Deputy Secre t a ry Robert L. Mallett

travelled to Arizona to keynote the

last in a series of regional IT town

meetings sponsored by the Office of

Technology Policy. Our host and cosponsor was the Business and

I n d u s t ry Institute at Mesa

Community College.

A c c o rding to Commerc e ’s own

Census Bureau, Mesa, Arizona, part

of Maricopa County saw higher

business and employee growth than

any other county between 1995 and

1996. Over 3,000 new businesses

w e re started and the county added

over 77,000 employees, so it was a

good audience with which to

a d d ress IT work force development.

Mallett told the 200 attendees that he

came to Arizona to “talk about a critical issue facing many communities

a c ross this nation and that is the

Office of Technology Policy ■ U.S. Department of Commerce

1

IN THIS ISSUE

1998 National Medal

of Te c h n o l o g y

R e c i p i e n t s

Page 1-6

The 21st Century

E c o n o m y

Page 7

Gila River Indian

C o m m u n i t y

Page 9

i n f o rmation technology worker

s h o rtage. We know that no community can prosper without a competitive business base.” Keeping a supply

of educated and skilled workers in

the eduction pipeline and part n e r i n g

with industry are cru c i a l .

Technology is critical to economic

g rowth. Leading economists identify

technical pro g ress as a major, if not

the single most important factor, in

sustained economic gro w t h ,

accounting for as much as one-half

of our economic growth in the past

50 years... Investment in inform ation technology now re p resents over

45 percent of all business equipment, far outstripping other capital

i n v e s t m e n t . ”

P a rticipants debated their communit y ’s priorities and needs in IT. Said

Arizona Town Hall Meeting

PA C E S E T T E R

News From the Office of Technology Policy ■ Spring 1999

■ "What is at stake in meeting [the IT work force] demand, to be completely candid, is nothing less than the competitiveness of our country in the 21st century." – Robert L. Mallett

This year’s medalists include one of

the world’s most esteemed heart surgeons; a team of computer scientists

who helped lay the foundation for

the Information Age; a team of engineers who pioneered the field

of biogenetic agriculture ;

and two innovative biomedical companies. The

winners of the Medal--

the nation’s most pre s t igious award for technological innovation--were

announced by President Clinton at

the White House in December 1998.

Praising the Medalists, the Pre s i d e n t

said, “These extraord i n a ry scientists

and engineers have applied their crea t i v i t y, resolve, and restless spirit of

innovation to ensure continued U.S.

leadership across the frontiers of scientific knowledge.”

The 1998 National Medal of

Technology Winners are :

■ Denton A. Cooley P resident and

S u rgeon-in-Chief, Texas Heart

I n s t i t u t e

Brief Biography: Nearly thirty years

ago Dr. Cooley perf o rmed the first

successful human heart transplant in

the United States. In 1969, he

became the first surgeon in the world

to implant an artificial heart in man

as a bridge to heart transplantation.

Back in 1962, Dr. Cooley had an

idea that changed the process by

which surgeons perf o rm heart surg e ry.

He began to use glucose rather than

continued on page 2

continued on page 2

1998 National 

Medal of Te c h n o l o g y

R e c i p i e n t s
2

PA C E S E T T E R ■ Office of Technology Policy Spring 1999

ARIZONA TOWN

M E E T I N G

one attendee. “We need an

i n d u s t ry stru c t u re model that

we can all adhere to so we can

go back to K-12 and say, ‘Here ’s

the job skills that the industry

re q u i res, here ’s the job skills that

people in the marketplace

re q u i re.’ We don’t have that in place

and until we do, I don’t care what

p rocess or what initiatives we have

in this country, we will not succeed.”

But another member of the audience challenged this idea by noting

the rapid change of technology. The

skill set a student needs when starting school will not be the skill set

needed by the time he or she graduates, he noted.

Arizona Town Hall Meeting from page 1 Following the opening plenary sessions, break out sessions bro u g h t

together regional leaders to discuss

key issues facing the local IT indust ry. The first panel included Deputy

Assistant Secre t a ry, Kelly Carnes and

local CEOs. The second panel

included re p resentatives from the

State Department of Commerce as

well as local businesses and educational institutions.

Other conference sponsors included: Arizona Software Association,

Mesa Community College, ARIZONA MESA, American Electro n i c s

Association, and Inform a t i o n

Technology Associates of Southern

Arizona. ■

In 1994 3 million

people used the

Internet. By the

end of 1999, it 

is expected 200

million people 

will be surfing 

the We b .

blood to prime the heart - l u n g

machine, which oxygenated and circ ulated blood throughout the body while

the heart was being re p a i re d .

The process worked, and as a

result, surgeons were able to

c o n s e rve blood and patients

who did not need transfusions

w e re spared exposure to possible contaminants. With less

demand for blood, more operations could be perf o rm e d .

Denton Cooley began re p a i r i n g

h e a rt defects over five decades

ago. It is because of Dr. Cooley

that many of the pro c e d u res and

devices commonly employed in open

h e a rt surg e ry are used today. His innovations have resulted in new surg i c a l

techniques to correct previously inoperable conditions. He developed new

p rosthetic devices and equipment that

save lives and aid the practice of cardiovascular s u rg e ry.

