THE GLOBALIZATION OF R&D AND INNOVATION, PARTS I–IV HEARINGS BEFORE THE COMMITTEE ON SCIENCE AND TECHNOLOGY ONE HUNDRED TENTH CONGRESS FIRST SESSION June 12, 2007, July 26, 2007 October 4, 2007, and November 6, 2007 Serial No. 110–39, Serial No. 110–49, Serial No. 110–62, and Serial No. 110–71 Printed for the use of the Committee on Science and Technology ( VerDate 11-MAY-2000 10:20 Mar 18, 2008 Jkt 035857 PO 00000 Frm 00001 Fmt 6011 Sfmt 6011 C:\WORKD\FULL07\061207\35857 SCIENCE1 PsN: SCIENCE1 VerDate 11-MAY-2000 10:20 Mar 18, 2008 Jkt 035857 PO 00000 Frm 00002 Fmt 6011 Sfmt 6011 C:\WORKD\FULL07\061207\35857 SCIENCE1 PsN: SCIENCE1 THE GLOBALIZATION OF R&D AND INNOVATION VerDate 11-MAY-2000 10:20 Mar 18, 2008 Jkt 035857 PO 00000 Frm 00003 Fmt 6019 Sfmt 6019 C:\WORKD\FULL07\061207\35857 SCIENCE1 PsN: SCIENCE1 VerDate 11-MAY-2000 10:20 Mar 18, 2008 Jkt 035857 PO 00000 Frm 00004 Fmt 6019 Sfmt 6019 C:\WORKD\FULL07\061207\35857 SCIENCE1 PsN: SCIENCE1 THE GLOBALIZATION OF R&D AND INNOVATION, PARTS I–IV HEARINGS BEFORE THE COMMITTEE ON SCIENCE AND TECHNOLOGY HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS FIRST SESSION JUNE 12, 2007, JULY 26, 2007, OCTOBER 4, 2007, and NOVEMBER 6, 2007 Serial No. 110–39, Serial No. 110–49, Serial No. 110–62, and Serial No. 110–71 Printed for the use of the Committee on Science and Technology ( Available via the World Wide Web: http://www.house.gov/science U.S. GOVERNMENT PRINTING OFFICE 35–857PS WASHINGTON : 2008 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate 11-MAY-2000 10:20 Mar 18, 2008 Jkt 035857 PO 00000 Frm 00005 Fmt 5011 Sfmt 5011 C:\WORKD\FULL07\061207\35857 SCIENCE1 PsN: SCIENCE1 COMMITTEE ON SCIENCE AND TECHNOLOGY HON. BART GORDON, Tennessee, Chairman JERRY F. COSTELLO, Illinois RALPH M. HALL, Texas EDDIE BERNICE JOHNSON, Texas F. JAMES SENSENBRENNER JR., LYNN C. WOOLSEY, California Wisconsin MARK UDALL, Colorado LAMAR S. SMITH, Texas DAVID WU, Oregon DANA ROHRABACHER, California BRIAN BAIRD, Washington ROSCOE G. BARTLETT, Maryland BRAD MILLER, North Carolina VERNON J. EHLERS, Michigan DANIEL LIPINSKI, Illinois FRANK D. LUCAS, Oklahoma NICK LAMPSON, Texas JUDY BIGGERT, Illinois GABRIELLE GIFFORDS, Arizona W. TODD AKIN, Missouri JERRY MCNERNEY, California JO BONNER, Alabama LAURA RICHARDSON, California TOM FEENEY, Florida PAUL KANJORSKI, Pennsylvania RANDY NEUGEBAUER, Texas DARLENE HOOLEY, Oregon BOB INGLIS, South Carolina STEVEN R. ROTHMAN, New Jersey DAVID G. REICHERT, Washington JIM MATHESON, Utah MICHAEL T. MCCAUL, Texas MIKE ROSS, Arkansas MARIO DIAZ-BALART, Florida BEN CHANDLER, Kentucky PHIL GINGREY, Georgia RUSS CARNAHAN, Missouri BRIAN P. BILBRAY, California CHARLIE MELANCON, Louisiana ADRIAN SMITH, Nebraska BARON P. HILL, Indiana PAUL C. BROUN, Georgia HARRY E. MITCHELL, Arizona CHARLES A. WILSON, Ohio SUBCOMMITTEE ON TECHNOLOGY AND INNOVATION HON. DAVID WU, Oregon, Chairman JIM MATHESON, Utah PHIL GINGREY, Georgia HARRY E. MITCHELL, Arizona VERNON J. EHLERS, Michigan CHARLIE A. WILSON, Ohio JUDY BIGGERT, Illinois BEN CHANDLER, Kentucky ADRIAN SMITH, Nebraska MIKE ROSS, Arizona PAUL C. BROUN, Georgia LAURA RICHARDSON, California BART GORDON, Tennessee RALPH M. HALL, Texas MIKE QUEAR Subcommittee Staff Director RACHEL JAGODA BRUNETTE Democratic Professional Staff Member COLIN MCCORMICK Democratic Professional Staff Member TIND SHEPPER RYEN Republican Professional Staff Member PIPER LARGENT Republican Professional Staff Member MEGHAN HOUSEWRIGHT Research Assistant (II) VerDate 11-MAY-2000 10:20 Mar 18, 2008 Jkt 035857 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 C:\WORKD\FULL07\061207\35857 SCIENCE1 PsN: SCIENCE1 C O N T E N T S June 12, 2007 Page Witness List ............................................................................................................. 2 Hearing Charter ...................................................................................................... 3 Opening Statements Statement by Representative Bart Gordon, Chairman, Committee on Science and Technology, U.S. House of Representatives ............................................... 6 Written Statement ............................................................................................ 7 Statement by Representative Ralph M. Hall, Ranking Minority Member, Committee on Science and Technology, U.S. House of Representatives ......... 8 Written Statement ............................................................................................ 9 Prepared Statement by Representative Russ Carnahan, Member, Committee on Science and Technology, U.S. House of Representatives ............................. 