Internet Info 1994 March/Internet Info CD-ROM (Walnut Creek) (March 1994).iso/inet/nren/nii.1993/tech.initiative

Internet Message Format | 1993-02-22 | 81KB

From: [e-mail] (Clinton/Gore '92)
Newsgroups: alt.politics.elections,alt.politics.clinton
Subject: CLINTON: Technology for America's Economic Growth
Message-ID: <[e-mail]>
Date: 22 Feb 1993 21:57:22 -0500
Organization: MIT Artificial Intelligence Lab
Lines: 1690


Technology for America's Economic Growth:
A New Direction to Build Economic Strength


A New Direction

        Investing in technology is investing in America's future: a
growing economy with more high-skill, high-wage jobs for American
workers; a cleaner environment where energy efficiency increases
profits and reduces pollution; a stronger, more competitive private
sector able to maintain U.S. leadership in critical world markets;
an educational system where every student is challenged; and an
inspired scientific and technological research community focused on
ensuring not just our national security but our very quality of
life.

       American technology must move in a new direction to build
economic strength and spur economic growth.  The traditional federal
role in technology development has been limited to support of basic
science and mission-oriented research in the Defense Department,
NASA, and other agencies.  This strategy was appropriate for a
previous generation but not for today's profound challenges.  We
cannot rely on the serendipitous application of defense technology
to the private sector.  We must aim directly at these new challenges
and focus our efforts on the new opportunities before us,
recognizing that government can play a key role helping private
firms develop and profit from innovations.

       We must move in a new direction:

    Strengthening America's industrial competitiveness and creating
jobs;

    Creating a business environment where technical innovation can
flourish and where investment is attracted to new ideas;

    Ensuring the coordinated management of technology all across the
government;

    Forging a closer working partnership among industry, federal and
state governments, workers, and universities;


    Redirecting the focus of our national efforts toward
technologies crucial to today's businesses and a growing economy,
such as information and communication, flexible manufacturing, and
environmental technologies; and,

    Reaffirming our commitment to basic science, the foundation on
which all technical progress is ultimately built.




For the American People

       Our most important measure of success will be our ability to
make a difference in the lives of the American people, to harness
technology so that it improves the quality of their lives and the
economic strength of our nation.

       We are moving in a new direction that recognizes the critical
role technology must play in stimulating and sustaining the long-
term economic growth that creates high-quality jobs and protects our
environment.

       We are moving in a new direction to create an educational and
training system that challenges American workers to match their
skills to the demands of a fast-paced economy and challenges our
students to reach for resources beyond their classrooms.

       We are moving in a new direction to dramatically improve our
ability to transmit complicated information faster and further, to
improve our transportation systems, our health care, our research
efforts, and even the ability of our military to respond quickly and
decisively to any threat to our nation's security.

       In these times, technology matters as well to an efficient
farm, food processing, and food retailing industry that delivers a
variety of low-cost, wholesome foods; to a construction industry
that builds high-quality, affordable housing; and to an energy
sector that balances energy efficiency with clean, affordable and
efficient energy sources.

New Criteria


       We will hold ourselves to tough standards and clear vision.
The best technology policy unleashes the creative energies of
innovators throughout the economy by creating a market that rewards
invention and enterprise.  We are moving to accelerate the
development of civilian technology with new criteria:

       Accelerating the development of technologies critical for
long-term economic growth but not receiving adequate support from
private firms, either because the returns are too distant or because
the level of funding required is too great for individual firms to
bear;

       Encouraging a pattern of business development that will
likely result in stable, rewarding jobs for large numbers of
workers;

       Accelerating the development of technologies that could
increase productivity while reducing the burden of economic activity
on the local, regional, or global environment;

       Improving the skills offered by American workers by
increasing the productivity and the accessibility of education and
training;

       Reflecting the real needs of American businesses as
demonstrated by their willingness to share the cost of research or
participate in the design of initiatives;

       Supporting communities or disadvantaged groups in the U.S. or
abroad who have not enjoyed the benefits of technology-based
economic growth;

       Contributing to U.S. access to foreign science and
technology, enhancing cooperation on global problems or U.S.
successes in technology-related foreign markets.

Reaching Our Technology Goals

       The challenge we face demands that we set and keep focused on
our goals:

                    LONG TERM ECONOMIC GROWTH THAT
              CREATES JOBS AND PROTECTS THE
              ENVIRONMENT


                        A GOVERNMENT THAT IS MORE
              PRODUCTIVE AND MORE RESPONSIVE TO THE
              NEEDS OF ITS CITIZENS

                        WORLD LEADERSHIP IN BASIC
              SCIENCE, MATHEMATICS, AND ENGINEERING.

       We have the means to stimulate innovations that will bring
economic growth and help us reach our goals and other important
objectives.  Foremost is a sound fiscal policy that reduces the
federal deficit and lowers interest rates.  But that is not always
enough.  We must also turn to:

    Research and experimentation tax credits and other fiscal
policies to create an environment conducive to innovation and
investment;

    A trade policy that encourages open but fair trade;

    A  regulatory policy that encourages innovation and achieves
social objectives efficiently;

    Education and  training programs to ensure continuous learning
opportunities for all Americans;

    Support for private research and development through research
partnerships and other mechanisms to accelerate technologies where
market mechanisms do not adequately reflect the nation's return on
the investment;


    Support for contract  R & D centers and manufacturing extension
centers that can give small businesses easy access to technical
innovations and know-how;

    Support for a national telecommunications infrastructure and
other information infrastructures critical for economic expansion;

    Department of Defense and other federal agency purchasing
policies  designed to foster early markets for innovative products
and services that contribute to national goals;


    Strong and sustained support for basic science to protect the
source of future innovations;

    International science and technology cooperative projects that
enhance U.S. access to foreign sources of science and technology,
contribute to the management of global problems, and provide the
basis for marketing U.S. goods and services;

    Dual-use Defense Department research and development programs;

    National user facilities that make sophisticated research tools,
such a synchrotron radiation and neutron beam tools, available to a
variety of research organizations.

Managing Technology for Economic Growth

       Redirecting America's programs in science and technology will
require major changes in the way we manage our efforts.   Tight
management is essential to ensure the highest possible return our
investments and to ensure that tax, regulatory and other efforts
reinforce instead of frustrate our work.

       We are making major changes:

    Working with Vice President Gore, a reinvigorated Office of
Science and Technology Policy will lead in the development of
science and technology policy and will use the Federal Coordinating
Council on Science, Engineering, and Technology, along with other
means, to coordinate the R & D programs of the federal agencies;

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

       As we move from traditional, mission-oriented R & D to
investments designed specifically to strengthen America's industrial
competitiveness and create jobs, considerable care must be taken to
set priorities.  In many cases, it will be essential to require
cost-sharing on the part of private partners.  In all cases, it will
be essential for our government to work closely with business and
labor.

       Our initiative in advanced manufacturing, for example, will
not be successful without direct input from the private sector about
which technical areas are most important.  We will conduct a review
of laws and regulations, such as the Federal Advisory Committee Act
and conflict-of-interest regulations to determine whether changes
are needed to increase government-industry communication and
cooperation.

       We also will work closely with Congress to prevent
'earmarking' of funds for science and technology.  Peer review and
merit-based competition are critical to the success of any science
and technology policy.

       Effective management of technology policy also requires an
effective partnership between federal and state governments.  The
states have pioneered many valuable programs to accelerate
technology development and commercialization.  Our efforts should
build on these programs.

