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DIRECTLY IN NEGOTIATIONS ESTABLISHING INDIVIDUAL SCHOLARLY

EXCHANGES WITH CHINA. THE DIRECTORATE NOW FUNDS A SIGNIFICANT PORTION OF U.S. SCIENTIFIC EXCHANGE WITH CHINA.

MY EXAMPLES ILLUSTRATE OUR THREE MAIN ROLES--PROVIDING

RESEARCH ON THE INTERACTION OF SCIENCE, TECHNOLOGY AND PUBLIC

POLICY; FACILITATING NATIONAL AND INTERNATIONAL EXCHANGE OF SCIENTIFIC AND TECHNICAL INFORMATION TO BENEFIT U.S. SCIENCE;

AND ASSISTING IN THE DEVELOPMENT AND IMPLEMENTATION OF FOREIGN

POLICY INVOLVING SCIENCE AND TECHNOLOGY.

TWO OF THE DIRECTORATE'S SUBACTIVITIES--INTERNATIONAL COOPERATIVE SCIENCE AND INFORMATION SCIENCE AND TECHNOLOGY-

ARE CONCERNED IN DIFFERENT WAYS WITH THE TRADE OR EXCHANGE
OF INFORMATION. THE INTERNATIONAL SUBACTIVITY INVOLVES

INTERNATIONAL TRADE IN SCIENTIFIC AND TECHNICAL INFORMATION. IT PROVIDES SUPPORT AND SERVICES FOR IMPROVING THE INTERNATIONAL SHARING OF RESEARCH APPROACHES, FACILITIES, AND RESULTS.

THE INFORMATION SCIENCE AND TECHNOLOGY SUBACTIVITY

SUPPORTS BASIC AND APPLIED RESEARCH TO IMPROVE THE EFFICIENCY

OF NATIONAL AND INTERNATIONAL INFORMATION FLOW, PARTICULARLY

S&T INFORMATION.

THE OTHER TWO SUBACTIVITES--POLICY RESEARCH AND ANALYSIS AND SCIENCE RESOURCES STUDIES--ARE CONCERNED WITH MONITORING AND ANALYZING SCIENTIFIC AND TECHNOLOGICAL ACTIVITY. THEY SUPPORT AND CONDUCT RESEARCH, ANALYSIS, AND-STATISTICAL

INFORMATION COLLECTION TO IMPROVE THE BASE FOR PUBLIC POLICY

DECISIONS.

TODAY I WILL CONCENTRATE ON SIGNIFICANT NEW INITIATIVES IN EACH SUBACTIVITY. A MORE COMPLETE DESCRIPTION OF THE FY 1981 PUDGET REQUEST APPEARS IN THE APPENDIX TO THIS STATEMENT.

FOR WORK IN INTERNATIONAL SCIENCE, WE ARE REQUESTING $12,900,000, AND AN ADDITIONAL $5.500,000 IN SPECIAL FOREIGN CURRENCY. PRIORITY HAS BEEN GIVEN TO EXPANDING COOPERATIVE SCIENCE AND EXCHANGE WITH THE DEVELOPED COUNTRIES, PARTICULARLY IN WESTERN EUROPE AND JAPAN, AND TO SCIENTIFIC AND TECHNICAL WORK WITH DEVELOPING COUNTRIES. THE FIRST PRIORITY BUILDS UPON THE ADVANTAGES THAT DEVELOPED COUNTRIES CAN ACHIEVE THROUGH COOPERATIVE EXCHANGES IN SCIENCE, SHARING FACILITIES, RESOURCES, AND EXPERTISE BENEFITS ALL SIDES BY REDUCING THE COSTS INVOLVED IN DOING SCIENCE. FOR THE U.S., COOPERATIVE SCIENTIFIC EXCHANGE AVOIDS THE LARGE INVESTMENTS IN HUMAN AND

CAPITAL RESOURCES THAT WOULD BE REQUIRED TO COVER ALL FIELDS

OF SCIENCE EQUALLY.

