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Suggested Citation:"Front Matter." National Research Council. 1999. New Vistas in Transatlantic Science and Technology Cooperation. Washington, DC: The National Academies Press. doi: 10.17226/9455.
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New Vistas in TranselIanti~ Science an'! Technology Cooperelion CHARLES W. WESSNER, Editor Based on a conference held June 8-9, 1 998, in Washington, D.C. Board on Science, Technology, and Economic Policy National Research Council NATIONAL ACADEMY PRESS Washington, D.C.

NATIONAL ACADEMY PRESS · 2101 Constitution Avenue, N.W. · Washington, D.C. 20418 The National Academy of Sciences is a private, nonprofit 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 Congress in 1863, the Academy has a mandate that requires it to advise the federal government on science and technical matters. Dr. Bruce Alberts is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the Na- tional 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. William 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 mat- ters 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 Alberts and Dr. William A. Wulf are chairman and vice chairman, respectively, of the National Research Council. 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 provide support for the project. This work relates to Department of Navy grant N00014-98- 1-0762 issued by the Of lice of Naval Research. The United States Government has a royalty-free license throughout the world in all copy- rightable material contained herein. Limited copies are available from: Board on Science, Technology, and Economic Policy National Research Council 1055 Thomas Jefferson, N.W. Washington, D.C. 20007 202-334-2200 Additional copies are available for sale from: National Academy Press Box 285 2101 Constitution Ave., N.W. Washington, D.C. 20055 800-624-6242 202-334-3313 (in the Washington Metropolitan Area) www.nap.edu International Standard Book Number 0-309-06197-0 Copyright 1999 by the National Academy of Sciences. All rights reserved. Printed in the United States of America

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 distinc- tive characteristic of STEP's approach is its frequent interactions with public and private sector decisionmakers. 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 mem- bers of the STEP Board* and the NRC staff are listed below: Dale Jorgenson, Chair Frederic Eaton Abbe Professor of Economics Harvard University Cambridge, Massachusetts James F. Gibbons Professor of Engineering Stanford University Stanford, California George N. Hatsopoulos President, Chief Executive Officer Thermo Electron Corporation Waltham, Massachusetts Ralph Landau Consulting Professor of Economics Stanford University Stanford, California James T. Lynn Adviser Lazard Freres Bethesda, Maryland Burton John McMurtry General Partner Technology Venture Investors Menlo Park, California Mark B. Myers Senior Vice President Xerox Corporation Stamford, Connecticut Ruben Mettler Chairman and Chief Executive Officer (ret.) TRW, Inc. Los Angeles, California *As of June, 1998. . . . William J. Spencer, Vice-Chair Chairman, SEMATECH Austin, Texas James M. Poterba Professor of Economics Massachusetts Institute of Technology Cambridge, Massachusetts A. Michael Spence Dean, Graduate School of Business Stanford University Stanford, California Joseph E. Stiglitz Senior Vice-President for Development Economics The World Bank Washington, D.C. Alan Wm. Wolff Managing Partner Dewey Ballantine Washington, D.C. Staff Stephen A. Merrill Executive Director Charles W. Wessner Program Director John B. Horrigan Consultant Craig M. Schultz Program Associate John Oldfield Program Associate Laura T. Holliday Program Associate