       And, every federal technology program, including those of
long-standing, will be regularly evaluated against pre-established
criteria to determine if they should remain part of a national
program.   Major changes facing our nation's economy demand a
searching re-examination of technology programs, particularly now as
we move toward new efforts and a new emphasis in our technology for
America's economic growth.

Building America's Economic Strength:  New Initiatives

       The challenges we face --  from our competitors abroad and
from our people at home -- demand dramatic innovation and bold
action that will not just revive our economy now but also ensure our
economic growth well into the future.  Building America's economic
strength through technology demands new initiatives that confront
these challenges effectively, efficiently, and creatively.

    PERMANENT EXTENSION OF THE RESEARCH AND EXPERIMENTATION TAX
CREDIT  to sustain incentives for the  R&E work so essential to new
developments;

    INVESTMENT IN A NATIONAL INFORMATION INFRASTRUCTURE and
establishment of a task force working with the private sector to
design a national communications policy

that will ensure rapid introduction of  new communication
technology;

    ACCELERATED INVESTMENT IN ADVANCED MANUFACTURING TECHNOLOGIES
that promote U.S. industrial competitiveness and that build on,
rather than minimize, worker skills;

    RE-ESTABLISHING TECHNOLOGICAL LEADERSHIP AND COMPETITIVENESS OF
THE U.S. AUTOMOBILE INDUSTRY through a major new program to help the
industry develop critical new technology that can all but eliminate
the environmental hazards of automobile use and operate from
domestically produced fuels and facilitate the development of a new
generation of automobiles;

    IMPROVE TECHNOLOGY FOR EDUCATION AND TRAINING by supporting the
development and introduction of computer and communications
equipment and software that can increase the productivity of
learning in formal school settings, a variety of business training
facilities and in homes.

    INVESTMENTS  IN ENERGY-EFFICIENT FEDERAL BUILDINGS to reduce
wasteful energy expenses and encourage the adoption of innovative,
energy-efficient technology.






Goal:  LONG-TERM ECONOMIC GROWTH THAT CREATES JOBS AND PROTECTS THE
ENVIRONMENT

      Technology is the engine of economic growth.  In the
United States, technological advance has been responsible for as
much as two-thirds of productivity growth since the Depression.
Breakthroughs such as the transistor, computers, recombinant DNA and
synthetic materials have created entire new industries and millions
of high-paying jobs.

      International competitiveness depends less and less on
traditional factors such as access to natural resources and cheap
labor.  Instead, the new growth industries are knowledge based.

They depend on the continuous generation of new technological
innovations and the rapid transformation of these innovations into
commercial products the world wants to buy.  That requires a
talented and adaptive work force capable of using the latest
technologies and reaching ever-higher levels of productivity.

      Modern production systems also make much more efficient
use of energy and materials.  Advances in technology can lead to
enormous reductions in the environmental emissions associated with
automobiles, buildings, and factories.  And because pollution always
signals inefficiencies and, because wasteful energy costs raise the
price of doing business, these technology advances can also lead to
increased profits.

      We can promote technology as a catalyst for economic
growth by:

   directly supporting the development, commercialization, and
deployment of new technology;
   fiscal and regulatory policies that indirectly promote these
activities;
   investment in education and training; and,
   support for critical transportation and communication
infrastructures.

Technology Development, Commercialization and Use

      Since World War II, the federal government's de facto
technology policy has consisted of support for basic science and
mission-oriented R&D -- largely defense technology.  Compared to
Japan and our other competitors, support for commercial technology
has been minimal in the U.S..  Instead, the U.S. government has
relied on its investments in defense and space to trickle down to
civilian industry.

      Although that approach to commercial technology may have
made sense in an earlier era, when U.S. firms dominated world
markets, it is no longer adequate.   The nation urgently needs
improved strategies for government/industry cooperation in the
support of industrial technology.  These new approaches need not
jeopardize agency missions:  In many technology areas, missions of
the agencies coincide with commercial interests or can be
accomplished better through close cooperation with industry.


      This Administration will modify the ways federal agencies
do business to encourage cooperative work with industry in areas of
mutual interest.  President Eisenhower undertook a similar policy
change in 1954, when he issued an executive order directing federal
agencies to support basic research.  This new policy will result in
significantly more federal R&D resources going to (pre-competitive)
projects of commercial relevance.  It will also result in federal
programs that go beyond R&D, where appropriate, to promote the broad
application of new technology and know-how.

R&D.  At the level of technology development, the fundamental
mechanism for carrying out this new approach is the cost-shared R&D
partnership between government and industry.  All federal R&D
agencies (including the nation's 726 federal laboratories) will be
encouraged to act as partners with industry wherever possible.  In
this way, federal investments can be managed to benefit both
government's needs and the needs of U.S. businesses.

       This reorientation is particularly urgent for the
Department of Defense, which accounts for 56 percent of all federal
R&D.   A significant portion of DoD's research and development
budget is already focused on dual-use projects --particularly
projects supported by the Defense Advanced Research Projects Agency
(DARPA).   Since a growing number of defense needs can be met most
efficiently by commercial products and technology in the years
ahead, this fraction will increase.   DoD is developing a strategy
to improve the integration of defense and commercial technology
development.

      All federal support for technology development is being
reviewed to ensure that research priorities are in line with
contemporary needs of industry and to ensure that strategies for
working with industry are consistent.

      To strengthen industry-government cooperation and to
provide more federal support for commercial R&D:

      The ratio of civilian and dual-use R&D to purely military
R&D is significantly higher in President Clinton's economic plan.
This is a first step toward balancing funding levels for these two
categories.   In 1993, the civilian share of the total federal R&D
budget was approximately 41% .  Under President Clinton's plan, the
civilian share will be more than 50% by 1998.   Total spending

for civilian R&D will rise from $27.9 billion to 36.6 billion during
this period.

      The Commerce Department's Advanced Technology Program is
expanded significantly.  Established in 1990, the ATP shares the
costs of industry-defined and industry-led projects selected through
merit-based competitions.

      The Defense Advanced Research Projects Agency (DARPA) will
be renamed the Advanced Research Projects Agency (ARPA) -- as the
agency was known before 1972.  The ARPA program in dual use will be
expanded in ways that increase the likelihood that defense research
can lead to civilian product opportunities.

      New Department of Energy programs designed to increase the
productivity of energy use in industry, transportation, and
buildings as well as renewable energy programs will ensure that the
goals of environmental protection are fully consistent with other
business objectives.  DoE, working with other agencies, will
encourage industry R&D consortia in an effort directed at reducing
pollution and manufacturing waste.

       Manufacturing R&D will receive particular attention from ATP,
ARPA and other federal agencies.   SEMATECH, an industry consortium
created to develop semiconductor manufacturing technology, will
receive continued matching funds from the Department of Defense in
FY94.   This consortium can serve as a model for federal consortia
funded to advance other critical technologies.   Programs will be
encouraged in the development of a new automobile, new construction
technologies, intelligent control and sensor technologies, rapid
prototyping, and environmentally-conscious manufacturing.

       All laboratories managed by the Department of Energy, NASA,
and the Department of Defense that can make a productive
contribution to the civilian economy will be reviewed with the aim
of devoting at least 10-20 percent of their budgets to R&D
partnerships with industry.

        Agencies will make it a priority to remove obstacles to
Cooperative R&D Agreements (CRADAs) and to facilitate industry-lab
cooperation through other means.


