The House Science Committee considers an exciting area of policy — many exciting areas — on Wednesday when it convenes a hearing, “The Future of Manufacturing: What is the Role of the Federal Government in Supporting Innovation by U.S. Manufacturers?” The issue at hand, the comittee says, is the need “for U.S. manufacturers to adopt innovative technologies and processes in order to remain globally competitive, and to determine the appropriate role for the Federal Government in supporting efforts by U.S. manufacturers to innovate.”

Witnesses are:

• Susan Smyth, Director of Manufacturing, GM R & D, and Chief Scientist for Manufacturing, General Motors Company
• Len Sauers, Vice President, Global Sustainability, Procter & Gamble
• Debtosh Chakrabarti, President and Chief Operating Officer, PMC Group Inc.
• Mark Tuominen, Director, National Nanomanufacturing Network
• Wayne Crews, Vice President for Policy and Director of Technology Studies, Competitive Enterprise Institute

The hearing charter includes a good discussion of manufacturing’s role in the U.S. economy, the importance of innovation, and federal policies intended to support that innovation.

Nanotechnology will be on the table when the House Science Committee holds a hearing Wednesday, “The Future of Manufacturing: What is the Role of the Federal Government in Supporting Innovation by U.S. Manufacturers?” Among those testifying is Mark Tuominen, Ph.D., director of the National Manufacturing Network.

The multiagency federal National Nanotechnology Initiative last month released its 2011 budget proposal. In his introductory letter, Presidential Science and Technology Advisor John Holdren, wrote, “Nanotechnology R&D constitutes a core building block of innovation that will ultimately accelerate job creation and transform many sectors of our economy through commercialization.” Can regulation be far behind?

Federal oversight of nanotechnology-containing consumer products was a topic of discussion at the March 4 hearing on the Consumer Product Safety Commission’s budget before the House Appropriations Committee Subcommittee on Financial Services and General Government.

In her prepared statement, Chairman Inez Tenenbaum noted the CPSC’s FY 2011 budget request called for $2 million to support the federal National Nanotechnology Initiative. She said:

In the last few years, there has been increasing public concern about potential health impacts associated with this technology. Although nanomaterials may have the same chemical composition as non-nanomaterials, at the nanonscale they may demonstrate different physical and chemical properties – and behave diferently in the environment and the human body.

The $2 million proposed will alow the Commission to conduct exposure and risk assessments of nanomaterials, allow for database updates to properly flag reports of nanotechnology incidents with consumer products, and conduct consumer outreach efforts such as public meetings. Perhaps even more importantly, it will allow the Commission to take a very proactive approach to this emerging issue, rather than merely reacting to incident reports after they are received.

In her statement, Commissioner Nancy Nord said, “This is an area where I have an especially strong interest and am pleased to see the agency take a strong role as nanomaterials transition from the research laboratory to the consumer market.”

The technology’s move — already well under way — to the marketplace is certainly welcome. One hopes regulators show restraint as they react so as to not endanger this “core building block of innovation.”

Washington Post, “Senate passes $140 billion in tax breaks, aid to unemployed“:

Beyond those provisions, the bill carries renewals of several expired tax credits, including those for research and development, biodiesel, energy-efficient home improvements, and the deduction of state and local sales taxes. Those extensions helped attract the support of Republicans and the praise of business groups.

Dorothy Coleman, vice president of tax and domestic economic policy for the National Association of Manufacturers, said the research-and-development credit extension will be a particularly effective job creator. “Going ahead and acting on these [tax extensions] gives companies some certainty” about how they can spend money in the future, she said.

NAM President John Engler also issued a statement in support of the Senate action, with some exceptions. Excerpt:

The NAM’s “Jobs for America” report finds that by increasing the R&D credit and making it permanent, we would encourage innovation and boost total employment by hundreds of thousands of jobs this decade. Similarly, by providing additional time for companies to make required pension payments, the retirement security provisions will put cash back in the hand of employers, allowing them to grow and create jobs. We are also pleased the Senate bill broadens the tax credit for energy efficient windows, doors and skylights by allowing them to meet the 2010 Energy Star standards. And, we welcome the provision that will allow companies to use their unused Alternative Minimum Tax (AMT) credits based on hiring workers or making investments.

While we are pleased that the tax extenders and retirement provisions are included in the Senate-passed bill, we are disappointed that it also includes industry-specific taxes that will pile more costs on manufacturers and make them less competitive. We will continue to work with members of Congress to improve this critical bill so that it can foster job creation and global competitiveness without putting undue burdens on specific industries. It is important for lawmakers to remember throughout this jobs debate that government doesn’t create jobs, business does.