P e rhaps Cooley’s most significant

contribution was his founding of the

Texas Heart Institute in 1962 at the

Houston Texas Medical Center. As

P resident and Surg e o n - i n - C h i e f ,

Cooley and his associates have perf o rmed over 93,000 open heart operations at the Texas Heart Institute saving and extending the lives of thousands of patients. Over the past 35

years, the Institute has become the

w o r l d - renowned leader in re s e a rc h

and education for the study, pre v e ntion, and treatment of diseases of the

h e a rt and blood vessels.

Because of Cooley’s leadership, the

Institute is known not only for its

re s e a rch and quality patient care, but

also for its active educational programs, which produce qualified specialists in cardiovascular medicine.

Cooley contributed to the development of techniques for repair and

replacement of diseased heart valves,

including designing the CooleyCutter valve. He also designed or

developed approximately 200 surg ical products, and disposable surg i c a l

supplies. Cooley is widely known

for operations to correct congenital

h e a rt anomalies in infants and child ren, saving the lives of thousands

of childre n .

A native Houstonian, Cooley graduated from the University of Te x a s

with highest honors and received his

M.D. from the John Hopkins

University School of Medicine. A

lifetime of achievement is re f l e c t e d

in over 80 honors and awards. In

celebration of his 50th anniversary

in medicine, his granddaughter

Sarah Cooley Walker wrote: “As the

oldest of your [16] grandchildren, I

write for all of us [when I say] we

feel your most admirable achievement is how you have maintained

balance between your work and

your family. Considering our numb e r, it is no small achievement to

stay involved in all our activities:

attending baseball, hockey, basketball, and football games; theater perf o rmances; and confirmations; to

name a few. We recognize your dedication to staying involved in our

lives. Even the babies feel it when

they bounce on your knees.”

C i t a t i o n : For his inspirational skill,

leadership, and technical accomplishments during six decades of

practicing cardiovascular surg e ry,

including having perf o rmed the first

successful human heart transplant in

the United States and the world’s first

implantation of an artificial heart in

man as a bridge to heart transplantation, and for founding the Te x a s

H e a rt Institute, which has serv e d

m o re heart patients than any other

institution in the world.

■ Monsanto Te a m

R o b e rt T. Fraley,

C o - P resident, Agriculture Sector

R o b e rt B. Horsch,

C o - P resident, Sustainable

Development Sector and General

M a n a g e r, Agracetus Research Campus

E rnest G. Jaworski,

D i rector (ret.), Biological Sciences

P ro g r a m

Medal Winners from page 1

■ Denton A. Cooley, M.D.

continued on page 3
3

Spring 1999 PA C E S E T T E R ■ Office of Technology Policy

N AT I O N A L

M E D A L I S T S

Stephen G. Rogers,

D i re c t o r, Biotechnology Pro j e c t s ,

E u rope, Monsanto European Center

for Crop Researc h

Brief Biography: This team has

changed the face of agriculture by

engineering superior plants resistant to

pests, weeds, disease and herbicides

that help farmers increase crop yield.

Since World War II, and until re c e n tl y, the U.S. has relied heavily on

c h e m i s t ry to address agriculture ’s

p roblems, and most re s e a rch and

development programs have focused

on discovering and developing the

next blockbuster herbicide, insecticide, or fungicide. But at Monsanto,

E rnest Jaworski has been studying

the advances being made in molecular biology and exploring how this

science could be applied to agricult u re. In 1980, Jaworski re c ru i t e d

Stephen Rogers, Robert Fraley, and

R o b e rt Horsch, and charged them

with the mission of establishing a

l i b r a ry of state-of-the-art technologies

for the genetic engineering of plants

and developing fundamental knowledge that would lead to new business opportunities in agriculture .

Within two years, the team successfully developed a method for genetically engineering a plant cell with a

newly introduced gene. This achievement was followed rapidly by the

invention of methods to re g e n e r a t e

whole plants that passed the engin e e red gene through seeds to future

generations of the crop. By 1987, a set

of historic field tests were conducted

on plants with tolerance to insects,

v i rus, or Roundup® herbicide.

To d a y, agricultural biotechnology is

one of the cornerstones of the newly

re o rganized Monsanto Company.

M o re than 1,000 high-skill and highpaying jobs support the rapidly

g rowing number and volume of new

p roducts of biotechnology. This part

of Monsanto’s business has gro w n

f rom utilizing about 4 million acre s

in 1996, to over 43 million acres in

1998. Monsanto has launched nine

major commercial products in the

past two years, helping growers to

i n c rease crop yields and farm income

by providing superior pro t e c t i o n

against insects and weeds.

Outside Monsanto, the team’s commitment to sharing its knowledge

with academic institutions and gove rnment laboratories has significantly

advanced the science of plant biology

and the industry of plant biotechnolo g y. The team’s methods in gene

e x p ression and gene transfer technology are the dominant methods

used in the field today. Overall, the

t e a m ’s pioneering achievements are

enhancing the sustainability of U.S.

a g r i c u l t u re while providing pro d u c t s

with superior perf o rmance and economical and environmental benefits

to growers, food processors and cons u m e r s .