       The Federal Coordinating Council for Science, Engineering,
and Technology (FCCSET) will be strengthened.  Initiatives are
currently underway in the following six areas: improving our
understanding of the climate system, advanced supercomputers and
computer networks, math and science education, materials processing,
biotechnology, and advanced manufacturing.

 Commercialization.  Although U.S. firms remain relatively strong in
the invention of new technologies, foreign competitors are often
first to commercialize and bring new products to market.  The
reorientation of federal R&D can play an important role.
Cooperative research is a powerful way to get technology and know-
how into the hands of businesses that are in a position to put them
quickly to work.   The tax, regulatory, and other reforms described
later also play a key role by creating a favorable investment
environment for innovation.  But in many cases additional programs
are needed, such as:

       Regional Technology Alliances  explicitly designed to promote
the commercialization and application of critical technologies in
which there are regional clusters of strength to encourage firms and
research institutions within a particular region to exchange
information, share and develop technology, and develop new products
and markets.

       Agile Manufacturing  programs expanded to allow temporary
networks of complementary firms to come together quickly to exploit
fast-changing market opportunities.  These programs support the
development and dissemination of information technology and
technical standards to make such networks possible.

Access and Use.  In addition to support for the development and
adoption of new technologies, programs are needed to ensure that all
American businesses have easy access to existing technology and best
practices.  The Agriculture Department has historically devoted half
of its R&D budget to the active dissemination of research results.
The extraordinary productivity gains in American farming throughout
this century owe a great deal to the close links between individual
farmers and county extension agents.

      American manufacturing also needs an effective system.
New manufacturing technologies and approaches are available that can
lead to dramatic improvements in product quality, cost,

and time-to-market.  But relatively few U.S. businesses have taken
advantage of these new technologies and best practices.  The problem
is particularly acute among the 360,000 small and medium-sized
manufacturers, many of whom are still using 1950s technology.

      Workers should play a significant role in the use and
spread of manufacturing technology.  Workplace experience makes
clear that new technologies are implemented most effectively when
the knowledge and concerns of workers are included in the process.

  To enhance the use of and access to technology, we will:

       Create a national network of manufacturing extension centers.
Existing state and federal manufacturing extension centers managed
through the Department of Commerce provide assistance to a small
number of businesses, but service must be greatly expanded to give
all businesses access to the technologies, testing facilities, and
training programs they need.  Federal funds (to be matched by state
and local governments) will support and build on existing state,
local, and university programs, with the goal of creating a nation-
wide network of extension centers.

       Expand the Manufacturing Experts in the Classroom program to
support manufacturing specialists from industry and labor teaching
in technical and community colleges.  The goal is to strengthen the
capacity of such institutions to serve regional manufacturing firms.

       Work through the Department of Labor to assist US firms in
implementing the principles of high performance work organization.
DOL will coordinate assistance in workforce literacy, technical
training, labor management relations, and the restructuring of
management and work processes.  Implementation will occur in part
through the network of manufacturing extension centers.




A World-Class Business Environment For Innovation and Private Sector
Investment

      Increasing investment in civilian technologies is only one
element of a strategy to restore America's industrial and
technological leadership, and to create high-wage, high-skill jobs.
The United States must also ensure that its tax, trade, regulatory
and procurement policies encourage private sector investment and
innovation.  In a global where capital and technology are
increasingly mobile, the United States must make sure that it has
the best environment for private sector investment and job creation.

      To improve the environment for private sector investment
and create jobs, we will:

1.      Make Permanent the Research and Experimentation (R&E) Tax
Credit:  The need for additional U.S. investment in R&D is clear.
Currently, the United States invests 1.9 percent of GDP in non-
defense R&D, as compared to 3.0 percent in Japan and 2.7 percent in
West Germany.  We will increase private R&E expenditures by making
the Research and Experimentation tax credit permanent.  In the past,
the effectiveness of this credit has been undermined by a series of
six and nine-month temporary extensions.  The credit cannot induce
additional R&E expenditures unless its future availability is known
when the businesses are planning R&E projects and projecting costs.
R&E activity, by its nature, is long term and businesses should be
able to plan their research activity knowing that the credit will be
available when the research is actually undertaken.  Thus if the R&E
credit is to have the intended incentive effect, it should be
permanent.

2.      Create incentives for long-term investments in small
businesses:  The Administration will send legislation to Congress
designed to provide incentives for those who make high-risk, long-
term venture capital investments in startups and other small
enterprises.  These companies are the major source of job creation,
economic growth, and technological dynamism in our economy.

3.      Create incentives for investment in equipment:  Currently,
America's chief economic competitors are investing twice as much in
plant and equipment (as a percentage of GDP) as the United States.
Furthermore, studies show a high correlation between investment in
new equipment and productivity -- since new technologies are often
embodied in capital equipment.  To stimulate additional investment
in equipment, the

Administration will propose a temporary incremental investment tax
credit for large businesses and a permanent credit for small
businesses.

4.      Reform antitrust laws to permit joint production ventures:
The Administration will forward legislation to Congress which would
extend the National Cooperative Research Act of 1984 to cover joint
production ventures.  Increasingly, the escalating cost of state-of-
the-art manufacturing facilities will require firms to share costs
and pool risks.

5.      Ensure that U.S. trade policy strengthens high technology
industries:  To remain competitive, America's high-tech industries
need full access to overseas markets and effective protection of
intellectual property rights.  The Administration is committed to
multilateral and bilateral negotiations, and enforcement of existing
agreements, that will accomplish these objectives.  The trade policy
must also be consistent with a vigorous public research and
development program.

6.     Review proposals to increase the supply and availability of
patient capital:  A number of proposals have been made to increase
the time-horizon of investments.  For example, the National Academy
of Science has proposed creating a publicly-funded, privately run
Civilian Technology Corporation.  The private-sector Council on
Competitiveness has proposed a sweeping set of reforms to improve
corporate governance and encourage long-term asset ownership.  The
Administration will review these and other proposals in an effort to
improve the environment for long-term investments.

7.     Ensure that federal regulatory policy encourages investment
in innovation and technology development that achieve the purposes
of the regulation at the lowest possible cost:    Regulatory policy
can have a significant impact on the rate of technology development
in energy, biotechnology, pharmaceuticals, telecommunications, and
many other areas.   The caliber of the regulatory agencies can
affect the international competitiveness of the industries they
oversee.  At the same time, skillful support of new technologies can
help businesses reduce costs while complying with ambitious
environmental regulations.  A well designed regulatory program can
stimulate rather than frustrate attractive directions for
innovation.  We will review the nation's regulatory "infrastructure"
to ensure that unnecessary

obstacles to technical innovation are removed and that priorities
are attached to programs introducing technology to help reduce the
cost of regulatory compliance.

Education and Training

      Technology policy can play a key role in supporting our
commitment to improving the education and training opportunities for
all Americans.

      First, it is essential that priorities in research,
regulatory, and other policies designed to encourage innovation and
investment in the economy reflect the need to create high-
performance workplaces -- workplaces which offer all workers
skilled, rewarding jobs with opportunities for growth.   These
priorities are reflected in the design of the initiatives described
earlier.  Our plan ensures that economic growth works to the
advantage of all Americans in the workforce, not just an elite group
of well-educated workers who have easy access to training in new
skills.