Yesterday, Senate Judiciary Chairman Patrick Leahy (D-VT) and Ranking Member Jeff Sessions (R-AL) announced that a new agreement to patent reform legislation had been made.

Sen. Leahy’s Patent Reform Act of 2009, (S. 515) passed through the Judiciary Committee thanks to Sen. Dianne Feinstein’s deft ability to bring parties on both sides of the controversial damages provisions together to agree on compromise language –- language that the NAM was supportive of because it ensured that no one sector would get a bonanza at the expense of another business sector.

Despite that success, S. 515 got hung up on other less high-profile, but just as important issues. After nine months of negotiations, another agreement (that contains the same compromise language on damages) appears to be in the making. While the official amendment-in-the-form-of-a-substitute language has yet to be released, we’re told that there’s been substantial movement on a number of issues.

While litigation reforms are very important, key to all manufacturers’ concerns is how will the US Patent & Trademark Organization fare – will there be an end to the diversion of their fees into the general treasury? Will USTPO Director David Kappos have the ability to make rules and set new fees? What’s being done to improve patent quality and decrease the time it takes to have a patent issued? The National Academy of Sciences issued a report in 2004 highly critical of how resources were being allocated to the USPTO, and offered a number of fixes that would not only strengthen the USPTO, but in the long run, strengthen our nation’s manufacturers’ ability to innovate.

As soon as we know what the new bill language looks like, we’ll make sure that the NAM’s members find out. More news as it comes in over the transom…

(Marc-Anthony Signorino is technology director for the National Association of Manufacturers)

We pass on a news release from the American National Standards Institute (ANSI), “ANSI and NAM to Host Event for Congressional Staff on Next Generation Batteries” with the sub-hed, “UL and SAE International join as co-sponsors.”

The American National Standards Institute (ANSI) is pleased to announce that it has teamed with the National Association of Manufacturers (NAM) to co-host an upcoming event for Congressional staff on the latest innovations, standards, and conformity assessment activities that support next generation battery technology.

To be held on March 1, 2010, the event will feature expert speakers from Johnson Controls, Nissan, NASA, and the Argonne National Laboratory. Underwriters Laboratories (UL) and SAE International are serving as event co-sponsors.

American technical experts are making great advancements in battery technology that are vital to U.S. competitiveness and economic growth. Termed “next generation” batteries, these devices allow longer and faster run times, reduce dependence on other sources of energy, lessen the environmental impact of modern technologies, and lead to smaller and lighter electronics. Next generation batteries will impact nearly every industry, including solar energy, electric vehicles, wind energy, and aerospace. Standards and conformance are key to the manufacture, implementation, and interoperability of this innovative technology.

The National Association of Manufacturers today released a major economic analysis documenting the impact on the economy and jobs creation of several policy changes. The report was conducted by the Milken Institute, a nonpartisan and independent think tank in Santa Monica, that used respected and rigorous economic models to assess the impact of proposals.

The report is “Jobs for America,” and the Milken Institute has put up a website with the full study, explanatory slides, and other material: http://www.milkeninstitute.org/jobsforamerica/

“Jobs for America” concludes that proposed corporate tax cuts, export control reforms and key infrastructure investments could create more than 11 million jobs in the U.S. by 2019.

Specifically:

• Reducing the U.S. corporate income tax to match the average of other industrial countries (OECD nations) would boost total employment by 2.1 million jobs.
• A permanent R&D tax credit, increased by 25 percent, could generate 510,000 jobs within a decade.
• Modernizing U.S. export controls would expand exports in high-value areas, increasing total employment by 340,000.
• Investing $425.6 billion across 10 infrastructure categories (including highway and transit, energy efficiency, wastewater treatment, Smart Grid, nuclear, etc.) would generate 10.7 million jobs over three years.

“Jobs for America” provides the substantive economic analysis that should guide policymakers with a clear course of action if, as many assert, jobs is the No. 1 facing the country.

See also NAM release, “New Study Gives Roadmap for U.S. Job Creation and Long-Term Growth”

The National Economic Council posted three reports of note on the White House’s website on January 8:

• Middle Class Task Force Meeting Manufacturing
  December 2009
• A Framework for Revitalizing American Manufacturing
  December 2009
• A Strategy for American Innovation: Driving Towards Sustainable Growth and Quality Jobs
  September 2009

The excellent “Framework” report accompanied the Dec. 16, 2009, meeting at the White House with manufacturers.