10 Witnesses: Dr. Alan S. Blinder, Director, Center for Economic Policy Studies; Gordon S. Rentschler Memorial Professor of Economics, Princeton University Oral Statement ................................................................................................. 10 Written Statement ............................................................................................ 14 Biography .......................................................................................................... 17 Dr. Martin N. Baily, Senior Fellow, Peter G. Peterson Institute for Inter- national Economics, Washington, DC Oral Statement ................................................................................................. 18 Written Statement ............................................................................................ 21 Dr. Ralph E. Gomory, President, Alfred P. Sloan Foundation Oral Statement ................................................................................................. 28 Written Statement ............................................................................................ 30 Biography .......................................................................................................... 35 Dr. Thomas J. Duesterberg, President and CEO, Manufacturers Alliance/ MAPI Oral Statement ................................................................................................. 36 Written Statement ............................................................................................ 39 Biography .......................................................................................................... 54 Discussion ................................................................................................................. 55 Appendix 1: Answers to Post-Hearing Questions Dr. Alan S. Blinder, Director, Center for Economic Policy Studies; Gordon S. Rentschler Memorial Professor of Economics, Princeton University .......... 64 Dr. Martin N. Baily, Senior Fellow, Peter G. Peterson Institute for Inter- national Economics, Washington, DC ................................................................ 65 Dr. Ralph E. Gomory, President, Alfred P. Sloan Foundation ............................ 68 Dr. Thomas J. Duesterberg, President and CEO, Manufacturers Alliance/ MAPI ..................................................................................................................... 84 Appendix 2: Additional Material for the Record Statement of the Computing Research Association .............................................. 92 (III) VerDate 11-MAY-2000 10:20 Mar 18, 2008 Jkt 035857 PO 00000 Frm 00007 Fmt 5904 Sfmt 5904 C:\WORKD\FULL07\061207\35857 SCIENCE1 PsN: SCIENCE1 IV Page C O N T E N T S July 26, 2007 Page Witness List ............................................................................................................. 100 Hearing Charter ...................................................................................................... 101 Opening Statements Statement by Representative Bart Gordon, Chairman, Committee on Science and Technology, U.S. House of Representatives ............................................... 104 Written Statement ............................................................................................ 104 Statement by Representative Ralph M. Hall, Ranking Minority Member, Committee on Science and Technology, U.S. House of Representatives ......... 106 Written Statement ............................................................................................ 108 Statement by Representative Brian Baird, Chairman, Subcommittee on Re- search and Science Education, Committee on Science and Technology, U.S. House of Representatives .................................................................................... 104 Written Statement ............................................................................................ 106 Prepared Statement by Representative Jerry F. Costello, Member, Committee on Science and Technology, U.S. House of Representatives ............................. 108 Prepared Statement by Representative Eddie Bernice Johnson, Member, Com- mittee on Science and Technology, U.S. House of Representatives ................. 109 Witnesses: Dr. David J. Skorton, President, Cornell University Oral Statement ................................................................................................. 110 Written Statement ............................................................................................ 112 Biography .......................................................................................................... 125 Dr. Gary Schuster, Provost and Vice President for Academic