R o b e rt Fraley, who holds a Ph.D. in

m i c robiology and biochemistry fro m

the University of Illinois, grew up on

a farm in central Illinois. He helped

pay college expenses by working at a

f a c t o ry making cans. Curre n t l y,

Fraley is Co-President of the

A g r i c u l t u re Sector of Monsanto.

R o b e rt Horsche a rned his Ph.D. in

genetics from the University of

C a l i f o rnia, Riverside, where he

helped to support his family during

graduate school by making and selling pottery. He now spends much of

his time restoring native prairie

plants, backpacking, biking, and

c ross country skiing. Horsch is CoP resident, Sustainable Development

Sector and General Manager for the

Agracetus Research Campus of

M o n s a n t o .

E rnest Jaworski received his

Ph.D. in biochemistry fro m

O regon State University,

w h e re his unusual skills as a

glass blower saved his agricultural chemistry depart m e n t

money by allowing them to

reuse the specialized glass

flasks and other laboratory

equipment he re p a i re d .

Jaworski is an avid skier and

an accomplished sailor.

P resently re t i red, he is the

founding director of the

Biological Sciences Program at

M o n s a n t o .

Stephen Rogers received his

Ph.D. in biology from Johns

Hopkins University, and he is

c u rrently the Director for

M o n s a n t o ’s Biotechnology

P rojects, Europe and the

head of its European Center

for Crop Research. He likes

to cook various ethnic

cuisines, hike, do magic

tricks, and travel. During the

last few years, work and

re c reation have taken Rogers

to Iceland, Thailand, China,

Israel, and most of the

E u ropean countries.

In addition to their many

individual honors and

achievements, the members of

the team were jointly honore d

as recipients of Monsanto’s

Thomas & Hochwalt Aw a rd .

C i t a t i o n : For pioneering

achievements in plant biology

and agricultural biotechnology and for global leadership

in the development and comm e rcialization of genetically

modified crops to enhance

agricultural productivity and

s u s t a i n a b i l i t y.

■ Robert T. Fraley

■ Robert B. Horsch

■ Ernest G. Jaworski

continued on page 4

Medal Winners from page 2

■ Stephen G. Rogers
■ Lucent Technologies, 

Bell Laboratories Te a m

Kenneth L. Thompson,

Distinguished Member, Te c h n i c a l

S t a ff and Bell Labs Fellow

Dennis M. Ritchie,

Head, Systems Software Researc h

D e p a rt m e n t

Brief Biography: It would be hard to

claim that any one person or team

u s h e red in the Information Age. But

it would be easy to question whether

this country would have obtained

the world leadership we now enjoy

had it not been for the enorm o u s

contributions from the two winners

f rom Lucent Technologies, Bell Labs.

The astounding pro g ress of computer hard w a re, software, and networks

during the past quarter century has provided the basis of

the Information Age, benefiting hundreds of millions of

people around the world and

p ropelling the United States

into an undisputed leadership

position. Much of this

p ro g ress can be traced to two

fundamental innovations--the

Unix operating system and

the C programming language-

-both created by Kenneth L.

Thompson and Dennis M.

Ritchie of Lucent

Technologies’ Bell

Laboratories, pioneers of computer science, engineering and

t e c h n o l o g y.

B e f o re Unix, operating systems were large, vendor- s p ecific, and designed to cope

with particular features of a

given machine. Unix was the

first portable operating system, usable almost without

change across the span of hard w a re

f rom the smallest laptops to supercomputers. More import a n t l y, Unix

4

PA C E S E T T E R ■ Office of Technology Policy Spring 1999

N AT I O N A L

M E D A L I S T S

embodied visionary ideas--deliberate

generality and openness--that today

a re fundamental to the explosive

g rowth of information technology.

The successes of Unix are intert w i n e d

with C, the first general-purpose programming language to combine the

e fficiency of assembly language with

high-level abstract expre s s i v e n e s s .

Like Unix, C programs can move

essentially without change fro m

machine to machine, removing the

need for expensive, erro r- p rone softw a re rewrites. Thus C remains the

b e d rock upon which most systemlevel software is built, and its influence continues to spread through its

descendants C++ and Java.

The pervasiveness and impact of

Unix and C cannot be overstated.

Unix is the operating system of most

l a rge Internet servers, businesses,

and universities. Most commerc i a l

s o f t w a re is written in C, C++, or

Java. A major part of academic and

industrial re s e a rch in operating systems is based on Unix. The principles underlying Unix and C consistently have inspired applications and

extensions undreamed of in the early

days of computing.

Although the two inventors’ contributions are visible in every aspect of

Unix and C, it was Thompson who

first set out to build a better computing environment, and Ritchie who

initiated the design of a better programming language. The two

worked together on the design and

implementation of Unix for several

years, and C grew out of an earlier

language, B, which was written by

Thompson. In essence, Ritchie and

Thompson worked so closely together during the development of C and

Unix that it is not possible to separate their individual contributions

c l e a n l y. It was precisely their combined talents that made their re m a r kable achievements possible.

Kenneth Thompson received an

M.S. in electrical engineering fro m

the University of California, Berkeley.

He is a Distinguished Member of the

Technical Staff in the Computing

Sciences Research Center at Bell

Laboratories, Lucent Te c h n o l o g i e s .

