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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3078 Introduced in Senate (IS)]

110th CONGRESS
  2d Session
                                S. 3078

To establish a National Innovation Council, to improve the coordination 
  of innovation activities among industries in the United States, for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              June 3, 2008

  Ms. Collins (for herself and Mrs. Clinton) introduced the following 
 bill; which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
To establish a National Innovation Council, to improve the coordination 
  of innovation activities among industries in the United States, for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Innovation and Job Creation 
Act of 2008''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Board.--The term ``Board'' means the National 
        Innovation Council Board appointed under section 4.
            (2) CLIC.--The term ``CLIC'' means the CLUSTER Information 
        Center established under section 6.
            (3) CLUSTER initiative.--The term ``CLUSTER Initiative'' 
        means a formally organized effort to promote cluster growth and 
        competitiveness through collaborative activities among cluster 
        participants.
            (4) CLUSTER program.--The term ``CLUSTER Program'' means 
        the Competitive Leadership for the United States Through its 
        Economic Regions Program established under this Act to create 
        and sustain a series of initiatives to promote economic growth 
        in industry groups.
            (5) Council.--The term ``Council'' means the National 
        Innovation Council established under section 3.
            (6) Industry cluster.--The term ``industry cluster'' means 
        a geographic concentration of interconnected businesses, 
        suppliers, service providers, and associated institutions in a 
        particular field.
            (7) Industry research council.--The term ``Industry 
        Research Council'' means an entity that--
                    (A) is organized for the purpose of advancing 
                innovation;
                    (B) is comprised of at least 5 for profit entities; 
                and
                    (C) contributes not less than the minimum amount 
                established by the Council toward any grant awarded by 
                the Council.
            (8) Innovation.--The term ``innovation'' means the 
        achievement of meaningful increases in productivity through the 
        introduction or diffusion of a new or improved product, 
        service, process, source of supply of materials, business 
        structure, business practice, business model, or methods of 
        production, delivery, distribution, financing, marketing, 
        packaging, promoting, or pricing.
            (9) Productivity.--The term ``productivity'' means the 
        measure of the quality or quantity of economic output relative 
        to the input required to produce that output.

SEC. 3. NATIONAL INNOVATION COUNCIL.