STEERING COMMITTEE FOR GOVERNMENT-INDUSTRY PARTNERSHIPS FOR THE DEVELOPMENT OF NEW TECHNOLOGIES Gordon Moore, Chair Chairman Emeritus Intel Corporation M. Kathy Behrens Robertson Stephen Venture Capital and STEP Board Gordon Binder Chief Executive Officer Amgen, Inc. Michael Borrus Co-Director Berkeley Roundtable on International Economics Iain Cockburn Professor of Commerce and Business Administration University of British Columbia 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 and STEP Board W. Clark McFadden Partner Dewey Ballantine Burton John McMurtry General Partner Technology Ventures and STEP Board *At the time of this conference, Dr. Flamm was a Senior Fellow at the Brookings Institution. TV William J. Spencer, Vice-Chair Chairman, SEMATECH and STEP Board Mark B. Myers Senior Vice President Xerox Corporation and STEP Board Richard Nelson George Blumenthal Professor Columbia University Charles Trimble Vice Chairman Trimble Navigation John P. Walker Chairman and Chief Executive Officer Axys Pharmaceuticals, Inc. Patrick Windham Adjunct Professor Stanford University Consultant Science and Technology Policy Project Staff Charles W. Wessner Study Director John B. Horrigan Consultant Ryan L. Catteau Program Associate Craig M. Schultz Program Associate Laura T. Holliday Program Associate

NATIONAL RESEARCH COUNCIL BOARD ON SCIENCE, TECHNOLOGY, AND ECONOMIC POLICY Conference on New Vistas in Transatlantic Science and Technology Cooperation Sponsors The National Research Council gratefully acknowledges the support of the following sponsors: The United Kingdom, (Presidency of the European Union) The European Commission Fogarty Center National Institutes of Health National Center for Toxicological Research Food and Drug Administration Office of Naval Research United States Navy U.S. Department of Transportation National Oceanic and Atmospheric Administration National Institute of Standards and Technology Airbus Industrie of North America, Inc. Chemical Manufacturers Association Nokia Telecommunications, Inc. Procter and Gamble Siemens Corporation Silicon Valley Group, Inc. Any opinions expressed in this conference are those of the participants and do not necessarily reflect the views of the project sponsors. v

Contents I. Introduction II. Proceedings Welcome Kenneth Shine, President, Institute of Medicine Opening Remarks ..................................................................................... Stuart Eizenstat, Under Secretary of State for Economic, Business, and Agricultural Affairs Hugo Paemen, Ambassador, European Commission Plenary Session I: Trends in Science and Technology Policy 14 The U.S. Perspective: The Here and Now Versus the Ideal 20 Joseph Bordogna, Deputy Director, National Science Foundation The EU Perspective on Transatlantic Cooperation 24 Jorma Routti, Director General DGXII, European Commission vat

. . . vile Evening Session CONTENTS Plenary Session II: International R&D Cooperation The EC and U.S. Approach and the Agreement on Science and Technology Cooperation The U.S. Approach to the U.S.-EU S&T Agreement 28 Melinda Kimble, Acting Assistant Secretary for Oceans and International Environmental and Scientific Affairs, U.S. Department of State The European Union Vista in Transatlantic Science and Technology Cooperation 32 Rainer Gerold, Director, European Commission Complementarily of Bilateral and EC Cooperation with the U.S Paolo Fasella, Director Generalfor Research, Italy Presentations of Discussions in Breakout Sessions 38 Group A: Information Technologies 42 Ray Kammer, National Institute of Standards and Technology, Department of Commerce Group B: Transportation Challenges for the 21st Century John C. Horsely, Department of Transportation ........... 44 Group C: Climate Prediction, Forecasting Applications, and Impacts 46 John Krebs, National Environmental Research Council Group D: Human Environmental Health Sciences: Endocrine Disrupters Paul Foster, Chemical Industry Institute of Toxicology Opening Remarks John Cadogan, Director General, Research Councils of the United Kingdom, for the UK Presidency of the European Union Keynote Address Gordon Moore, Chairman Emeritus, Intel Corporation 48 51 54

