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2 Evolution of the U.S. Research Enterprise
Pages 19-36

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From page 19...
... • The United States remains at the forefront of research and development (R&D) with the world's largest investment in R&D, the largest share of scientific publications, more than one-third of scientific publications cited in patents, and world class research universities.
From page 20...
... research enterprise compares with those of other nations. RESEARCH AND THE NATIONAL ECONOMY Over the course of its history, the United States has developed from a primarily agricultural to an industrial or manufacturing economy, and then to an economy in which services have grown in importance, and knowledge, information, and human capital play a larger role than ever before.
From page 21...
... federal investments in defense-related research.1 Of particular concern is the future funding of high-risk, long-term research and of proof-ofconcept research (described further in Chapter 6) , which helps bridge the gap between research and development through the development of innovations.
From page 22...
... The federal government, on the other hand, makes key investments in basic research, recognizing that the generation, distribution, and application of knowledge will prove fruitful in years to come by ensuring an eventual supply of marketable innovations and other societal benefits. Federally funded research is performed to benefit society and is intended to produce social returns more than private gains.
From page 23...
... Examples include methods of measurement and testing for conducting research, for managing production for quality and unit cost, and for enabling marketplace transactions. The fact that these tools are in common use (e.g., as publicly owned standards in the semiconductor industry)
From page 24...
... suggests that at the very least, one thing is clear: the role of funding from wealthy donors differs from the broadly understood roles of federal and industry funding. The most striking difference is that philanthropic funding often shapes research around the preferences of its patrons, rather than taking account of the needs of the research enterprise as a whole.
From page 25...
... In this role, the government purchases research that will yield innovative technologies to help the nation prepare for the future. Excluding funding from the American Recovery and Reinvestment Act between FY 1993 and FY 1999, federal support for research in the fields of physics, chemical engineering, geological sciences, and electrical and mechanical engineering declined by more than 20 percent in real terms, while funding for research in the biological and medical sciences increased by more than 20 percent in the same period.
From page 26...
... by the top six federal funding agencies, 2013 (budget authority in millions of constant 2014 dollars)
From page 27...
... Laboratories both produce agency mission-related outputs and conduct commercial activities, as described below. Universities produce new knowledge and an educated workforce trained in research, as well as other research outcomes, and likewise conduct commercial activities.
From page 28...
... Federal funds also supported generations of future talent by strengthening universities' research capabilities in computer science; facilitating university "spin offs" such as BBN and Sun Microsystems; and training the technical workers who helped develop, adopt, and commercialize the Internet. Privately financed research played an important role as well, supporting basic The differing priorities of industry and government are clearly reflected in the distribution of research performers supported by different federal agencies.
From page 29...
... has declined significantly since the 1970s. Among the performers of federally funded research, national laboratories, including 17 under the purview of DoE, invest heavily in scien 3  Industry-funded basic research, although beyond the scope of this report, was extremely important to the evolution of the U.S.
From page 30...
... The national laboratories received much attention in the years before and immediately following the Bayh-Dole Act of 1980.4 Along with universities, federal laboratories were explicit targets for initiatives, including Bayh-Dole, focused on developing and commercializing research discoveries. In the wake of the Bayh-Dole legislation, however, the commercial 4  The Bayh-Dole Act allowed universities, small businesses, and nonprofit institutions to pursue ownership of federally funded research inventions.
From page 31...
... Furthermore, the methods of collecting data were revised in 2008 for business R&D and in 2010 for academic R&D; thus, these data are not directly comparable with data reported for earlier years. The federal shares include amounts for federally funded research and development centers.
From page 32...
... The federal shares include amounts for federally funded research and development centers. SOURCE: Data from National Science Foundation (2014a)
From page 33...
... A lack of short-term gains, a low success rate, and steep competition from other companies discourage private investment (Ewing Marion Kauffman Foundation, 2012)
From page 34...
... In Canada, the prime minister and cabinet formulate overall science, technology, and innovation policy, which is implemented by Industry Canada and the Department of Finance. In East Asia, national governments have taken control of the transfer of research findings to development, targeting specific investments, creating barriers to foreign competition, and establishing industries in the international market.
From page 35...
... The OECD comparison also reveals that the United States remains at the forefront of cutting-edge innovation, with a large and integrated marketplace and efficient capital and equity markets (OECD, 2012b, 2013)
From page 36...
... And there are indications that students from these nations may be finding more opportunities for advanced education in science and employment in their home countries. These observations drive home the point that the United States still dominates global research, but Asian nations, including China, are not far behind.


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