      Secondly, it is essential that all Americans have access
to the education and training they need and that the teaching
enterprise itself become a high-performance workplace.  Our
initiatives in education and training follow four central themes:
restructuring primary and secondary schooling, using youth
apprenticeships and other programs to facilitate the transition from
school to work for people who do not expect to go to college, making
training accessible and affordable to all workers who need to
upgrade their skills to keep pace with a rapidly changing economy,
and programs specifically targeted to help workers displaced by
declining defense budgets or increased international trade.

      Technology policy can and must support all of these
objectives.

1.  Public investment will be provided to support technology that
can increase the productivity of learning and teaching in formal
school settings, in industrial training, and even at home.  New
information technologies can give teachers more power in the
classroom and create a new range of employment opportunities.
Schools can themselves become high-performance workplaces.


2. Public investment will also be increased for programs designed to
provide needed skills in mathematics, science, and engineering.
Programs will be supported in primary, secondary, college, post-
graduate schools and in a range of industrial training facilities.
Particular attention will be paid to increasing participation by
minorities and women.

3.  Defense capabilities in education and training represent an
important resource.  New programs will accelerate transfer of this
experience to civilian institutions.  The Department of Defense and
NASA have invested heavily both in the hardware and software needed
for advanced instructional systems, they have accumulated valuable
experience in how to use the new technologies in practical teaching
situations.  The Navy Training Systems Center and the Army
Simulation, Training and Instrumentation Command together spend
about $1 billion a year on training systems.  There are over 150
defense simulation and training companies serving these needs in
central Florida alone.

      Specific initiatives include the following:

A.         Access to the Internet and developing NREN will be
expanded to connect university campuses, community colleges, and K-
12 schools to a high-speed communications network providing a broad
range of information resources.  Support will be provided for
equipment allowing local networks in these learning institutions
access to the network along with support for development of high-
performance software capable of taking advantage of the emerging
hardware capabilities.

B.        An interagency  task force will be created from
appropriate federal agencies to (i)  establish software and
communication standards for education and training, (ii) coordinate
the development of critical software elements, (iii) support
innovative software packages and curriculum design, and (iv) collect
information resources in a standardized format and make them
available to schools and teaching centers throughout the nation
through both conventional and advanced communication networks.  This
task force will provide specific assistance to the interagency task
force on worker displacement.

C.       Programs in the Federal Coordinating Council for Science,
Engineering, and Technology (FCCSET) Committee on Education and
Human Resources programs will be enhanced.

These programs are designed to improve the teaching of science,
mathematics, and engineering at all levels.  In K-12 schools,
primary emphasis will be placed on teacher preparation,
comprehensive organizational reform, and curriculum development.
Programs for undergraduate education emphasize faculty preparation
and organization and curriculum reforms but place heaviest emphasis
on student incentives.  At the graduate level, most funding is
directed for fellowships.

D.        Proposals will be encouraged for an industry consortia or
regional alliance designed to develop new teaching systems (hardware
and software) and work with training organizations throughout the
nation to develop, install, and maintain state-of-the art systems.
Firms now providing similar services to defense training
organizations are likely to participate.

E.     Promote Manufacturing Engineering Education.  Traditional
engineering education, with its focus on product design and
analysis, has seriously neglected the management and operation of
manufacturing activities.  This program provides matching funds for
graduate or undergraduate programs in manufacturing engineering.





" Information Superhighways"

New Options offered by Information Technology
in Education and Training

--  Computers can create an unprecedented opportunity for learning
complex ideas, creating an environment that can closely approximate
real work environments or experimental apparatus.
--  Interconnected systems can help students work together as parts
of a team even if the members of the team are separated
geographically.
--  Training can be embedded as a part of new equipment.  Complex
machine tools or software packages can be purchased with tutorials
that bring new operators up to speed quickly, that provide quick
refreshers for unusual events, and that allow operators to build new
competencies during off-hours.

--  Advanced systems permit instruction tailored to the learning
needs of individuals.  This is particularly important for retraining
adults that reenter a training environment with a great variety of
learning needs and learning abilities.  And it is important in
ensuring that minorities, women, people with disabilities, and
others that may be disadvantaged by traditional approaches to
instruction.
--  Communication technologies can bring a rich education and
training environment to people isolated because they live in remote
areas or because of the demands of work and family responsibilities.
--  Technology can reduce the burden of record-keeping and other
paperwork that consumes so much teacher time in today's classrooms.
It can also bring teachers and schools together in ways that
facilitate the exchange of ideas and build a sense of community.

      Efficient access to information is becoming critical for
all parts of the American economy.   Banks, insurance companies,
manufacturing concerns, and many other business operations now
depend on high-speed communication links.  Many more businesses can
take advantage of such systems if they are reliable, easy to use,
and inexpensive.  Such systems would also be of enormous value to
schools, hospitals, and other public organizations.  Even the most
remote school could be connected to state-of-the art information.
Hospitals could call in experts for consultation even if the expert
is far from the patient.

      Accelerating the introduction of an efficient, high-speed
communication system can have the same effect on US economic and
social development as public investment in the railroads had in the
19th century.  It would provide a critical tool around which many
new business opportunities can develop.

      Specific new programs include :

A.     Implementation of the High-performance Computing and
Communications Program established by the High-Performance Computing
Act of 1991 introduced by Vice President Gore when he served in the
Senate.   Research and development funded by this program is
creating (1) more powerful super computers, (2) faster computer
networks and the first national high speed network, and (3) more
sophisticated software. This network will be constructed by the
private sector but encouraged by federal policy

and technology developments.   In addition, it is providing
scientists and engineers with the tools and training they need to
solve "Grand Challenges", research problems--like modeling global
warming--that cannot be solved without the most powerful computers.

B.     Create a Task Force on Information Infrastructure.
Government telecommunication and information policy has not kept
pace with new developments in telecommunications and computer
technology. As a result, government regulations have tended to
inhibit competition and delay deployment of new technology.  For
instance, without a consistent, stable regulatory environment, the
private sector will hesitate to make the investments necessary to
build the high-speed national telecommunications network that this
country needs to compete successfully in the 21st Century.   To
address this problem and others, we will create a high-level inter-
agency task force within the National Economic Council which will
work with Congress and the private sector to find consensus on and
implement policy changes needed to accelerate deployment of a
national information infrastructure.

C.     Create an Information Infrastructure Technology Program to
assist industry in the development of the hardware and software
needed to fully apply advanced computing and networking technology
in manufacturing, in health care, in life-long learning, and in
libraries.

D.     Provide funding for networking pilot projects through the
National Telecommunications and Information Administration (NTIA) of
the Department of Commerce.  NTIA will provide matching grants to
states, school districts, libraries, and other non-profit entities
so that they can purchase the computers and networking connections
needed for distance learning and for hooking into computer networks
like the Internet.  These pilot projects will demonstrate the
benefits of networking to the educational and library communities.

E.     Promote dissemination of Federal information.  Every year,
the Federal government spends billions of dollars collecting and
processing information (e.g. economic data, environmental data, and
technical information). Unfortunately, while much of this
information is very valuable, many potential users either do not
know that it exists or do not know how to access it.  We are

committed to using new computer and networking technology to make
this information more available to the taxpayers who paid for it.
In addition, it will require consistent Federal information policies
designed to ensure that Federal information is made available at a
fair price to as many users as possible while encouraging growth of
the information industry.

Transportation and other Infrastructure

      A competitive, growing economy requires a transportation
system that can move people, goods and services quickly and
efficiently.  To meet this challenge, each transport sector must
work effectively both by itself and as part of a larger,
interconnected whole.  With nearly one out of every six dollars of
GDP now spent in transportation related activities, technologies
that increase the speed, reliability, and cost-effectiveness of the
transportation sector will also increase the economy's
competitiveness and ability to create jobs.

