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1 Materials as Global Activity: Setting the Scene
Pages 11-33

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From page 11...
... Over the last half of the 20th century, MSE remained a driver of economic activity in the United States and around the world. It can be thought of as the key building block of most advanced technologies, if not all, and as such it continues to make innumerable contributions to social advancement, human health and development, and the maintenance of national security.
From page 12...
... Increasingly, as the field emerged in its own right, MSE practitioners were trained in materials departments established at engineering or physical sciences schools in universities here and abroad. Nevertheless, despite 50 years of developing, maturing, and gaining broad acceptance, agreeing on an all-encompassing definition for MSE as a discipline remains a challenge.
From page 13...
... Semiconducting, dielectric, optical, conducting, and magnetic materials and materials that interact with or draw inspiration from biological sys tems. · Processing and manufacture.
From page 14...
... In its 1993 and 1995 reports, the NSTC listed the subfields of materials research and engineering as biomaterials, ceramics, composites, electronic materials, magnetic materials, metals, optical-photonic materials, polymers, and superconducting materials. The com defense systems to protect the nation's security.1 The quest for greater insight and innovation remains the primary motivation for the continuing evolution of a field that is characteristically inter- and multidisciplinary.
From page 15...
... M A T E R I A L S A SG L O B A L AC T I V I T Y: S E T T I N G T H E S C E N E 15 mittee that carried out the MSE benchmarking exercise added catalysts to the NSTC list and combined electronic materials and optical-photonic materials research into one category.e Since publication of the benchmarking report, the investigation of nanomaterials has blossomed into a vibrant, crosscutting area of materials research, so for the purposes of this report, the subfield of nanomaterials has been added to the list. MSE at the beginning of the 21st century, therefore, consists of the following subfields: · Biomaterials · Ceramics · Composites · Magnetic materials · Metals · Electronic and optical-photonic materials · Superconducting materials · Polymers · Catalysts · Nanomaterials In summary, MSE involves the generation and application of knowledge that relates the composition, structure, and processing of materials to their properties and uses.
From page 16...
... , which said that the United States should "strive for clear leadership in the most promising areas of science and technology and those deemed most im portant to our national goals." In 1999, the National Science and Technology Council (NSTC) stated that advanced materials were the foundation and fabric of manufactured products.4 To support its assertion, NSTC cited the role of advanced materials in, among others, fuel-efficient automobiles, damage-resistant buildings and structures, electronic devices that transmit signals rapidly over long distances, protecting surfaces from 3While the expansion of MSE R&D activity and knowledge is closely connected to larger trends in the globalization of other economic activities -- such as markets for goods and services and produc tion networks -- this report does not consider these except insofar as they drive or determine the location of MSE R&D.
From page 17...
... Because continual upgrades of technology are fundamental to a healthy domestic industry, federal incentives for technological investment will be more effective in the long run than "Buy American" restrictions. The reports cited above represent only a small sample of many volumes that have been produced on the importance of materials research to future U.S.
From page 18...
... While data are not available on aggregate federal support for MSE owing 7NRC, Materials Research to Meet 21st Century Defense Needs, Washington, D.C.: The National Academies Press (2003) ; NRC, Accelerating Technology Transition: Bridging the Valley of Death for Materials and Processes in Defense Systems, Washington, D.C.: The National Academies Press (2004)
From page 19...
... This growth in crossborder economic activity takes various forms -- international trade, foreign direct investment, capital market flows, and so on. Each of these activities is associated with distinct issues, benefits, and risks that call for an assessment and a policy response.
From page 20...
... Notwithstanding the predominantly economic and trade-related features of globalization, in recent years a trend toward globalization of the world's R&D activities has emerged, driven by the institutions of government and by global industrial activity. The globalization of R&D can take a variety of forms -- for example, offshoring industrial R&D activities; foreign direct investment in R&D in the United States and in other countries; and the development of transnational strategic alliances/cooperation, including intergovernmental supported networks of academic and industrial researchers.
From page 21...
... 21 udgetb budget. Materials final the 2005 dollars)
From page 22...
... 10See Toward an International Materials Research Network, available at http://www.nsf.gov/pubs/ 2002/nsf02068/background.htm. 11For more information, see http://www.icmr.ucsb.edu/general.html.
From page 23...
... Although the OECD declaration focuses on how to ensure open access to research data, it recognizes that the innovation system is becoming global, that this trend is beneficial, and that the flow of information is critical to supporting this trend. Governments are also restructuring national policies in order to attract R&D activities to their countries, often to underpin a wider effort to attract and maintain foreign direct investment in manufacturing and to build national R&D capacities.
