The American Competitiveness Initiative

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The American Competitiveness Initiative

• Dan Byers
• Deputy Chief of Staff
• Office of Science and Technology Policy
• Executive Office of the President
• BESC-CoFARM March 14, 2006

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U.S. Is the World Leader in Science and Technology

• By nearly every relevant metric, the U.S. leads
  the world in science and technology.
• President Bushs FY07 Budget brings the total
  Federal RD investment to a record 137 billion,
  an increase of over 50 percent since 2001.
• U.S. RD spending of over 300 billion is as much
  as the rest of the G-8 nations combined.
• With only about five percent of the worlds
  population, the U.S. employs nearly one-third of
  all scientists and engineers and accounts for
  approximately one-third of global RD spending.

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Keeping America Competitive

• America's economic strength and global leadership
  depend on our ability to generate and harness
  scientific and technological developments. A
  comprehensive strategy of related investments and
  policies will help to strengthen innovation
  capacity and economic competitiveness, including
• Federal investment in basic research and
  scientific facilities that enable discovery and
  development
• A system of education that equips each new
  generation of Americans with the educational
  foundation for future study in technical
  subjects, and which inspires and sustains their
  interest
• Institutions of higher education that provide
  American students access to world-class education
  and research opportunities in mathematics,
  science, engineering, and technology
• Immigration policies that continue to attract
  the best and brightest
• A favorable environment for private sector
  investment in research and development
• An efficient system that protects intellectual
  property and
• A business environment that stimulates and
  encourages entrepreneurship.

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American Competitiveness Initiative (ACI)
The American Competitiveness Initiative commits
5.9 billion in FY 2007 for research, education,
and tax incentives. Over ten years, the ACI
commits to increase funding for research by 50
billion and RD tax incentives by 86 billion.
Specifically, ACI includes

• Doubling, over 10 years, funding for
  innovation-enabling research at key Federal
  agencies that support physical science and
  engineering the National Science Foundation, the
  Department of Energys Office of Science, and the
  National Institute for Standards and Technology
  within the Department of Commerce
• Modernizing the Research and Experimentation tax
  credit by making it permanent and working with
  Congress to update its provisions to encourage
  additional private sector investment in
  innovation
• Strengthening K-12 math and science education by
  enhancing our understanding of how students learn
  and applying that knowledge to train
  highly-qualified teachers, develop effective
  curricular materials, and improve student
  learning
• Promoting workforce training programs that train,
  retrain, and provide professional development
  opportunities for the science, engineering, and
  technology workforce and
• Increasing our ability to retain the best and
  brightest high-skilled workers from around the
  world.

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ACI Research and Development

• The centerpiece of the American Competitiveness
  Initiative is President Bush's commitment to
  double, over 10 years, investment in key Federal
  agencies that support basic research programs in
  the physical sciences and engineering. This
  amounts to a total of 50 billion in new
  investments in fundamental research.
• For the sixth straight year the budget includes
  making the Research and Experimentation (RE) tax
  credit permanentan effort that will cost 4.6
  billion in FY 2007 and 86.4 billion over ten
  years.  The President is also committed to
  working with Congress to simplify and modernize
  the credit to make it even more effective.

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The Advanced Energy Initiative

• Americas energy challenges require continued
  action. For the sake of our economic and national
  security, we must reduce our dependence on
  foreign sources of energy including on the
  natural gas that is a source of electricity for
  many American homes and the crude oil that
  supplies gasoline for our cars. -- President
  Bush, February 20, 2006
• To achieve this objective, we will take
  advantage of technology by changing the way we
  fuel our vehicles and changing the way we power
  homes and businesses. The Advanced Energy
  Initiative provides for a 22 percent increase in
  funding for clean-energy technology research at
  the Department of Energy.
• Advanced Energy Initiative Goals Fueling Our
  Vehicles
• Develop advanced battery technologies that allow
  a plug-in hybrid-electric vehicle to have a
  40-mile range operating solely on battery charge.
• Foster the breakthrough technologies needed to
  make cellulosic ethanol cost-competitive with
  corn-based ethanol by 2012.
• Accelerate progress towards the Presidents goal
  of enabling large numbers of Americans to choose
  hydrogen fuel cell vehicles by 2020.

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Overall RD Budget

• In the Presidents 2007 Budget, total Federal RD
  investment is a record 137.2 billion, an
  increase of 3.4 billion (2.6 percent) over this
  years (2006) RD funding level and a 50
  increase compared to 2001s 91.3 billion.
• Real five-year growth in the conduct of RD
  budget has exceeded 40 for each of the last two
  years, the first time five-year inflation
  adjusted RD outlays have topped 40 since 1967
  and the Apollo era.
• Basic research funding is 28.2 billion in 2007,
  up from 21.3 billion in 2001 - a 32 percent
  increase.
• While the Presidents 2007 Budget does not
  increase overall non-defense discretionary budget
  authority, a 1.9 increase in the non-defense RD
  budget is requested.

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Total RD by Agency FY07 proposed
Agriculture
NSF
Energy
Defense
NASA
HHS
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Total Non-Defense RD FY07 proposed
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Interpreting RD Budgets

• Earmarks, accounting changes (re-baselining), and
  program changes complicate RD budget
  comparisons.
• For example, while the Federal Science and
  Technology (FST) budget is cut by 1 percent in
  FY 2007, this figure is distorted by earmarks
  that are not included in the request (2.7
  billion) and the transition of NASAs Crew
  Exploration Vehicle from applied research into
  development (approx. 450 million). After
  accounting for earmarks, the FST budget is
  actually increasing by 3.5 percent.
• Another way to compare budgets without earmark
  distortion is to use request-to-request levels.
  Using this method, the FY07 request is 1 percent
  above the FY06 request.
• AAAS estimates that RD earmarks have increased
  63 percent since 2003. The Presidents budget
  states that earmarking is rarely the most
  effective use of taxpayer funds. In the case of
  science programs, the practice signals to
  potential researchers that there are acceptable
  alternatives to creating quality research
  proposals for merit-based consideration.

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