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32 KiB
Plaintext
608 lines
32 KiB
Plaintext
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#### #### #### | A TECHNOLOGY POLICY FOR AMERICA
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######## ######## ######## | by President-Elect Bill Clinton
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=====================================================================
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EFFector Online November 4, 1992 Issue 3.08
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A Publication of the Electronic Frontier Foundation
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ISSN 1062-9424
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=====================================================================
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A TECHNOLOGY POLICY FOR AMERICA Six Broad Initiatives
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by Bill Clinton
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(September, 1992)
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The Clinton-Gore technology policy consists of six broad initiatives
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that together will restore America's technological leadership:
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1. Building a 21st Century Technology Infrastructure.
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Infrastructure has traditionally been the responsibility of federal and
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state governments. Investing in infrastructure means more than repairing
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bridges, harbors and highways. Today, the United States faces a new
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series of communications, transportation and environmental needs for the
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21st century. The creation of a 21st century infrastructure program
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would serve as a critical technology driver for the nation. It would
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stimulate major new national R&D efforts; create large, predictable
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markets that would prompt significant private sector investments; and
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create millions of new jobs.
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A 21st century infrastructure would address many practical problems. For
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example, the government can serve as a catalyst for the private sector
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development of an advanced national communications network, which would
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help companies collaborate on research and design for advanced
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manufacturing; allow doctors across the country to access leading
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medical expertise; put immense educational resources at the fingertips
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of American teachers and students; open new avenues for disabled people
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to do things they can't do today; provide technical information to small
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businesses; and make telecommuting much easier. Such a network could do
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for the productivity of individuals at their places of work and learning
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what the interstate highway of the 1950s did for the productivity of the
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nation's travel and distribution system.
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Each year, I plan to devote a significant portion of my four year, $80
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billion Rebuild America fund to laying the groundwork for the nation's
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infrastructure needs in the 21st century. Federal funding for the
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National Research and Education Network is one example of how the
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federal government can serve as a catalyst for private sector
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infrastructure investment. We will also provide additional funding to
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network our schools, hospitals and libraries.
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As part of the effort to assess U.S. needs and develop appropriate
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programs, the federal government must monitor, or "benchmark", what
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foreign governments are doing. For example, the Japanese government has
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committed to invest over $120 billion by 1995 to develop a digital
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broadband communication infrastructure called the Information Network
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System, and plans to invest another $150 billion to establish model
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programs for business and residential users.
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A comprehensive infrastructure program must also include effective
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standards and regulations. By establishing reasonable standards and a
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constructive regulatory environment, the government can send clear
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signals to industry about important, emerging markets and spur private
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sector investment. For example, the digital standard that the Federal
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Communications Commission (FCC), in cooperation with industry,
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established for high resolution television provides an excellent
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indication of the future technical direction of the industry and will do
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much to facilitate private sector R&D.
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A 21st century infrastructure program should consist of the following
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five elements:
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Funding the establishment of key networks and demonstration
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projects;
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Benchmarking U.S. programs against those of other major industrial
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nations;
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Establishing standards and a regulatory climate that fosters
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private sector investment;
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Involving the federal labs, companies, and universities in
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conducting R&D on key technical issues; and
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Providing training for users of networks and databases.
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2. Establishing Education and Training Programs for a High-Skill
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Workforce.
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The U.S. education system must make sure that American workers have the
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requisite skills. The focus should be not only on the top American
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students who measure up to world-class standards, but also on average
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and disadvantaged students. It must also take into account the need to
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upgrade workers' skills and help people make the difficult transition
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from repetitive, low-skill jobs to the demands of a flexible, high-skill
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workplace. Unlike Germany, the United States does not have a
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sophisticated vocational education program, and unlike Japan, U.S. firms
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do not have a strong incentive to invest in the training and retraining
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of their workers. We need more of both, geared to meet the needs of the
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mobile U.S. workforce.
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I will implement the following programs to strengthen the skills of
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America's workforce:
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Establish tough standards and a national examination system in
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core subjects like writing, communication, math and science;
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level the playing field for disadvantaged students;
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reduce class sizes;and give parents the right to chose the public
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schools their child attends.
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Establish a national apprenticeship program that offers non-
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college bound students training in a marketable skill.
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Give every American the right to borrow money for college by
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establishing a National Service Trust Fund. Students can repay
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their borrowing as a percent of their earnings over time, or by
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serving their communities for one or two years doing work their
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country needs.