    (a) Establishment.--
            (1) In general.--There is established a council in the 
        Executive Office of the President, to be known as the 
        ``National Innovation Council'', which shall coordinate Federal 
        innovation policy and provide financial assistance for State 
        and local innovation initiatives.
            (2) Director.--The Council shall be under the direction of 
        a Director, who shall be appointed by the President, with the 
        advice and consent of the Senate.
            (3) Staff.--
                    (A) In general.--The Director shall, in accordance 
                with such policies as the Council shall from time to 
                time prescribe, appoint and fix the compensation of 
                such personnel as may be necessary to enable the 
                Council to perform its duties under this Act.
                    (B) Temporary staff.--The Director may appoint, for 
                a limited term or on a temporary basis, such 
                professional or technical staff as the Director 
                determines to be necessary to carry out specific 
                functions under this Act for which their expertise is 
                required.
    (b) Powers and Responsibilities.--
            (1) Policy formulation and advocacy.--The Council shall be 
        responsible for formulating and advocating for the innovation 
        policy of the Federal Government.
            (2) Assistance.--The Council shall achieve the goal 
        described in paragraph (1) by--
                    (A) providing assistance to other Federal agencies 
                with respect to innovation, upon request;
                    (B) assisting the Census Bureau, the Bureau of 
                Economic Analysis, the Bureau of Labor Statistics, 
                other major Federal statistical agencies, and the 
                National Science Foundation in developing operational 
                measures of innovation that can be included in new or 
                existing economic data sources, and provide funding to 
                these agencies for this purpose;
                    (C) providing Federal agencies and companies with 
                the information they need to promote innovation and 
                productivity; and
                    (D) assisting companies with activities such as--
                            (i) joint industry-university research 
                        partnerships;
                            (ii) technology transfer from laboratories 
                        to businesses;
                            (iii) technology-based entrepreneurship;
                            (iv) industrial modernization through 
                        adoption of best practice technologies and 
                        business practices; and
                            (v) incumbent worker training.
            (3) Innovation measurement.--The Council shall create 
        methods of measuring innovation and productivity.
            (4) Research program.--The Council shall carry out a 
        program of research on innovation and productivity.
            (5) Advocacy.--The Council shall recommend specific 
        measures to improve innovation and productivity in the United 
        States.
    (c) Collaboration.--The Council shall collaborate with, and provide 
funding to, the Census Bureau, the Bureau of Economic Analysis, the 
Bureau of Labor Statistics, other major Federal statistical agencies, 
and the National Science Foundation to develop--
            (1) measures of productivity in the service sector;
            (2) measures of total factor productivity, reflecting 
        capital, materials, energy, and purchased services, labor, and 
        other relevant factors as productive inputs for all industries;
            (3) measures of gross product and productivity for counties 
        and metropolitan areas; and
            (4) measures of private rates of return from research and 
        development.
    (d) Data Collection and Analysis.--The Council shall--
            (1) collect and analyze data necessary to evaluate the 
        impact on productivity resulting from the Council's programs; 
        and
            (2) require recipients of funding or other assistance from 
        the Council to provide information necessary to measure 
        improvements in productivity resulting from such funding or 
        assistance.
    (e) Annual Report.--The Council shall annually submit to Congress a 
report, to be known as the National Innovation Report, which shall set 
forth--
            (1) the current and foreseeable trends in innovation and 
        productivity in the Nation;
            (2) a review and analysis of recent domestic and 
        international developments affecting innovation and 
        productivity in the Nation;
            (3) goals for improved innovation and productivity in the 
        Nation;
            (4) a program designed to improve innovation and 
        productivity in the Nation; and
            (5) such recommendations for legislation as the President 
        considers desirable.

SEC. 4. NATIONAL INNOVATION COUNCIL BOARD.

    (a) Establishment.--The Council shall be under the direction of the 
National Innovation Council Board, which shall be comprised of 11 
voting members to be appointed by the President, with the advice and 
consent of the Senate.
    (b) Appointment Criteria.--
            (1) Qualifications.--Each voting member of the Board--
                    (A) shall be eminent in the field of business, 
                economic development, health care, applied sciences, 
                engineering, education, or public affairs;
                    (B) shall have a record of distinguished service in 
                his or her field; and
                    (C) shall have demonstrated knowledge and 
                appreciation of the value of innovation.
            (2) Representation.--In making appointments under this 
        section, the President shall--
                    (A) give due regard to equitable representation of 
                members who are women or who represent minority groups;
                    (B) provide representation of the views of leaders 
                in economic development and innovation in all areas of 
                the Nation; and
                    (C) appoint not fewer than--
                            (i) 1 representative with a background in 
                        manufacturing;
                            (ii) 1 representative with a background in 
                        the service industry;
                            (iii) 1 representative of higher education;
                            (iv) 1 representative of State and local 
                        government;
                            (v) 1 representative of organized labor;
                            (vi) 1 representative of the nonprofit 
                        sector;
                            (vii) 1 representative of economic 
                        development organizations;
                            (viii) 1 representative of professional 
                        associations; and
                            (ix) 1 recognized expert in innovation.
            (3) Terms.--Voting members of the Board shall be appointed 
        to 4-year terms.
            (4) Ex officio members.--The Secretary of Commerce and the 
        Secretary of Labor shall serve as ex officio members of the 
        Board.

SEC. 5. TRANSFER OF PROGRAMS AND FUNCTIONS.

