Statement before US House on March 29, 1993

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Statement of

The Honorable John H. Gibbons, Director

Office of Science and Technology Policy

before the

Subcommittee on Veterans' Administration, HUD, and Independent Agencies

Committee on Appropriations

U.S. House of Representatives

March 29, 1993

Mr. Chairman, Members of the Committee, I am pleased to appear before youfor the first time as Director of t he Office of Science and Technology Policy(OSTP). I will present testimony on OSTP's budget request for Fiscal Year1994. I will also provide a brief overview of six initiatives of the FederalCoordinating Council for Science, Engineering, and Technolo gy (FCCSET), which Ichair, and of the President's technology initiative, Technology forAmerica's Economic Growth: A New Direction to Build Economic Strength, inwhich OSTP played a key development role and continues to play a leadershiprole.

OSTP BUDGET REQUEST

The Clinton Administration believes that investing in science and technologyis investing in America's future: a growing economy with more high-skill,high-wage jobs for American workers; a cleaner envi ronment where, for example,energy efficiency increases profits and reduces pollution; a stronger, morecompetitive private sector able to maintain U.S. leadership in critical worldmarkets; an educational system where every student is challenged to reach hisor her full potential; and an inspired scientific and technological researchcommunity focused on ensuring not just our national security but our veryquality of life. The most important measure of success of the Federalinitiatives will be our abil ity to make a difference in the lives of theAmerican people, to support science and direct technology so they improve thequality of life and the economic strength of our nation.

The Office of Science and Technology Policy, created by the Nationa l Scienceand Technology Policy, Organization, and Priorities Act of 1976 (P.L. 94-282),coordinates science and technology policy for the White House. OSTP supportsthe Administration's objectives by: providing authoritative scientific andtechnological information, analysis, and advice for the President, for theExecutive Branch, and for Congress; participating in formulation, coordination,and implementation of national and international policies and programs thatinvolve science and technology; maint aining and promoting the health andvitality of the U.S. science and technology infrastructure; and coordinatingresearch and development efforts of the Federal government to maximize thereturn on the public's investment in science and technology and to ensureFederal resources are used efficiently and appropriately.

The total FY 1994 budget request of $5,170,000 is intended to support 40professional and support staff for OSTP and 6 detailees. The request providesfor four Associate Directors -- the number authorized in the enablinglegislation. The FY 1994 request also provides for an estimated 7 assistantdirectors and several policy analysts, consistent with the current OSTPstaffing configuration. The professional staff will be composed o f individualswith diverse skills, multiple advanced degrees, and broad experience. This isessential, given the number and variety of issues addressed by OSTP and thechanges in emphasis from year to year. OSTP also utilizes detailees from otheragenci es to fulfill staffing needs in specialized science and technologyareas.

The total OSTP budget request for FY 1994 provides a base of support that willallow OSTP to fulfill its growing responsibilities related to Administrationprograms, policie s, and initiatives involving science and technology,including:

Making recommendations to the President and his staff on current major issuesof science and technology policy. This requires a very high level ofparticipation and interaction by O STP with numerous coordinating groups withinthe Executive Office of the President and with all Federal departments andagencies.

Directing and coordinating the Federal Coordinating Council for Science,Engineering and Technology (FCCSET) and its committees and subgroups. Thisrequires an intensive level of participation, coordination, and guidance byOSTP staff on the various FCCSET committees and subgroups.

Coordinating the science and technology elements of the programs of Federalag encies and departments.

Prioritizing and coordinating the different objectives of the Nation's civil,military, and commercial space activities and developing policies that are inthe broad national interest (a new responsibility formerly carried out by theNational Space Council).

Anticipating new science and technology issues, or issues with a significantscience and technology component, especially those with a longer-rangeperspective, and initiating interagency coordination on such issues.

In consultation with the Department of State, developing, planning, andimplementing international bilateral science and technology agreements withforeign countries. Interagency coordination, under FCCSET, of science andtechnology issu es in negotiated agreements with foreign countries.

Preparing reports in accordance with legislative requests or direction.

Interacting with various science and technology related groups outside of theFederal Government.