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Stimulate industry to provide continuing, high skills training to
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its front-line workers.
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For small manufacturers to compete today, it is not good enough simply
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to have access to new equipment and new technologies if their workers do
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not have the skills and know-how to operate them efficiently, and engage
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in truly flexible production. Yet, too much of our training is for only
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top executives or workers after they have lost their jobs.
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My plan calls for companies with over 50 employees to ensure that 1.5
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percent of their payroll goes to training throughout the workforce --
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not just for the top executives. But we must do more for smaller
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companies who cannot afford to set up the training programs. These
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companies need to adapt to new technologies and new equipment and the
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constantly new demands.
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New production technology should be worker-centered and skill-based, not
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skill-eliminating. In the high-performance workplace, workers have more
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control over production and worker responsibility is increased. Some
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companies that have invested billions in new capital equipment have
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found that genuine employee involvement and good labor-management
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relations are ultimately more important. Therefore we need to undertake
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the following:
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Manufacturing training centers:
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We need to promote private sector-led efforts to set up training
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for small companies. These can be done by building off community
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colleges training and should be an integral part of the network of
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Manufacturing Extension provisions. These would also be integrated
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with my Apprenticeship initiative so that young people will have
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the opportunity to learn specific skills needed for specific
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manufacturing jobs or industries. Councils including private
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sector and academic leaders as well as workers would help decide
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generic areas for training.
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Certificate of training guarantees:
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In order to be eligible for federal funds for manufacturing
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training centers, such centers would have to provide all future
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employers with a Certificate of Guarantee. This would ensure that,
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when workers do not pick up the necessary skills the first time,
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these centers would provide additional training -- at no
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additional cost to the employer.
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Best Practices on Worker Participation:
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An integral function of the Manufacturing Extension Centers will
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be to collect and disseminate information on "best practices" with
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regards to worker participation. Increasing worker productivity is
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one of the keys to increasing overall manufacturing productivity.
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3. Investing in Technology Programs that Empower America's Small
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Businesses.
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A healthy and growing small-business sector is essential to America's
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economic well-being. America's 20 million small businesses account for
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40 percent of our GNP, half of all employment, and more than half of the
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job creation. My technology policy will recognize the importance of
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small and medium-sized business to America's economic growth with:
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Market-driven extension centers:
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Creating 170 manufacturing centers will put the best tools in the
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hands of those companies that are creating the new jobs on which
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the American economy depends by helping small- and medium- sized
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manufacturers choose the right equipment, adopt the top business
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practices, and learn cutting-edge production techniques. In order
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to enhance U.S. industrial competitiveness, public policy must
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promote the diffusion and absorption of technology across the U.S.
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industrial base. Some state and local governments are already
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involved in technology diffusion using manufacturing centers. They
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are helping small businesses improve the productivity of their
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existing machinery and equipment, adopt computer-integrated or
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flexible manufacturing techniques, and identify training needs.
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The Commerce Department has five Manufacturing Technology Centers across
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the country and has plans for two more. Unfortunately, these efforts are
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only a drop in the bucket compared to those of our major competitors.
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Germany has over 40 contract R&D centers (Fraunhofer Gesellschaft) and a
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broad network of industry associations and research cooperatives that
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effectively diffuse technology across industry. In Japan, major
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government-sponsored research projects, 170 kohsetsushi technology
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support centers for small businesses, and tight links between companies
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and their suppliers serve much the same function. There is no comparable
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system in the United States.
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A Clinton-Gore Administration will build on the efforts of state and
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local governments to create a national technology extension program,
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designed to meet the needs of the millions of small businesses that have
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difficulty tracking new technology and adapting it to their needs.
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The involvement of workers is critical to developing and executing
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successful industrial extension programs. In technology, as in other
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area, we must put people first. New production technology should be
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worker-centered and skill-based, not skill-eliminating. In the high-
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performance workplace, workers have more control over production and
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worker responsibility is increased. Some companies that have invested
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billions in new capital equipment have found that genuine employee
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involvement and good labor-management relations are ultimately more
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important.
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No less than 25 of these new manufacturing centers will be regional
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technology alliances devoted to regions hit hard by defense cut-backs.
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These alliances could promote the development of dual-use technologies
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and manufacturing processes on a regional basis. Extending the Small
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Business Innovation Research Program (SBIR)
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In addition to creating a national technology extension service for
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small and medium-sized businesses, I will also expand the Small Business
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Innovation Research Program. By requiring that federal agencies set-
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aside 1.25 percent of their R&D budget for small businesses, this
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program has helped create billions of dollars of new commercial activity
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while improving the research programs of the federal government. Given
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this track record, the SBIR program should be doubled over a period of
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four years to 2.5% to accelerate the development of new products by
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innovative small businesses.
