Capitalizing on National R

1
Capitalizing on National RD Investments
Accelerating Innovation Conference 2005

• Fred Dylla
• Chief Technology Officer
• Thomas Jefferson National Accelerator Facility
• (Jefferson Lab)
• Newport News, VA

2
Return on RD Investment

• Total cost of all basic research, from
  Archimedes to the present, is less than the value
  of ten days of the worlds present industrial
  production
• Victor
  Weisskopf, National Medal of Science

3
The American Century Reaping the Benefits of
RD Investments

• During the second half of the 20th century, the
  US
• Had highest per capita income of any major
  economy
• Led the developed world in economic growth
• Generated the largest share of world exports
• This prosperity was in large measure based on US
  investments in science and technology.
• After WWII government spending on RD soared
  reaching a peak of 1.9 of GDP in 1964.
• With only 5 of the worlds population the US
  employs nearly one-third of scientific and
  engineering researchers
• Technology improvements have accounted for up to
  one-half of GDP growth and two-thirds
  productivity growth since 1946
• Conclusion RD investments have led to
  innovation and increased standard of living for
  our nation
• Information from Rising Above the Gathering
  Storm, National Academy of Sciences,2005

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Universities
National Labs
Industry
-Long term research-Intellectual
pipeline-Serendipitous discovery
-Multidisciplinary approach-Bridge between
university and industrial
timescale-Pipeline for trained Ph.D.s-Complex
and unique scientific technological
infrastructure
-Market focus-Short time frame-Entrepreneurial
approach-Capital generation
5
A Lab to Dashboard Example - GPS

• Mid-1950s Work began of portable atomic clocks
• 1961 Aerospace Corporation starts early GPS
  development
• 1973 Concept brainstormed in DOD meeting as a
  means of satellite navigation
• 1978 First operational GPS satellite launched
• 1993 Full 24-satellite capability
• Present GPS technology incorporated into cars,
  boats, used for surveying units are available
  at your local electronics store

6
DOEs Office of Science and theNational Lab
System

• The DOEs Office of Science (Budget 3.5B) is
  the leading
• funding agency in the U.S. for research in the
  physical sciences
• The DOE operates a system of 17 national labs and
  user facilities
• - Ten of the national labs are within the Office
  of Science
• - User facilities are built and operated for
  peer reviewed research
• - Utilized by 19,000 researchers/year
• - Garnered 669 RD 100 Awards from 1962-2004,
  and 82 Nobel Prizes

7
RD is critical to Our Nations Future

• Medical advances may seem like wizardry. But
  pull back the curtain, and sitting at the lever
  is a high-energy physicist, a combinational
  chemist or an engineer. Magnetic resonance
  imaging is an excellent example. Perhaps the last
  century's greatest advance in diagnosis, MRI is
  the product of atomic, nuclear and high-energy
  physics, quantum chemistry, computer science,
  cryogenics, solid state physics and applied
  medicine. scientists can wage an effective war
  on disease only if we - as a nation and a
  scientific community - harness the energies of
  many disciplines, not just biology and
  medicine. Harold Varmus, NIH
• "On the issue of research, there is just no
  question that if youre going to have technology
  as the base of your economy, which we do,
  research is crucial." Federal Reserve
  Chairman Alan Greenspan
• In this Commissions view, the inadequacies of
  our systems of research and education pose a
  greater threat to U.S. national security over the
  next quarter century than any potential
  conventional war that we might imagine If we do
  not invest heavily and wisely in rebuilding these
  two core strengths, America will be incapable of
  maintaining its global position long into the
  21st century. Hart-Rudman
  Commission

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The US cannot continue to rest on its laurels

• Federal funding is in a long-term decline, now
  only half of its mid-1960s peak of 2 of GDP.
• Corporate RD had its single largest decline
  since the 1950s in 2002, when it dropped nearly
  8B.
• Total scientific papers by American authors has
  been flat since its peak in 1992.
• Globally, the United States ranks 17th in
  proportion of college age population earning
  science and engineering degrees, down from 3rd
  place several years ago.
• RD spending has shifted to the D, with very
  little emphasis on the R

9
U.S. RD, by source of funds 19532002
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Some Worrisome Indicators

• When asked in spring 2005 what is the most
  attractive place in the world in which to lead a
  good life, respondents in only one of the 16
  countries polled (India) indicated the United
  States.
• For the cost of one chemist or one engineer in
  the United States, a company can hire about five
  chemists in China or 11 engineers in India.
• For the first time, the most capable high-energy
  particle accelerator on Earth will, beginning in
  2007, reside outside the United States.
• The United States is today a net importer of
  high-technology products. Its share of global
  high technology exports has fallen in the last 2
  decades from 30 to 17, and its trade balance in
  high technology manufactured goods shifted from
  plus 33 billion in 1990 to a negative 24
  billion in 2004.
• US 12th graders recently performed below the
  international average for 21 countries on a test
  of general knowledge in mathematics and science.
• In one recent period, low-wage employers, such as
  Wal-Mart (now the nations largest employer) and
  McDonalds, created 44 of the new jobs, while
  high-wage employers created only 29 of the new
  jobs.
• Information from Rising Above the Gathering
  Storm, National Academy of Sciences,2005

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Some Worrisome Indicators (cont.)

• In 2003, only three American companies ranked
  among the top 10 recipients of patents granted by
  the United States Patent and Trademark Office.
• In Germany, 36 of undergraduates receive their
  degrees in science and engineering. In China, the
  figure is 59, and in Japan 66. In the United
  States, the corresponding figure is 32.
• In 2004, China graduated over 600,000 engineers,
  India 350,000, and America about 70,000.
• In 2001 (the most recent year for which data are
  available), US industry spent more on tort
  litigation than RD.

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How the Partnership Works An Example

• Extreme Ultraviolet (EUV) Lithography for the
  Semiconductor Roadmap
• Basic research conducted at universities and
  national labs (Sandia and LBNL)
• Development funding picked by industry (Intel)
• DOE-Industry CRADA established to commercialize
  technology
• Full scale demonstration at Sandia completed
• Commercialization expected this year (2005)

13
A Working Partnership in Virginia

• The Free Electron Laser User Facility at
  Jefferson Lab (Newport News)
• Worlds most powerful tunable laser
• (far IR to deep UV)
• Applications to basic science, materials
  processing, defense, biomedicine
• Leveraged from prior investments in accelerator
  technology by DOE
• Targeted investments by federal (ONR,AFRL), state
  (VA) and industry- university partnership

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Ratio of first university NSE degrees to
24-year-old population, by selected
country/economy 1975 and 2000 or most recent
year
15
SE articles, by selected country/region and
U.S. share of world total 19882001
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Revitalizing Innovation

• The echo from Rising Above the Gathering
  Storm
• Strengthen our investment in basic research and
  our national research infrastructure
• Strengthen the talent pipeline K-12 through
  stable professional positions for scientists and
  engineers
• Encourage partnerships among universities,
  national labs and industry
• Remove bureaucratic obstacles that reduce
  agility

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• Epilog
• If America were a company, freedom and
  exploration would be our core competencies. And
  the capacity to innovate is the foundation for
  bringing our competitiveness into full fruition.
  The first Americans were innovating when they
  made the decision to leave an established life
  for the perils of an unknown world. They were
  innovating before we had government, a
  functioning economy, an educational system or
  national defense. In short, if Americans stop
  innovating, we stop being Americans.
•      Innovation America Report (2004)