THE SECOND PRIORITY, SCIENCE IN DEVELOPING COUNTRIES, STEMS FROM PRIOR NSF WORK AND FROM THE UN CONFERENCE ON SCIENCE AND TECHNOLOGY FOR DEVELOPMENT. NSF CRITERIA AND ACTIVITIES

FOR BROADENING WORK IN DEVELOPING COUNTRIES HAVE BEEN REVIEWED

AND APPROVED BY THE NATIONAL SCIENCE BOARD. WE EXPECT PROPOSALS IN RESPONSE TO THE NEW PROGRAM SHORTLY. THIS PROGRAM ENCOURAGES

THE DEVELOPING COUNTRIES IN THEIR EFFORTS TO CREATE NEW CAPABILITIES IN SCIENCE AND TECHNOLOGY, AND IT ASSISTS IN INTEGRATING SCIENCE AND TECHNOLOGY INTO ROCESSES OF SOCIAL AND ECONOMIC DEVELOPMENT. THE LATTER IS AN OJECTIVE OF BOTH THE DEVELOPING COUNT:?IES AND THE UNITED STATES.

OUR REQUEST FOR THE POLICY RESEARCH AND ANALYSIS SUBACTIVITY IS $6,650,000, REFLECTING NEW INITIATIVES IN INTERNATIONAL ECONOMIC POLICY AND RISK ANALYSIS. DURING ITS HISTORY, THIS

SUBACTIVITY HAS FUNDED RESEARCH ON SUCH ISSUES AS INTERNATIONAL

TECHNOLOGY TRANSFER, COMPARATIVE ADVANTAGE AND TECHNOLOGICAL
SUPERIORITY CREATED BY R&D, AND SCIENCE AND TECHNOLOGY POLICY
FOR DEVELOPING COUNTRIES. BUT THESE SCIENCE AND TECHNOLOGY
ISSUES DO NOT OCCUR IN A VACUUM. THEY ARE RELATED TO OTHER

ISSUES INVOLVING THE INTERNATIONAL POLITICAL ECONOMY.

OUR

ESTIMATES OF THE EFFECTS OF SCIENCE AND TECHNOLOGY ON THE

U.S. ECONOMY AND THE BALANCE OF TRADE MUST BE CONDITIONED BY OVERALL INTERNATIONAL TRANSACTIONS AND POLICY DECISIONS. THIS INITIATIVE WILL PERMIT US TO RELATE SCIENCE AND TECHNOLOGY POLICY ISSUES TO GENERAL ECONOMIC POLICY.

FURTHERMORE, BECAUSE OF A NEW AND GROWING INTERDEPENDENCE BETWEEN THE U.S. ECONOMY AND OTHER ECONOMIES, BOTH THE EXECUTIVE AND LEGISLATIVE BRANCHES NEED INCREASED INFORMATION ABOUT THE EFFECTS OF CHOOSING AMONG ALTERNATIVE INTERNATIONAL ECONOMIC POLICIES. POLICY DECISIONS ABOUT TRADE, TARIFFS, TAXES,

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FOR THESE REASONS, WE ARE REQUESTING $750,000 TO BEGIN COHERENT RESEARCH PROGRAMS ON INTERNATIONAL ECONOMIC POLICY. OVER THREE

OR FOUR YEARS, WE EXPECT TO DEVELOP ADDITIONAL CAPABILITY IN UNIVERSITIES AND NONPROFIT INSTITUTIONS TO TACKLE THESE TOUGH AND VITAL ISSUES ON A PROGRAMMATIC BASIS. THESE PROGRAMS WILL

BE DESIGNED TO PROVIDE INFORMATION FOR DECISIONMAKING ON A

CONTINUOUS BASIS, WHILE THEY ALSO EXAMINE LONGER-RUN ISSUES.

We

BELIEVE THAT THESE PROGRAMS WILL ENABLE THE SCIENTIFIC COMMUNITY

TO PROVIDE IMPORTANT AND TIMELY INFORMATION FOR PUBLIC DECISIONS.