      One of the greatest challenges we face is to rehabilitate
and properly maintain the huge stock of infrastructure facilities
already in place.  With this in mind, the Administration will
consider establishing an integrated program of research designed to
enhance the performance and longevity of the existing
infrastructure.  Among other things, this program would
systematically address issues of assessment technology and renewal
engineering.     A strategic program to develop new technologies for
assessing the physical condition of the nation's infrastructure,
together with techniques to repair and rehabilitate those
structures, could lead to more cost-effective maintenance of the
infrastructure necessary to economic growth.

      Providing a world class transportation sector will require
the nation to meet the challenges posed both by increased congestion
in many parts of the transportation system, and by the need to
rebuild and maintain a public capital stock valued at more than $2.4
trillion.  To meet these challenges, the Administration's program
includes increased investment in a number of areas:

A.      Upgrading the nation's highways and transit systems by
providing additional funding authorized by the Intermodal Surface
Transportation Efficiency Act of 1991 (ISTEA).  Improve mass transit
services and facilities by investing an additional $600

million in 1994 and $1 billion each year from 1995 to 1998 in
transit capital projects.

B.      Investing in magnetic levitation (maglev) transportation
and high-speed rail by providing funds for a maglev prototype and
for start-up of private or state/local high-speed rail projects.

C.      Increasing research on new technologies that could lead to
the development of "smart highways".  These efforts range from
technologies that provide in-route planning and traffic monitoring,
to those that would support a fully automated system.

D.      Increasing research on civil aviation technologies,
including an examination of the economic, market, safety, and noise
aspects of advanced aircraft.   We will also support advanced in-
flight space and ground-based command, navigation, weather
prediction, and control systems.   US aeronautical, research and
development facilities infrastructure such as wind tunnels will also
be revitalized.

E.      Increasing research on new materials that will allow the
construction of infrastructure facilities that are more durable,
minimizing the frequency of costly reconstruction with its attendant
disruption of traffic.

F.      Exploring new assessment technologies  for more accurately
assessing the expected life of existing public infrastructure.    A
number of new technologies from a variety of industries, including
electronic, medical, space, defense, and manufacturing sectors,
could be used to develop more-reliable, nondestructive methods for
evaluating the condition of existing structures.  Since current
assessment techniques are so unreliable, engineering decisions must
include significant room for error and costly fail-safe features.
The data made available by nondestructive evaluation and monitoring
could be used to schedule better an ongoing program of cost-
effective maintenance and rehabilitation.

G.      Supporting renewal engineering programs which target
materials and construction methods that would lower the cost of
rehabilitating and repairing structures.




GOAL:  MAKING GOVERNMENT MORE EFFICIENT AND MORE RESPONSIVE

      The federal government must use technology to improve the
efficiency of its own operations.   Many private businesses have
used advanced communication systems to improve the efficiency of
their operations and to make their businesses more sensitive to the
needs of individual customers and clients.  The federal government
must move actively to take advantage of these new opportunities.
Similarly, the federal government is one of the nation's largest
consumers of energy yet many of its buildings are far less efficient
than structures owned by private firms and taxpayers are paying the
bill.

      The enormous purchasing power of the federal government
can be used to stimulate markets for innovative products in many
areas.  This power should be exercised in a way that is consistent
with overall national technology objectives.  President Clinton is
committed to reinventing government, to make government work better,
harder, and smarter.  Technology can help us achieve that goal.

Information Technology

      Information technology will be used to dramatically
improve the way the Federal Government serves the people.
Government will become more cost-effective, efficient, and "user-
friendly."  In particular, we will use technology to improve the
quality and timeliness of service, to provide new ways for the
public to communicate with their government, and to make government
information available to the public in a timely and equitable
manner.

      Fast communication makes it possible for teams to work
closely on a project even if the team members are physically distant
from each other.  Information technology presents an opportunity to
flatten existing organizational structures, form effective cross-
disciplinary problem-solving groups, and expand the definition of
the workplace and workforce via telecommuting.  But business
organizations in many sectors have found that automating existing
work processes based on a tradition of processing paper does not
always provide the greatest benefits from investment in automation.
Efficiency gains from the new technology often can only be captured
if changes are made in the

structure of their organizations and the way they are managed.  The
administration will undertake a careful review of government
management with a view to making the most efficient possible use of
new information technologies.

      Improved quality and timeliness of service.   Information
technology will eliminate errors generated in routine paper
processes while reducing processing time. For example, the Internal
Revenue Service (IRS)'s electronic filing program is reducing error
rates on tax returns from 16 percent to less than 3 percent, while
speeding up the delivery of refunds by as much as four weeks.
Agencies are moving forward to convert many other paper processes to
electronic form.

      Information on paper is hard to retrieve.  Automation is
allowing the Social Security Administration to provide beneficiaries
with "one-stop" service anywhere in the country from an 800 number.
Better connections among Federal offices, in a manner that
safeguards the privacy of individuals, will make it easier to get
answers from the government.

      New ways to communicate.  In the past, citizens typically
had to go to a federal office during business hours to receive
benefits or services.  A government that uses technology to expand
its hours of service and communicate with the public electronically
will deliver services and benefits where people need them, not where
the government provides them.  We will make it possible for people
to communicate with a Federal agency using electronic as well as
conventional mail.  Automated terminals may be placed in public
locations such as shopping centers or post offices that could
provide in-hours access to a variety of government services.

      Access to government information.  Government information
is a public asset. Markets depend on sound and timely economic
decisions.  Federal geographic and climatological information allows
farmers to apply fertilizer more efficiently, local governments to
formulate environmental policy, and public safety officials to
prepare for natural disasters.  The government will promote the
timely and equitable access to government information via a diverse
array of sources, both public and private, including state and local
governments and libraries.  The development of public networks such
as the Internet and the National Research and Educational Network
(NREN) will

contribute significantly to this diversity, enabling government
information to be disseminated inexpensively to a broad range of
users.

      Policy and technology infrastructure.  Many of the
government's policies in such areas as privacy, information
security, records management, information dissemination, and
procurement will be updated to take into account the rapid pace of
technological change.  In addition, the government must apply the
economic principle of maximizing return on investment when acquiring
information technology, and be able to acquire commercial, off-the-
shelf technology quickly and easily.

      In addition, resources are needed to provide a technology
infrastructure to support these service delivery improvements.  The
support for the IRS Tax System Modernization in the stimulus
package, along with requests elsewhere for resources to support
information technology, are examples of the government investing in
technology to put people first.

Energy Efficiency

      The federal government is wasting tax dollars by operating
inefficient buildings.  More than $2 billion could be invested in
energy retrofits in federal buildings with average payback times
less than 3-4 years.  California, Texas, Iowa, and several other
states have successful programs which have profitably invested in
state buildings during the past several years.  The programs have
both increased the efficiency of state structures and stimulated the
local construction industry.

      HUD spends approximately $3-4 billion a year subsidizing
the energy bills of about 5 million low income households.  At least
$3 billion could be invested in energy retrofits with a payback less
than five years.

      We are introducing a multi-year program designed to
capture the economic benefits of energy retrofits, create new jobs
in the construction industry, and to foster innovation in efficient
building components and in the construction industry itself.