The resp onsibilities of the Assistant to the President for Science andTechnology and of OSTP have increased in the Clinton Administration.Significant additions to OSTP's responsibilities include:

The Director of OSTP, as Assistant to the President for Science andTechnology, plays an active role in the newly formed National EconomicCouncil.

OSTP has been directed to complete absorption of the essential functions ofthe National Space Council and the National Critical Materials Council by the beginning of Fiscal Year 1994. OSTP specific responsibility within theExecutive Office of the President will include: review of United StatesGovernment space policy, including long-range goals and development of astrategy for national space activiti es; development of recommendations for thePresident on space policy and space-related issues; monitoring and coordinationof implementation of the objectives of the President's national space policy byExecutive Departments and agencies; and fostering cl ose coordination,cooperation, and technology and information exchange among the civil, nationalsecurity, and commercial space sectors, and facilitating resolution ofdifferences concerning major space and space-related policy issues. Inaddition, OSTP will take the lead role in: assisting the President inestablishing coherent national materials policies; coordinating Federalmaterials-related policies, programs, and research and technology activities;and reviewing and appraising the various programs and activities of the Federalgovernment in accordance with the policy and directions given in the NationalMaterials and Minerals Policy, Research, and Development Act of 1980.

Under the President's investment plan, OSTP has assumed additionalr esponsibilities in science and mathematics education, the environment, highperformance computing and communications, biotechnology, materials science, andtechnology, particularly as it affects global competitiveness.

The Director of OSTP chair s FCCSET, which will have an expanded mission andaugmented role in the new Administration.

In Fiscal Year 1994, OSTP requests an increase in funding of $945,000 overFiscal Year 1993 (excluding consideration of $2 million provided to theConsorti um for International Earth Science Information Network (CIESIN) throughOSTP in FY '93). Growth in personnel compensation -- pay and benefits --largely accounts for the requested increase. This growth is occasioned by thetransition from reliance on de tailees during the previous Administration toreliance on full-time equivalent staff (FTEs) and hiring up to OSTP's permittedstrength of 40 positions. OSTP hopes to have a more stable staff in place forFiscal Year 1994 (and beyond) than has been the ca se in prior years.

We have also requested an increase in the funds available for consultingservices. Since OSTP is limited in the number of detailees that can beborrowed from other agencies, we will depend on contracts for specializeddeliverab les to fill short-term, highly technical information needs. This typeof contracting to complement staff capabilities served the Congressional Officeof Technology Assessment very well during my years as Director there, and Ibelieve it can be used to ve ry good effect at OSTP as well.

OSTP has a critical role to play in coordinating science and technology policyfor the Executive Branch. The performance of the Office will be enhanced bygreater stability in the permanent staff coupled with bette r access tospecialized, "cutting edge" information needed on a quick turn-around,short-term basis. The budget requested for Fiscal Year 1994 would supportthese needs. I hope the following descriptions of two important OSTP functions-- chairmanship o f FCCSET and leadership on implementing the technologyinitiative -- will help you to appreciate OSTP's role and to support this levelof funding.

FCCSET INITIATIVES

The Federal Coordinating Council for Science, Engineering, and Technology (FCCSET) plays an essential role in developing and implementing U.S. scienceand technology policy. Chaired by the Director of OSTP, FCCSET is chargedwith:

-- Providing more effective planning, integration, and coordination of Federalscientifi c, engineering, educational, and technological programs;

-- Achieving more effective utilization of the scientific, engineering,educational, and technological resources and facilities of Federal agencies;

-- Involving individuals, univers ities, and companies from the non-Federalsector in addressing the interaction of the Federal government and the privatesector on scientific, engineering, educational, and technological issues; and

-- Furthering international cooperation in scien ce, engineering, andtechnology.

The agencies participating in FCCSET, in conjunction with OSTP and the Officeof Management and Budget, have undertaken crosscutting analyses of all Federalactivities in 6 specific areas of science and technology. FCCSET performed aninventory of current agency activities in these areas and fashioned coordinatedFederal strategies with long-range goals and priorities. These FCCSETinitiatives, described below, address issues of great importance to nationalneeds and objectives. The agencies involved in FCCSET deserve specialrecognition for their efforts in these critical areas.

