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Capitalizing on New Needs and New Opportunities: Government - Industry Partnerships in Biotechnology and Information Technologies (2001)
Board on Science, Technology, and Economic Policy (STEP)

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies

Capitalizing on New Needs and New Opportunities:

Government-Industry Partnerships in Biotechnology and Information Technologies

CHARLES W.WESSNER, EDITOR

Board on Science, Technology, and Economic Policy

Policy and Global Affairs

National Research Council

NATIONAL ACADEMY PRESS
Washington, D.C.

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies CHARLES W.WESSNER, EDITOR Board on Science, Technology, and Economic Policy Policy and Global Affairs National Research Council NATIONAL ACADEMY PRESS Washington, D.C.

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies NATIONAL ACADEMY PRESS 2101 Constitution Avenue, N.W. Washington, D.C. 20418 NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the organizations or agencies that provided support for the project. International Standard Book Number 0-309-08257-9 Limited copies are available from Board on Science, Technology, and Economic Policy, National Research Council, 1055 Thomas Jefferson Street, N.W., Suite 2014, Washington, D.C. 20007; 202–334–2200. Additional copies of this report are available from National Academy Press, 2101 Constitution Avenue, N.W., Lockbox 285, Washington, D.C. 20055; (800) 624–6242 or (202) 334–3313 (in the Washington metropolitan area); Internet, http://www.nap.edu Printed in the United States of America Copyright 2001 by the National Academy of Sciences. All rights reserved.

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies THE NATIONAL ACADEMIES National Academy of Sciences National Academy of Engineering Institute of Medicine National Research Council The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Bruce M.Alberts is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Wm.A.Wulf is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Kenneth I.Shine is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy’s purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Bruce M.Alberts and Dr. Wm.A.Wulf are chairman and vice chairman, respectively, of the National Research Council.

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies This page in the original is blank.

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies Steering Committee for Government-Industry Partnerships for the Development of New Technologies * Gordon Moore, Chair Chairman Emeritus, retired Intel Corporation M.Kathy Behrens Managing Partner Robertson Stephens Investment Management and STEP Board Michael Borrus Managing Director The Petkevich Group, LLC Iain M.Cockburn Professor of Finance and Economics Boston University Kenneth Flamm Dean Rusk Chair in International Affairs LBJ School of Public Affairs University of Texas at Austin James F.Gibbons Professor of Engineering Stanford University W.Clark McFadden Partner Dewey Ballantine Burton J.McMurtry General Partner Technology Venture Investors William J.Spencer, Vice-Chair Chairman Emeritus International SEMATECH and STEP Board Mark B.Myers Senior Vice-President, retired Xerox Corporation and STEP Board Richard Nelson George Blumenthal Professor of International and Public Affairs Columbia University Edward E.Penhoet Dean, School of Public Health University of California at Berkeley and STEP Board Charles Trimble Chairman U.S. GPS Industry Council John P.Walker Chairman and Chief Executive Officer Axys Pharmaceuticals, Inc. Patrick Windham President, Windham Consulting and Lecturer, Stanford University *   As of August 2001.

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies Project Staff* Charles W.Wessner Study Director McAlister T.Clabaugh Program Associate David E.Dierksheide Program Associate Christopher S.Hayter Program Associate Sujai J.Shivakumar Consultant Contributors Paula Stephan Georgia State University Grant Black Georgia State University Wesley M.Cohen Carnegie Mellon University Kenneth Flamm University of Texas at Austin Michael McGeary McGeary and Smith John Walsh University of Illinois at Chicago *   As of August 2001

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies For the National Research Council (NRC), this project was overseen by the Board on Science, Technology and Economic Policy (STEP), a standing board of the NRC established by the National Academies of Sciences and Engineering and the Institute of Medicine in 1991. The mandate of the STEP Board is to integrate understanding of scientific, technological, and economic elements in the formulation of national policies to promote the economic well-being of the United States. A distinctive characteristic of STEP’s approach is its frequent interactions with public and private-sector decision makers. STEP bridges the disciplines of business management, engineering, economics, and the social sciences to bring diverse expertise to bear on pressing public policy questions. The members of the STEP Board* and the NRC staff are listed below: Dale Jorgenson, Chair Frederic Eaton Abbe Professor of Economics Harvard University M.Kathy Behrens Managing Partner Robertson Stephens Investment Management Vinton G.Cerf Senior Vice-President WorldCom Bronwyn Hall Professor of Economics University of California at Berkeley James Heckman Henry Schultz Distinguished Service Professor of Economics University of Chicago Ralph Landau Consulting Professor of Economics Stanford University Richard Levin President Yale University William J.Spencer, Vice-Chair Chairman Emeritus International SEMATECH David T.Morgenthaler Founding Partner Morgenthaler Mark B.Myers Senior Vice-President, retired Xerox Corporation Roger Noll Morris M. Doyle Centennial Professor of Economics Stanford University Edward E.Penhoet Dean, School of Public Health University of California at Berkeley William Raduchel Chief Technology Officer AOL Time Warner Alan Wm.Wolff Managing Partner Dewey Ballantine *   As of August 2001.