Procurement Policy


      The federal government, particularly the Department of
Defense and NASA, is a gigantic customer for high technology
products.  Historically, it played an important role in helping
assure an early market for high-risk commercial technologies that
were extremely expensive to develop. For example, the defense-space
share of the U.S. computer hardware market was 100 percent in 1954,
and it exceeded 50 percent until 1962.  Semiconductors, jet
aircraft, and pharmaceuticals also benefited from this government
investment.

      In recent years, DoD has ceased to be an influential
"first customer" for commercial technology.  By and large, this is
not due to differing technical requirements:  today's commercial
capabilities often equal or surpass DoD requirements.  Rather the
problem is a growing morass of procurement laws and regulations.
Many commercial manufacturers refuse to do business with DoD
altogether, and those that do often wall off their defense
production.  As a result, the military and commercial worlds have
grown increasingly segregated from one another.

      The cost of this segregation both to DoD and the nation is
high, as a 1991 report by the Center for Strategic and International
Studies plainly stated:

"[It] results in higher prices to DoD (even when lower-cost
commercial alternatives exist for the same requirements), loss of a
broad domestic production base that could be available to defense
for peacetime and surge demands, and lack of access to commercial
state-of-the-art technologies. Additionally, the wall between
engineers and scientists engaged in commercial and military work
impedes the kind of shoulder-to-shoulder contact that is the essence
of technology transfer and that is basic to achieving greater job
stability and growth opportunities for the U.S. work force."

      The federal government will make it a priority to
thoroughly review and reform its procurement policy, particularly
(but not exclusively) defense procurement policy.  It will begin by
reviewing the recommendations of the congressionally-mandated
"Section 800 Panel" (after Section 800 of the FY1991 Defense
Authorization Act), which recently completed a detailed study of DoD
procurement practices.




      More specifically, the federal government will begin steps
necessary to achieve the following reforms:

       Government purchases or government-contracted development
should give priority to commercial specifications and products.

        Agencies should invest in and procure advanced technologies,
where it is economically feasible, in order to facilitate their
commercialization.

        Agencies should experiment with a portion of their
procurement budget to allow them to procure innovative products and
services incorporating leading-edge technologies.

        Agencies should evaluate bids based on their ability to
minimize life-cycle cost rather than acquisition cost, including
environmental, health and safety costs borne by the public.

        Agencies should obtain rights in technologies developed
under government contracts only to the extent necessary to meet the
agencies' needs, leaving contractors with the rights necessary to
encourage private sector investment in the development of commercial
applications.

        Agencies should use performance-based contracting strategies
that give contractors the design freedom and financial incentive to
be innovative and efficient.








GOAL:  WORLD LEADERSHIP IN BASIC SCIENCE, MATHEMATICS, AND
ENGINEERING.


      It is essential to recognize that technical advances
depend on basic research in science, mathematics, and engineering.
Scientific advances are the wellspring of the

technical innovations whose benefits are seen in economic growth,
improved health care, and many other areas. The federal government
has invested heavily in basic research since the Second World War
and this support has paid enormous dividends.    Our research
universities are the best in the world; our national laboratories
and the research facilities they house attract scientists and
engineers from around the globe.  In almost every field, United
States researchers lead their foreign colleagues in scientific
citations, in Nobel Prizes, and most other measures of scientific
excellence.

      This administration will both ensure that support for
basic science remains strong, and that stable funding is provided
for projects that require continuity.   We will not allow short-term
fluctuations in funding levels to destroy critical research teams
that have taken years to assemble.

      But stable funding requires setting clear priorities.  In
recent years, rather than canceling less important projects when
research budgets have been tight, Federal agencies have tended to
spread the pain, resulting in disruptive cuts and associated
schedule delays in hundreds of programs.   We will improve
management of basic science to ensure that high-priority programs
receive sustained support.

      University Research.  The National Science Foundation and
the National Institutes of Health provide the vast majority of
Federal funding for university research.  Since universities play
dual roles of research and teaching, the long-term scientific and
technological vitality of the U.S. depends upon adequate and
sustained funding for university research grant programs at NSF,
NIH, and other research agencies.

      National Laboratories.  In fields like high-energy
physics, biomedical science, nuclear physics, materials sciences,
and aeronautics, the national laboratories provide key facilities
used by researchers in academia, Federal labs, and industry.  In
addition, in many fields, researchers at Federal labs are world
leaders.  We will ensure that Federal laboratories continue their
key role in basic research and will encourage more cooperative
research between the laboratories and industry and universities.
And we will develop new missions for our federal labs to make full
use of the talented and experienced men and women working there in
today's post-cold war era.


      Space Science and Exploration.   The resources needed for
space exploration and research make government funding essential.
We will continue to work with foreign partners to design missions
needed to explore our solar system and the universe beyond.
Research on micro-gravity and life-sciences as applied to the human
in space program will also be supported.

      Environmental Research.  In FY93, the Federal government
will invest in research to better understand global warming, ozone
depletion, and other phenomena important to local, regional, and
global environments.   This research is essential if we are to fully
assess the damage mankind is doing to our planet and take effective
action to address it.  Vital research on local and regional
environmental problems will also be strongly supported at EPA, NOAA,
NASA, DoD, DOL,  USDA,  and other agencies.





BUILDING AMERICA'S ECONOMIC STRENGTH:  NEW INITIATIVES

Permanent Extension Of The Research And Experimentation Tax Credit

Invest In A National Information Infrastructure

Advanced Manufacturing Technology

Facilitate Private Sector Development of a New Generation of
Automobiles

Improve Technology For Education And Training

Investments In Energy-Efficient Federal Buildings






PERMANENT EXTENSION OF THE RESEARCH AND EXPERIMENTATION TAX CREDIT

Objectives

      The success of U.S. businesses depends on their ability to
compete both in the development of innovative products and
production processes and in their ability to bring new products to
the market quickly and efficiently.  Unfortunately, the U.S. has
fallen behind many of its foreign competitors in civilian research.
Currently the U.S. invests 1.9 percent of GDP in non-defense R&D
compared to 3.0 percent in Japan and 2.7 percent in Germany.   US
investment in research and experimentation can be increased through
a tax credit for R&E that can provide a stable basis for business
planning.

      Increasing investment in research is important to foster
economic growth and technological development and to improve
international competitiveness.  But many of the benefits of research
cannot be captured by the businesses making the investments.
Instead, these benefits redound to competitors and to the public.
In the absence of an incentive for research, businesses simply might
not invest in research the way our economic goals demand.  The
research and experimentation credit should be permanently extended
to foster economic growth and technological development, create
jobs, and improve international competitiveness.  R&D activity, by
its nature, is long-term, and taxpayers should be able to plan their
research activity knowing that the credit will be available when the
research is actually undertaken.

Actions

      The Administration will propose that the Research and
Experimentation Tax Credit be made permanent.  The credit would
apply to qualified research expenditures by businesses and
businesses expenditures for university basic research paid or
incurred after June 30, 1992.  The proposal also provides a basis
for start-up businesses to qualify for the credit.






INVEST IN AN INFORMATION INFRASTRUCTURE

Objectives

       Today's "Information Age" demands skill, agility and speed in
moving information.  Where once our economic strength was determined
solely by the depth of our ports or the condition of our roads,
today it is determined as well by our ability to move large
quantities of information quickly and accurately and by our ability
to use and understand this information.  Just as the interstate
highway system marked a historical turning point in our commerce,
today "information superhighway" -- able to move ideas, data, and
images around the country and around the world -- are critical to
American competitiveness and economic strength.