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Funding private sector-led training centers:
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We also need a fundamental change in the way we deal with R&D and
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technology if we are to lead a new era of American manufacturing.
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Currently, our R&D budget reflects neither the realities of the post-
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Cold War era nor the demands for a new national security. At present,
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60% of the federal R&D budget is devoted to defense programs and 40%
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percent to non-defense programs. The federal government should aim to
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restore a 50-50 balance between defense and non-defense R&D. That is why
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I have called for a new civilian research and development program to
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support research in the technologies that will launch new growth
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industries and revitalize traditional ones.
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This civilian technology program will:
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Invest in Private-Sector Led Consortia: When the private sector
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creates consortia to share risks, pool resources, avoid
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duplication and make investments that they would not make without
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such agreements, government should be willing to do its part.
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Support for consortia such as the SEMATECH, National Center for
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Manufacturing Sciences and the Advanced Battery is appropriate. By
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requiring firms to match federal contributions on at least a 50:50
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basis, the government can insure that we are leveraging public
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dollars and that they are market-led and market-oriented. Often
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major companies are reluctant to invest in their suppliers and
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assist them in quality management techniques, because they fear
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they will go to another company. Private-sector-led consortia
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allow the major companies to cure that problem by coming together
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and agreeing on industry-wide efforts to invest in smaller
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suppliers. Some of these consortia will be funded by the Advanced
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Technology Program.
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Inward Technology Transfer: While we must strengthen the links
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between American R&D and American jobs, we must also develop a
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strategy for acquiring, disseminating, and utilizing foreign
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technologies. Our Government must increase the collection,
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translation and dissemination of foreign scientific and technical
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information.
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4. Increasing Dramatically the Percentage of Federal R&D for Critical
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Technologies.
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I will view the support of generic industrial technologies as a priority
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mission. The government already spends $76 billion annually on R&D. This
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funding should be refocused so that more resources are devoted to
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critical technologies, such as advanced materials, information
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technology and new manufacturing processes that boost industrial
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performance.
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At present, 60% of the federal R&D budget is devoted to defense programs
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and 40% percent to non-defense programs. This level of support for
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defense R&D is a holdover from the massive arms build-up of the 1980s.
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At the very least, in the next three years the federal government should
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shift the balance between defense and non-defense programs back to a 50-
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50 balance, which would free-up over $7 billion for non-defense R&D.
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Having achieved this balance, the government should examine whether
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national security considerations and economic conditions warrant further
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shifts.
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I will also create a civilian research and development program to
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support research in the technologies that will launch new growth
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industries and revitalize traditional ones.
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This civilian technology program will:
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Help companies develop innovative technologies and bring new
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products to market;
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Take the lead in coordinating the R&D investments of federal
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agencies;
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and Cooperate and consult with industry, academia and labor in the
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formulation and implementation of technology policy and R&D
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programs.
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Advanced Manufacturing R&D:
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The United States is currently underinvesting in advanced manufacturing
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R&D. The federal government should work with the private sector -- with
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the private sector taking the lead -- to develop an investment strategy
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for those technologies critical to 21st century manufacturing.
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Following the lead of my running mate, Al Gore, and several of his
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colleagues, we must do more to support industry's efforts to develop the
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advanced computer-controlled equipment ("intelligent machines") and the
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electronic networks that will enable American factories to work as
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quickly and efficiently as their Japanese counterparts. These
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technologies also include flexible micro- and nanofabrication,
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simulation and modeling of manufacturing processes, tools for concurrent
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engineering, electronic networks that allow firms to share business and
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product data within and between firms, and environmentally-conscious
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manufacturing. According to industry experts, the United States has an
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opportunity to capitalize on the emerging shift from mass production to
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flexible or "agile" manufacturing.
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5. Leveraging the Existing Federal Investment in Technology to Maximize
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its Contribution to Industrial Performance.
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R&D conducted at the federal labs and consortia should be carefully
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evaluated to assure that it has a maximum impact on industrial
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performance. Furthermore, cooperation between universities and industry
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should be encouraged.