Biotechnology Research

Biotechnology offers novel approaches to understanding and solving some of theworld's gr eatest problems, including disease, hunger, and pollution. The goalof the Biotechnology Research initiative is to sustain and extend U.S.leadership in biotechnology research for the 21st Century, to enhance thequality of life for all Americans, and to spur the growth of the U.S.economy.

Twelve Federal agencies participate in this FCCSET initiative: theDepartments of Health and Human Services (DHHS), Agriculture (USDA), Commerce(DOC), Defense (DoD), Energy (DOE), Interior (DOI), Justice (DO J), andVeterans' Affairs (VA), and the Agency for International Development (AID), theEnvironmental Protection Agency (EPA), the National Aeronautics and SpaceAdministration (NASA), and the National Science Foundation (NSF). Workingtogether, these ag encies have chosen 6 major areas of biotechnology researchfor tracking and analysis: 1) human health; 2) environment; 3) agriculture; 4)energy; 5) general foundations; and 6) manufacturing and bioprocessing. We arenow in a period in which Federal fun ding can catalyze the development of keyadvances for more effective means of disease diagnosis and treatment and ofenvironmental protection and restoration. Each area of biotechnology researchhas knowledge gaps that, if not addressed, will impede prog ress in thiscritical area.

High Performance Computing and Communications (HPCC)

The agencies participating in the HPCC Program are creating a single,integrated, nationwide infrastructure for high performance computing andcommunica tions and for information technology. The goal of this Program is tofacilitate the development of computing, communications, and softwareinfrastructure to serve the national economy and security, spur gains in U.S.productivity and industrial competiti veness, and improve the health andeducation of the U.S. population.

Participants -- DoD's Advanced Research Projects Agency (ARPA) and NationalSecurity Agency (NSA), NSF, DOE, NASA, DOC's National Oceanic and AtmosphericAdministration (NOAA) an d National Institute of Standards and Technology(NIST), and EPA -- coordinate their activities in order to leverage efforts inareas of common need and mission overlap. No individual agency has either themission or the expertise to develop all componen ts of a national informationinfrastructure, but each agency plays a necessary and complementary role.

Development of a national information infrastructure (NII) received specialattention in the President's technology initiative, and the particip ants in theHPCC Program will support the NII with the following activities:

-- Broadening the reach of the HPCC computing and communicationsinfrastructure to include access by medical facilities, libraries, educationinstitutions, and industry t hroughout the United States;

-- Demonstrating the potential of advanced applications of software inimproving health care, manufacturing, energy use, and the environment; and

-- Improving education and lifelong learning, including facilita tingestablishment of digital libraries and providing for appropriate privacy andsecurity protections.

Science, Mathematics, Engineering, and Technology Education (SMETE)

The goal of the SMETE initiative is to ensure the health and wellbeing ofscience, mathematics, engineering, and technology education at all levels andin all sectors. Eleven agencies -- DOC, DoD, DOE, DOI, EPA, DHHS, NASA, NSF,USDA, the Department of Education (ED), and the Smithsonian Institution (SI) --pa rticipate in this initiative, and they have established priorities andmilestones in areas of responsibility from kindergarten through postgraduateeducation, as well as public understanding of science and technology education.The participants carefully monitor progress toward achieving the milestones andwork toward ensuring interagency coordination and communication.

In support of the President's efforts to improve math and science education,SMETE will address:

-- Elementary and second ary system reform, by attempting to fosterstandards-based systemic reform through an approach that incorporates ambitiouscontent standards for all students, curriculum, in-service training, teacherpreparation programs, and assessments linked to those s tandards;

-- Undergraduate revitalization, by supporting curriculum revisions, providingundergraduate faculty with research experience, and providing student financialassistance;

-- Graduate education, by continuing to provide pre- and p ost-doctoral studentsupport;

-- Public understanding of science, by supporting programs designed toincrease the ability of adults to make informed choices on science-relatedissues;

-- Technical education, by supporting efforts to improv e the school-to-worktransition and ensuring that all workers receive the training necessary to keeppace with a rapidly changing economy; and

-- Technology transfer, particularly by assisting in the transfer of militaryexpertise in education and training to the civilian sector.