       This information infrastructure -- computers, computer data
banks, fax machines, telephones, and video displays -- has as its
lifeline a high-speed fiber-optic network capable of transmitting
billions of bits of information in a second.  Imagine being able to
transmit the entire Encyclopedia Brittanica in one second.

        The computing  and networking technology that makes this
possible is improving at an unprecedented rate, expanding both our
imaginations for its use and its effectiveness.  Through these
technologies, a doctor who needs a second opinion could transmit a
patient's entire medical record -- x-rays and ultrasound scans
included -- to a colleague thousands of miles away, in less time
than it takes to send a fax today.  A school child in a small town
could come home and through a personal computer, reach into an
electronic Library of Congress -- thousands of books, records,
videos and photographs, all stored electronically.  At home, viewers
could choose whenever they wanted from thousands of different
television programs or movies.

       Efficient access to information is becoming increasingly more
important for all parts of our economy.  Banks, insurance companies,
manufacturing concerns, and many other businesses now depend on high
speed communication networks.  These networks have become a critical
tool around which many new business opportunities are developing.

       And, by harnessing the power of supercomputers able to
transform enormous amounts of information to images or solve
incredible complex problems in record time, and share this power

with an ever-expanding audience of scientists, businesses,
researchers, students, doctors and others, the potential for
innovation and progress multiplies rapidly.  Supercomputers help us
develop new drugs, design new products, predict dangerous storms and
model climate changes.  They help us design better cars, better
airplanes, more efficient manufacturing processes.  Accelerating the
introduction of an efficient,  high-speed communication network and
associated computer systems would have a dramatic impact on every
aspect of our lives.  But this is possible only if we adopt forward-
looking policies that promote the development of new technologies
and if we invest in the information infrastructure needed for the
2lst Century.



Actions

A.     Implementation of the High-performance Computing and
Communications Program established by the High-Performance Computing
Act of 1991 introduced by Vice President Gore when he served in the
Senate.   Research and development funded by this program is
creating (1) more powerful super computers, (2) faster computer
networks and the first national high speed network, and (3) more
sophisticated software. This network will be constructed by the
private sector but encouraged by federal policy and technology
developments.   In addition, it is providing scientists and
engineers with the tools and training they need to solve "Grand
Challenges", research problems--like modeling global warming--that
cannot be solved without the most powerful computers.

B.     Create a Task Force on Information Infrastructure.
Government telecommunication and information policy has not kept
pace with new developments in telecommunications and computer
technology. As a result, government regulations have tended to
inhibit competition and delay deployment of new technology.  For
instance, without a consistent, stable regulatory environment, the
private sector will hesitate to make the investments necessary to
build the high-speed national telecommunications network that this
country needs to compete successfully in the 21st Century.   To
address this problem and others, we will create a high-level inter-
agency task force within the National Economic Council which will
work with Congress and the private sector to find consensus on and
implement policy

changes needed to accelerate deployment of a national information
infrastructure.

C.     Create an Information Infrastructure Technology Program to
assist industry in the development of the hardware and software
needed to fully apply advanced computing and networking technology
in manufacturing, in health care, in life-long learning, and in
libraries.

D.     Provide funding for networking pilot projects through the
National Telecommunications and Information Administration (NTIA) of
the Department of Commerce.  NTIA will provide matching grants to
states, school districts, libraries, and other non-profit entities
so that they can purchase the computers and networking connections
needed for distance learning and for hooking into computer networks
like the Internet.  These pilot projects will demonstrate the
benefits of networking to the educational and library communities.

E.     Promote dissemination of Federal information.  Every year,
the Federal government spends billions of dollars collecting and
processing information (e.g. economic data, environmental data, and
technical information). Unfortunately, while much of this
information is very valuable, many potential users either do not
know that it exists or do not know how to access it.  We are
committed to using new computer and networking technology to make
this information more available to the taxpayers who paid for it.
In addition, it will require consistent Federal information policies
designed to ensure that Federal information is made available at a
fair price to as many users as possible while encouraging growth of
the information industry.





PROMOTE ADVANCED MANUFACTURING TECHNOLOGY

Objectives

      Manufacturing remains the foundation of the American
economy.  Although the United States was the unchallenged world
leader in manufacturing for many years, our performance has slipped
badly in recent decades.  American firms still excel at

making breakthroughs, such as IBM's discovery of high-temperature
superconductivity, but foreign firms are often better at follow
through: namely, turning technology into new products and processes
both quickly and cheaply.

      Both American industry and government under-invest in
manufacturing.  In contrast to their foreign competitors, U.S. firms
neglect process-related R&D within their overall R&D portfolio.  And
the federal government allocated only two percent of its $70 billion
R&D budget to manufacturing R&D in FY92.

      We have also neglected the dissemination of existing
technology and know-how.  New manufacturing technologies and
approaches are available that can lead to dramatic improvements in
product quality, cost, and time-to-market.  Although a few U.S.
firms have begun to adopt these technologies and approaches, most
firms still lag.  The problem is most acute among the 360,000 small
and medium-sized manufacturers, who employ 8 million workers, but
too often lack the resources or ability to gain access to the
technologies that will help them grow, increase their profits, and
create jobs.

      Finally, investments in manufacturing have not reflected
the concerns and the knowledge of factory employees.  Firms should
use technology to build on rather than reduce worker skills.

Actions:

A.      Provide increased funding for advanced manufacturing R&D.
SEMATECH, an industry consortium to develop semiconductor
manufacturing technology, will receive continued matching funds from
the Department of Defense in FY94.   Industry consortia (including
universities and government laboratories, where appropriate) will be
the preferred performers of such R&D, to assure its commercial
relevance.    Programs will be encouraged in the development of a
new automobile, new construction technologies, intelligent control
and sensor technologies, rapid prototyping, and environmentally-
conscious manufacturing.





B.     Support Agile Manufacturing.  The new Agile Manufacturing
Program (also known as "Enterprise Integration") is designed to
capitalize on the emerging shift from mass production to flexible or
"agile" manufacturing.  Agile manufacturing allows independently-
owned companies to form instantaneous partnerships with firms that
have complementary capabilities in order to exploit market
opportunities.  These partnerships -- called "virtual enterprises"
or "virtual corporations" -- will leverage our nation's strengths in
information technology.  This program supports both the development
and dissemination of such technology for enterprise integration.

C.     Create a national network of manufacturing extension centers.
Many small and medium-sized manufacturing firms in the U.S. have not
taken advantage of new technologies and best practices, either
because they are unaware of them or because they cannot afford them.
Existing state and federal manufacturing extension centers provide
assistance to a small number of firms, but service must be greatly
expanded to give all firms access to the technologies, testing
facilities, and training programs they need.  Federal funds (to be
matched by state and local governments) will go to support and build
on existing state, local, and university programs, with the goal of
creating a nation-wide network of extension centers.

D.     Seed Regional Technology Alliances.  Manufacturing industries
tend to cluster geographically, and the strength of these technology
clusters is fast becoming a key to international competitiveness.
This new program is designed to encourage firms and research
institutions in a particular region to exchange information, share
and develop technology, and develop new products and markets.
Federal funds (to be matched by alliance members) will go to support
applied R&D and a range of technology services oriented particularly
to smaller firms (test facilities for new products and prototypes,
design and management assistance, start-up incubators, education and
training, export promotion and market monitoring, and quality
testing and standards certification).

E.     Promote Manufacturing Engineering Education.  Traditional
engineering education, with its focus on product design and
analysis, has seriously neglected the management and operation of
manufacturing activities.  This program provides matching funds

for graduate or undergraduate programs in manufacturing engineering.

