Rising Above the Gathering Storm: Energizing and Employing America for a Brighter Economic Future

Carry out the process across as well as within agencies, and include input from the S&T community.

Principle 2: Avoid the creation of categories of SBU information and consolidate existing ones.
- Undertake a systematic review to determine the number and provisions of all existing types of SBU in the federal government.
- Using that baseline, require a further review and justification for the maintenance of any category. Tie remaining categories to an explicit statutory or regulatory framework that includes procedures to request access to information and appeal decisions.

“DEEMED EXPORTS”: A SPECIAL CURRENT CASE

The controls governed by the Export Administration Act and its implementing regulations extend to the transfer of “technology.” Technology is considered “specific information necessary for the ‘development,’ ‘production,’ or ‘use’ of a product,” and providing such information to a foreign national within the United States may be considered a “deemed export” whose transfer requires an export license⁹ [italics added]. The primary responsibility for administering deemed exports lies with the Department of Commerce (DOC), but other agencies may have regulations to address the issue. Deemed exports are currently the subject of significant controversy.

In 2000, Congress mandated annual reports by agency offices of inspector general (IG) on the transfer of militarily sensitive technology to countries and entities of concern; the 2004 reports focused on deemed exports. The individual agency IG reports and a joint interagency report concluded that enforcement of deemed-export regulations had been ineffective; most of the agency reports recommended particular regulatory remedies.¹⁰

⁹

“Generally, technologies subject to the Export Administration Regulations (EAR) are those which are in the United States or of US origin, in whole or in part. Most are proprietary. Technologies which tend to require licensing for transfer to foreign nationals are also dual-use (i.e., have both civil and military applications) and are subject to one or more control regimes, such as National Security, Nuclear Proliferation, Missile Technology, or Chemical and Biological Warfare.” “Deemed Exports” Questions and Answers, Bureau of Industry and Security, Department of Commerce.

The International Traffic in Arms Regulations (ITAR), administered by the Department of State, control the export of technology, including technical information, related to items on the US Munitions List. Unlike the EAR, however, “publicly available scientific and technical information and academic exchanges and information presented at scientific meetings are not treated as controlled technical data.”

¹⁰

Reports were produced by the DOC, DOD, the Department of Energy (DOE), the Department of State, the Department of Homeland Security, and the Central Intelligence Agency. Only the interagency report and the reports from DOC, DOD, and DOE are publicly available.

Table of Contents

Front Matter R1-R26

Executive Summary 1-22

1 A Disturbing Mosaic 23-40

2 Why Are Science and Technology Critical to America's Prosperity in the 21st Century? 41-67

3 How Is America Doing Now in Science and Technology? 68-106

4 Method 107-111

5 What Actions Should America Take in K–12 Science and Mathematics Education to Remain Prosperous in the 21st Century? 112-135

6 What Actions Should America Take in Science and Engineering Research to Remain Prosperous in the 21st Century? 136-161

7 What Actions Should America Take in Science and Engineering Higher Education to Remain Prosperous in the 21st Century? 162-181

8 What Actions Should America Take in Economic and Technology Policy to Remain Prosperous in the 21st Century? 182-203

9 What Might Life in the United States Be Like if It Is Not Competitive in Science and Technology? 204-224

Appendix A Committee and Professional Staff Biographic Information 225-240

Appendix B Statement of Task and Congressional Correspondence 241-248

Appendix C Focus-Group Sessions 249-300

Appendix D Issue Briefs 301-302

K–12 Science, Mathematics, and Technology Education 303-324

Attracting the Most Able US Students to Science and Engineering 325-341

Undergraduate, Graduate, and Postgraduate Education in Science, Engineering, and Mathematics 342-356

Implications of Changes in the Financing of Public Higher Education 357-376

International Students and Researchers in the United States 377-396

Achieving Balance and Adequacy in Federal Science and Technology Funding 397-414

The Productivity of Scientific and Technological Research 415-422

Investing in High-Risk and Breakthrough Research 423-431

Ensuring That the United States Is at the Forefront in Critical Fields of Science and Technology 432-443

Understanding Trends in Science and Technology Critical to US Prosperity 444-454

Ensuring That the United States Has the Best Environment for Innovation 455-472

Scientific Communication and Security 473-482

Science and Technology Issues in National and Homeland Security 483-500

Appendix E Estimated Recommendation Cost Tables 501-512

Appendix F K–12 Education Recommendations Supplementary Information 513-516

Appendix G Bibliography 517-536

Index 537-564

“DEEMED EXPORTS”: A SPECIAL CURRENT CASE