowships, traineeships and curriculum development.