Dennis Ritchie completed a Ph.D.

thesis in applied mathematics at

H a rv a rd University. He is the head of

Systems Software Researc h

D e p a rtment at Bell Laboratories,

Lucent Te c h n o l o g i e s .

Both Ritchie and Thompson are

members of the National Academy of

Engineering, and both are Bell Labs

Fellows. Ritchie is an avid reader of

scientific biographies and of humorous works, and he values dearly the

time he spends at a summer re t re a t

in Pennsylvania with his extended

f a m i l y. Thompson pilots planes and

i n s t ructs students in how to do the

same. In addition to numerous individual honors, the two were jointly

a w a rded the IEEE Richard E.

Hamming Medal, the ACM Tu r i n g

Aw a rd, and the IEEE Emmanuel

P i o re Aw a rd .

C i t a t i o n : For co-inventing the

UnixTM operating system and the C

p rogramming language, which

together have led to enorm o u s

advances in computer hard w a re ,

s o f t w a re, and networking systems,

and have stimulated the growth of an

e n t i re industry, thereby enhancing

American leadership in the

I n f o rmation Age.

■ Biogen, Inc.

Brief Biography: If you suffer fro m

multiple sclerosis, leukemia, or

hepatitis B, Biogen may be well

known to you. Biogen is a leading

biotechnology company, whose innovative biopharmaceuticals are

enhancing the lives of people who

s u ffer from a variety of diseases.

Medal Winners from page 3

continued on page 5

■ Kenneth L. Thompson

■ Dennis M. Ritchie
5

Spring 1999 PA C E S E T T E R ■ Office of Technology Policy

N AT I O N A L

M E D A L I S T S

Founded in 1978, Biogen, Inc.,

based in Cambridge, Massachusetts,

is one of the leading companies in

the vibrant new industry of biotechnology and biopharmaceuticals. The

company got its start when a gro u p

of internationally acclaimed scientists, including two future Nobel laureates, pooled their talent and

re s o u rces. Today it is the world’s seco n d - l a rgest independent biotechnology company in terms of market

capitalization, and it is one of a

handful of companies in its industry

that successfully has commerc i a l i z e d

their own drugs while re m a i n i n g

independent. Three major pro d u c t s

a re on the global market today as a

d i rect result of Biogen’s eff o rts, and

each serves a large, previously undert reated market. They are :

AVONEX® (Interf e ron beta-1a):

Licensed by the U.S. Food and Dru g

Administration (FDA) in 1996,

AVONEX® is the first drug that

slows both the pro g ression of disability and the frequency of exacerbations in people with relapsing form s

of multiple sclerosis (M.S.). M.S. is a

p ro g ressive, debilitating disease of

the nervous system, and while there

is yet no cure, AVONEX® off e r s

patients the potential to significantly

resist its most disabling eff e c t s .

I n t ron®A alpha interf e ro n is marketed by Biogen’s licensee ScheringPlough Corporation and ranks 55th

among the top 100 prescription dru g s

by worldwide sales. Approved in

1986 for the relatively minor disease

indication of hairy cell leukemia,

I n t ron® A is now marketed in more

than 80 countries for treatment of 16

major disease indications. ScheringPlough is continuing its active development program for this drug with

several clinical trials currently underw a y. Intron® A is used to treat hepatitis B and C, potentially life-thre a t e n i n g

diseases that affect millions of people

t h roughout the world. It also is an

i m p o rtant treatment for AlDS-re l a t e d

K a p o s i ’s sarcoma and several other

c a n c e r s .

Hepatitis B vaccines a re the first vaccines developed using re c o m b i n a n t

DNA technology and the first successful preventives for one of the

w o r l d ’s most common and lifet h reatening diseases. In 1995, hepatitis B vaccine sales exceeded $1 billion annually, the first time a vaccine

has exceeded this important pharm aceutical industry milestone.

Biogen has a number of import a n t

on-going re s e a rch programs, part i c ularly in the areas of inflammatory disease, heart disease, kidney disease,

gene therapy and developmental

b i o l o g y. It is from these pro m i s i n g

new compounds that the second and

t h i rd generation of Biogen pro d u c t s

a re expected to hit the market.

In addition to its re s e a rch eff o rt s ,

Biogen has donated money to nonp rofit health and community-serv i c e

g roups serving the Cambridge/

Boston area and laboratory equipment and supplies to local universities and community colleges.

Looking to the future, Biogen has

been a leader in the Boston Science

C a reers Project, a new pro g r a m

designed to attract qualified minority

students into biomedical care e r s .

C i t a t i o n : For leadership in applying

b re a k t h roughs in biology to the

development of life-saving and lifeenhancing pharmaceutical pro d u c t s

designed to treat large, pre v i o u s l y

u n d e r s e rved patient populations

t h roughout the world, including

development of hepatitis B vaccines,

the first vaccines using re c o m b i n a n t

DNA technology.

■ Bristol-Myers Squibb Company

Brief Biography: Founded 110-years

ago, the Bristol-Myers Squibb

Company today is a diversified health

and personal care company

with 55,000 employees worldwide (including 25,000 in the

U.S.) and $16.7 billion in

annual sales. It produces some

of the world's leading dru g

therapies to control card i o v a scular diseases and to fight canc e r. Bristol-Myers Squibb is a

leader in treatments for infectious disease, including

AIDS/HIV and central nerv o u s

system and dermatologic diso rd e r s .