    There shall be transferred to the Council the functions, personnel, 
assets, and liabilities of--
            (1) the Manufacturing Extension Partnership Program of the 
        National Institute of Standards and Technology;
            (2) the Technology Innovation Program of the National 
        Institute of Standards and Technology;
            (3) the Office of Technology Partnerships of the National 
        Institute of Standards and Technology;
            (4) the Partnerships for Innovation of the National Science 
        Foundation;
            (5) the Industry-University Cooperative Research Center 
        Program of the National Science Foundation;
            (6) the Engineering Research Center Program of the National 
        Science Foundation; and
            (7) the Workforce Innovation in Regional Economic 
        Development of the Department of Labor.

SEC. 6. CLUSTER INFORMATION CENTER.

    (a) Establishment.--There is established within the Council the 
CLUSTER Information Center (referred to in this section as the 
``CLIC'').
    (b) Purposes.--The purpose of the CLIC is to promote the 
collection, development, and dissemination of data and analysis on 
industry clusters throughout the United States.
    (c) Databases.--The Director of the Council shall compile databases 
for the CLIC from existing Federal data sets available from--
            (1) the Census Bureau;
            (2) the Bureau of Economic Analysis;
            (3) the Bureau of Labor Statistics;
            (4) the International Trade Administration;
            (5) the Statistics of Income Program of the Internal 
        Revenue Service;
            (6) the Office of Patent Resource Administration in the 
        United States Patent and Trademark Office;
            (7) the National Science Foundation;
            (8) the National Innovation Council;
            (9) other Federal agencies; and
            (10) non-Federal sources, including private databases, as 
        appropriate.
    (d) Functions.--
            (1) In general.--The CLIC shall--
                    (A) support and disseminate research on the 
                formation and evolution of industry clusters, CLUSTER 
                Initiatives, and cluster programs;
                    (B) gather, analyze, and disseminate information on 
                the best practices for the development of industry 
                clusters, CLUSTER Initiatives, and cluster programs in 
                the United States and in other countries, specifically 
                determining how productivity, innovation, and 
                competitive advantage can be maximized through industry 
                clusters, CLUSTER Initiatives, and cluster programs;
                    (C) develop technical assistance guides for 
                regional cluster analysis and CLUSTER Initiative and 
                initiative program development and operations; and
                    (D) bring together representatives of industry 
                clusters, CLUSTER Initiatives, and cluster programs, 
                experts, and scholars to disseminate developments in 
                cluster analysis, initiatives, and programs.
            (2) Data collection.--The CLIC shall collect and make 
        available data on cluster activity showing--
                    (A) breadth, a geographically-specific picture of 
                the array of clusters in each key industry throughout 
                the United States, with data on size, specialization, 
                and competitiveness of the industry clusters in each 
                State, region, and major metropolitan area;
                    (B) depth, for each cluster, detailed data such as 
                regional domestic product contribution, total jobs and 
                earnings by key occupations, establishment size, nature 
                of specialization, patents, Federal research and 
                development spending, citation patterns, and trade; and
                    (C) flow, estimates of supply chain product and 
                service flows within and between industry clusters.
            (3) Report.--The CLIC shall--
                    (A) monitor the extent to which the data available 
                to it is sufficient for proper analysis of cluster 
                activity; and
                    (B) submit a report to Congress that includes 
                recommendations regarding further authorization for 
                data collection, as necessary.
            (4) Limitation.--The CLIC may not collect or analyze data 
        which would otherwise be in violation of Federal privacy laws.
            (5) Dissemination of analyses.--Data and analysis compiled 
        by the CLIC shall be made available to other Federal agencies, 
        State and local governments, and nonprofit and for-profit 
        entities, to guide investments in industry cluster activities 
        that will lead to increased productivity, innovation, and 
        competitive advantage, including--
                    (A) cluster development;
                    (B) economic development;
                    (C) workforce development;
                    (D) research and development;
                    (E) business site locations;
                    (F) analysis of United States competitiveness, by 
                industry, industry cluster, and geography; and
                    (G) other appropriate activities.
    (e) Cluster Initiative and Cluster Program Registry.--
            (1) In general.--The CLIC shall maintain a publicly 
        available registry of CLUSTER Initiatives and cluster programs 
        that contain information that is useful to the study and 
        analysis of CLUSTER Initiatives and cluster programs, 
        including--
                    (A) organizational structure;
                    (B) membership;
                    (C) activities;
                    (D) funding; and
                    (E) perceived impacts of registered CLUSTER 
                Initiatives and Cluster Programs.
            (2) Information collected.--At the time a CLUSTER 
        Initiative is registered, the CLIC shall collect sufficient 
        information to demonstrate that the CLUSTER Initiative--
                    (A) is an industry-led effort with not fewer than 5 
                member firms and 1 lead organizing entity;
                    (B) involves not fewer than 3 cluster support 
                organizations, such workforce boards, community 
                colleges, universities, and industry associations; and
                    (C) has a strategy to enhance the competitive 
                position of the cluster.
            (3) Priority funding.--Registered CLUSTER Initiatives and 
        cluster programs shall receive priority for funding from the 
        Council and the CLIC.
            (4) Use of information.--Information contained in the 
        CLUSTER Initiative and Cluster Program Registry shall be made 
        available to other Federal agencies, State and local 
        governments, and nonprofit and for-profit entities.
    (f) Outside Contracts.--The Director of the Council may contract 
out the operation of the CLIC to an external organization such as 
another Federal agency, a university, a nonprofit research entity, or a 
private company.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated $20,000,000 to carry out this section.

