[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

======================================================================



 
                  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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------

                         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.