Capitalizing on New Needs and New Opportunities Government-Industry Partnerships in Biotechnology and Information Technologies (2001) / Chapter Skim
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Preface
Preface
Pages 1-13
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Policies encouraging partnerships and other cooperative arrangements among universities, industry, and the government have proved, in some cases, to be effective measures to foster the development of new productivity-enhancing technologies.] Such policies are often related to specific government missions and procurement in sectors such as 1See National Research Council, The Small Business Innovation Research Program: An Assessment of the Department of Defense Fast Track Initiative, Washington, D.C.: National Academy Press, 2000; and National Research Council, The Advanced Technology Program: Assessing Outcomes, Washington, D.C.: National Academy Press, 2001.
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dual-use industries such as aircraft frames and engines and radioseen as important to the nation's security and commerce. The unprecedented challenges of World War II generated huge increases in the level of government procurement and support for high-technology industnes.3 Today's computing industry has its origins in the government's wartime support for a program that resulted in the creation of one of the earliest electronic digital computers, the ENIAC.4 Following that war, the federal government began to fund basic research at universities on a significant scale, first through the Office of Naval Research and later through the National Science Foundation.5 Dunng the Cold War, the government continued to emphasize technological supenonty as a means of ensuring U.S.
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By the late part of the 1990s, this belief steadily gained momentum, resulting in major yearly increases in federal funding for biomedical research. This tremendous 7National Research Council, Funding a Revolution: Government Support for Computing Research, op.
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535-539. 13For example, intellectual property protection plays a key role in the continued development of the biotechnology industry.
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. This has raised concerns, even among the NIH leadership, that other areas of promising research, which directly contribute to the development of medical technologies, are suffering from relative neglect.l6 The authors of this study believe that sustained scientific and technological advance depends on progress across a broad spectrum of scientific and engineering disciplines.
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With growth externalities coming about, in part from the exchange of knowledge among innovators, certain regions become centers for particular types of high-growth activities.21 Some economic analysis suggests that high technology is often characterized by increasing rather than decreasing returns. This justifies to some the proposition that governments can capture permanent advantage in key industries by providing relatively small but potentially decisive support to bring national industnes up the learning curve and down the cost curve.22 In part, this is why the economics literature now recognizes the relationship between technology policy and trade policy.23 Recognition of these linkages and a corresponding ability of governments to shift comparative advantage in favor of the national economy provides the intellectual underpinning for government support for hightechnology industry.24 Another widely recognized rationale for government support for new technologies exists in cases where a technology is expected to 20See Paul Romer, "Endogenous Technological Change," Journal of Political Economy, 98(5)
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in Kiel.26 One of the principal recommendations for further work emerging from that study was an analysis of the principles of effective cooperation in technology development. These analyses include lessons from national and international consortia, such as assessment mechanisms and modes of cooperation that might be developed to improve national and international cooperation in high-technology products.27 As indicated in the box below, many countries seek to nurture their new technology-based industries in order to capture benefits and anchor them in the national economy.
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Trade Conflict in High Technology Industries, Washington, D.C.: Institute for International Economics, 1992. 33For example, see Flat Panel Display Task Force, Building U.S.
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technology policy, which continues to employ a wide variety of ad hoc mechanisms developed through the government' s decentralized decision-making and management process. The Committee's desire to ensure that its deliberations and analysis are directly relevant to current policy making has allowed it to be responsive to Executive Branch and Congressional requests for examinations of various policies and programs of current policy relevance.
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The sponsors are listed in the front of this report. WORKSHOP, CONFERENCE, COMMISSIONED RESEARCH, AND DISCUSSIONS At its scoping workshop on this topic, the Project Steering Committee decided to focus its attention on the emerging needs, synergies, and opportunities 37The 2001 Senate Appropriations language cites extensively the STEP Board report called for in 1999.
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Congress and NASA Administrator Daniel Goldin. Other senior participants included Tom Kalil, then of the White House National Economic Council,
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Cohen of Carnegie Mellon, John Walsh of the University of Illinois at Chicago, Kenneth Flamm of the University of Texas at Austin, and Michael McGeary of McGeary and Smith have contributed original research to this report. Given the quality and the number of presentations, summarizing the papers and conference proceedings has been a challenge.
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This report's goal is to advance our understanding of the new needs and opportunities arising in biotechnology and information technology and to ensure that a strengthened national commitment in biotechnology is not compromised by inadequate investments in the disciplines and technologies required to make that commitment a reality. Gordon M
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