S p e a rheading the discovery and

development eff o rt at Bristol-Myers

Squibb is the Pharm a c e u t i c a l

R e s e a rch Institute (PRI).

H e a d q u a rt e red in Princeton, N.J.,

PRI has eight major sites in the U.S.

and Europe linked to a network of

smaller facilities and re s e a rch partners worldwide. This collective

investment of talent and re s o u rces is

focused on a growing portfolio of

eleven therapeutic areas: card i o v a scular and metabolic disease, oncolog y, neurosciences, derm a t o l o g y,

immunology and inflammation, antiinfectives (including antibiotics, antifungals and antivirals), uro l o g y, pain

management, and pulmonary disease. Currently there are about 50

d rugs in development in the PRI

p i p e l i n e .

In all, Bristol-Myers Squibb invests

about $1.3 billion annually in pharmaceutical re s e a rch. Results include

m o re than 15, 400 U.S. and fore i g n

patents current or pending, and--

since 1990--an average of nearly

1,000 patents each year granted to

company scientists.

An example of the Bristol-Myers

S q u i b b ’s success, is the story of the

development and marketing of the

c a rdiovascular drug Capoten. In

1975, Capoten became the first dru g

d i s c o v e red through “rational dru g

design.” Pre v i o u s l y, drug discovery

Medal Winners from page 4

continued on page 6

■ James L. Vincent

Chairman, Biogen, Inc.
6

PA C E S E T T E R ■ Office of Technology Policy Spring 1999

N AT I O N A L

M E D A L I S T S

was serendipitous; it was done more

or less through random screening of

compounds in a tedious search for

d rugs with disease-fighting potential.

The discovery of Capoten,

h o w e v e r, was the result of a

novel approach. It was deliberately designed by scientists

to target an enzyme re s p o n s ible for controlling blood pre ss u re. Now targeted dru g

development, or “rational

d rug design,” is widely

employed by industry,

b i o t e c h n o l o g y, and academic

s c i e n t i s t s .

To demonstrate Capoten’s

therapeutic benefits, BristolMyers Squibb undertook a series of

clinical trials involving thousands of

patients over a 15 year period. In the

p rocess, the company re w rote the

clinical textbooks on the optimal

t reatment of patients with card i o v a scular disease--a science that had been

in its infancy. In 1983, Capoten

became the first drug in over a generation to be approved for use in all

stages of heart failure, and in 1994 it

won FDA approval as the first medication found to reduce the neart e rm risk of death and to slow the

p ro g ress of serious kidney disease in

insulin-dependent diabetes patients.

Bristol-Myers Squibb analyzed the

results of 28,000 patients enrolled in

re s e a rch programs sponsored by the

c o m p a n y, and used these extensive

clinical studies as models for the

i n d u s t ry. They were crucial to pro ving the benefits of lowering cholest e rol in extending and enhancing the

lives of patients at-risk.

As a result of Capoten, Pravachol,

and other drug discoveries, BristolMyers Squibb has redefined the science of the clinical study--conducting and sponsoring hugely complex

trials that have involved years of

work, thousands of patients, and

millions of dollars. These innovative

clinical trials have helped to advance

the public’s knowledge and understanding of complex diseases. Some

of these studies (many published in

The New England Journal of Medicine

and known by abbreviated titles like

S AVE, CARE, and Quality of Life)

not only have become industry models but have changed the practice of

m e d i c i n e .

Medal Winners from page 5

■ Charles A. Heimbold, Jr. ,

Chairman and CEO, 

Bristol-Myers Squibb Company

EPSCoT Winners Announced

The Technology Administration has awarded $1.6 million in matching funds

to seven organizations, including universities, state government agencies and

small business development centers, under the Experimental Program to

Stimulate Competitive Technology (E P S C o T) .

EPSCoT is an innovative program that supports the eff o rts of rural states to

p romote technology-based economic growth. The first EPSCoT award winners are :

■ Alabama Department of Economic and Community Affairs for developing 

and implementing technology-based economic development in Alabama.

■ Dakota State University for EPSCoT West, a four-state (SD, ND, MT and 

WY) technology business network.

■ E a s t e rn Maine Development Corporation for the Maine Technology 

C o m m e rcialization Network.

■ Louisiana Board of Regents for accelerating commercialization of universitybased technologies in Louisiana.

■ University of Mississippi for the Mississippi SBIR/STTR Pro j e c t .

■ University of Puerto Rico for improving small businesses’ access to technological expert i s e .

■ Boise State University for the Idaho technology business network.

The funded projects will identify and eliminate barriers to technology transfer,

enhance competitiveness for Federal R&D programs and improve small business’ access to technological expertise. A group of states is collaborating to

knit together a regional network of business services that will accomplish on a

regional basis what is not possible in each state individually.

