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Washington D.C. – September 29, 2010 - Today the Science and Technology Committee received testimony from distinguished members of the Committee who produced the 2005 report, Rising Above the Gathering Storm, and who recently produced an updated report entitled, Rising Above the Gathering Storm, Revisited: Rapidly Approaching Category 5. The report addresses how to maintain U.S. competitiveness and economic security for the long-term, ensuring America’s position as a world leader in innovation and job creation.
“We all agree that a strong, skilled and STEM-educated workforce is critical to our Nation’s ability to compete,” said Ranking Member Ralph Hall (R-TX). “Particularly in today’s economic uncertainties, we need to make sure that we are reaping the benefits of the numerous initiatives called for in the initial Gathering Storm report and set forth in America COMPETES before creating others.”
Testifying today, Chair of the Gathering Storm report, Mr. Norman Augustine, retired Chairman and CEO of the Lockheed Martin Corporation and former Under Secretary of the Army, outlined their findings. Mr. Augustine stressed the continued need for investments in basic research and development (R&D;) and improved science, technology, engineering, and math (STEM) education. In response to these recommendations, in 2007 Congress enacted and President Bush signed into law the America COMPETES Act (COMPETES). This spring, the House passed a 5-year reauthorization of COMPETES.
Witnesses today also highlighted other critical policies that negatively affect America’s economic growth potential. Dr. Craig Barrett, retired Chairman and CEO of Intel Corporation, noted that the U.S. currently has the second highest corporate tax rate in the world. Dr. Barrett said that there are very few incentives for companies to locate facilities in the U.S. and the high corporate tax rate forces companies to build manufacturing facilities overseas.
Witnesses also unanimously told Members that taxpayers should not subsidize corporate R&D.; Dr. Barrett said, “I frankly don’t think the U.S. government and taxpayers should subsidize research within the private corporations unless the government has a specific project or objective.” Barrett also said that the federal government should fund pre-competitive research that is at least eight to ten years away from any application. Augustine agreed, saying that he opposed the federal government funding R&D; for a company that could lead to a predictable profit.
Following up on this point, Mr. Charles Holliday, Jr., Chairman of the Board of Bank of America and retired Chairman of the Board and CEO of DuPont, recounted a conversation he had with a colleague who was concerned with his company’s shift in focus away from basic research and toward applied research. Holliday responded to his colleague saying, “We must depend on the universities to provide that basic research for us and our competitors.” Holliday continued, “It’s better done at the university level, or at the national labs, so all competitors can have access to it and compete to make it a success.”
Republicans raised similar concerns while the Committee was in the process of reauthorizing the America COMPETES Act. Throughout the legislative process Republicans were critical of the bill’s shift in focus away from basic research and toward technology commercialization activities, along with dramatically increased spending levels, and the creation of new and duplicative programs.
“If America is going to remain on top in the evolving world economy, we must be dedicated to encouraging innovation and entrepreneurship, while simultaneously cultivating a scientifically and technologically astute future workforce,” Ranking Member Hall said. “While my message hasn’t changed, and seemingly neither has the message of the Gathering Storm Committee members before us today, unfortunately, our economy has.”
Discussing the need for continued investments in basic R&D; and STEM education, Mr. Augustine said that “It is the Gathering Storm committee’s conviction that this is an endeavor in which all Americans can unite since the fundamental issue is the quality of life we will leave to our children and our grandchildren.”
The following witness also testified today before the Committee:
Dr. C.D. (Dan) Mote, Jr., President Emeritus of the University of Maryland and Glenn L. Martin Institute Professor of Engineering.
For more information on today’s hearing, or to read witness testimony, please visit the GOP Science and Technology Committee website.
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