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America's 726 federal laboratories collectively have a budget of $23
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billion, but their missions and funding reflect the priorities that
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guided the United States during the Cold War. Approximately one-half of
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their budget is directed toward military R&D. By contract, the budget
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for the National Institute for Standards and Technology (NIST) - the
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only federal agency whose principal mission is to assist industry -
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accounts for less than one percent of the total federal lab budget.
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Despite several years of legislative reform and many new directives, the
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labs still do not have the autonomy or funding to pursue joint ventures
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and industry aggressively.
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These labs and other private non-profit research centers are national
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treasures because they house large, multi-disciplinary teams of
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researchers who have honed the skills of balancing basic and applied
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research for long-term, mission-oriented projects. It would take years
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to match these special capabilities elsewhere. Today, the labs and
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industry cooperate on defense needs; we need to change regulations and
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orientation to get this cooperation on technology development for
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commercial usage.
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To remedy these problems, I propose the following:
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The budget of the National Institute of Standards and Technology
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should be doubled. Federal labs which can make a significant
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contribution to U.S. competitiveness should have ten to twenty
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percent of their existing budget assigned to establish joint
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ventures with industry.
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Private corporations should compete for this funding through
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review by panels managed by the labs and made up of corporate and
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academic experts. Lab directors should have full authority to
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sign, fund and implement cooperative R&D agreements with industry.
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Some labs, such as NIST, already have this authority, but others
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do not.
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Industry and the labs should jointly develop measures to determine
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how well the technology transfer process is working and review
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progress after 3 years. If these goals have not been met, industry
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and the labs should reevaluate their involvement, and funds should
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be redirected to consortia, universities and other organizations
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that can work more effectively with industry for results.
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University research accounts for a large part of the federal basic
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research budget. Funding for basic university research should
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continue to be provided for a broad range of disciplines, since it
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is impossible to predict where the next breakthrough may come.
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While maintaining America's leadership in basic research,
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government, universities and industry must all work together to
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take advantage of these new breakthroughs to enhance U.S.
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competitiveness.
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Cooperative R&D programs represent another opportunity. Consortia can
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help firms share risks, pool resources, avoid duplication, and make
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investments that they would not undertake individually. By requiring
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that firms match federal contributions on at least a 50:50 basis, the
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government can leverage its investments and ensure that they are market-
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oriented.
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Many industries are demonstrating a new found willingness to cooperate
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to meet the challenge of international competition: SEMATECH has proven
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to be an important investment for the industry and the Nation. It has
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helped improve U.S. semiconductor manufacturing technology, helped
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reversed the decline in world-wide market share of U.S. semiconductor
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manufacturing equipment companies, and improved communications between
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users and suppliers. U.S. automakers have recently formed the United
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States Council for Automotive Research to develop batteries for electric
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cars, reduce emissions, improve safety, and enhance computer-aided
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design. The Michigan-based National Center for Manufacturing Sciences,
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which now has 130 members, is helping to develop and deploy the
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technologies necessary for world-class manufacturing. The
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Microelectronics Computer Technology Corporation (MCC) is developing an
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information infrastructure which will enable businesses to develop,
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manufacture, deliver and support products and services with superior
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speed, flexibility, and quality. U.S. steel-makers are cooperating to
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develop manufacturing processes which would use less energy, create
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fewer pollutants, and slash the time required to turn iron ore and coal
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into steel.
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A Clinton-Gore Administration will work to build a productive
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partnership between government, research labs, universities, and
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business.
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6. Creating a World-Class Business Environment for Private Sector
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Investment and Innovation.
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Changes in America's tax, trade and regulatory policies are also needed
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to help restore America's industrial and technological leadership. In a
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global economy in which capital and technology are increasingly mobile,
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we must make sure that the United States has the best business
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environment for private sector investment. Tax incentives can spur
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investment in plant and equipment, R&D and new businesses. Trade policy
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can ensure that U.S. firms have the same access to foreign markets that
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our competitors enjoy in the U.S. market. Antitrust reform will enable
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U.S. firms to share risks and pool resources. Strengthening commercial
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sections of our embassies will increase our ability to promote U.S.
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goods abroad. Streamlining export controls will reduce the bureaucratic
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red tape which can undermine competitiveness. And an overhaul of
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cumbersome defense procurement regulations will strengthen both our
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civilian and defense industrial bases. Permanent incentives for private
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sector investment:
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Too many federal incentives meant to spur innovation are on-again-off-
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again programs that industry views as unreliable. As a result, they have
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not realized their full impact. Several permanent tax measures should be
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put in place immediately to stimulate commercial activity. They include
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the following:
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Make the R&D tax credit permanent to provide incentives for U.S.