The participants in this initiative have identified several crosscuttingpriorities to be addressed in Fiscal Year 1994 and beyond, including:increasing the use of educational technology; increasing participation ofunderrepresented groups; identification and dissemination of exemplarymaterials; and evaluation.

Global Change Research

The goal of the U.S. Global Change Research Program (USGCRP) is to gain abetter understanding of the intera ctive physical, geological, chemical,biological, economic, and social processes that regulate the total Earthsystem. Such an understanding will help establish a scientific basis fornational and international policy formulation and action.

To f ulfill the goals and address the strategic priorities of the USGCRP, 4parallel but interconnected streams of national and international activity havebeen developed:

-- Observations and data management: the establishment of an integrated,compre hensive, long-term program of Earth system observations and datamanagement on a global scale;

-- Process research: the development of a program of focused studies toimprove knowledge of the physical, geological, chemical, biological, and social processes that influence and govern Earth system behavior and our knowledge ofthe impact of global change on human health and activities;

-- Integrated modeling and prediction: the development and application ofintegrated conceptual and predic tive Earth system models; and

-- Assessments: the documentation and assessment of the state of scientificknowledge and uncertainties and the implications of the science of globalchange to support national and international policymaking activiti es over abroad spectrum of global and regional environmental issues.

The USGCRP maintains a formal mechanism to coordinate the interests ofindustry, business, commerce, and nongovernmental environmental groups withFederal participants (DOC, DoD , DOE, DOI, EPA, DHHS, NASA, NSF, SI, USDA, andthe Tennessee Valley Authority (TVA)).

Advanced Manufacturing Technology (AMT)

Manufacturing is the foundation of the U.S. economy. Private industry mustdefine and develop new man ufacturing technologies and put them to use on thefactory floor, but the Federal Government can facilitate this process bysupporting R&D involving precompetitive, generic fabrication andmanufacturing technologies and by providing appropriate mechan isms toaccelerate successful technology deployment, particularly among smallermanufacturers. The participants in AMT -- DOC, DoD, DOE, DOI, EPA, NASA, NSF,and USDA -- have established the following goal: to accelerate the developmentand application of advanced manufacturing technologies to dramatically improvethe manufacturing capabilities of a broad spectrum of U.S. industries. Thegoal will be accomplished by developing a coherent and synergistic interagencyprogram in advanced manufacturing tec hnology R&D and by combining andintegrating Federal efforts in cooperation with the States and otherstakeholders.

AMT participants focus their efforts in 4 broad categories:

-- Manufacturing design technologies, including tools and t echniques used toprepare for manufacturing;

-- Manufacturing technologies, including processes and equipment used for theactual production of physical products;

-- Supporting technologies, including underlying core technologies needed to provide advances in design and manufacturing technologies; and

-- Manufacturing infrastructure elements, including concepts and mechanismsfor managing the development of appropriate technologies and for encouragingtheir widespread use within th e industrial base.

AMT will have a major role in coordinating the Federal Government'scontribution to development and deployment of a new generation of automobiles,part of the President's technology initiative.

Advanced Materials and P rocessing Program (AMPP)

The goal of the AMPP is to improve the manufacture and performance ofmaterials to enhance the Nation's quality of life, security, industrialproductivity, and economic growth. To achieve this overall goal, programs a redesigned in accordance with 4 strategic objectives, which concern broadnational needs:

-- Establish and maintain the U.S. scientific and technological leadershipposition in advanced materials and processing;

-- Bridge the gap between innovation and commercial application of advancedmaterials technologies;

-- Support agencies' mission objectives to meet national needs withimprovements in advanced materials and processing; and

-- Encourage university and private-sector R&D activities in materialstechnologies, their applications, and their implementation.

Each participating agency focuses on aspects of materials R&D relevant tothe agency's missions and cooperates with other agencies in areas of common interest. The 10 participating agencies are DOC, DoD, DOE, DOI, the Departmentof Transportation (DOT), EPA, DHHS, NASA, NSF, and USDA.

THE TECHNOLOGY INITIATIVE

The President has directed OSTP to assume a leadership role in implementing his technology initiative, described in Technology for America's EconomicGrowth: A New Direction to Build Economic Strength. This initiative,introduced February 22, 1993, offers a comprehensive blueprint to focusAmerican technology on 3 centra l goals:

-- Long-term economic growth that creates jobs and protects the environment;

-- Making government more efficient and more responsive;

-- World leadership in basic science, mathematics, and engineering.