Chairman Bart Gordon (D-TN) of the House Science Committee commented on Wednesday’s committee hearing, “America COMPETES: Big Picture Perspectives on the Need for Innovation, Investments in R&D and a Commitment to STEM Education.” From his news release:

[We] are kicking off one of the most important efforts of the year – to reauthorize our Committee’s landmark legislation, the America COMPETES Act,” stated Committee Chairman Bart Gordon (D-TN). “As we learned from the National Academies’ report Rising Above the Gathering Storm, in order to create an innovative economy we need a well-educated workforce and predictable funding streams for these programs. Today, our witnesses have expressed how critical this commitment to innovation is to our prosperity and our economic growth. COMPETES has affected, and will continue to affect, U.S. innovation and its programs will help sustain a skilled workforce in the future.”

National Association of Manufacturers President John Engler testified on basic research, technical education, the Manufacturing Extension Program (MEP) and a research-supporting arm of the Department of Energy known as ARPA-E, Advanced Research Projects Agency - Energy. Rep. Gordon is a big supporter:

One key provision of COMPETES with a strong public-private partnership component was ARPA-E.  The agency recently made its first round of awards.  In addition to receiving far more concept papers for the first Funding Opportunity Announcement than expected—3,700—the awards also attracted far more funds from the private sector than was required or expected. The Chairman and the Committee have continued to look for ways to attract additional private sector support for high-risk, high-reward energy technology development.

“There are far more good ideas than ARPA-E’s funding can accommodate,” said Gordon.  “Many of the finalists have very promising projects that are as deserving of grant funding as the award winners.”

Focusing more attention on the projects and other innovations is the ARPA-E Energy Innovation Summit scheduled March 1-3 at National Harbor Place.

The Committee continues its work today with a hearing by the Subcommittee on Technology & Innovation, “Commerce Department Programs to Support Job Creation and Innovation at Small- and Medium-Sized Manufacturers,” primarily the MEP.

Today’s Wall Street Journal reminds us of the passing of Richard E. Heckert, former chairman and CEO of DuPont, whose accomplishments as a research chemist risen to corporate leader testify to the companies and careers built on scientific smarts meshed with hard work.

Heckert was hired by DuPont in 1947 and rose through the ranks. From the WSJ:

As a Du Pont vice president in the 1970s, Mr. Heckert helped oversee the largest chemical research budget in the country. He became CEO and chairman of Du Pont in 1986.

As leader of a firm that sold products around the globe, Mr. Heckert was often quoted on issues of U.S trade imbalances. In 1988, he was named chairman of the National Association of Manufacturers.

In a 1987 profile, Fortune described Mr. Heckert as “a 6-foot-3, 220-pound, friendly bear of a boss,” with 14EEEE shoes. He retired in 1989.

Mr. Heckert was raised in Oxford, Ohio, where his German-immigrant father was a professor of education at Miami University and taught at associated McGuffey High School. There, Mr. Heckert played tight end under Weeb Ewbank, who went on to coach the Colts and the Jets in the NFL.

Heckert was passionate about the outdoors and conservation, chairing the Nature Conservancy from 1989-95. He also endowed a chair at the University of Illinois-Urbana, now known as the Richard E. Heckert Chair in Chemistry.

Ellen Kullman, DuPont’s chair and CEO paid tribute to Heckert: “All who knew Dick remember him for his genuine warmth and good humor,” said Ellen Kullman, DuPont chair and CEO.  “As a leader, he was direct and forthright.  He had high regard for DuPont’s values and traditions, and he encouraged every opportunity for future growth and innovation. ”

National Association of Manufacturers’ President John Engler testified today at a House Science Committee hearing, “America COMPETES: Big Picture Perspectives on the Need for Innovation, Investments in R&D and a Commitment to STEM Education.”

His testimony focused on four programs important to America’s manufacturers: federal funding for basic R&D; the Advanced Research Projects Administration for Energy (ARPA-E); science, technology, engineering and mathematics (STEM) education, and the Hollings Manufacturing Extension Partnership (MEP).

Engler’s complete prepared testimony is available at the committee’s website here.

Also testifying were:

• Mr. John Castellani, Business Roundtable
• Mr. Tom Donohue, U.S. Chamber of Commerce
• Ms. Deborah Wince-Smith, Council on Competitiveness