ADDITIONAL RESOURCES ARE ALSO REQUESTED TO SUPPORT EXPANDED WORK ON RISK ANALYSIS. THERE HAS BEEN SIGNIFICANT GROWTH IN THE

NUMBER OF GOVERNMENT POLICIES AND PROGRAMS CONCERNED WITH

ANTICIPATING AND MANAGING RISK FROM NEW TECHNOLOGIES AND FROM

NATURAL AND MAN-MADE HAZARDS.

IMPROVING THE EFFECTIVENESS

AND EFFICIENCY OF THESE POLICIES AND PROGRAMS INVOLVES SOLVING

COMPLEX INTELLECTUAL QUESTIONS. IN GENERAL WE FACE TRADEOFF
PROBLEMS. USUALLY LACKING COMPLETE INFORMATION ABOUT CAUSE

AND EFFECT, WE CAN ACT NOW AND RISK BEING WRONG, OR WAIT FOR

MORE INFORMATION AND RISK BEING TOO LATE, OR TOO COSTLY.
THUS, THE QUESTIONS: HOW SHOULD OUR STANDARDS BE SET WHEN
OUR CURRENT KNOWLEDGE OF EFFECTS IS UNCERTAIN AND EVOLVING?
WHAT RULES SHOULD SOCIETY USE IN DISTRIBUTING BENEFITS, RISKS,

AND COMPENSATION AMONG DIFFERENT GROUPS AND LOCALITIES?

OVER THE LAST FEW YEARS PROMISING ANALYTICAL TOOLS HAVE BEEN

CREATED TO HELP ANSWER THESE QUESTIONS, AND WE REQUEST

INCREMENTAL FUNDS TO ADVANCE THE STATE OF THE APT AND TO

ADDRESS CURRENT ISSUES.

SOUND POLICY RESEARCH AND ANALYSIS REQUIRE VALID DATA AND INFORMATION. THE SCIENCE RESOURCES STUDIES SUBACTIVITY COLLECTS, MAINTAINS, ANALYZES, AND REPORTS STATISTICS ON THE SCIENCE AND TECHNOLOGY ENTERPRISE. IN FY 1981 WE ARE REQUESTING $3,400,000 FOR THIS WORK. PRIORITY IS GIVEN TO CONTINUING THE DESIGN AND PLANNING OF THE POST-CENSAL SURVEY OF SCIENTISTS AND ENGINEERS. EACH DECADE THIS SURVEY PROVIDES THE BASELINE FOR THE NSF SYSTEM THAT REPORTS REGULARLY ON THE

MAGNITUDE AND CHARACTERISTICS OF THE NATIONAL POOL OF SCIENTISTS

AND ENGINEERS.

IN TURN, THIS FORMS THE BASIS OF NATIONAL

ESTIMATES AND PROJECTIONS FOR THE DEMAND AND SUPPLY OF SCIENTISTS

AND ENGINEERS.

THESE DATA HAVE A SIGNIFICANT IMPACT ON GOVERN

MENT POLICY AND ON EXPECTATIONS IN EDUCATION AND PRIVATE

ENTERPRISE. THEY ALSO CAN AFFECT INDIVIDUAL CAREER DECISIONS.

PRIORITY IN FY 1981 is ALSO GIVEN TO SEVERAL PERIODIC SURVEYS ON FUNDING AND SCIENTIFIC PERSONNEL. THESE ARE: A SURVEY OF R&D ACTIVITIES OF INDEPENDENT NONPROFIT INSTITUTIONS; A SURVEY OF SCIENCE AND ENGINEERING EMPLOYMENT IN INDUSTRY; AND A SURVEY OF THE WORK AND ACADEMIC EXPERIENCE OF RECENT SCIENCE AND ENGINEERING GRADUATES. EXECUTION OF THESE SURVEYS IN FY 81 IS NECESSARY TO MAINTAIN CONSISTENCY AMONG OUR TIME

SERIES AND TO IMPROVE OUR DATA BASE.

AT ANY POINT, OUR WORK IN SCIENCE AND TECHNOLOGY DEPENDS UPON THE INFORMATION AVAILABLE AND UPON OUR ABILITY TO RETRIEVE, PROCESS, AND DRAW INFERENCES FROM IT. THIS DEPENDENCE LEADS

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