S. HRG. 99-233 NEW TECHNOLOGIES ON ECONOMIC COMPETITIVENESS HEARINGS BEFORE THE SUBCOMMITTEE ON SCIENCE, TECHNOLOGY, AND SPACE OF THE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION UNITED STATES SENATE NINETY-NINTH CONGRESS FIRST SESSION ON EFFECT OF NEW TECHNOLOGIES ON ECONOMIC COMPETITIVENESS: TECHNOLOGY TRANSFER APRIL 17, MAY 2, AND JULY 1, 1985 Printed for the use of the Committee on Commerce, Science, and Transportation U.S. GOVERNMENT PRINTING OFFICE 49-924 O WASHINGTON : 1985 COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION JOHN C. DANFORTH, Missouri, Chairman BOB PACKWOOD, Oregon ERNEST F. HOLLINGS, South Carolina BARRY GOLDWATER, Arizona RUSSELL B. LONG, Louisiana NANCY LANDON KASSEBAUM, Kansas DANIEL K. INOUYE, Hawaii LARRY PRESSLER, South Dakota WENDELL H. FORD, Kentucky SLADE GORTON, Washington DONALD W. RIEGLE, JR., Michigan TED STEVENS, Alaska J. JAMES EXON, Nebraska BOB HASTEN, Wisconsin ALBERT GORE, JR., Tennessee PAUL S. TRIBLE, JR., Virginia JOHN D. ROCKEFELLER IV, West Virginia W. ALLEN MOORE, Chief Counsel and Staff Director RALPH B. EVERETT, Minority Chief Counsel and Staff Director SUBCOMMITTEE ON SCIENCE, TECHNOLOGY, AND SPACE SLADE GORTON, Washington, Chairman BARRY GOLDWATER, Arizona DONALD W. RIEGLE, JR., Tennessee NANCY LANDON KASSEBAUM, Kansas ALBERT GORE, JR., Tennessee PAUL S. TRLBLE, JR., Virginia JOHN D. ROCKEFELLER IV, West Virginia (11) C ONTENTS Page Opening statement by Senator Gorton 1 Opening statement by Senator Riegle 2 Opening statement by Senator HolTings 3 CHRONOLOGICAL LIST OF WITNESSES APRIL 17,1985 Cooper, Linda, research associate, Ohio Technology Transfer Organization, Ohio State University 72 Corson, Dale R., chairman, Government-University-Industry Research Roundtable, National Academy of Sciences/National Academy of Engineering... 37 Prepared statement 39 Crockett, Lawrence Richards, director, Special Projects Division, Institute of Science & Technology, University of Michigan 65 Prepared statement 66 Gillam, Isaac T., Assistant Administrator for Commercial Programs, NASA 21 Prepared statement 23 Houck, Paul W., information coordinator. Technical Assistance Program, Pennsylvania State University 46 Prepared statement 49 Janis, F. Timothy, director, Technology Transfer/ARAC, Indianapolis Center for Advanced Research, Inc 56 Prepared statement 58 Palur, Larry, Ohio Technology Transfer Organization, Ohio Department of Development 62 Prepared statement 63 Stark, Eugene E., Jr., Chairman, Federal Laboratory Consortium for Technology Transfer , 3 Prepared statement 6 Suh, Dr. Nam P., Assistant Director for Engineering, NSF 33 Thompson, Gen. Richard H., Commanding General, U.S. Army Materiel Command 16 Prepared statement 19 MAY 2,1985 Opening statement by Senator Gorton 79 Opening statement by Senator Riegle 79 Opening statement by Senator Gore 80 Opening statement by Senator Hollings 81 Branscomb, Dr. Lewis, vice president and chief scientist, IBM Corp.; and F. Brett Berlin, advisory board member. National Coalition for Science and Technology 125 Prepared statements: Dr. Branscomb 130 Mr. Berlin 137 010 IV Olmer, Lionel H., Under Secretary for International Trade, Department of Commerce; John P. McTague, Deputy Director for Science, Office of Science and Technology Policy, Office of the President; and Egils Milbergs, Executive Director, Preident's Commission, and Deputy Assistant Secretary, Office of Productivity, Technology and Innovation, Department of Commerce 82 Prepared statements: Mr. McTague % Mr. Milbergs 103 Ross, Ian M., president, AT&T Bell Laboratories 112 Prepared statement 116 JULY 1.1985 Opening statement by Senator Gorton 143 Baldwin, Donald R., assistant provost for research and director, Technology Transfer, University of Washington; Dr. J. Ray Bowen, dean of Engineeging, Dr. Deborah L. Illman, assistant director, Center for Process Analytical Chemistry; and Dr. Paul Young, professor and chairman, Department of Computer Science 144 Prepared statements: Mr. Baldwin 148 Dr. Bowen 153 Dr. Illman 158 Dr. Young 164 Barron, Dr. James, Cooperative Extension, Washington State Univertsity College of Agriculture and Home Economics; and Dr. Reid C. Miller, dean. College of Engineering and Architecture, Washington, State University 171 Prepared statement 173 Farmer, Sam J., director, Battelle Seattle Research Center; and Dr. William Aron, director. Northwest Alaska Fishery Center 195 Prepared statements: Mr Farmer 199 Dr. Aron 211 Fluke, John M., Jr., chairman of the board and chief executive officer, John Fluke Manufacturing Co., Inc.; and Dr. Edwin R. Stear, executive director, Washington Technology Center 181 Prepared statement 185 Tarn, Patrick Y., Ph.D., president, Washington research Foundation; A. T. Brix, president. Technology International