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INTRODUCTION Computers and their associated software are a critical factor in the U.S. economy: . The computer and software industry generated revenues of over $45 billion in 1979, and that amount is growing at more than 15 percent per year (Datamation, July 19807. m e U.S. computer industry enjoys a clear technical leadership position worldwide, but the Japanese, among others, have announced their intention of assuming that leadership. . Our national defense is critically dependent on computer and software technology. Technical leadership in this area is crucial to the security of the nation. Computers have a key role to play in the reindustrialization of American society. Business Week (June 30, 1980) estimates that the decline in U.S. industrial competitiveness in the 1970s alone amounts to some $125 billion in lost production and a loss of at least 2 million industrial jobs. In the use of computers in industry, we are clearly behind Japan and Germany, among others. The impact of computers in the noncomputer segment of U.S. industry is large and growing. Between 10 and 20 percent of computers (in dollar volume) are used for industrial design and control purposes. Over the next decade, the dependence of noncomputer industrial sectors on computer technology will continue to grow. In industry, computers will be required by designers of mechanisms, circuits, control systems, aircraft, ships, and chemical processes. In offices and on the production line, computers will be used for control of inventories, video inspection, instruments, machine tools, and a growing array of robot mechanisms. In support of production, computers will be used by reliability engineers, industrial test designers and test groups, cost estimators, and analysts. These applications will need to be supported by a broad spectrum of computer research activities, ranging from hardware to algorithm design, from systems development to artificial intelligence. The following table shows some ways in which important industrial applications depend on the products of computer research. 5

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6 Industrial Applications of Some Products of Computer Research Industrial Application Computer Science Research mechanical design circuit design control system design process engineering airplane design scheduling inspection information networks medical technologists office system designers 2- and 3-D graphics research sparse matrices, numerical techniques very large scale integrated (VLSI) circuit design automation real time operating systems simulation languages numerical methods, computer graphics simulation languages, queuing theory robots, vision distributed processing, systems, data bases clustering, pattern recognition microprocessors, communication algorithms, graphics, data base theory - As an example of this dependence, consider the task of a mechanical designer in industry responsible for conceiving and detailing one of the thousands of special mechanisms required for the functioning of production lines. Over the past decade, this work has come to be heavily dependent on a growing family of current computer-aided-design products, available from major computer manufacturers and smaller specialist companies. In turn, these software packages make use of many research results, including university work on numerical analysis, special programming languages, and graphics. Using the design aids that this research has made available, the mechanical designer can create his product graphically in a simulated environment; he can then exercise his mechanism, checking for problems by looking at it in several three-dimensional views or automatically by using a mathematical model. m e design can be analyzed by SUPERB, NASTRAN, or such computerized stress analysis programs as ANSYS (many of them byproducts of the NASA Apollo program). Production drawings can be prepared and bills of materials transmitted to the manufacturing

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7 department for scheduling and purchasing--all as byproducts of a computerized approach. Similar capabilities exist for circuit design, aircraft design, chemical process design, and many other vital industrial activities. Until now, U.S. computer researchers have given U.S. industry a competitive advantage in the international marketplace, but recently doubts have been raised with growing frequency about whether the technological excellence and international competitiveness of the U.S. computer industry will continue. For example, in a May 1980 article in Science entitled "Do the Japanese Make Better IC's?. Richard Anderson - of Hewlett-Packard's Data Systems Division says, "At first glance, the impression is that the Japanese are using low cost and domestic protection as levers to build up a strong base for exports. On close inspection, this premise does not hold up. m e Japanese semiconductor companies are using superior product quality to gain competitive advantages of enormous magnitude. n ~ ~ ~ The same article quotes a recent General accounting thrice report as stating, "ffl e defect ratio in product after product is lower in Japan than in the United States.. Maintaining leadership in the rapidly advancing computer and software field requires a continuing commitment to research and development. In the computer hardware area, this commitment has existed for a number of yearss its results have included a dramatic decrease in size and cost of computer hardware. In the software area, the commitment to research and development has been less clear, but that commitment is equally crucial in meeting the challenges that face the industry. m e papers of Part II of this report give ample testimony to the power of the complementary relationship between basic research and development and between work in universities and that in industry to advance the nation's capability in the computer field. Precis of these papers are given in the following section.