F.     Promote Environmentally-Conscious Manufacturing.  The
Departments of Commerce, Energy, Defense, and a number of other
federal organizations will incorporate environmental goals in
research and development consortia for manufacturing.  In addition,
NIST, working with EPA, DoE, and state agencies, will undertake a
technical support program in energy and environmental waste
minimization for small and medium-sized firms.





FACILITATE PRIVATE SECTOR DEVELOPMENT OF A NEW GENERATION OF
AUTOMOBILES

Objectives:

       The automobile plays a central role in U.S. manufacturing
capabilities, in America's economy, and in the lives of most
Americans.  If America's auto industry is to remain competitive and
strong in the 21st century, preserving jobs, sustaining economic
growth, and expanding its business, it must continue its exploration
of new technologies that encourage the industry's growth and protect
the environment.  Increasingly stringent environmental concerns both
here and abroad make this effort increasingly more essential and the
need for innovation and new ideas even greater.

       New fuels and new propulsion systems developed during the
last decade offer promise as eventual replacements for the
combination of gasoline and the internal combustion engine that have
served so well for generations.  Given adequate investment in
research and development, and adequate incentives for U.S. producers
to invest in these technologies, a new generation of vehicles could
be on the market -- preserving jobs, expanding growth -- that would
be safe and perform as well,  if not better  than existing
automobiles, cost no more to drive than today's automobiles, consume
only domestic fuels such as natural gas and renewables, and produce
little or no pollution.


       While the basic technology needed to achieve this goal is
available, converting it to a practical vehicle represents an
historic challenge.  The potential can only be captured under the
leadership of the U.S. business community and the industry itself.
Success must be defined by their ability to develop a vehicle that
can be built and sold successfully in private markets.  They must
play a central role in designing an efficient government-industry
partnership in which the industry plays a leadership role in
establishing priorities.

       If U.S. producers lead the world in introducing such a
vehicle, the domestic industry would be able to meet expanding
domestic and international markets with a machine that significantly
reduces pollution and operates from domestic fuel sources.

       This initiative represents a bold and dramatic step toward a
more profitable, and more environmentally sound future for one of
America's most important industries.



Actions

A.      Establish a "clean car" task force linking research efforts
of relevant agencies with those of U.S. auto manufacturers.   This
task force will immediately establish an advisory group consisting
of technology leaders in the principle US automobile manufacturers,
their principal suppliers, and US fuel suppliers.   It will oversee
the establishment of cooperative research ventures in (i) fuel-cells
and the control and other systems required for practical fuel-cell
hybrid vehicle designs, (ii) advanced batteries, ultra-capacitors,
advanced gas storage & delivery systems, and (iii)  production of
methanol and hydrogen from natural gas, municipal waste and other
waste products, energy crops, and the electrolysis of water

B.     The task force will establish a special advisory group
consisting of key state officials and representatives of the
participating Departments to (i) design a program for using the
authority already present in the Clean Air Act revision of 1991 and
the National Energy Act of 1992 to encourage introduction of
prototype vehicles consistent with the objectives of this program,
(ii) coordinate state regulatory programs designed to require low or

zero emission vehicles, and (iii) propose federal regulations needed
to supplement state efforts.   It will also design programs for
managing federal vehicle procurement.

C.       Working with its private sector and state advisory groups,
the task force will prepare a list of development requirements and
conduct a systematic search for capabilities in national
laboratories and defense facilities.   Capabilities identified will
be integrated rapidly into the research teams.



IMPROVE TECHNOLOGY FOR EDUCATION AND TRAINING

Objectives

      This project will support the development and introduction
of computer and communications equipment and software that can
increase the productivity of learning in formal school settings, a
variety of business training facilities, and in homes.

Actions

A.         Access to the Internet and developing high-speed National
Research and Educational Network (NREN) will be expanded to connect
university campuses, community colleges, and K-12 schools to a high-
speed communications network providing a broad range of information
resources.  Support will be provided for equipment allowing local
networks in these learning institutions access to the network along
with support for development of high-performance software capable of
taking advantage of the emerging hardware capabilities.

B.        An interagency  task force will be created from
appropriate federal agencies to (i)  adopt software and
communication standards for education and training, (ii) coordinate
the development of critical software elements, (iii) support
innovative software packages and curriculum design, and (iv) collect
information resources in a standardized format and make them
available to schools and teaching centers throughout the nation
through both conventional and advanced communication networks.  This
task force will provide specific assistance to the interagency task
force on worker displacement.

C.       Programs in the Federal Coordinating Council for Science,
Engineering, and Technology (FCCSET) Committee on Education and
Human Resources programs will be enhanced.   These programs are
designed to improve the teaching of science, mathematics, and
engineering at all levels.  In K-12 schools, primary emphasis will
be placed on teacher preparation, comprehensive organizational
reform, and curriculum development.  Programs for undergraduate
education emphasize faculty preparation and organization and
curriculum reforms but place heaviest emphasis on student
incentives.  At the graduate level, most funding is directed for
fellowships.

D.        Proposals will be encouraged for an industry consortia or
regional alliance designed to develop new teaching systems (hardware
and software) and work with training organizations throughout the
nation to develop, install, and maintain state-of-the art systems.
Firms now providing similar services to defense training
organizations are likely to participate.

E.     Promote Manufacturing Engineering Education.  Traditional
engineering education, with its focus on product design and
analysis, has seriously neglected the management and operation of
manufacturing activities.  This program provides matching funds for
graduate or undergraduate programs in manufacturing engineering.



MAKE ENERGY EFFICIENCY INVESTMENTS IN FEDERAL BUILDINGS

Objectives

      This project would increase the efficiency of government
by making cost-effective investments in buildings where the energy
bills are paid by the taxpayers.  The project would create a
significant number of jobs in urban areas, create new businesses and
job skills, stimulate markets for innovative energy efficiency
equipment, and reduce the impact of the federal government on the
environment.

Actions


      In the case of federal building retrofits, funding will be
provided to the Department of Energy which will be responsible for
managing the program.

      In the case of funds for federally subsidized housing,
funds will be provided to HUD which will manage the fund with DoE
providing technical guidance.

A.        Create an advisory group of key officials from states with
successful state building retrofit programs,  representative
building facility managers from federal buildings, and utility
managers of successful "demand-side management" programs.   This
group will ensure that the federal program is designed with the
advantage of their experience and provide periodic evaluation and
guidance.

B.        The managers of the funds will provide funding for
preliminary "walk through" audits, following the experience in the
Texas program.  Based on these preliminary studies, funding will be
provided for more extensive audits.  Proposals made in these audits
will be funded using the following criteria:
--   technical merit of the proposal;
--   extent to which all cost-effective savings (i.e. justified on a
10%  real discount rate) have been captured;
--   cost-sharing by the agency, utility, or other source of
financing;
--   in the case of federally subsidized housing, state and other
non- program cost-sharing will be considered, including use of Low-
Income Home Energy Assistance Program (LIHEAP) and other funds -- at
least a 1:1 match should be expected; and
--   the extent to which contractors invest in hiring and training
new workers.

      In each proposal, at least 6% of the program cost will be
set aside for monitoring and evaluation using regional centers that
follow an agreed protocol established by a lead center

      Up to 10% of the program funds should be spent to create
early markets for innovative technologies which represent a
significant advance over existing systems and have the potential for
large future applications.