Second Day's Welcome .................................................................................. William Wulf; President, National Academy of Engineering ..60 Best Practices in Small-Business Technology Development Programs 62 Moderator: Helmut List, Chairman, Industrial Research and Development Advisory Council, Austria Industry-Laboratory Cooperation: The Amtex Experiment 63 Jerry Cogan, Milliken Research Laboratory Partnerships with Industry 64 Dan Hartley, Sandia National Laboratories The U.S. Experience with the Small Business Innovation Research Program Joshua Lerner, Harvard Business School 67 The EU Experience with Small- and Medium-Sized Enterprise Development 71 Patrice Laget, European Commission Discussants: Jon Baron, U.S. Department of Defense, SBIR Program Attilio Stajano, DGIII, European Commission R&D in the Framework of the New Transatlantic Agenda Moderator: Kenneth Flamm, Brookings Institution 76 The 300-mm International Initiative 78 William Spencer, SEMA TECH Discussants: John Shamaly, Silicon Valley Group, Inc. Robert Hance, Motorola Michael Borrus, University of California at Berkeley Discussion Internationalization of the Technical Workforce and Transatlantic Cooperation in R&D 88 Moderator: William Wulf President, National Academy of ~ · . Engineering

x CONTENTS Discussants: E. Praestguard, European Science and Technology Assembly, Denmark H. Glatz, DaimlerBenz, Germany Henri Conze, Ministry for Defense (1993-1996), France Gary Poehlein, National Science Foundation Dieter Seltzer, Fraunhofer Institute, Erlangen-Nurnberg, Germany Discussion Concluding Remarks .. Jorma Routti, Director General DGXII, European Commission .94 Selected Bibliography 98 ANNEX European Union Research Programs 103 Professor Jorma Routti and Dr. William Cannell, DGXII, European Commission Multilingual Information Management 117 Gary Strong, National Science Foundation Charge for Electronic Commerce Subgroup 122 Ray Kammer, Director, National Institutes of Standards and Technology White Papers on Transportation Research U.S. Department of Transportation Opportunities for EU and U.S. Cooperation in Global Navigation and Applications Intelligent Transportation Systems: Surface Applications Intelligent Transportation Systems: Maritime Safety Strategic Enabling Research Intermodal Transportation: Intermodal Transportation Networks 125

CONTENTS Agreement for Scientific and Technological Cooperation Between the European Community and the Government of the United States of America ............................................................. Conference Participants x~ 136 146

Preface The successful conclusion of the US-KU Agreement on Science and Tech- nology Cooperation offers the prospect of a new chapter in transatlantic coopera- tion.i As with any international agreement in science and technology, the accord's full potential will be realized only if it can encourage mutually benefi- cial cooperation. With this in mind, responsible officials of the European Union (KU) and the U.S. government contacted the National Research Council's Board on Science, Technology, and Economic Policy (STEP) to discuss how this nego- tiating success might be publicized and productively exploited. It was agreed that the STEP Board should organize a conference to celebrate the accord, inform the U.S. and European research communities of the agreement, and explore specific opportunities for enhanced cooperation. At the same time, the conference would provide the occasion to review existing and evolving areas of transatlantic coop- eration in science and technology from the perception of the United States, the European Commission, and the member states of the European Union. Given the strong interest and support on both sides of the Atlantic for a major conference, the STEP Board welcomed the opportunity to hold a conference cel- ebrating and advancing transatlantic science and technology cooperation. En- couraging such international cooperation is of great importance to the National Research Council (NRC). Under the leadership of Dr. Bruce Alberts, Dr. William Wulf, and Dr. Kenneth Shine, the NRC has emphasized the role of international iFor the full text of the agreement, formally known as the Agreement for Scientific and Techno- logical Cooperation Between the European Community and the Government of the United States of America, see the Annex. . . . x~