Echange; Hunter Simpson, president and chief executive officer, Physio-Control Corp 218 Prepared statements: Dr. Tarn 222 Mr. Brix 227 Mr. Simpson 235 ADDITIONAL ARTICLES, LETTERS, AND STATEMENTS Abbott, Robert, president, Neorx, statement 239 Mowry, David T., associate director, NTIS, statement 239 EFFECT OF NEW TECHNOLOGIES ON ECONOMIC COMPETITIVENESS: TECHNOLOGY TRANSFER WEDNESDAY, APRIL 17, 1985 U.S. SENATE, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, SUBCOMMITTEE ON SCIENCE, TECHNOLOGY AND SPACE, Washington, DC. The subcommittee met, pursuant to notice, at 9:38 a.m., in room 253, Russell Senate Office Building, Hon. Slade Gorton (chairman of the subcommittee) presiding. Staff members assigned to these hearings: Cassie Phillips and Charlene Woods, staff counsels; and Pat Windham, minority profes­ sional staff member. OPENING STATEMENT BY SENATOR GORTON Senator GORTON. Welcome to our hearing this morning to exam­ ine whether federally developed technologies are being transferred to the private sector and State and local governments in an appro­ priate fashion. The need for practical transfer of research results to the market­ place appears to be greater than ever. The President's Commission on Industrial Competitiveness has warned that the United States is losing its ability to compete in world markets. The Commission's 1985 report notes that the United States has lost world market share in 7 out of 10 high-technology sectors. Although foreign trade barriers and the strength of the dollar are contributing factors to this decline, Business Week stated that the basic problem is the failure of American high technology companies to translate new technology consistently into competitive products. The Commission on Industrial Competitiveness agreed and also noted that the United States has failed to apply its own technologies to manufac­ turing. Robotics, automation, and statistical quality control were all first developed in the United States, but in recent years they have been more effectively applied in other countries. Much of the new technology that is available for utilization is de­ veloped in Federal laboratories. The Federal Government funds ap­ proximately half of this Nation's total research and development, and much of this work is performed in Government-owned labora­ tories. The scientific and engineering expertise, the technology base, the facilities and equipment within these laboratories are val­ uable natural resources. More effective utilization of the research (l) 2 results and research capabilities of Federal laboratories will pro­ mote economic growth and enhance industry's ability to compete in international markets. At today's hearing, we will look at how technology transfer is being accomlished and examine methods to improve the transfer of Government technology. We will also examine the effectiveness of the Stevenson-Wydler Technology Innovation Act in promoting technology transfer efforts and consider whether any changes to the Stevenson-Wydler Act are appropriate. We are pleased to have with us today several witnesses who will aid in the evaluation of present technology transfer efforts. I would like to welcome all of you and thank you for taking the time to share this valuable information with the committee. Senator Riegle, do you have a statement? OPENING STATEMENT BY SENATOR RIEGLE Senator RIEGLE. Mr. Chairman, I want to thank you for schedul­ ing this hearing. I believe that our national competitiveness, par­ ticularly in technology, is the most critical issue facing the long- term economic security of this Nation. I am particularly pleased that today we will have the opportuni­ ty to hear from a member of the President's Commission on Indus­ trial Competitiveness. I have read the Commission report and it is a lucid statement of the problems we are facing: Our ability to compete internationally faces unprecedented challenge from abroad. Our world leadership is at stake and so is our ability to provide for our people the standard of living and opportunities to which they aspire. Americans must take on the challenge of competitiveness as the economic agenda for the next decade. We cannot continue to create jobs, compete in the world economy and retain our standard of living without a technological advan­ tage. To keep our edge we must do everything we can to foster in­ novation and the infrastructure in American manufacturing. This includes education, basic research and technology transfer. The need to act could not be clearer. Yet, I am disturbed to note that instead of moving ahead we are going back and forth in an effort to save the few programs already in existence. Today's hearing focuses specifically on the Stevenson Wydler In­ novation Act of 1980. Stevenson Wydler is the one