America, We Have a Problem Addressing US competitiveness through basic research investment A Presentation to The Blue Dog Coalition United States House of Representatives

2 USACM Task Force on the Future of American Innovation

3 Big Changes in Global Competitive Landscape 191 countries in the world 2008 Source: WTO GATT WTO Today WTO Members WTO Observers } Over 95% Market Economies The Internet

4 The Innovation Economy Articles Patents Research Investment Need to capitalize on new product before it becomes a commodity and is outsourced. Scientists/Engineers

5 Example: the role of basic research in the iPod...

6 Input for Knowledge Base: Research Investment

7 US performance in STEM below our competitors

8 How should the US respond? -- Compete through Innovation NASULGC Broad Consensus – multiple reports

9 Recommendations to Legislation Ensign / Lieberman & Alexander / Bingaman legislation ( ) Rep. Pelosi’s Democratic Innovation Agenda (Nov. 2005) President Bush’s American Competitiveness Initiative (Feb. 2006) The America COMPETES Act (August 2007)

10 Increase Request vs. Appropriated ($ millions)

11 What happened in 2008? A partial list... Layoffs for 625 scientists, students, technicians and staff at national labs and universities An additional 760 Ph.D.s and graduate students not hired at labs or supported in universities No funding for 700 peer-reviewed energy research grants 230 fewer graduate research fellowships 1,000 fewer basic research projects Cuts supercomputing, nanotech and climate change programs 300 new scientists and engineers will not be hired Eliminates work on advanced nanotech tools for materials, healthcare, electronics, chemical and aerospace industries Cuts computing research needed by national defense and financial services communities source: DOE, NSF, NIST

12 These are important issues in Kansas Rep. Dennis Moore (KS-3), Blue Dog Co-Chair for Policy Economic Development Strategy of Kansas calls for:  Research in alternative energy sources and technologies  Joint industry-institution research incentives  Federal funding for strategic research like that at U. of Kansas  Using technology assets available through regional, national and global networks  Aerospace research and training  Agriculture research in genetic engineering, environmental solutions and conservation technologies  Bioscience research and start-up assistance  STEM skills and entrepreneurial/innovation training for service professions Kansas University of Kansas – Wichita State University – Kansas State University

13 Perspective Comparing Cost of Stimulus Bill vs. Competitiveness funding (dollars in millions)

Background Slides A Presentation to The Blue Dog Coalition United States House of Representatives

Automobile 75 Years Telephone Electricity Radio Television VCR PC Cellular Internet % Global Penetration Innovation Cycles Faster – Will USA capture high margin jobs and growth?

16 Industry investment in Research and Development

17 Input for Knowledge Base: Undergrad and Grad Degrees

18 Measures of Knowledge Base Output