xlv PREFACE cooperation in the advancement of science and human welfare.2 The Academy therefore was pleased to host an event to encourage cooperation in this domain among nations as we prepare to address the challenges of the 21St Century. International cooperation is also a central element of a major project now underway under the aegis of the STEP Board. The project focuses on the coop- erative activities or partnerships among government, industry, and universities for the development of new technologies. It is being carried out under the direc- tion of a distinguished steering committee, led by Gordon Moore, the Chairman Emeritus of Intel, and is to review the goals and operation of a number of U.S. cooperative programs.3 These include U.S. programs such as the multi-agency Small Business and Innovative Research program, the Advanced Technology Pro- gram of the National Institute of Standards and Technology, and industry partner- ships with national laboratories.4 The project also plans to assess government- industry cooperation in sectors such as biotechnology and computing. The project's ultimate goals are to improve policy makers' understanding of the op- portunities and challenges inherent in such partnerships and to make recommen- dations for best practice, for both international and domestic cooperation. The recent signing of the agreement and the continued expansion of transat- lantic cooperation provided an ideal opportunity for the STEP Board's project entitled Government-Industry Partnerships for the Development of New Tech- nologies to explore current international cooperation with Europe, which, along with the United States, is one of the premier centers of global scientific activity. Moreover, U.S.-European cooperation is unparalleled in its scope and depth. It includes expanding opportunities for cooperation at the level of the European Union and vibrant bilateral cooperation among the European member states and the United States. In both regions, public-private collaboration is increasing, raising a rich set of crosscutting policy issues of direct relevance to the STEP Board's work and to the international community as a whole. The high-level policy interest evident on both sides of the Atlantic suggested that the signing of the accord presented a valuable opportunity for the Academy to contribute di- rectly to enhanced transatlantic cooperation. 2Reflecting the interest in having science more effectively incorporated into U.S. foreign policy, the National Research Council (NRC) is carrying out a study for the Department of State on Science, Technology, Health Issues, and U.S. Foreign Policy. 3The STEP Steering Committee members responsible for overseeing the activities associated with this conference are listed in the front matter. 4Cooperative Research and Development Agreements, or CRADAs, became a significant element of U.S. technology policy in the l990s, serving as the principal vehicle for industry-laboratory coop- eration.

PREFACE XV BACKGROUND The specific suggestion for the NRC to host a conference to highlight the S&T Agreement, which was then in the final stages of negotiation, emerged through a series of meetings between STEP staff and European Union representa- tives in Washington and Brussels in 1997. Subsequently, both the Commission and the relevant U.S. government interagency working group endorsed the pro- posal and requested that the STEP Board hold an event to publicize the agreement and to identify promising areas of potential collaboration. The decision to con- vene the conference was taken under the leadership of the United Kingdom, which held the EU presidency in the first half of 1998. THE NEED FOR SUSTAINED EFFORT- THE CONFERENCE IN EUROPE From the outset, it was recognized that the range of existing and potential S&T activities is so broad that one conference, no matter how large, would not be sufficient. The partners recognized that the transatlantic S&T relationship is one that could benefit from a sustained effort to share views, review current activities, explore new opportunities, and deepen mutual understanding of the S&T systems in operation on both sides of the Atlantic. Accordingly, it was agreed that a second meeting would be held in June 1999 in Stuttgart, Germany. Major confer- ences such as these have the advantage of not only assessing current progress, but also of offering a means of focusing the attention of the scientific community on the opportunities presented by expanding transatlantic S&T cooperation. A SHARED COMMITMENT Conferences such as the event recorded in this volume do not take place without leadership and commitment. In this regard, the Academy wishes to rec- ognize the leadership and early support of the United Kingdom, in particular, Chris Whaley, the Science Counselor, and Phillipa Rogers, the Attache for Sci- ence and Technology, of the British Embassy in Washington. The leadership and commitment of Dr. Jorma Routti and Dr. Rainer Gerold from the European Com- mission were essential, as was the encouragement of the Commission's able rep- resentative in Washington, Ambassador Hugo Paeman. The STEP Board would like to express a special debt of gratitude to Counselors Patrice Laget and Pablo Amor, of the Delegation of the European Commission. Without their initiative, enthusiasm, good judgment, and support, the Conference could not have taken place, and certainly not within six months of the decision to proceed. On the American side, the STEP Board is grateful for the early encouragement from Dr. Neal Lane, Assistant to the President for Science and Technology and then Direc- tor of the National Science Foundation. However, the enthusiasm and financial