From page 24...
... Kearney/Foreign Policy Globalization Index ranks as the most globalized country in the world for the third year in a row.a Examining the Irish experience provides an insight into how one country is responding to globalization with a view to mitigating the risks and maximizing the potential. Following two decades of concerted efforts by successive Irish governments to attract high-value investment by global high-technology industries, Ireland now enjoys living standards, as measured by gross domestic product (GDP)
From page 25...
... The strategy calls for a national plan to increase the performance, productivity, and efficiency of research in the higher education and public sectors, thereby sustaining Ireland's commitment to building an international reputation for research excellence. The program also aims to make Ireland a very attractive environment for high-quality researchers and research careers and develop the research commercialization expertise necessary to ensure effective and rapid exploitation by enterprise of research in the higher education and public research sectors.
From page 26...
... Corporation 2001 2000 1999 2001 2000 1999 Description Ford Motor Company 1 1 1 7,400 6,800 7,100 Motor vehicle manufacturing General Motors 2 2 2 6,200 6,600 6,800 Motor vehicle manufacturing Pfizer Inc. 3 4 8 4,847 4,435 2,776 Pharmaceutical and medicine manufacturing IBM 4 5 4 4,620 4,336 4,464 Computer systems design and related services Microsoft 5 8 7 4,379 3,775 2,970 Software publishers Motorola 6 3 5 4,318 4,437 3,438 Communications equipment manufacturing Cisco Systems 7 11 20 3,922 2,704 1,594 Computer and peripheral equipment manufacturing Intel 8 7 6 3,796 3,897 3,111 Semiconductor and other electronic component manufacturing Johnson & Johnson 9 9 9 3,591 2,926 2,600 Pharmaceutical and medicine manufacturing Lucent Technologies 10 6 3 3,520 4,018 4,510 Computer systems design and related services Hewlett-Packard 11 12 10 2,635 2,646 2,440 Computer and peripheral equipment manufacturing Merck 12 13 11 2,456 2,344 2,068 Pharmaceutical and medicine manufacturing Bristol Myers Squibb 13 15 12 2,259 1,939 1,843 Pharmaceutical and medicine manufacturing Eli Lilly 14 14 13 2,235 2,019 1,784 Pharmaceutical and medicine manufacturing Pharmacia 15 10 25 2,195 2,753 1,290 Pharmaceutical and medicine manufacturing Sun Microsystems 16 22 26 2,016 1,630 1,263 Computer and peripheral equipment manufacturing General Electric 17 17 17 1,980 1,867 1,667 Engine, turbine, and power transmission equipment manufacturing Boeing 18 24 22 1,936 1,441 1,341 Aerospace product and parts manufacturing Wyeth 19 21 14 1,870 1,688 1,740 Pharmaceutical and medicine manufacturing Procter & Gamble 20 16 15 1,769 1,899 1,726 Soap, cleaning compounds, and toilet preparations manufacturing SOURCE: NSF, Science and Engineering Indicators (2004)
From page 27...
... affiliates of foreign companies. Foreign R&D investments in the United States represent industry funding based on foreign ownership regardless of originating source, whereas the foreign totals for other countries represent flows of foreign funds from outside the country to any of its domestic performers.
From page 28...
... 28 G L O B A L I Z A T I O N O FM A T E R I A L SR & D 30.0 Foreign-owned R&D in U.S. 25.0 U.S.-owned R&D overseas $)
From page 29...
... Foreign funding as defined by the OECD predominantly came from foreign corporations but also included funding from foreign governments and other foreign organizations.19 According to a recent survey of senior executives, over half the leading companies polled plan to increase their overseas R&D investments over the next 3 years and a further 38 percent will 19 The expansion of efforts through successive EU Framework Programs to foster cooperative research throughout the EU may have added to the growth in foreign sources of R&D funds within Europe.
From page 30...
... did R&D expenditures exceed 1 percent of the OECD R&D total. SOURCE: OECD, Main Science and Technology Indicators (2004)
From page 31...
... The U.S. foreign R&D totals represent industry funding based on foreign ownership regardless of originating source, whereas the foreign totals for other countries represent flows of foreign funds from outside the country to any of its domestic performers.
From page 32...
... OECD countries accounted for 97.6 percent of patent applications to the Eu ropean Patent Office (EPO) in 1999 and for more than 95 percent of patents
From page 33...
... in 1998. In 1999, Israel -- at 122 patent applications per million population -- was the only nonOECD economy whose patent applications at the EPO exceeded the OECD average of 88.


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