SEC. 7. GRANT PROGRAMS.

    (a) CLUSTER Grant Program.--
            (1) Authorization.--The Council shall award grants to 
        eligible grantees to operate a CLUSTER Grant Program for the 
        purpose of awarding grants to CLUSTER Initiatives in accordance 
        with the requirements under this subsection.
            (2) Eligible grantees.--A grant may be awarded under this 
        subsection to--
                    (A) a State; or
                    (B) an entity designated by a State or a group of 
                States, which may be a city, a county, another 
                political subdivision of a State, a nonprofit 
                organization, or any other economic development 
                organization.
            (3) Use of grant funds.--All entities receiving grant funds 
        under this subsection shall ensure that CLUSTER Initiatives 
        supported by such funds--
                    (A) are operated in a manner consistent with the 
                ``best practices'' established by the CLUSTER Program;
                    (B) are industry-led;
                    (C) are inclusive, seeking any and all 
                organizations that might find benefit from 
                participation, including startups, firms not locally 
                owned, and firms rival to existing members;
                    (D) encourage broad participation by and 
                collaboration among all types of participants;
                    (E) involve key State and local government actors; 
                and
                    (F) participate in the CLIC registry and research 
                activities described in section 6(e).
            (4) Grant types.--
                    (A) Feasibility study grants.--
                            (i) In general.--A grant in an amount not 
                        to exceed $250,000 shall be awarded to eligible 
                        grantees for Cluster Program feasibility 
                        studies, planning, and operations.
                            (ii) Conditions.--A feasibility study grant 
                        shall be awarded to not fewer than 1 eligible 
                        grantee in each State on a 1-time basis, with 
                        no matching funds required.
                    (B) Start up and annual grants.--
                            (i) Start up grant.--A 1-year grant in an 
                        amount not to exceed $1,000,000 shall be 
                        awarded to not fewer than 1 new cluster program 
                        in each State to support planning studies, 
                        provide technical assistance, and fund start-up 
                        activities.
                            (ii) Annual grant.--An annual grant shall 
                        be awarded to not fewer than 1 early-stage 
                        cluster programs in each State to provide 
                        technical assistance and fund operating 
                        activities.
                            (iii) Renewal.--Grants awarded under clause 
                        (ii) may be renewed for a total period not to 
                        exceed 5 years (including any start up grant).
                            (iv) Matching funds requirement.--
                                    (I) Initial period.--During the 
                                first 2 years in which an eligible 
                                entity receives grant funding under 
                                this subparagraph, the eligible entity 
                                shall provide matching funds in an 
                                amount equal to the amount of funds 
                                received under this subparagraph.
                                    (II) Subsequent period.--If the 
                                Council determines, in accordance with 
                                criteria established by the CLUSTER 
                                Program, that an eligible grantee has 
                                demonstrated greater effectiveness than 
                                other grant recipients during the 
                                period described in subclause (I), the 
                                non-Federal matching requirement for 
                                such eligible grantee in future years 
                                may be reduced.
                    (C) Matching grants for cluster initiatives.--
                            (i) In general.--A grant in an amount of 
                        between $1,000,000 and $15,000,000 may be 
                        awarded, on a competitive basis, to Cluster 
                        Programs for the purpose of supporting CLUSTER 
                        Initiatives.
                            (ii) Matching requirement.--An eligible 
                        entity receiving a grant under this 
                        subparagraph shall provide matching funds in an 
                        amount equal to the amount of grant funds 
                        received under this subparagraph.
                            (iii) Selection criteria.--In selecting 
