BUSH BUDGET SEEKS RESULTS FROM FUNDED R&D

Corporate R&D backed by federal govt. would have more- targeted focus on commercial success while assisting those truly in need of support, under the FY 2003 budget released by President Bush Mon. “Dollars will go to programs that work,” budget said: “Those programs that don’t work will be reformed, constrained or face closure.” Numerous federal programs offer loans or grants to companies or research institutions to back R&D that eventually could lead to commercial applications. One to be shuttered if Bush gets his way is Technology Opportunities Program (TOP), favorite of legislators. He also proposed reducing Advanced Technology Program (ATP), another congressional favorite, in favor of additional funding for the National Institute of Standards & Technology (NIST).

ATP would be reduced in FY 2003 to $108 million from $185 million in FY 2002, with only $35 million in direct awards. The budget said General Accounting Office studies show ATP, created in 1988 to help U.S. companies compete with Japan and other foreign economic powers, no longer was relevant, with private venture capital soaring to $104 billion in 2000 from $6 billion in 1995: “[S]ufficient private funding is available for high- technology projects.” More of ATP’s money will go to universities and less to major corporations, the budget said. One disincentive was proposed for ATP grant recipients -- they would be required to reimburse the federal govt. up to 5 times their original grants for successful projects.

The Budget described NIST labs as “world leaders in high- tech and basic industrial standards,” although it criticized NIST-related congressional earmarks as repeatedly supporting projects “unrelated to NIST activities.” NIST would receive $402 million, up from $321 million. Commerce Dept.’s NTIA, meanwhile, would drop to $62 million under the FY 2003 budget, from $74 million in FY 2002. Salaries and expenses actually would go up to $18 million from $15 million, but grant money would decline to $44 million from $59 million, leaving total exactly half that of NTIA’s FY 2001 grant program. Office of Technology Policy, involved with NTIA in reviewing spectrum issues, among other topics, would decline slightly from $8.2 million to $8.1 million, while Bureau of Export Administration would increase to $103 million from $72 million.

National Science Foundation was cited as model agency for R&D as it completed 94% of its research projects in 2001, vs. mere 42% for Commerce Dept. White House also praised NSF’s “competitive merit review process” ensuring quality research grants, as well as the fact that “NSF awards do not last indefinitely.” Potential NSF grants would increase to $120,000 under new budget, from $90,000 in 1998; its FY 2003 budget would increase slightly to $3.8 billion from $3.6 billion. NSF’s focus on long-term, high-risk technology was termed “excellent” by White House, but that program will be evaluated in 2002. “If adopted, this budget will provide the highest level of funding for R&D in history,” White House said, “but the focus should not be on how much we are spending, but rather on what we are getting for our investment.”