The Industrial Technology Program which sponsors research on incentives designed to increase the commitment of U.S. industry to research and development, and supports establishment of university/industry cooperative research centers in generic technologies. The program also supports projects to draw together results of various basic research efforts when it appears likely that a synergistic effect on U. S. technological capability could occur.

The total amount requested in fiscal year 1981 for these last three programs is $38.2 million, a substantial increase over

earlier funding via NSF.

Activities seeking improved understanding of the incentives and disincentives affecting the innovation processes and their management to identify potential leverage points for Federal supported through the Foundation's Directorate for Scientific, Technological, and International Affairs. These efclosely coordinated with complementary efforts in

action are

forts are

other programs.

A 10-year Ocean Margin Drilling Program is included in NSF's fiscal year 1981 budget at $10 million, to be matched by the U.S. petroleum industry. Engineering design and cost estimates for conversion of the Government-owned ship, the GLOMAR EXPLORER, and the advanced deep ocean drilling system, as well as scientific planning, will take place in fiscal year 1981. Results of these efforts will provide the basis for the final "go, no go" decision on the whole project as a joint venture between government and industry. Total cost is estimated at $700 million.

There is also a proposed joint government/industry program in basic automotive research, to be supported by the Department of Transportation, NSF, and other agencies. The Federal share of the costs of this targeted program is estimated to be up to $800 million over 10 years, with matching funds from industry of up to $500 million.

In fiscal year 1980 the President has directed the Foundation to work with the Department of Defense, Department of Energy, Environmental Protection Agency, and National Aeronautics and Space Administration to help initiate other industry/university programs, with a view to reaching a level of over $150 million annually. NSF will also work with other agencies to determine whether they should establish small business programs, with an eventual total of $150 million in annual funding.

A different type of activity, a national conference to stimulate improved curriculum development in technology management and entrepreneurship, will be jointly hosted by the Department of

Commerce and NSF.

Whether the efforts enumerated above are the "correct" amount and mix or whether greater inducements will be required to stimulate university/industry cooperation, only experience can tell.

Today's conference, through its panels, may identify other arrangements as alternatives or supplements to the existing programs. Among those which I have heard suggested is exchange and industry. The physical

of personnel

between universities

location of students and faculty in an industrial setting, or locating industrial researchers at a university should encourage each to become aware of the problems, needs, and capabilities of the other. It is important that the interaction be in-depth and continuing, and that the individuals involved personally identify with and have a high degree of responsibility for R&D projects. They should be aware of their significance for industry and for contributing to development of new knowledge.

A different kind of alternative is the establishment of university/industry research centers within industrial locations. In such an approach, industry would provide the center location and leadership, with appropriate arrangements for university researchers to perform research activities at the center. Important issues associated with this approach are such disparate

items as those concerned with anti-trust and the formulation of

research programs.

The Nation's economic well-being requires constant attention by all interested parties to stimulate innovation and productivity. Continuing experimentation, strengthening of the system, and imaginative new approaches by academia, industry, and government are needed for the most effective utilization of our resources. Thank you for your attention.

Mr. WATKINS. What I'm really saying is I think there is a beautiful role that NSF can play. I think it's so beautiful it could outshine MIT's effect on its surrounding area. If you thought Boston was a deteriorated area, you would think this area that I'm talking about is dead. It would bring it back to life. It's Lazarus and we've got to bring it back to life.

Dr. Atkinson?

Dr. ATKINSON. Mr. Watkins, I don't know what an innovation center in that area would be like, but I would be interested in drawing together a group of business leaders from that part of the State and telling Oklahoma State, "Look, we want to work with you. We want to raise some Federal funds to develop ideas that will lead to new developments and new activities in our part of the State."

I think you fill find expertise at the university. Scientists there should be able to work with the people from your part of the State to help develop some of these activities.

Mr. WATKINS. We are doing exactly that through an innovation center which is a working partner with Southeastern State University. There is an application in your office today, a couple of them, along these lines. I think a beautiful thing could develop out of this whole idea, replicating what has happened in some other areas.

Are there any other specific questions the staff might have?

Dr. Moss. This is a specific followup to some of the questions from Mr. Brown and Mr. Watkins on technology transfer. It's related to the new functions of the Smithsonian Information Exchange and the NTIS and the Department of Commerce. Do you see this combination as having the potential-let's say a triumvirate of NSF, the Bureau of Standards and the Department of Commerce-of really being a better information center for technological information transfer.

Dr. ATKINSON. That is certainly the aim; the past situation was unsatisfactory. But to date, how SSIE, NTÍS, and the Bureau will interact has not been planned. It is an important issue, one I have called attention to throughout my years in Washington. I have been distressed that we have made such slow progress. I hope this is a step that will initiate more activity.

I know that Congressman Brown is much concerned about longrange planning and the balancing of funds across fields of research. An underlying factor in that planning should be a data base which permits us to know what we are doing in different fields of science and different parts of the country. We don't have such a data base; it is the sort of data base that SSIE should provide us.

Dr. Moss. I wondered if Dr. Sanderson would comment on the percentage of projects in the applied science and engineering directorate? Do you think the data base is very high in that case?

Dr. SANDERSON. All projects are entered into the SSIE data base. We have a standard form. Indeed, as part of making the award, the document is sent to SSIE. I will say that in the past, we have been one of the few agencies that has gotten them in quickly and on time.

Some other agencies report on an annual basis. So, there is a good deal of scattering of the quality of the data that is there. NSF has always taken that reporting requirement very seriously.

Dr. ATKINSON. NSF does enter its information, but NSF is one of a small group. There must be either a Presidential directive or a con

gressional requirement that agencies enter this information. And the system must be costed out so that an agency can afford to use the system.

Dr. Moss. I'm obviously raising that because as you know, the chairman has been very interested. I guess I would ask whether you agree with what I think is his thinking; that is, the transfer of SSIE to Commerce and the innovation proposals and the strengthening of the technological innovation function in the Department of Commerce are all a good opportunity to really think about what we need to build that data base and make it a useful one for technology transfer?

Dr. ATKINSON. It is a Presidential initiative, and we agree with the President.

Mr. WATKINS. Let me say, Dr. Atkinson and Dr. Sanderson and other members of the panel, we appreciate your being here today and we are going to stand adjourned until tomorrow, February 13 at 2 p.m. in room 2325.

[Whereupon, at 11:36 a.m., the hearing was adjourned.]