                        grant recipients under this subparagraph, the 
                        Council shall consider--
                                    (I) the probable impact of the 
                                proposed effort on the competitiveness 
                                of the area's traded sector;
                                    (II) if the proposed effort fits 
                                within a broader achievable economic 
                                development strategy;
                                    (III) the capacity and commitment 
                                of the sponsoring organization;
                                    (IV) the degree of support and 
                                involvement from relevant State and 
                                regional economic and workforce 
                                development organizations, other public 
                                purpose institutions (such as 
                                universities, community colleges, 
                                workforce boards), and the private 
                                sector, including industry 
                                associations;
                                    (V) the eligible grantee's expected 
                                ability to access additional funds from 
                                Federal, State, and local sources;
                                    (VI) the eligible grantee's 
                                capacity to sustain activities once 
                                grant funds have been expended; and
                                    (VII) the extent to which economic 
                                diversity across regions of the United 
                                States would be increased through the 
                                grant.
            (5) Application process.--The application process for 
        grants awarded under this subsection shall be on a rolling 
        basis.
            (6) Authorization of appropriations.--There are authorized 
        to be appropriated $350,000,000 for fiscal year 2009 and each 
        subsequent fiscal year to carry out this subsection.
    (b) National Sector Research Grants.--
            (1) Grants authorized.--The Council shall award competitive 
        grants to eligible companies and joint ventures to encourage 
        innovation through research partnerships between academic 
        institutions in the United States and industry research 
        alliances.
            (2) Eligibility.--Each company and joint venture desiring a 
        grant under this subsection shall--
                    (A) submit an application to the Council containing 
                such information as the Council may reasonably require;
                    (B) form an industry-led research consortium 
                consisting of at least 5 companies; and
                    (C) agree to develop a 3- to 10-year technology 
                roadmap that charts out generic science and technology 
                needs that the companies share.
            (3) Federal cost share.--The Federal share of a project 
        funded by a grant under this subsection shall be not more than 
        50 percent of the total project costs.
    (c) Productivity Enhancement Research Grants.--The Council shall 
award grants to academic institutions in the United States and to joint 
ventures comprised of academic institutions and private companies to 
support early-stage research into methods of increasing productivity 
and innovation, with broad application for a range of industries, 
including--
            (1) automated manufacturing or service processes;
            (2) technology-enabled remote service delivery;
            (3) quality improvement; and
            (4) other methods of improving productivity and innovation.
    (d) State Innovation-Based Economic Development Partnership 
Grants.--
            (1) Grants authorized.--The Council shall award innovation-
        based economic development partnership grants to State economic 
        development entities designated by each State.
            (2) Grant types.--
                    (A) Feasibility study grants.--
                            (i) In general.--A grant in an amount not 
                        to exceed $250,000 shall be awarded to States 
                        for feasibility studies, planning, and 
                        operations.
                            (ii) Conditions.--A feasibility study grant 
                        shall be awarded to not fewer than 1 eligible 
                        grantee in each State on a 1-time basis, with 
                        no matching funds required.
                    (B) Start-up and annual grants.--
                            (i) Start up grant.--A 1-year grant in an 
                        amount not to exceed $2,000,000 shall be 
                        awarded to States to support planning studies, 
                        provide technical assistance, and fund start-up 
                        activities.
                            (ii) Annual grants.--In addition to the 
