WASHINGTON -- The U.S. Congress, led by Senators John Ensign (R-NV) and Joe Lieberman (D-CT), yesterday unveiled a proposal calling for a boost in R&D funding for basic and advanced science, in an effort to spearhead nationwide attention toward developing domestic engineering talent and ideas.

In a letter to colleagues, the senators said the bill “aims to make the necessary improvements in research, education of science and technology talent and innovation infrastructure to allow the United States to maintain the global leadership it achieved in the last century.” The bill responds to the recommendations made in the National Innovation Initiative report, “Innovate America,” issued late last year by the Council on Competitiveness.

The National Innovation Act of 2005 calls for a national commitment to basic research, and would nearly double the National Science Foundation’s research funding from 2007 through 2011.

In a statement today, the Semiconductor Industry Association said it strongly supports the bill.

The proposal also calls on each executive agency that currently funds R&D in science, mathematics, engineering and technology to commit at least 3% of its existing annual R&D budget to this program. The Department of Defense would be urged to allocate at least 20% of this amount toward basic research in science and technology.

A total of $300 million between 2007 and 2011 would go to the National Institute of Standards and Technology to support R&D in the industrial sector to develop innovative, state-of-the-art manufacturing practices. Among the targets: improving advanced distributed and desktop manufacturing capabilities, developing small lot manufacturing processes that are compatible with volume production, and applying nanotechnology to manufacturing.

More than $475 million would be committed graduate fellowships and other education support within the DoD. Another $111 million would go to various universities and government agencies to fund graduate fellowships and training.

A total of $1 million would go to the National Academy for a yearlong study of potential barriers to private sector innovation.

The proposal includes a provision to make permanent the research credit of the Internal Revenue Code. The credit, originally enacted in 1981, has been extended 11 times and is scheduled to expire Dec. 31. The tax credit should permit companies to engage more easily in long-term research projects.

The proposal also calls for U.S. patent law reform to enhance the quality of patents, to leverage patent databases as innovation tools, and to create best practices for global collaborative standard-setting.

Under the proposed act, the President would create a Council on Innovation comprised of heads of various executive agencies including Commerce, Defense, Education, Energy and others. The Council, which will be chaired by the Secretary of Commerce, will have oversight over legislative proposals and executive branch initiatives for promoting innovation.

The bill came shortly after a high level summit on innovation and competitiveness. On Dec. 6, more than 55 corporate CEOs, university presidents and scientists from across the country participated in a day-long summit during which they pressed cabinet secretaries and members of Congress for more R&D funding; a greater emphasis on science, math and engineering education; immigration reform for highly educated, high-skill foreign nationals and support for development of advanced technologies.

Commerce Secretary Carlos Gutierrez, Energy Secretary Samuel Bodman, Labor Secretary Elaine Chao, Education Secretary Margaret Spellings and Deputy Commerce Secretary David Sampson were among those who met with summit participants to discuss policy prescriptions for future economic success.

The SIA released a statement announcing its "strong support" for Act.

"U.S. leadership in technology has been the cornerstone of America’s strategies for driving economic growth and ensuring national security,” said SIA president George Scalise. “The National Innovation Act of 2005 addresses a number of the most critical issues involving technology leadership, especially those related to federal support for basic research."

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