We are moving in a n ew direction that recognizes the critical role technologymust play in stimulating and sustaining the long-term economic growth thatcreates high-quality jobs and protects our environment. The traditionalfederal role in technology development has been l imited to support of basicscience and mission-oriented research in, primarily, the Defense Department andNASA. This strategy was appropriate for a previous generation, but not fortoday's profoundly different challenges. We cannot rely on the serendip itousapplication of defense technology to the private sector. We must aim moredirectly at our goals and focus our efforts on the new opportunities before us,recognizing that government can play a key role in enabling private firms todevelop and profi t from innovations.

With this initiative, we take a critical step toward ensuring that the federalinvestment in science and technology becomes a key instrument for promotingU.S. economic growth and for satisfying other national goals. We must a pproachthese interrelated goals in an integrated fashion to take full advantage of theopportunities presented by new technologies.

Goal: Long-Term Economic Growth that Creates Jobs and Protects theEnvironment

Technology drives economic growth. Advances in technology created two-thirdsof the productivity growth in the United States over the past 60 years. Theknowledge-based, growth industries of the future depend on continuousgeneration of new technological innovations and rapid tra nsformation of thoseinnovations into marketable products. We can promote technology as a catalystfor economic growth by:

Directly supporting the development, commercialization, and deployment ofnew technology. The nation urgently needs improved strategies forgovernment/industry cooperation in the support of industrial technology. Wecannot afford to wait for investments in defense and space to trickle down tocivilian industry. Commercial R&D will be enhanced by the President's planto: increase the civilian share of the R&D budget to more than 50% by1998; expand the Commerce Department's Advanced Technology Program; emphasizedual use technologies in the renamed Advanced Research Projects Agency;encourage industry consor tia to advance critical technologies, including"green" technologies that reduce pollution and m eralGovernment spends over $26 billion annually on information technologies andservices. Thus Federal use of these technologies can have a significantinfluence on the information technology market and can improve quality andtimeliness of service and improve access to government information. Because ofall these factors, information technology plays a key role in the President'sprogram to make government more efficient.

Operating energy-efficient buildings. The federal government iswasting tax dollars by operating inefficient buildings. California, Texas,Iowa, and several other States have successful programs that have profitablyinvested in buildings during the past several years. These programs haveincreased the efficiency of State structures and stimulated the localconstruction industries. In his effort to learn from the States and improvethe use of tax dollars, the President will emphasize investments in energyretrofits that have short payback periods: for instance, the budget includes$2 billion over the next 5 years for energy retrofits in federal buildings thatwe expect will have an average payback time of about 5 years; and some of the$3-4 billion a year that HUD spends subsidizing the energy bills of 5 million low income households (about 7 percent, or $200-300 million) could be investedin energy retrofits that would pay back in less than 5 years and represent alasting decrease in energy bills.

Reforming procurement policy. The enormous purch asing power of thefederal government has often played a key role in ensuring early markets forinnovative technologies. An accretion of complex regulations governingprocurement, however, has made it difficult for the government to purchasecost-competi tive commercial products or to stimulate markets for innovativeproducts as a matter of policy. We will work to eliminate these problems toensure that the taxpayers get their money's worth from federal purchases. Wewill develop purchasing procedures t hat give priority to advanced commercialproducts whenever they are justified on the basis of life-cycle costs(including environmental, health, and safety costs). Where appropriate, wewill also try to create markets for technologies likely to have sign ificanteconomic or social benefits. Contracting procedures will be designed to ensurethat commercial firms are given the opportunity to propose innovative responsesto federal requests and to retain rights in technologies developed.

Goal: World Leadership in Basic Science, Mathematics, and Engineering

Our basic science program provides the foundation for new technologies, andvice versa. The federal government has invested heavily in basic researchsince the Second World War, and this support has paid enormous dividends. Ourresearch universities are the best in the world; our research universities, ournational laboratories, and our research facilities attract students,scientists, and engineers from around the globe. In almost ever y field, U.S.researchers lead their foreign colleagues in scientific citations, in NobelPrizes, and in most other measures of scientific excellence. This preeminentposition is of inestimable value and merits strong, sustained support.

