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An Analysis of Efforts to Double Federal Funding for Physical Sciences and Engineering Research An Analysis of Efforts to Double Federal Funding for Physical Sciences and Engineering Research John F. Sargent Jr. Specialist in Science and Technology Policy September 8, 2015 Congressional Research Service 7-5700 www.crs.gov R41951 Efforts to Double Federal Funding for Physical Sciences and Engineering Research Summary Federal funding of physical sciences and engineering (PS&E) research has played a substantial role in U.S. economic growth and job creation by creating the underlying knowledge that supports technological innovation. Some Members of Congress and leaders in industry and academia have expressed concern that recent public investments in these disciplines have been inadequate in light of the emergence of new global competitors and the science and technology- focused investments of other nations. A 2005 National Academies report, Rising Above the Gathering Storm: Energizing and Employing America for a Brighter Economic Future, requested by several Members of Congress, recommended doubling federal basic research funding over seven years, with an emphasis on selected fields, including PS&E, to address this issue. President George W. Bush subsequently launched the American Competitiveness Initiative, which sought, in part, to double funding over 10 years for targeted accounts at three federal agencies with a research focus on physical sciences and engineering—the National Science Foundation, the Department of Energy’s Office of Science, and the Department of Commerce’s National Institute of Standards and Technology. In 2007, Congress enacted the America COMPETES Act (P.L. 110-69) which set authorization levels for FY2008-FY2010 for the targeted accounts that established, implicitly, a seven-year doubling path. Subsequently, Congress passed the America COMPETES Reauthorization Act of 2010 (P.L. 111-358), setting FY2011-FY2013 authorization levels for these accounts that implicitly extended the doubling path to 11 years. In his FY2010 budget, President Obama supported a 10-year doubling effort, but in subsequent budgets he first extended the doubling period then omitted the doubling language. Opposition to the doubling effort has centered primarily on concerns about increased spending in light of current economic conditions. Some contend that additional research funding may not translate effectively into U.S. innovation and that scarcity of funds elicits stronger research proposals. Progress toward doubling the targeted accounts has been slower than originally sought. Through FY2010, Congress had appropriated funding for the targeted accounts consistent with doubling over 12 years. However, by FY2013 appropriations for these accounts had fallen by 1.8% from their FY2010 level, extending the doubling pace to more than 22 years. Some policymakers are currently seeking to address the perceived need for increased funding for PS&E using a framework that supports sustained and predictable increases rather than using a doubling goal. And while the doubling agencies were targeted to raise overall federal spending on PS&E basic research, obligations for PS&E basic research at these agencies grew from FY2006 to FY2013 at a slower pace (3.6% CAGR) than at all other agencies (4.9% CAGR). Total federal obligations for PS&E basic research grew faster between FY2006 and FY2013 (4.2% CAGR) than in the prior decade (2.8% CAGR). However, total federal obligations for PS&E applied research grew at a slower pace (2.0% CAGR) between FY2006 and FY2013 period than in the prior decade (4.7% CAGR), as did total federal PS&E research (3.0% CAGR and 3.9% CAGR, respectively). Congress has a variety of options related to the doubling effort, including providing more funds for the targeted accounts; changing existing funding to better align with overarching goals of the doubling effort (e.g., national competitiveness, economic growth, job creation); shifting PS&E applied research and development funding to PS&E basic research; identifying and adopting new mechanisms to promote expanded cooperative research and technical collaboration among industry, academia, government, and others, and more effective approaches to technological innovation; exploring other mechanisms for meeting the economic goals of the doubling effort by further incentivizing private sector efforts; identifying and adopting mechanisms by which the United States might promote increased access to and use of PS&E research performed in other nations; accepting a slower doubling path; or delaying or abandoning the effort. Congressional Research Service Efforts to Double Federal Funding for Physical Sciences and Engineering Research Contents Introduction ..................................................................................................................................... 1 Background ..................................................................................................................................... 2 Selected Milestones in the Doubling Effort .................................................................................... 3 National Summit on Competitiveness ....................................................................................... 3 The Gathering Storm Report ..................................................................................................... 4 American Competitiveness Initiative ........................................................................................ 5 America COMPETES Act ......................................................................................................... 6 America COMPETES Reauthorization Act of 2010 ................................................................. 7 Progress Toward the Doubling Targets ............................................................................................ 7 Actual Appropriations ............................................................................................................... 8 Presidential Doubling Periods and Budget Requests Versus Actual Appropriations ................ 9 Congressional Doubling Periods Versus Actual Appropriations .............................................. 11 An Integrated Perspective ....................................................................................................... 12 Policy Issues .................................................................................................................................. 13 How Has the Doubling Effort Affected Federal PS&E Research Funding? ........................... 13 Changes in Current Dollar Obligations ............................................................................. 13 Constant Dollar Analysis: How Has the Real Purchasing Power of Federal PS&E Obligations Changed During the Doubling Effort? ....................................................... 16 Should the Federal Government Double Funding for PS&E Research? ................................. 17 Would Increased Investment in PS&E Research Produce Jobs and Economic Growth for the United States? ........................................................................................................... 20 How Might the Doubling Effort Affect the Number of Students Pursuing PS&E Degrees? ............................................................................................................................... 21 Options for Congress ..................................................................................................................... 23 Figures Figure 1. Appropriations for Targeted Accounts, FY2006-FY2015, as a Percentage of FY2006 Funding .......................................................................................................................... 8 Figure 2. Presidential Requests and Appropriations for Targeted Accounts, Annual Aggregates, FY2007-FY2015 .................................................................................................... 10 Figure 3. Authorizations and Appropriations for Targeted Accounts, Annual Aggregates, FY2008-FY2013 ......................................................................................................................... 11 Figure 4. Doubling of Research Funding for Targeted Accounts: Appropriations and Authorizations versus Selected Rates ......................................................................................... 12 Figure 5. Federal PS&E Obligations for Research as a Percentage of GDP ................................. 19 Tables Table 1. Authorization Levels for Targeted Accounts, FY2008-FY2010 ........................................ 6 Table 2. Authorization Levels for Targeted Accounts, FY2011-FY2013 ........................................ 7 Table 3. Compound Annual Growth Rates for Targeted Accounts, Selected Periods ..................... 9 Congressional Research Service Efforts to Double Federal Funding for Physical Sciences and Engineering Research Table 4. Requested Funding for Targeted Accounts, with Associated Compound Annual Growth Rate and Doubling Pace, FY2006-FY2016 ................................................................... 10 Table 5. Compound Annual Growth Rates for Total Federal Basic Research Obligations in Physical Sciences, Engineering, and PS&E Combined for Selected Periods ........................ 14 Table 6. Compound Annual Growth Rates for Total Federal Applied Research Obligations in Physical Sciences, Engineering, and PS&E Combined for Selected Periods .......................................................................................................................................
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