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companies that invest in developing new technology.
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Place a permanent moratorium on Treasury Regulation 1.861-8: This
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regulation increases the effective rate of U.S. taxation of R&D
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and creates a disincentive for companies to conduct R&D in the
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United States.
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Provide a targeted investment tax credit to encourage investment
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in the new equipment that we need to compete in the global
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economy, and ensure that depreciation schedules reflect the rapid
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rate of technological obsolescence of today's high-tech equipment.
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Help small businesses and entrepreneurs by offering a 50% tax
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exclusion to those who take risks by making long-term investments
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in new businesses.
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An effective trade policy:
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The Bush-Quayle Administration has failed to stand up for U.S. workers
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and firms. We need a President who will open foreign markets and respond
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forcefully to unfair trade practices. I will:
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- Enact a stronger, sharper Super 301 to ensure that U.S.
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companies enjoy the same access to foreign markets that foreign
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companies enjoy to our market.
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- Successfully complete the Uruguay Round. This will help U.S.
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manufacturers and high-tech companies by reducing foreign tariffs,
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putting an end to the rampant theft of U.S. intellectual property,
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and maintaining strong disciplines against unfair trade practices.
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- Insist on results from our trade agreements. Although the U.S.
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has negotiated many trade agreements, particularly with Japan,
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results have been disappointing. I will ensure that all trade
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agreements are lived up to, including agreements in sectors such
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as telecommunications, computers and semiconductors. Countries
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that fail to comply with trade agreements will face sanctions.
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- Promote manufactured goods exports by small and medium
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|
companies: To promote exports of manufactured goods, I will
|
|
strengthen the commercial sections of our embassies abroad so that
|
|
they can promote U.S goods, participate in foreign standards-
|
|
setting organizations, and support the sales efforts of small and
|
|
medium-sized businesses. We should also provide matching funds to
|
|
trade associations or other organizations who establish overseas
|
|
centers to promote U.S. manufactured goods exports.
|
|
|
|
Streamline Exports Controls:
|
|
Export controls are necessary to protect U.S. national security
|
|
interests and prevent the proliferation of nuclear, biological and
|
|
chemical weapons. Nonetheless, these controls are often overly
|
|
restrictive and bureaucratic, creating a mountain of red tape and
|
|
costing the U.S. tens of billions of dollars in exports -- while
|
|
undermining the competitiveness of the high-tech industries on which our
|
|
national security depends. The United States should:
|
|
- Further liberalize East-West export controls that are
|
|
unnecessary given the end of the Cold War.
|
|
- Avoid unilateral export controls and controls on technology
|
|
widely available in world markets. Unilateral controls penalize
|
|
U.S. exporters without advancing U.S. national security or foreign
|
|
policy interests.
|
|
- Streamline the current decision-making process for export
|
|
controls. While our competitors use a single agency to administer
|
|
export controls, the United States system is often characterized
|
|
by lengthy bureaucratic turf wars between the State Department,
|
|
the Commerce Department, the Pentagon's Defense Technology
|
|
Security Agency, the Arms Control and Disarmament Agency, the
|
|
Department of Energy, and the National Security Agency.
|
|
|
|
Antitrust Reform:
|
|
Increasingly, the escalating cost of state-of-the-art manufacturing
|
|
facilities will require firms to share costs and pool risks. To permit
|
|
this cooperation, the United States should extend the National
|
|
Cooperative Research Act of 1984 to cover joint production ventures.
|
|
|
|
Civil-military integration:
|
|
Department of Defense procurement regulations are so cumbersome that
|
|
they have resulted in an unnecessary and wasteful segregation of our
|
|
civilian and defense industrial bases. The military specification for
|
|
sugar cookies is 10 pages long. Government procurement is so different
|
|
from private sector practices that companies now set up separate
|
|
divisions and manufacturing facilities to avoid distorting the
|
|
commercial part of their business. The U.S. must review and eliminate
|
|
barriers to the integration of our defense and civilian industrial base.
|
|
These barriers include cost and price accounting, unnecessary military
|
|
specifications, procurement regulations, inflexibility on technical data
|
|
rights, and a failure to develop technologies in a dual-use context.
|
|
|
|
Taken together, the six initiatives discussed above comprise a
|
|
technology policy that will restore economic growth at home, help U.S.
|
|
firms succeed in world markets, and help American workers earn a good
|
|
standard of living in the international economy.
|
|
|
|
|
|
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