While we emphasize technology in the President's initiative, none of theinnovations proposed will be funded at the expense of basic science. Ourproposal ensures that support for basic science remains strong and that stablefunding is provided for projects that require continuity. We must not allowshort term fluctuations in funding levels to destroy critical researchactivities that have taken years to assemble.

But stable funding requires clear priorities and periodic reevaluation. Inrecent years, rather than phasing out less important projects when researchbudgets have been tight, Federal agencies have tended to spread the pain,resulting in disruptive cuts and associated schedule delays in hundreds ofprograms. Improved management of basic scie nce can ensure sustained supportfor high-priority programs, including:

University research. The National Science Foundation (NSF) and theNational Institutes of Health (NIH) provide the vast majority of federalfunding for university rese arch. Since universities play dual roles ofresearch and teaching, the long-term scientific and technological vitality ofthe U.S. depends upon adequate and sustained funding for university researchgrant programs at NSF, NIH, and other research agencies .

National laboratories. In high-energy physics, biomedical science,nuclear physics, environmental and materials sciences, aeronautics, and otherfields, the national laboratories provide key facilities used by their ownresearchers and t hose in academia and industry. In many fields, researchers atfederal labs are world leaders. We will ensure that federal laboratoriescontinue their key role in basic research but will encourage more cooperativeresearch between the laboratories, indus tries, and universities. And we willdevelop new missions for our federal labs to make full use of the talented andexperienced men and women working there in today's post-Cold War era with itsemphasis on jobs, economy, and environment.

Space science and exploration. Space research and exploration programsconstitute an important component of the nation's overall science andtechnology effort. Given the competing demands for scarce national resources,these programs require design and m anagement that ensure maximum return on ourinvestment. One way to accomplish this is through carefully craftedcooperation with international partners, virtually all of whom are alsoexperiencing budgetary pressures. We must explore all reasonable mean s ofworking with them to use our collective resources more efficiently.

Environmental research. The federal government will invest in researchto better understand global climate factors, ozone depletion, and otherphenomena important to local, regional, and global environments. This researchis essential if we are to fully assess the damage humankind is doing to ourplanet and take effective action to address it. Vital research on local andregional environmental problems will also be strongly supported at EPA, NOAA,NSF, DOE, NASA, DoD, DOL, USDA, and other agencies.

The plan embodied in Technology for America's Economic Growthrepresents a major departure from the programs of the past. Organized aroundbroad, national goals, it abandons the notion that we can depend on spin-offsfrom space and defense R&D for future wellbeing and adopts an ambitious,integrated approach to civil and defense R&D spending in order to ensurenational, economic, and environmental security.

Redirecting America's programs in science and technology will require majorchanges in the way we manage our efforts, and change is underway:

-- Working with Vice President Gore, a reinvigorated Office of Science andTechnology P olicy will lead the development of science and technology policyand will use the FCCSET as one tool in coordinating the R&D programs of thefederal agencies.

-- The new National Economic Council will monitor the implementation of newpolicies and provide a forum for coordinating technology policy with tax,trade, regulatory, economic development and other policies.

Other changes will require the cooperation of Congress. For instance, we willconduct a review of laws and regulations , such as the Federal AdvisoryCommittee Act and conflict of interest laws, to determine whether changes areneeded to increase the ability of government and industry to communicate andcooperate. We also intend to work closely with you, Mr. Chairman, an d othersin Congress to prevent inappropriate "earmarking" of funds for science andtechnology. We believe that peer review and merit-based competition arecritical to the success of any science and technology program.

If this plan succeeds, we w ill experience fundamental change in the way welive and work. The technology initiative incorporates valuable existingprograms, but steps forward in important new directions. I would like tohighlight 6 new initiatives outlined in Technology for Am erica's EconomicGrowth that hold great promise for enabling the future:

Extend Permanently the Research and Experimentation Tax Credit. Our economicgoals demand private sector investment in research. Yet businesses lackincentives to make such investments. The Administration will propose that theResearch and Experimentation Tax Credit be made permanent. The credit wouldapply to qualified research expenditures by businesses and to businessexpenditures for university basic research paid or incurred after June 30,1992. The proposal will also provide a basis for startup businesses to qualifyfor the credit.