xv! PREFACE support of Ray Kammer, Director of the National Institute of Standards and Tech- nology, and Deputy Secretary of Transportation, Mortimer Downey, and his col- league, Fenton Carey, were instrumental in enabling STEP to organize the con- ference, as was the early interest and support of the National Oceanic and Atmospheric Administration (NOAA). The STEP Board wishes to acknowledge the Chief of Naval Research, Admiral Paul G. Gaffney, for his contribution at a crucial juncture in the preparation of the conference. A number of distinguished individuals deserve recognition for their willing- ness to review this report. These individuals were chosen for their diverse per- spectives and technical expertise, in accordance with procedures approved by the National Research Council's Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making the published report as sound as possible and to ensure that the report meets institutional standards for objectivity, evidence, and responsive- ness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the deliberative process. We wish to thank the following individuals for their participation in the review process: Dr. Gerald Dinneen, the review coordinator, Dr. Albert N. Link, Professor of Economics, University of North Carolina, Greensboro, Dr. David Bruce Audretsch, Director and Ameritech Professor of Economic Development, Indiana University, Dr. Ri- chard Thayer, President, Telecommunications and Technologies International, and Dr. John Boright, Executive Director, Office of International Affairs at the National Research Council. Although these individuals have provided construc- tive comments and suggestions, it must be emphasized that responsibility for the final content of this report rests entirely with the STEP Board and the NRC. It should also be emphasized that, although the conference participants identified numerous areas of potential collaboration, no formal recommendations are made by the National Research Council and the National Academies of Science and Engineering. Many of the topics covered in the conference are of interest to industry as well as to the research community. As a result, the conference benefited from the endorsement of Siemens Corporation, Procter and Gamble, Airbus Industries, Nokia Telecommunications, Silicon Valley Group, and the Chemical Manufac- turers Association. Without their interest, confidence, and support, the confer- ence could not have been organized in the time frame and on the scale required. Last, the STEP Board would like to thank Thomas Kalil, of the White House National Economic Council, for his leadership in identifying topics of common interest and outstanding participants, as well as for his participation. Among the STEP staff, Dr. John Horrigan and John Oldfield deserve recognition for their commitment, skill, and energy in organizing STEP's largest conference to date. Dr. Horrigan also played an instrumental role in producing the conference report. As the acknowledgments above suggest, the organization of this conference was

PREFACE . . XVi! a cooperative effort benefiting from the genuine interest, on both sides of the Atlantic, in developing transatlantic S&T cooperation. The evident mutual interest, indeed enthusiasm, for transatlantic cooperation in science and technology does not, however, mean that there are no challenges to overcome. Effective cooperation requires that we recognize, but are not deterred by differences in perspectives and practices. Addressing these issues and identi- fying common ground, while sharing the burdens and the fruits of research, are the essence of sustainable international cooperation. Our goal in hosting this conference was to contribute, with many others, to a new and productive chapter in transatlantic cooperation. Charles W. Wessner

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The successful conclusion of the US-EU Agreement on Science and Technology Cooperation offers the prospect of a new chapter in transatlantic cooperation. As with any international agreement in science and technology, the accord's full potential will be realized only if it can encourage mutually beneficial cooperation. With this in mind, responsible officials of the European Union (EU) and the U.S. government contacted the National Research Council's Board on Science, Technology, and Economic Policy (STEP) to discuss how this negotiating success might be publicized and productively exploited. It was agreed that the STEP Board should organize a conference to celebrate the accord, inform the U.S. and European research communities of the agreement, and explore specific opportunities for enhanced cooperation. At the same time, the conference would provide the occasion to review existing and evolving areas of transatlantic cooperation in science and technology from the perception of the United States, the European Commission, and the member states of the European Union.

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