[Senate Report 116-300]
[From the U.S. Government Publishing Office]
Calendar No. 593
116th Congress } { Report
SENATE
2d Session } { 116-300
_______________________________________________________________________
INDUSTRIES OF THE FUTURE ACT OF 2020
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 3191
November 17, 2020.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
19-010 WASHINGTON : 2020
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred sixteenth congress
second session
ROGER F. WICKER, Mississippi, Chairman
JOHN THUNE, South Dakota MARIA CANTWELL, Washington
ROY BLUNT, Missouri AMY KLOBUCHAR, Minnesota
TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska TOM UDALL, New Mexico
CORY GARDNER, Colorado GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee TAMMY BALDWIN, Wisconsin
SHELLEY MOORE CAPITO, West Virginia TAMMY DUCKWORTH, Illinois
MIKE LEE, Utah JON TESTER, Montana
RON JOHNSON, Wisconsin KYRSTEN SINEMA, Arizona
TODD C. YOUNG, Indiana JACKY ROSEN, Nevada
RICK SCOTT, Florida
John Keast, Staff Director
David Strickland, Minority Staff Director
Calendar No. 593
116th Congress } { Report
SENATE
2d Session } { 116-300
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INDUSTRIES OF THE FUTURE ACT OF 2020
_______
November 17, 2020.--Ordered to be printed
_______
Mr. Wicker, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 3191]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 3191) to increase the capacity
of research and development programs of the Federal Government
that focus on industries of the future, and for other purposes,
having considered the same, reports favorably thereon with
amendments and recommends that the bill (as amended) do pass.
PURPOSE OF THE BILL
The purpose of S. 3191, the Industries of the Future Act of
2020, is to promote Federal investment and leadership in the
industries of the future.
BACKGROUND AND NEEDS
In his 2019 State of the Union Address, President Trump
highlighted the industries of the future which will drive our
economy in the coming decades.\1\ Since then, the White House
has launched several initiatives to coordinate and advance
those industries: artificial intelligence, advanced
manufacturing, quantum information science, biotechnology, and
developing the next generation of wireless networks and
infrastructure.\2\ This bill provides the framework for
advancing U.S. leadership in the industries of the future
through concerted investment in research and development (R&D)
for these emerging technologies.
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\1\President Donald J. Trump, Address Before a Joint Session of the
Congress on the State of the Union, Feb. 5, 2019 (https://
www.govinfo.gov/content/pkg/DCPD-201900063/html/DCPD-201900063.htm)
(accessed May 20, 2020).
\2\U.S. Congress, Senate Committee on Commerce, Science, and
Transportation, Industries of the Future, 116th Cong., 2nd sess., Jan.
15, 2020, testimony of Michael Kratsios, Chief Technology Officer of
the United States, webcast and prepared statement (https://
www.commerce.senate.gov/2020/1/industries-of-the-future) (accessed May
20, 2020).
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Science and technology have a pervasive influence over a
wide range of issues confronting the Nation. Public and private
research and development spur scientific and technological
advancement. Such advances can drive economic growth, help
address national priorities, and improve health and quality of
life. More than half of the economic growth in the United
States during the first 50 years of the 20th century was due to
technological advancements.\3\ A primary driver of future
economies and job creation will be innovation that is made
possible through advances in science and engineering.\4\ In the
past century, basic research in areas from genomics to
engineering have enabled entirely new industries. From the
Manhattan Project during World War II to today's advances in
GPS positioning, scientific discovery has allowed the United
States to maintain a strategic advantage in times of war. U.S.
investment in research and innovation allowed the Nation to
become the strongest economy in the world.\5\ The Federal
Government supports scientific and technological advancement
directly by funding and performing R&D and indirectly by
creating and maintaining policies that encourage private sector
efforts.
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\3\Robert M. Solow, ``Technical Change and the Aggregate Production
Function,'' The Review of Economics and Statistics 39, no. 3 (Aug.
1957): 312-320 (https://www.jstor.org/stable/
1926047?seq=9#metadata_info_tab_contents) (accessed May 20, 2020).
\4\National Academy of Sciences, National Academy of Engineering,
Institute of Medicine Rising Above the Gathering Storm, Revisited:
Rapidly Approaching Category 5, The National Academies Press, 2010
(https://www.nap.edu/read/13151/chapter/1) (accessed Sep. 14, 2020).
\5\Walter Isaacson, ``How America Risks Losing Its Innovation
Edge,'' Time, Jan. 3, 2019 (https://time.com/longform/america-
innovation/) (accessed May 20, 2020).
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Between fiscal year (FY) 2000 and FY 2017, U.S. R&D funding
increased from $268 billion to $548 billion in inflation
adjusted dollars. Most of this increase was from an increase in
R&D funding by businesses. Federal R&D only increased from
$67.2 billion to $121 billion in this timeframe. From FY 2010
to 2017, Federal R&D has declined from a high of $126.6 billion
in 2010 to $121 billion in 2017.\6\ The decline was a reversal
of sustained growth in Federal R&D funding for more than half a
century, and has stirred debate about the potential long-term
effects on U.S. technological leadership, innovation,
competitiveness, economic growth, and job creation.
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\6\Mark Boroush, National Science Board, Research and Development:
U.S. Trends and International Comparisons, Jan. 15, 2020 (https://
ncses.nsf.gov/pubs/nsb20203/cross-national-
comparisons-of-r-d-performance) (accessed May 20, 2020).
