search and other science and technology activities, while in other states it is not clear who within the state has responsibility and authority for initiating research and development activities to meet specific needs. Representatives of state research and development programs have to be identified and brought into relationships with the federal government through institutional arrangements such as those of the Technical Support Working Group.

Recommendation 13.1: The OSTP intergovernmental panel for coordination of S&T by the federal and state governments should be charged with developing effective federal-state linkages for the exchange of information to support the funding, performance, and evaluation of S&T related to counterterrorism.

INDUSTRY

The nation has reassessed its overall vulnerability to terrorism since the events of 9/11, but the nature of the risk to any single company or even industry is very difficult to predict, much less quantify. Yet the private sector is where much of the activity to increase national preparedness against terrorism must occur. Companies will be the developers of new security technologies and, because they own and operate many of the potential targets within the critical infrastructures, will also be among the users and beneficiaries of new approaches and products. Companies make a considerable investment in research and development activities (industry financed two-thirds of such activities in the United States in 2000). For the United States to take advantage of the significant scientific and technical expertise residing in the private sector, and to overcome the market disincentive for single firms to invest in improving their security, the federal government must explore creative and flexible ways to motivate industry to develop and adopt counterterrorism technologies.

For the government and private sector to work together on increasing homeland security, effective public–private partnerships and cooperative projects must occur. There are many models for government–industry collaboration—cooperative research and development agreements, the NIST Advanced Technology Program, and the Small Business Innovative Research program, to cite a few. And a more expansive patent policy, as in the Bayh-Dole Act of 1980, is critical in providing private sector incentives.

Other ways to encourage industry’s participation in the drive to protect the nation from terrorism include mandating involvement through federal regulation, providing government subsidies or tax relief, and exploiting insurance markets. Codes and standards promulgated through various professional organizations or through local regulations, perhaps in close cooperation with federal agencies such as NIST, may also encourage the implementation of technologies that can enhance public protection. Overall, a new pattern of public-private partnership—



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