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies STEP Staff* Stephen A.Merrill Executive Director Philip Aspden Senior Program Officer Craig M.Schultz Senior Program Officer Camille M.Collett Program Associate David E.Dierksheide Program Associate Charles W.Wessner Program Director Sujai J.Shivakumar Consultant Adam Korobow Consultant McAlister T.Clabaugh Program Associate Christopher S.Hayter Program Associate *   As of September 2001.

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies National Research Council Board on Science, Technology, and Economic Policy Sponsors The National Research Council gratefully acknowledges the support of the following sponsors: National Aeronautics and Space Administration Office of the Director, Defense Research & Engineering National Science Foundation U.S. Department of Energy Office of Naval Research National Institutes of Health National Institute of Standards and Technology Sandia National Laboratories Electric Power Research Institute International Business Machines Kulicke and Soffa Industries Merck and Company Milliken Industries Motorola Nortel Proctor and Gamble Silicon Valley Group, Incorporated Advanced Micro Devices Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the authors and do not necessarily reflect the views of the project sponsors.

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies This page in the original is blank.

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies Contents     PREFACE   1     EXECUTIVE SUMMARY   14 I.   INTRODUCTION AND OVERVIEW   21 II.   ISSUES IN BIOTECHNOLOGY AND INFORMATION TECHNOLOGY   33 III.   FINDINGS AND RECOMMENDATIONS   51 IV.   PROCEEDINGS   71     Welcome Dale Jorgenson, Harvard University   73     Introduction Bill Spencer, SEMATECH   76     Opening Remarks Congressman Sherwood Boehlert (R-NY)   78     Panel I: Biotechnology and Information Technologies: The Need for a Diversified Federal Research Portfolio Moderator: Clark McFadden, Dewey Ballantine   84

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies     The View From the Semiconductor and Biotechnology Industries Gordon Moore, Intel Corporation Edward Penhoet, University of California at Berkeley and Chiron Corporation   85     Discussion   95     Panel II: A Historical Perspective: Federal Partnerships in Computing and Biotechnology Moderator: Patrick Windham, Stanford University   98     Partnerships in the Computer Industry Kenneth Flamm, University of Texas at Austin   98     Partnerships in the Biotechnology Industry Leon Rosenberg, Princeton University   111     Trends in Federal Research William Bonvillian, Office of Senator Joseph Lieberman   116     Luncheon Address: “The Cornucopia of the Future” Dan Goldin, NASA   120     Panel III: Biotechnology: Needs and Opportunities Moderator: Edward Penhoet, University of California at Berkeley and Chiron Corporation   129     Exploiting the Biotechnology Revolution: Training and Tools Marvin Cassman, National Institute of General Medical Sciences, NIH   129     The New Frontier: Bioinformatics and the University Rita Colwell, National Science Foundation   135     Emerging Opportunities and Emerging Gaps Paula Stephan, Georgia State University   139     Discussant: Greg Reyes, Schering-Plough Stephen Dahms, San Diego State University   144

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies     Discussion   145     Panel IV: Information Technology: New Opportunities—New Needs Moderator: Dave Goldston, Office of Congressman Boehlert   146     Biofutures for Multiple Missions Jane Alexander, DARPA   146     Meeting the Needs: Realizing the Opportunities Paul Horn, IBM   149     New Information Technology Research Initiatives Tom Kalil, National Economic Council   152     Discussants: Charles Trimble, Trimble Navigation Richard Rosenbloom, Harvard Business School   155     Discussion   157     Panel V:Capturing New Opportunities Moderator: Michael Borrus, Pektevich & Partners, LLC   160     Computing and the Human Genome Mark Boguski, National Center for Biotechnology Information   160     NanoFrontiers Alton Romig, Sandia National Laboratories   165     Defense Interests and Applications Timothy Coffey, Naval Research Laboratory   169     Discussion   171     Panel VI: Intellectual Property and the Public Domain: Sectoral Perspectives Moderator: Jorge Goldstein, Stern, Kessler, Goldstein & Fox   173     Sectoral Variations in the Role of Intellectual Property Wesley Cohen, Carnegie Mellon University   174     Post Bayh-Dole University-Industry Relationships Maryann Feldman, Johns Hopkins University   179

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Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies     Intellectual Property and Biotechnology Robert Blackburn, Chiron Corporation   183     Discussion   189     Concluding Remarks Gordon Moore, Intel Corporation   191 V.   RESEARCH PAPERS   193     The Federal Partnership with U.S. Industry in U.S. Computer Research: History and Recent Concerns Kenneth Flamm, University of Texas at Austin   195     Public Research, Patents, and Implications for Industrial R&D in the Drug, Biotechnology, Semiconductor and Computer Industries Wesley M.Cohen, Carnegie Mellon University John Walsh, University of Illinois at Chicago   223     Bioinformatics: Emerging Opportunities and Emerging Gaps Paula E.Stephan, Georgia State University Grant Black, Georgia State University   244     Recent Trends in the Federal Funding of Research and Development Related to Health and Information Technology Michael McGeary, McGeary and Smith   261 VI.   ANNEX   319     A. Biographies of Contributors   321     B. Participants List   327     C. Bibliography   335