Developed by the Department of Commerce in partnership with the states,

E P S C o T is a competitive matching grants program that reaches beyond traditional constituencies to assist rural states to participate fully in the New

E c o n o m y. Throughout its first year, E P S C o T has met with overw h e l m i n g

enthusiasm. Eighteen of the nineteen eligible states participated, submitting

25 applications that requested over $9.4 million – almost six times as much

as was appro p r i a t e d . ■

Bristol-Myers Squibb and its employees are the recipients of numero u s

a w a rds and honors for significant

achievement in science, business,

and education.

C i t a t i o n : For extending and enhancing human life through innovative

p h a rmaceutical re s e a rch and development, and for redefining the science of clinical study thro u g h

g ro u n d b reaking and hugely complex

clinical trials that are re c o g n i z e d

models in the industry. ■
7

Spring 1999 PA C E S E T T E R ■ Office of Technology Policy

21ST CENTURY

ECONOMY

Acting Under Secretary Bachula Co-hosts State Federal Dialogue on

the 21st Century Economy with the Science and Technology Council

of the States

The United States Innovation

P a rt n e r s h i p (USIP) agreed to cohost with the Science and

Technology Council of the States

(STCS) a series of roundtable discussions that address the issue of

technology-based economic development from the vantage point of

the states. The first of these meetings with state science and technology stakeholders was held in

Washington, D.C., and featured five

states with strong commitments in

this area of technology-based economic development. The meeting

was chaired jointly by Gary R.

Bachula, Acting Under Secre t a ry for

Technology at the U.S. Depart m e n t

of Commerce and Delbert J. Schuh

II, Chairman, Science and

Technology Council of the States.

USIP is a state-federal part n e r s h i p ,

c reated in June 1997 to establish a

new working relationship between

the states and the federal govern m e n t

which will promote the development

of a national innovation system.

The Role of States in 

Science and Te c h n o l o g y

States play an important role in supp o rting science and technology in

the U.S. In FY 1995, states spent

a p p roximately $3 billion on

re s e a rch and development and

about $500 million on technologybased economic development programs. Many, if not most, state technology-based economic development programs were developed in

response to changes in the state’s

e c o n o m y. These programs originated during times of economic transition, often in a period of crisis.

Common characteristics of state programs include the willingness to take

risks, the involvement of higher education, a focus on new start-up companies, and emphasis on downstre a m

which permit colleges and universities to own technology by hosting

businesses on their pro p e rty for the

purposes of project development.

For more information on OCAST

contact the website:

h t t p : / / w w w. o c a s t . s t a t e . o k . u s .

K a n s a s

L i e u t e n a n t

G o v e rnor Gary

S h e rre r,

S e c re t a ry,

K a n s a s

D e p a rtment of

H o u s i n g

Rich Bendis,

P resident of

the Kansas Technology Enterprise

Corporation (KTEC)

KTEC, was established in 1987 to

stimulate economic development in

the State of Kansas, and is re s p o n s ible for the State Small Business

Innovation Research pro g r a m

(SSBIR). One of four pro g r a m s

which helps small companies compete for federal SBIR awards, SSBIR

is a partnership between federal and

state governments and private

i n d u s t ry which is designed to accelerate commercialization of new

technologies. Under SSBIR, additional funds and support are available to selected small businesses

over and above SBIR funding.

For more information on KTEC contact the website: http://www.ktec.com. 

For information on SSBIR contact:

h t t p : / / w w w. i n f o rm a t i o n re s e a rc h . c o m .

I n d i a n a

Mike Gery, Executive Assistant,

Legislative Affairs, Office of the

G o v e rn o r, State of Indiana

activities; i.e. product development

and commercialization rather than

basic re s e a rch. In addition, state programs are market-driven with stro n g

private sector part i c i p a t i o n .

To d a y, it is common for states to

s u p p o rt interm e d i a ry org a n i z a t i o n s

at the regional or local level to actually deliver services. The ingre d i e n t s

of a successful technology-based

economic development pro g r a m

include the involvement and supp o rt of a strong re s e a rch university,

networking among firms and org anizations, outside discre t i o n a ry

funding, indigenous venture capital,

and a long-term perspective.

State Best Practices

The following states were re p re s e n t e d

at the roundtable meeting and each

had unique best practices to share

with all of the roundtable part i c i p a n t s :

O k l a h o m a

H o w a rd Barn e t t, Secre t a ry of

C o m m e rce, State of Oklahoma.

D r. Carolyn Sales, Dire c t o r,

Oklahoma Center for the

Advancement of Science and

Technology (OCAST)

C reated in 1987, OCAST’s mission

is to foster innovation in existing

and developing businesses by supp o rting basic and applied re s e a rc h ,

facilitating technology transfer

between re s e a rch laboratories and

f i rms and farms, and pro v i d i n g

seed-capital for new innovative

f i rms and their products. OCAST

s p e a rheads the University/Industry

Technology Transfer Initiative

(1998) which established, via the

Technology Transfer Act, university

technology transfer offices and the

Technology Commerc i a l i z a t i o n

C e n t e r. Constitutional amendments

w e re passed, November 1998,

■ Joseph Bordogna,

N S F, Lieutenant

Governor Gary

S h e r r e r, Kansas and

Rich Bendis, KTEC.

continued on page 8

“Networking and

c o m p e t i t i v e

alliances are critical to the success of technology in economic 

d e v e l o p m e n t .