Invest in an Information Infrastructure. The interstate highway systemreoriented American commerce. "Information Superhi ghways" -- able to moveideas, data, and images around the country and around the world -- will have asimilarly positive effect on U.S. competitiveness and economic strength. TheAdministration will initiate a package of programs -- e.g., implementation ofthe High-Performance Computing and Communications Program; creation of a TaskForce on Information Infrastructure; creation of an Information InfrastructureTechnology Program; provision of funding for networking pilot projects; andpromotion of disse mination of federal information -- to ensure that the nationadopts forward-looking policies that promote the development of newtechnologies that will create the information infrastructure needed for the21st Century.

Promote Advanced Manufacturi ng Technology. The 360,000 small- andmedium-sized manufacturers in the United States, who employ 8 million workers,lack the resources and ability to gain access to the technologies that willhelp them grow, increase their profits, and create jobs. The Administrationwill work to remedy that problem by: providing increased funding for advancedmanufacturing R&D; supporting agile manufacturing, which allowsindependently-owned companies to form instantaneous partnerships with firmsthat have comple mentary capabilities in order to exploit market opportunities;creating a national network of manufacturing extension centers, which willensure that small- and medium-sized firms know about and use new technologiesand best practice information; seeding regional technology alliances, toencourage firms and research institutions in a particular region to exchangeinformation, share and develop technology, and develop new products andmarkets; promoting manufacturing engineering education, to end the years ofneglect of the management and operation of manufacturing activities; andencouraging environmentally-conscious manufacturing, to illuminate the factthat energy efficient and waste minimization technologies save money andimprove the economy.

Facilitate Private Sector Development of a New Generation of Automobiles.America needs a strong automobile industry. Given adequate investment inR&D, a new generation of safe, high-performance automobiles designed toconsume domestic fuels and prod uce little or no pollution could be brought tomarket -- preserving jobs, increasing the market share of American firms, andexpanding U.S. economic growth. The Administration proposes a bold initiative,including: a "clean car" task force linking resea rch efforts of relevantagencies, national laboratories, and defense facilities with those of U.S. automanufacturers; involving key State officials in a special advisory group to thetask force that will 1) design a program for using the authority alread ypresent in the Clean Air Act revision of 1991 and the National Energy Act of1992 to encourage introduction of prototype vehicles consistent with theobjectives of this program, 2) coordinate state regulatory programs designed torequire low or zero emi ssions vehicles, 3) propose federal regulations neededto supplement State efforts, and 4) design programs for managing federalvehicle procurement.

Improve Technology for Education and Training. Many Americans leave schoolill-equipped to enter the high-tech workforce of today or even to put newscientific and technological innovations to work for themselves. To enable thelife-long learning process essential to productive and satisfying lives, theAdministration proposes to: expand access to the Internet and NREN, to providea broad range of information resources to universities and K-12 schools;facilitate development of software and communication standards for educationand training; improve Federal programs designed to improve the teaching ofscience, math, and engineering at all levels; work with industry consortia andtraining organizations across the nation to develop, install, and maintainstate-of-the-art teaching systems; and promote manufacturing engineeringeducation.

Make Energy Efficiency Investments in Federal Buildings. The government hasto stop throwing away taxpayer dollars on needless energy expenditures. TheAdministration proposes to increase the efficiency of government by makingcost-effective investments in b uildings where the energy bills are paid by thetaxpayers.

This technology initiative captures the Clinton Administration's vision of thepower of technology to improve our economy and citizens' lives. The besttechnology policy unleashes the creat ive energies of innovators throughout theeconomy.

CONCLUSION

Growth in OSTP's responsibilities corresponds with growth in the importance ofscience and technology in many areas of national policy. Given the continuingchallenges to the N ation in OSTP's areas of responsibility, I hope you willsupport our budget request of $5.17 million.

The President has adopted an aggressive stance on the direction of science andtechnology toward solving national problems and achieving national goals. Asmy testimony described, R&D funds will be invested in areas that will boostproductivity and improve economic performance as well as in areas that ensurethe United States maintains its leadership in basic science. The science andtechnol