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While the United States has long led the world in terms of
R&D investment size, China is rapidly gaining ground, and
according to the National Science Board, may have recently
surpassed the United States.\7\ Despite growth in nominal
measures of U.S. R&D, the U.S. share of global R&D has
experienced a substantial decline in recent years. Increases in
Chinese R&D expenditures between 1991 and 2016 cut into the
U.S. share. As China's share rose from 2.2 percent to 20
percent, the U.S. share declined from 37 percent to 25.1
percent of the global total during the same period.\8\ So even
with rising total R&D expenditures in the United States,
increases in foreign countries' R&D efforts underscore the need
to maximize investments to boost U.S. competitiveness.\9\
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\7\Id.
\8\Id.
\9\Congressional Research Service, Global Research and Development
Expenditures: Fact Sheet, updated Apr. 29, 2020 (https://fas.org/sgp/
crs/misc/R44283.pdf) (accessed May 20, 2020).
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SUMMARY OF PROVISIONS
If enacted, S. 3191 would support increased investments and
leadership in the discovery and implementation of future
technologies throughout the Federal Government and in non-
Federal entities.
LEGISLATIVE HISTORY
S. 3191, the Industries of the Future Act of 2020, was
introduced on January 14, 2020, by Senator Wicker (for himself
and Senators Gardner, Baldwin, and Peters) and was referred to
the Committee on Commerce, Science, and Transportation of the
Senate. On March 11, 2020, the Committee met in open Executive
Session and, by voice vote, ordered S. 3191 reported favorably
with amendments. On October 21, 2020, Senator Hassan became an
additional cosponsor.
A companion bill, H.R. 6145, was introduced on March 9,
2020, by Representative Baird (for himself and Representatives
Foster, Lucas, and Stevens) and was referred to the Committee
on Science, Space, and Technology of the House of
Representatives. Representatives Mast, Young, and Yoho are
additional cosponsors.
Hearing
On January 15, 2020, the Committee held a hearing entitled
``Industries of the Future.'' Members of key Federal agencies
involved in the research, development, and deployment of such
industries testified.
ESTIMATED COSTS
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
S. 3191 would require the Office of Science and Technology
Policy (OSTP) to report to the Congress on the federal
government's research and development, infrastructure, and
workforce development in what the bill calls industries of the
future. Those industries include artificial intelligence,
quantum information science, biotechnology, next generation
wireless networks, advanced manufacturing, and synthetic
biology. In addition, the bill would establish an Industries of
the Future Coordination Council within OSTP. The council would
provide the OSTP with advice on all matters related to those
industries and the federal government. The council would sunset
in six years.
Using information from OSTP, CBO expects that S. 3191 would
codify and expand on OSTP's current efforts. On that basis, CBO
estimates that implementing the bill would cost less than
$500,000 over the 2021-2025 period. Any spending would be
subject to the availability of appropriated funds.
The CBO staff contact for this estimate is Matthew
Pickford. The estimate was reviewed by H. Samuel Papenfuss,
Deputy Director of Budget Analysis.
REGULATORY IMPACT STATEMENT
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
Number of Persons Covered
S. 3191, as reported, would not create any new programs or
impose any new regulatory requirements, and therefore will not
subject any individuals or businesses to new regulations.
Economic Impact
S. 3191 is not expected to have a negative impact on the
Nation's economy.
Privacy
S. 3191 would not impact the personal privacy of
individuals.
Paperwork
S. 3191 would increase paperwork by requiring a report from
the White House Office of Science and Technology Policy (OSTP)
on Federal research and development focused on industries of
the future.
CONGRESSIONALLY DIRECTED SPENDING
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title.
This section would provide that the bill may be cited as
the ``Industries of the Future Act of 2020''.
Section 2. Sense of Congress on investment in research and development.
This section would state the importance of the United
States leading the global community in industries of the future
through the identification of key research and infrastructure
investments that enable technological breakthroughs, as well as
encouraging collaboration between the Federal Government and
the private sector.
Section 3. Report on Federal research and development focused on
industries of the future.
This section would require the Director of OSTP to submit a
report to Congress on R&D investments, infrastructure, and
workforce development by the Federal Government that would
enable continued U.S. leadership in industries of the future no
later than 120 days after the enactment of the Act. The report
would contain an assessment of baseline investments, plans to
increase Federal investments in industries of the future, a
plan to use said Federal investment to elicit complimentary
investments from non-Federal entities, and proposed legislation
to implement such plans.
Section 4. Industries of the Future Coordination Council.
This section would require the President to establish or
designate an Industries of the Future Coordination Council
(Council) to advise the OSTP Director on matters relevant to
the Director and the industries of the future. Specifically,
the Council would provide the Director with advice on ways the
United States can continue to lead the world in energy
technologies, including investments, further workforce
development, leveraging the strength of the U.S. R&D ecosystem,
and through leveraging existing partnerships and creating new
ones to advance industries of the future. This Council would be
would be composed of members of the Federal Government,
including one appointed by the OSTP Director and one appointed
by the Director of the Office of Management and Budget. It
would also include the chairpersons of the National Science and
Technology Council (NSTC) Committees on Artificial
Intelligence, Advanced Manufacturing, and Quantum Information
Science and other members from the Federal Government the
President considers appropriate. The council, in execution of
its duties, would coordinate with existing NSTC committees to
minimize duplicative effort. The Council would terminate 6
years after the date of enactment of this Act.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee states that the
bill as reported would make no change to existing law.