The unique characteristics and relative abundance of wood have made it a natural material for a variety of uses, including homes and other structures, furniture, tools, vehicles, and decorative objects. Because wood varies in characteristics and volume by species, it may be heavy or light, stiff or flexible, and hard or soft. Federal agencies conduct research on the range of processes that occur between the time a tree is grown in the forest to the time it becomes a wood product and then is recycled. For purposes of our review, wood utilization research and product development refers to the activities that occur from harvesting the wood through the recycling of wood and paper products. (See fig. 1.) According to the North American Industry Classification System, the U.S. forest products industry is divided into two sectors: wood product manufacturing and pulp and paper manufacturing. The wood product manufacturing sector comprises small companies, while the pulp and paper manufacturing sector tends to have fewer, larger companies. The wood product manufacturing sector can be broken into three sub- sectors: (1) primary producers—sawmills and plywood mills; (2) secondary producers—millwork, cabinet, and furniture manufacturers; and (3) structural and reconstituted products producers—oriented strandboard (OSB), I-Joist, laminated veneer lumber, medium density fiberboard, and particleboard. The United States is the world’s leading producer of lumber and wood products used in residential construction and in commercial wood products. According to 2004 data (the most recent data available), the wood product sector employed 535,000 workers nationwide and produced shipments valued at $103 billion. The pulp and paper manufacturing sector includes two industry groups: (1) manufacturers of pulp and paper and (2) manufacturers of products made from purchased paper and other materials, such as paper bags or tissues. The vast majority of the raw material for making paper is the residue from other mills—primarily chips from sawmills. The United States is also a leader in the pulp and paper business, producing about 28 percent of the world’s pulp and 25 percent of the total world output of paper and paperboard. In 2004 (the most recent data available), the paper manufacturing sector employed 440,000 workers nationwide and produced shipments valued at $154 billion. According to a federal government report, the U.S. forest products industry faces increasing competition from its traditional competitors (Canada, the Scandinavian countries, and Japan), as well as from emerging competitors (Brazil, Chile, and Indonesia). Domestic purchases of paper and paperboard declined from 2000 to 2002, but have begun to rebound since then. Approximately 120,000 jobs were lost in the paper manufacturing sector from 1999 to 2004, representing a 21.5-percent loss. Sectors of the wood product manufacturing industry have also declined. According to a 2003 Forest Service report, during the last decade, the wood household furniture industry lost approximately one-third of its market share to imports. China now accounts for one-third of U.S. imports, up from none a decade ago. Federal research and product development in wood utilization helps provide the science and technology needed to conserve the nation’s forest resources, supply the demand for wood products, and support forest management and restoration activities. At least 12 federal agencies support wood utilization research and product development activities, but only 2 of these agencies—the Forest Service and CSREES—have programs targeted for these activities. For the Forest Service, the Forest and Rangeland Renewable Resources Act of 1978 is the primary legislation authorizing the Secretary of Agriculture to implement a comprehensive research program for forest and rangeland renewable resources, including wood utilization, and to disseminate the results. Other relevant legislation includes the following: The Biomass Research and Development Act of 2000, which requires the secretaries of Agriculture and of Energy to cooperate on policies and procedures that promote research and development leading to the production of fuels and biobased products; the act also established the Biomass Research and Development Initiative. The Energy Policy Act of 2005 established technical areas for focusing research under the Biomass Research and Development Initiative. The Healthy Forests Restoration Act of 2003 established a grant program to encourage the commercialization of woody biomass. The Forest Service’s research and development organization establishes research work units in the field by developing formal mission statements, which must be approved by the Deputy Chief for Research and other senior managers. A team from the Deputy Chief’s Office and station directors’ office formally reviews these mission statements and the unit’s work at least every 5 years, and the review often includes input from the public and private sectors. The Forest Service’s wood utilization research and product development is carried out by scientists and professional support staff in 27 research work units around the country that were operating at the time of our review. Most of the Forest Service’s wood utilization research and product development takes place at 16 research work units in the Forest Products Laboratory, which conducts research of national and international scope. The other 11 research work units are located in the Forest Service’s Northeastern, Southern, Pacific Northwest, Pacific Southwest, and Rocky Mountain Research Stations, and these units mostly focus on regional