                        grants authorized under clause (i), annual 
                        grants shall be awarded to States to provide 
                        technical assistance and fund operating 
                        activities. Grants awarded under this clause 
                        may be renewed indefinitely.
                            (iii) Minimum grants.--Each State shall be 
                        awarded not fewer than 1 grant under this 
                        subparagraph.
                            (iv) Matching funds requirement.--A State 
                        receiving a start-up grant under this 
                        subparagraph shall provide--
                                    (I) for the first $1,000,000 in 
                                grant funds, a match of $1 for every $2 
                                received in grant funds; and
                                    (II) for any additional amount in 
                                grant funds, a match of $2 for every $1 
                                received in grant funds.
            (3) IBED plans.--
                    (A) Initial plans.--Each State desiring a grant 
                under this subsection shall submit to the Council an 
                initial innovation-based economic development plan 
                (referred to in this paragraph as the ``IBED plan''), 
                which describes--
                            (i) how grant funds would be used to 
                        support the creation of alliances for the 
                        dissemination of innovation among local 
                        governments, businesses, educational 
                        institutions, and other institutions;
                            (ii) how companies within the State would 
                        benefit from the activities funded through a 
                        grant under this subsection; and
                            (iii) how innovation would be disseminated 
                        through the activities described in paragraph 
                        (4) to companies within the State.
                    (B) Review.--The Council and an outside panel of 
                experts shall--
                            (i) review the initial IBED plans submitted 
                        under subparagraph (A); and
                            (ii) notify the States of any suggested 
                        modifications to such plans.
                    (C) Resubmission of plans.--States may submit 
                modified IBED plans to the Council.
                    (D) Use of plans.--The Council shall score IBED 
                plans submitted under this section and award 
                competitive grants to States under this subsection, to 
                the extent available, on the basis of such scores. In 
                scoring plans under this subparagraph, the Council 
                shall award additional points for multistate and 
                regional innovation-based economic development efforts.
            (4) Use of funds.--Grant funds received under this 
        subsection may be used to establish--
                    (A) technology commercialization centers;
                    (B) industry-university research centers;
                    (C) regional cluster development programs;
                    (D) regional skills alliances;
                    (E) entrepreneurial support programs;
                    (F) science parks; and
                    (G) related activities to spur innovation or 
                productivity.
            (5) Federal cost share.--The Federal share of a project 
        funded by a grant under this subsection shall be not more than 
        \1/3\ of the total project costs.
            (6) Noncompetitive grants.--The Council shall award 
        noncompetitive planning and technical assistance grants to 
        States that do not receive a competitive grant under this 
        subsection, which shall be used to improve the quality of the 
        States' proposals for subsequent grants under this section.
    (e) Technology Diffusion Grants.--
            (1) Grants authorized.--The Council shall award grants to 
        manufacturing extension partnership centers in each State to 
        promote the diffusion of existing technological innovations to 
        companies in which such innovations are underutilized. 
        Notwithstanding any other provision of law, a manufacturing 
        extension partnership may use grant funds awarded under this 
        subsection for activities in the service sector that comply 
        with the requirements under this subsection.
            (2) Grant types.--
                    (A) Feasibility study grants.--
                            (i) In general.--A grant in an amount not 
                        to exceed $250,000 shall be awarded to 
                        manufacturing extension partnership centers for 
                        feasibility studies, planning, and operations.
                            (ii) Conditions.--A feasibility study grant 
                        shall be awarded to not fewer than 1 eligible 