State and the

F e d e r a l

G o v e r n m e n t

must join together to face the

challenges of the

21st century

e c o n o m y. ”

Delbert J. Schuh II
D e l b e rt J. Schuh II, Pre s i d e n t ,

Indiana Business Modernization and

Technology Corporation (BMT)

Established in 1983, BMT is a nonp rofit organization offering business

assistance services and

re s o u rces to

small- and

m e d i u m - s i z e d

Indiana companies to aid

e x p a n s i o n

while cre a t i n g

and re t a i n i n g

high value jobs. Statewide BMT initiatives are in place, each with their

own appointed managers and led

by a task force of industry leaders,

associations and academics, with

responsibility for plastics, medical

device, machine tool users, elect ronics, printing and the automotive industries to help identify common challenges faced by Indiana

c o m p a n i e s .

For more information on BMT contact the website: http://www. b m t a dv a n t a g e . c o m .

U t a h

David Wi n d e r, Executive Dire c t o r,

Utah Department of Community

and Economic Development.

Rod Linton, Dire c t o r, Office of

Technology Development, Utah

D e p a rtment of Community and

Economic Development

The Office of Te c h n o l o g y

Development and the Centers of

Excellence Program were created in

1986. The Utah Centers of

Excellence Program is a state funded grant program which support s

selected re s e a rch programs at Utah’s

universities. Programs are selected

based on leading edge re s e a rc h

activities that have projected comm e rcial value. The primary objective

is to encourage the commerc i a l i z ation of leading edge technologies

t h rough licensing patented technologies and by creating new companies. (126 have already been

e s t a b l i s h e d . )

For more information on Utah’s

O ffice of Technology Development

contact the website:

h t t p : / / w w w. d c e d . s t a t e . u t . u s

P e n n s y l v a n i a

Te rri Kaufman, Dire c t o r, Office of

Science and Te c h n o l o g y,

D e p a rtment of Community and

Economic Development

Inaugurated in the summer of

1996, Technology 21 seeks indust ry input as to what is needed fro m

state government for high-tech

f i rms to succeed in today’s enviro nment. Organized around bro a d l y

defined industry clusters (including

Advanced Manufacturing,

Biotechnology and Inform a t i o n

Technology) members have made

recommendations re g a rding marketing, Technology Communities

and emerging technology part n e rships. To highlight Pennsylvania’s

technology accomplishments,

G o v e rnor Ridge inaugurated the

“21 Days of Technology” in January

1998, during which daily

announcements of technology initiatives and events statewide were

made, including the unveiling of

the 1998-99 budget plan, allocating

$22.9M for state govvern m e n t - w i d e

technology pro j e c t s .

For more information on

Technology 21 contact the website:

h t t p : / / w w w. d c e d . s t a t e . p a . u s

Also in attendance were the following re p resentatives of federal agencies and org a n i z a t i o n s :

Duncan T. Moore, 

Associate Director for Te c h n o l o g y,

White House Office of Science and

Technology Policy; Dr. Joseph

B o rdogna, Acting Deputy Dire c t o r,

National Science Foundation;

Phillip A. Singerman, Assistant

S e c re t a ry, Economic Development

Administration, U.S. Department of

C o m m e rce; Daniel O. Hill, Assistant

A d m i n i s t r a t o r, Office of Te c h n o l o g y,

Small Business Administration;

Fenton Care y, Associate

Administrator for Researc h ,

Technology Analysis, U.S. Dept. of

Tr a n s p o rtation, Ray Kammer,

D i re c t o r, National Institute of

S t a n d a rds and Technology; Kelly

C a rnes, Deputy Assistant Secre t a ry

for Technology Policy, U.S. Dept. of

C o m m e rce; Pat Flahert y, Secre t a r i a t ,

United States Innovation Part n e r s h i p ,

U.S. Dept. of Commerc e .

Thom Rubel, Dire c t o r, Economic

Development and Commerce Policy

Studies Division, re p resented the

National Governors’ Association.

The American Society of Mechanical

Engineers and the State Science and

Technology Institute also part i c i p a ted as sponsors of the event. ■

8

PA C E S E T T E R ■ Office of Technology Policy Spring 1999

INNOVATIVE

PARTNERSHIPS

■ Del Schuh, BMT

and Mike Gery, Office

of the Governor,

State of Indiana.

21st Century Economy from page 7

■ G a ry Bachula, Acting Under Secretary

for Technology describes the 21st Century

E c o n o m y.

“As the country

transitions to the

New Economy,

we must explore

how federal

agencies can

effectively partner

with states to

ensure that the

benefits will

accrue to all peoples and regions

of the nation.”

G a ry R. B a c h u l a
During his trip to Arizona, Deputy Secre t a ry Robert Mallett visited the Gila

River Indian Community (GRIC) and heard from Leslie Cozette Stovall who

stated that IT training has allowed her to use state-of-the-art technology to

map physical and cultural aspects of the community.

The Survey and Cartography Section of the

Gila River Indian Community-Cultural

R e s o u rce Management Program (GRICCRMP) was established in 1996 with the

p r i m a ry goal to assist the field mapping and

documentation of archaeological sites and

other cultural re s o u rces. The section has

also been charged with the responsibility to

develop and expand its Geographic

I n f o rmation System (GIS) capabilities,

incorporating the accumulating cultural re s o u rce database with other re l e v a n t

data, such as vegetation zones, soil classes, land-use areas, canals, roads, and

allotment ownership.