wood utilization issues. For example, research work unit 4104 of the Southern station focuses on managing Southern pine ecosystems, whereas research work unit 4701 of the Northeastern station focuses on efficiently using northern forest resources. These research work units produce 5-year research work plans that identify the mission, the problem to be solved through research, the proposed research approach, planned accomplishments, and staffing needs. CSREES provides support for wood utilization research and product development through several grant programs. CSREES awards committee- directed grants to 10 designated wood utilization research centers at 12 universities. The first three centers were established in fiscal year 1985 at Oregon State University, Mississippi State University, and Michigan State University. These three centers were established to support wood utilization and harvesting research on western conifers, southern pine, and eastern hardwoods, respectively. In fiscal year 1993, three centers with specific research focuses were added at the University of Maine, the University of Minnesota at Duluth, and North Carolina State University. In fiscal year 1999, the University of Tennessee and the Inland Northwest Forest Products Research Consortium were added. The consortium consists of the universities of Idaho and of Montana, and Washington State University. The most recent additions are the University of Alaska Southeast, in fiscal year 2000, and West Virginia University, in fiscal year 2004. Every year each center submits a grant proposal, reviewed by CSREES staff, containing information on proposed research activities, budgets, and progress to date. Funding supports scientists and graduate students and helps to pay for new equipment, supplies, and travel. In addition, CSREES provides grants to state-supported colleges and universities that can be used for, but are not specifically focused on, wood utilization research and product development through the following: The McIntyre–Stennis Act, a formula grant program, for forestry research, including two of eight potential funding areas focused on wood utilization and product development. The Hatch Act, a formula grant program, designed to fund a number of broad agricultural research areas. The National Research Initiative, a competitive grant program with several research areas, including biobased products and energy. Wood utilization research and product development grants have been awarded under this initiative, as well as under CSREES’ Small Business Innovation and Research grants and other small grants programs. Ten other agencies also support wood utilization research and product development. Table 1 provides information on these agencies’ principal authorizing legislation and a description of the programs that have supported wood utilization research and product development, and the mechanisms used for program delivery. The Federal Laboratory Consortium for Technology Transfer defines technology transfer as “the process by which existing knowledge, facilities or capabilities developed under federal research and development funding are utilized to fulfill public and private needs.” Since 1978, Congress has enacted a series of laws to promote technology transfer and to provide technology transfer mechanisms and incentives. Table 2 presents selected laws that support technology transfer for wood utilization research and product development. In addition to these laws, Executive Order 12591 (“Facilitating Access to Science and Technology”) directs federal agencies to encourage and facilitate collaboration among federal laboratories, state and local governments, universities, and the private sector—particularly small business—in order to assist in the transfer of technology to the marketplace. Technology transfer is also carried out through the nation’s extension system, established by the Smith-Lever Act in 1914, to assist in the development of practical applications of research knowledge in agriculture, including wood utilization. Under this system, thousands of county and regional extension specialists bring university expertise to the local level. Funding is provided by CSREES through annual formula grants to supplement state and county funds for extension services. The funds can be used for natural resources, including forestry or wood utilization, depending upon the priorities of the university. The Renewable Resources Extension Act of 1978 created the Renewable Resources Extension Program. Under this program, CSREES provides funds to 72 universities, which use these funds, along with state, local, and institutional funds, to deliver educational programs to forest and rangeland owners and managers. The program also provides guidance to states in developing their general extension programs for, among other things, timber utilization, harvesting, and marketing; wood utilization; and wood products marketing. These efforts have included wood utilization extension services, usually through extension specialists. Wood utilization research and product development conducted by 12 federal agencies span a broad spectrum of activities, and coordination of these activities is both formal and informal. These activities fall into five broad categories: (1) harvesting, (2) wood properties, (3) manufacturing and processing, (4) products and testing, and (5) economics and marketing. We grouped the wood utilization research and product development activities that the 12 agencies conduct into five broad categories: harvesting, wood properties, manufacturing and processing, products and testing, and economics and marketing.