Information on Research and Development 44.1. General. Information on research and development (R&D) programs, including crosscutting R&D and technology transfer activities, is required for review of agency requests, Government-wide resource allocation, and preparation of budget material on research and development. To permit a more complete understanding of the budgetary resources devoted to R&D areas supported by more than one agency, each year a number of such areas may be selected for special "crosscutting reviews." Information on these areas is required to supplement the information provided in the agency budget submission to OMB and in the general R&D exhibits. Agencies are required to submit an R&D exhibit for each of the agency's organizational components designated by OMB. In addition, agencies are required to report crosscutting R&D and technology transfer information if the level of budget authority or outlays for the agency exceeds the following thresholds in any of the years covered. --R&D levels exceeding $1 million for individual crosscutting areas require crosscutting R&D exhibits. A consolidated summary is required where the total amounts reported for crosscutting R&D activities exceed $100 million dollars. --R&D levels exceeding $10 million and technology transfer levels exceeding $100 thousand require a consolidated exhibit on technology transfer activities for the whole agency and a separate schedule for each Government-owned Government-operated (GOGO) and Government-owned contractor-operated (GOCO) laboratory. (Agencies should use the laboratory designations established in the 1989 General Accounting Office survey "Implementation of the Technology Transfer Act" for general guidance.) 44.2. Definitions. Research and development broadly covers the work performed by a Government agency or by private individuals or organizations under a contractual or grant arrangement with the Government. It includes R&D in all fields, including education and the social sciences, as well as the physical sciences, engineering, etc. --Research is systematic study directed toward fuller scientific knowledge or understanding of the subject. --Development is systematic use of the knowledge and understanding gained from research for the production of useful materials, devices, systems, or methods, including the design and development of prototypes and processes. Research and development excludes routine product testing, quality control, mapping, collection of general purpose statistics, experimental production, routine monitoring and evaluation of an operational program, and the training of scientific and technical personnel. This definition of research and development is the same as that used for the National Science Foundation Annual Survey of Federal Funds for Research, Development, and Other Scientific Activities. Information reported under this section should be reconcilable with the more detailed information subsequently reported in the annual survey. Technology Transfer consists of efforts and activities intended to result in the application or commercialization of Federal laboratory-developed innovations by the private sector, State and local governments, and other domestic users. These activities may include, but are not limited to: --Technical/cooperative interactions (direct technical assistance to private sector users and developers; personnel exchanges; resource sharing; and cooperative research and development agreements); --Commercialization activities (patenting and licensing of innovations and identifying markets and users); and --Information exchange (dissemination to potential technology users of technical information: papers, articles, reports, seminars, etc.). 44.3. Materials required. Data for general R&D, crosscutting R&D, and technology transfer will be submitted electronically via the MAX system. Your agency will be provided instructions on how and when to access and accomplish data entry. Some agencies, particularly those with large R&D programs, may also be requested by OMB to provide additional data aggregated at different levels of detail from those required below (e.g., Department of Defense, National Aeronautics and Space Administration, and Department of Health and Human Services). The general R&D and technology transfer exhibits will cover PY through BY. All exhibits will include, without separate identification, amounts proposed for supplementals, rescissions, or legislative proposals. Each exhibit should contain the date of preparation and the name and telephone number of an individual responsible for answering questions concerning that exhibit. Revised materials, reflecting budget decisions and other changes in the initial submissions, should be submitted promptly after such decisions and changes have been made. (a) General R&D exhibits.--This exhibit will be prepared in the format of exhibit 44A. The exhibits will report budget authority and outlays. Amounts will be reported in thousands. Amounts reported for outlays will equal the corresponding outlay amounts reported for R&D in MAX schedule C (see section 25.4). The entries on the following table will be used in reporting the data required for exhibit 44A. Care should be taken to ensure that allocations across the basic, applied, and development categories are consistent with your agency's historical interpretation of these R&D definitions. ---------------------------------------------------------------------- Entry Description ---------------------------------------------------------------------- Basic research Systematic study directed toward greater knowledge or understanding of the fundamental aspects of phenomena and of observable facts without specific applications towards processes or products in mind. Budget authority and outlays reported here shall equal those reported under character classification codes 1411 and 1412 in MAX schedule C (see section 25.4). Includes all normal operating expenses, such as salaries, supplies, noncapitalized equipment and contractual services; excludes construction of facilities and other items reported under "R&D facilities". Applied research Systematic study to gain knowledge or understanding necessary for determining the means by which a recognized and specific need may be met. Budget authority and outlays reported here shall equal those reported under character classification codes 1421 and 1422 in MAX schedule C (see section 25.4). Includes all normal operating expenses, such as salaries, supplies, noncapitalized equipment and contractual services; excludes construction of facilities and other items reported under "R&D facilities". Development Systematic application of knowledge toward the production of useful