Government and private industry representatives gather in Oak Ridge

Can We Really Compete?

October / November 2008 By: Tom Michael Volume 6 Number 5

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For almost three years, the Bush administration and members of congress have touted the virtues of the American Competitiveness Initiative. The landmark proposal, legitimized by law in the America Competes Act of 2007, aims to stimulate U.S. proficiency in math and science and keep the nation at the forefront of global innovation and technology.

So when 250 of America's top scientists, technology executives and policy-makers gathered for the first National Science and Technology Summit at Oak Ridge National Laboratory in August, the first question almost everyone asked was "Why hasn't the federal government put its money where its mouth is?" And, also, what will happen to the competitiveness plan when a new president—€”Barack Obama or John McCain—€”reports for duty? The two questions infused the two-day summit, even as participants delved deep into other issues ranging from how to spur more private-sector research to sparking student interest in technology.

Although many conference speakers touched on the competitiveness budget question, none did so with the blunt force of Brian Halla, chairman and CEO of National Semiconductor and the keynote speaker representing industry.

"We have got to fund the America Competes Act before it becomes a complete joke," Halla said during a 25-minute speech about the state of American competitiveness that was at turns enlightening, entertaining and deeply troubling.

Ambassador Richard Russell, deputy director of technology at the Department of Energy's Office of Science and Technology, deflected blame from the Bush Administration in an interview with Innovation during a break in the conference. Russell pointed out that Bush proposed $5.9 billion ($1.3 billion in new federal funding, and an additional $4.6 billion in R&D tax incentives) in his FY 2007 budget for research, education and entrepreneurship. The White House has also proposed $50 billion in research funding and $86 billion for R&D tax incentives over the next decade.

But congress, responsible for crafting federal appropriations bills, has yet to put much of the money in its budgets. Democrats, who currently control both chambers of congress, reached an impasse with Bush over the competitiveness budgets this year when they couldn't convince him to boost funding for clean energy research.

Regardless of blame, Russell and others at the tech summit said it is imperative that the next president and congress get the message. A 2005 National Academy of Science study—€”requested by Senators Jeff Bingaman of New Mexico and Lamar Alexander of Tennessee—€”showed that students in China and India consistently outperform their U.S. counterparts in math and science. It also said China and Pakistan produce at least five times more engineers each year than the U.S. universities. That study was the basis for the president's competitiveness initiative.

"There is an opportunity to enshrine into the political process now for the next administration, whichever it is, these concepts," Russell told Innovation. "If we miss this opportunity, it's going to be harder to get a new administration to commit to something that there isn't already a consensus on." He said the August summit at Oak Ridge—€”the first of its kind—€”was required by law under the American Competes Act, and organized in part to bridge the gap between the Bush administration and its successor.

"One of the reasons for having this summit is to make sure momentum continues into the next administration," Russell said. "There is very strong bipartisan support—€”and I would say nonpartisan support, for this. So, we're hopeful that we can actually get the funding started, locked in and it will proceed apace. The conference is to talk about how we can move the ball forward. Everyone in this room agrees that this is the way to go."

Rep. Bart Gordon of Tennessee, the Democrat who chairs the House Science and Technology Committee, urged conference participants—€”and virtually anyone or any organization with a stake in the future of American competitiveness—€”to lobby congress and the new administration on the issue. Gordon said the federal deficit and Democratic initiatives to offset all new spending increases and balance budgets will make it harder than ever to compete for federal dollars.

"We are trying to move into a new area of pay as you go, which makes it very difficult to fund new programs on top of the many programs that are already under-funded," he said. "We've got to raise Competes to a higher level and to do that in congress you need to do a couple of things—€”make it simple and work from consensus."

The "simple" message that America Competes advocates should deliver to congress is "fully fund the blueprint that has already been set out," Gordon said.
"Consensus means bring all of you together—€”your companies your institutions, whatever associations and groups you might be a part of—€”to your endorsement of Competes funding," he said. "Go through whatever process it is and contact us to allow us to add you to that group" that supports putting money for America Competes in the budget.

Charles Vest, president of the National Academy of Engineering and former president of the Massachusetts Institute of Technology, said until congress invests in the bill, America's spiral of scientific and innovative decline will only accelerate. "We need increased and sustained federal investment in long-term basic research that ultimately is the feed stock for this economy," Vest said during a panel discussion on federal investment and resources allocation in science and technology. "And the absolutely essential first step is to fully fund the American Competes Act; don't get weary, focus like a laser on getting Competes funded. "There is no serious reason why this shouldn't happen. The point is—€¦that we cannot afford not to invest and to face these challenges."

Senator Alexander, one of the architects of the America Competes Act, seemed to question the wisdom of the huge economic stimulus package pushed by President Bush and approved by congress earlier this year

"We spent $152 billion on an economic stimulus package—€”would it have been better to spend $792 million of that to make up the shortfall on the competitiveness package?," Alexander wondered aloud during a speech. He suggested the high gas prices might provide the single best impetus to kick-start American ingenuity.

"Our job is to keep out front America's brainpower advantage is basically solving many of the major problems that face us as a country, and solving the energy problem may be the way to do it," he said. "The best way to keep $4 gasoline coming down and the best way to stop sending billions of dollars overseas to countries that don't much like us is to keep our brainpower advantage."

Bingaman, the New Mexico senator who helped write the America Competes Act, said during an interview with Innovation in Washington after the summit that both congress and the White House are at fault for failing to pay for the initiatives in the America Competes Act. He said the president hasn't pressed hard enough for the money in his budgets, and congress hasn't appropriated it either. The FY 2009 appropriations bills will all be postponed until early next year. And once a new president is installed in January, he will start to work crafting a budget for 2010.

"We will be arguing strongly to increase funding for programs covered by America Competes and frankly the next administration will have significant say in whether or not we do follow through and fully fund that legislation," Bingaman said. He expects some money for the science and technology initiatives to be included in both the FY 2009 and 2010 budget bills.

"The new administration is going to have the most say in the 2010 budget," Bingaman said. "However much we have to spend, we're going to have to set our priorities and put more money in those and less in other things. I think we can successfully argue that this needs to be a priority and increase funding in these areas and get all the way to what we authorized when we passed the bill."

Halla, the CEO of National Semiconductor, said the political malaise surrounding America's lagging science and technology climate is depressing, but he didn't put all the blame on elected officials. He said the entire nation is to blame, in part because we've become so complacent about and expectant of the next technological gadget. He encouraged everyone to rise up in support of science, or else America risks falling down and getting left behind.

"I'm excited about new innovations, but I've never seen so much apathy about our industry, and not just in government, by the way," Halla told those gathered at Oak Ridge. "The apathy extends to Wall Street and shareholders—€¦and even consumers. It's not just our politicians"

Tom Michael reports from Washington for Innovation.