The Cultural Resource Management Program has established a Survey and

C a rtography Section, to gather information such as archaeological site boundaries. Work is also pro g ressing to map canals, roads, power lines, and other

f e a t u res using the Total Station and GPS (Global Positioning System). This

equipment gives the position of any feature on the face of the earth within a

centimeter of it true location. ■

While in Arizona, Deputy Secre t a ry

R o b e rt Mallett toured the Gila River

Indian Community with Tr i b a l

G o v e rnor Mary Thomas and Lt.

G o v e rnor Cecil F. Antone as his hosts.

The Indian re s e rvation is home to

six diff e rent Indian tribes who

f o rmed a community that Govern o r

Thomas says is home to a solid economic development program that

will support self-determ i n a t i o n

t h rough the application of tribal

s o v e re i g n t y. A unique initiative

being undertaken by the community in partnership with Intel

Corporation includes six

Technology Education Centers.

The centers allow the tribes to

enhance the math and science education of Indian students and access

the Internet using 37 120-MHz

Pentium pro c e s s o r-based computers,

10 laptops, six routers and networking equipment including a T1 line.

The centers are made possible

t h rough a combination of federal,

Tribal, and Intel

m o n e y.

The initiative has

other components

including a college

success pro g r a m ,

s c h o o l - t o - w o r k

i n t e rnships, teacher

training and a community-based education model that uses

real issues to teach

basics in math and

s c i e n c e .

I n t e l ’s involvement began in 1994

when Dr. Craig Barrett, Intel’s chief

operation off i c e r, was asked to

deliver the keynote address at the

national conference of the American

Indian Science and Engineering

Society (AISES). As a result of his

keynote, Intel, along with Native

American re p resentatives, formed a

task force to propose a wide-ranging

initiative that would simultaneously

p rovide innovative ways to addre s s

the educational needs of Native

Americans and the business needs

of Intel. Some of the issues include:

the alarming dropout rate among

Native American students, the need

to develop a larger work force of

technically trained Native

Americans, and Intel’s commitment

to having a work force that mirro r s

its local communities. The task

f o rce led to the development of a

p a rtnership that included Intel, Gila

River Indian Community (GRIC),

Santa Fe Indian School (SFIS) and

American Indian Science and

Engineering Society (AISES). ■

9

Spring 1999 PA C E S E T T E R ■ Office of Technology Policy

ARIZONA

TOWN HALL

Gila River Indian Community

■ Robert Mallett accepts a present–a calendar made by Gila students.

■ Deputy Secretary Robert Mallett and

Tribal Governor Mary Thomas tour the Gila

River computer lab, a partnership with Intel.

American Indians make up less than one

percent of America’s science and engineering labor force overall.

“The bottom line,

we need to do

two things: one,

inspire young

Americans to

t e c h n o l o g y

careers and 

two, retrain 

existing workers

in information

t e c h n o l o g y. We

simply must

encourage our

children to dream

as much about

being a software

engineer as a

basketball player." 

Robert L. Mallett

■ Deputy Secretary

Robert Mallett listens

to tribal leaders and

students at a roundtable discussion.

Gila Presentation
United States Department of Commerce

Technology Administration

Office of Technology Policy

Room 4814C HCHB

Washington, DC 20230

Official Business

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F I R S T-CLASS MAIL

P O S TAGE & FEES PA I D

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PERMIT NO. G-797

The PA C E S E T T E R is a publication of the Office of Technology Policy, a division of the United States Department of Commerce Technology Administration.

Any mention of organizations, companies or products is for inform a t i o n a l

purposes only; it does not imply any recommendation or endorsement.

■ O ffice of Technology Policy 

G a ry R. Bachula, Acting Under Secre t a ry for Te c h n o l o g y

Kelly H. Carnes, Deputy Assistant Secre t a ry for Technology Policy

■ E d i t o r s

C h e ryl Mendonsa, Dire c t o r, Public Aff a i r s

Kathleen Sullivan, Public Aff a i r s

■ Comments and Inquiries

C h e ryl Mendonsa, OTP Public Aff a i r s

Te l e p h o n e 2 0 2 . 4 8 2 . 8 3 2 1

■ World Wide Web Addre s s e s

h t t p : / / w w w. t a . d o c . g o v

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h t t p : / / w w w. t a . d o c . g o v / G o 4 I T

■ Design and Layout

Alpha MicroDesigns, Inc.

Something to Talk About!

In the Next PA C E S E T T E R

■ Announcement from the Sixth Bi-annual Meeting of the U.S.-Israel Science &

Technology Commission

■ O T P releases its IT re p o rt after a year of

regional town meetings. Innovative practices

f rom Mississippi to Seattle and suggested next

steps in IT work force development.

■ An Update on Commercial Space

■ The success of the GO4IT web site

■ Pictured on cover is the Yale University bell tower. OTP

recently joined Ya l e ’s School of Forestry and Environmental

Management to roll out OTP’s report on the environmental

i n d u s t ry.