materials, devices, and systems or methods; including design, development, and improvement of prototypes and new processes to meet specific requirements. Budget authority and outlays reported here shall equal those reported under character classification codes 1431 and 1432 in MAX schedule C (see section 25.4). Includes all normal operating expenses, such as salaries, supplies, noncapitalized equipment and contractual services; excludes construction of facilities and other items reported under "R&D facilities". |R&D facilities Includes the acquisition, design, and construction | of, or major repairs or alterations to all | physical facilities for use in R&D activities. | Facilities include land, buildings, and fixed | capital equipment regardless of whether the | facilities are to be used by the Government or by | a private organization, and regardless of where | title to the property may rest. Includes such | fixed facilities as reactors, wind tunnels, and | particle accelerators. Excluded from the R&D | facilities category are expendable or moveable | equipment (e.g., spectrometers, microscopes) and | office furniture and equipment. Also excluded are | the costs of pre-design studies (e.g., those | undertaken before commitment to a specific | facility). These excluded costs should be reported | under "Total, conduct of research and | development". Budget authority and outlays | reported here shall equal those reported under | character classification codes 1311, 1312, 1321, | and 1322 in MAX schedule C (see section 25.4). Conduct of R&D Subset of the above total. Represents amounts for performed by R&D performed by institutions engaged primarily in colleges and providing instruction for at least a 2-year universities program above the secondary school level. Included are colleges of liberal arts; schools of arts and sciences; professional schools (such as in engineering and medicine); affiliated hospitals and associated institutes; and agricultural experimental stations (excludes federally funded research and development centers). Indirect costs Indirect costs are classified as "Administration" related to R&D or "Facilities" costs that are incurred for common performed by or joint objectives, and therefore, cannot be colleges and identified with a particular sponsored project. universities. Facilities costs are defined as depreciation and use allowances, interest on debt associated with a certain building, equipment and capital improvements, and operations and maintenance. Administration costs are defined as general administration. See OMB Circular A-21 "Cost Principles for Educational Institutions" for further definition and guidance on indirect costs. |Merit reviewed Intramural and extramural research programs where |scientific research funded activities are chosen from a pool of |with peer qualified applicants following review by a set of |evaluation and (scientific) peers for merit. To meet the |competitive criterion of peer evaluation, the merit reviewed |selection activities must be reviewed by appropriately | qualified scientists and engineers outside the | decision-making or supervisory chain. To meet the | criterion of competitive selection, applicants | must not be prohibited from applying by unduly | restrictive criteria. The pool of funds within | which the competition takes place may be | reasonably broadly defined. Sole source activities | are excluded. ---------------------------------------------------------------------- | (b) Crosscutting R&D exhibits.--Exhibits will be prepared for each |crosscutting R&D priority areas identified by the National Science and |Technology Council. Agencies will be provided with a list of priority |areas, definitions, instructions, and a reporting format prior to the |first data request. Data should be reported on all activities funded |by the agency, regardless of performer. For reimbursements and other |transfers between agencies, the agency that benefits from the R&D |outlay will report the R&D data. Data in this section should include all normal operating expenses, e.g., salaries, supplies, etc., consistent with other R&D data reported in this section. These data will be submitted to OMB electronically. Other crosscutting R&D topics may be requested by OMB. (c) Technology transfer exhibits.--An exhibit summarizing agency technology transfer data is required for each agency with R&D levels (budget authority or outlays) exceeding $10 million and technology transfer activities (budget authority or outlays) of more than $100 thousand. These schedules will be prepared in the format of exhibit 44B and entered electronically. The following information will be submitted, with dollar amounts reported in terms of budget authority and in thousands: Budget Information: Funds allocated to technology transfer; Funds allocated to operation of Research and Development Application Offices (ORTAs), including salaries; Funds allocated to Federal Laboratory Consortium (FLC); Amount of royalties and other income received from all licenses; Amount of royalties and other income received from licenses developed in Government-owned laboratories; Amount of royalties paid to Federal employee inventors and Government contractor inventors (include amount for each category) for inventions developed in Government-owned laboratories; Amount of other cash awards paid to Federal employee inventors and Government contractor inventors; (include amount for each category) for inventions developed in Government-owned laboratories; Number of full-time equivalent staff positions, both professional and support, assigned to ORTAs; Cooperative Research and Development Agreements: Value, cash and non-cash (facilities, equipment, salaries), of all Cooperative Research and Development Agreements (CRADAs) active in fiscal year; Value, cash and non-cash (facilities, equipment, salaries), of CRADAs in which at least one partner is a foreign business entity (a foreign business entity is owned or foreign controlled directly or indirectly, 50% or more of the stock or ownership is held by foreign citizens or nationals, or is organized under the laws of a foreign government); Value, cash and non-cash (facilities, equipment, salaries), of CRADAs with small businesses; Amount of Federal funds invested in CRADAs; Amount of non-Federal funds invested in CRADAs; Number of all CRADAs active in fiscal year; Number of active CRADAs in which at least one partner is a foreign business entity; and Number of active CRADAs with small businesses. Measures of Productivity: Number of invention disclosures; Number of patent applications; Number of exclusive licenses awarded; Number of non-exclusive licenses awarded; Number of titles assigned; Number of new companies formed