                        grantee in each State on a 1-time basis, with 
                        no matching funds required.
                    (B) Start up and annual grants.--
                            (i) Start up grant.--A 1-year grant in an 
                        amount not to exceed $2,000,000 shall be 
                        awarded to a manufacturing extension 
                        partnership center in each State to support 
                        planning studies, provide technical assistance, 
                        and fund start-up activities.
                            (ii) Annual grants.--In addition to the 
                        grants authorized under clause (i), annual 
                        grants shall be awarded to manufacturing 
                        extension partnership centers in each State 
                        provide technical assistance and fund operating 
                        activities. Grants awarded under this clause 
                        may be renewed indefinitely.
                            (iii) Matching funds requirement.--A 
                        manufacturing extension partnership center 
                        receiving a grant under this subparagraph shall 
                        provide--
                                    (I) for the first $1,000,000 in 
                                grant funds, a match of $1 for every $2 
                                received in grant funds; and
                                    (II) for any additional amount in 
                                grant funds, a match of $2 for every $1 
                                received in grant funds.
            (3) Use of funds.--Grants funds received under this 
        subsection may be used to--
                    (A) establish manufacturing extension partnership 
                centers in each State to provide--
                            (i) support for manufacturing and services; 
                        and
                            (ii) innovation awards; and
                    (B) support the diffusion of innovation in any 
                sector of the economy, including the service sector.
            (4) Evaluation process.--In evaluating proposals for grants 
        under this subsection, the Council shall--
                    (A) determine the degree to which measurable 
                productivity gains are expected to be achieved through 
                each applicant's proposed diffusion of innovation;
                    (B) follow the 2-step process established under 
                subsection (d)(3) for grants to carry out the 
                activities described in paragraph (3)(A); and
                    (C) require manufacturing extension partnership 
                centers to submit a plan to carry out the activities 
                described in paragraph (3)(B).
    (f) Use of Grants.--Grant funds received under this section shall 
be used to--
            (1) perform Council-supported grant work in the United 
        States; and
            (2) promote the production of any resulting goods or 
        services in the United States.
    (g) Award Criteria.--In evaluating proposals for grants under this 
section, the Council shall--
            (1) determine, as 1 award factor, the extent to which a 
        grant to each State or manufacturing extension partnership 
        center is expected to increase production, wages, or employment 
        in the United States;
            (2) not award any grant which the Council believes could 
        result in a decrease in production, wages, or employment in the 
        United States; and
            (3) consult with technology-specific boards staffed with 
        experts in fields appropriate to the proposals for grants being 
        evaluated.
    (h) Minimum Funding Level.--
            (1) In general.--For each of the grant programs established 
        under subsections (a), (d), and (e)--
                    (A) not fewer than 1 grant shall be awarded to a 
                grantee in each State; and
                    (B) the amount of each grant shall be not less than 
                80 percent of the average grant awarded in such grant 
                program.
            (2) Population-based allocations.--In each State, the total 
        amount of grant funds awarded to grantees in such State under 
        subsections (a) through (e) shall be not less than 50 percent 
        of the product of--
                    (A) the percentage of the population of the United 
                States who are residents of such State, according to 
                the most recent decennial census; and
                    (B) the total amount of grant funds awarded under 
                subsections (a) through (e).
    (i) Coordination of Funds.--Recipients of grants under this section 
may use, as matching funds, amounts received from the agencies listed 
in section 5, to the extent approved by the Council and such agencies.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the National Innovation 
Council, for each of the fiscal years 2009 through 2013, such sums as 
may be necessary to carry out this Act.
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