[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2390 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2390

              To provide a national innovation initiative.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 8, 2006

 Mr. Ensign (for himself, Mr. Lieberman, Mr. Lugar, Mr. Bingaman, Ms. 
Stabenow, Mr. Kerry, Mr. DeWine, Mr. Allen, Mr. Nelson of Florida, Mr. 
Rockefeller, Mr. Chambliss, and Mrs. Clinton) introduced the following 
 bill; which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
              To provide a national innovation initiative.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Innovation Act--Commerce 
Provisions''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress makes the following findings:
            (1) The United States is the most innovative Nation in the 
        world. Since our Nation's founding, exploration, opportunity, 
        and discovery have remained essential to fulfilling our 
        Nation's strategic economic and political objectives.
            (2) In the 21st century, a well-educated and trained 
        workforce, investment in research and development, and a 
        regulatory and physical infrastructure that supports innovators 
        are essential to ensuring that the United States continues to 
        lead the global economy on innovation.
            (3) America's future economic and national security will 
        largely depend on the creativity and commitment of our Nation 
        to unleash its innovation capacity.
            (4) The world has become dramatically more interconnected 
        and competitive. Cutting edge research, world-class education, 
        and highly skilled labor pools are no longer within the sole 
        purview of the United States.
            (5) The United States investment in basic research is 
        currently insufficient to meet the challenges we face.
            (6) Federal support for basic research in the physical 
        sciences has consistently lagged behind that given to the life 
        sciences in recent years.
            (7) Traditional measurements of innovation capacity focused 
        solely on inputs, such as research and development spending, 
        number of patents and value of physical infrastructure. The 
        traditional measurements are necessary but are not sufficient 
        metrics for innovation in the 21st century's knowledge economy.
            (8) Current Federal budget constraints require 
        prioritization of spending and new programs must be funded 
        through existing funds or through identifiable funding offsets 
        whenever possible.
            (9) A national, private sector-led, and government 
        supported plan is required if the United States is to 
        adequately respond to the challenges of increased global 
        competition and take advantage of the opportunities this 
        changing global dynamic presents.
    (b) Purposes.--The purposes of this Act are to--
            (1) make innovation a fundamental economic priority for the 
        United States;
            (2) create the most fertile policy environment for 
        innovation to occur;
            (3) increase the Federal Government's investment in basic 
        research, especially in the physical sciences;
            (4) direct greater funding toward multidisciplinary and 
        frontier research where tomorrow's innovations are most likely 
        to occur; and
            (5) secure a strong advanced manufacturing base in the 
        United States to ensure that as innovations occur, America is 
        poised to reap the benefits via the creation of new jobs and 
        investment.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Executive agency.--The term ``Executive agency'' has 
        the meaning given that term in section 105 of title 5, United 
        States Code.
            (2) Extended production enterprise.--The term ``extended 
        production enterprise'' means a system in which key entities in 
        the manufacturing chain, including entities engaged in product 
        design and development, manufacturing, sourcing, distribution, 
        and user entities, are linked together through information 
        technology and other means to promote efficiency and 
        productivity.
            (3) Innovation.--The term ``innovation'' means the 
        intersection of invention and insight leading to the creation 
        of social and economic value, including through efforts meeting 
        fundamental technology challenges and involving 
        multidisciplinary work and a high degree of novelty.
            (4) Manufacturing extension partnership program.--The term 
        ``Manufacturing Extension Partnership Program'' means the 
        Manufacturing Extension Partnership Program of the Department 
        of Commerce.
            (5) Manufacturing technology program.--The term 
        ``Manufacturing Technology Program'' means the Manufacturing 
        Technology Program under section 2521 of title 10, United 
        States Code.
            (6) Regional innovation hot spots defined.--The term 
        ``regional innovation hot spots'' means regions that are 
        defined by a high degree of innovation and the availability of 
        talent, investment, and infrastructure necessary to create and 
        sustain such innovation.
            (7) Service science.--The term ``service science'' means 
        curriculums, research programs, and training regimens, 
        including service sciences, management, and engineering (SSME) 
        programs, that exist or that are being developed to teach 
        individuals to apply technology, organizational process 
        management, and industry-specific knowledge to solve complex 
        problems.
            (8) Small business innovation research program.--The term 
        ``Small Business Innovation Research Program'' has the meaning 
        given that term in section 2500(11) of title 10, United States 
        Code.
            (9) Small business technology transfer program.--The term 
        ``Small Business Technology Transfer Program'' has the meaning 
        given that term in section 2500(12) of title 10, United States 
        Code.
            (10) SSME.--The term ``SSME'' means the discipline known as 
        service sciences, management, and engineering that--
                    (A) applies scientific, engineering and management 
                disciplines to tasks that one organization performs 
                beneficially for others, generally as part of the 
                services sector of the economy; and
                    (B) integrates computer science, operations 
                research, industrial engineering, business strategy, 
                management sciences, and social and legal sciences, in 
                order to encourage innovation in how organizations 
                create value for customers and shareholders that could 
                not be achieved through such disciplines working in 
                isolation.

SEC. 4. PRESIDENT'S COUNCIL ON INNOVATION.

    (a) In General.--The President shall establish a President's 
Council on Innovation (in this section referred to as the ``Council'').
    (b) Duties.--The Council's duties shall include--
            (1) monitoring implementation of legislative proposals and 
        initiatives for promoting innovation, including policies 
        related to research funding, taxation, immigration, trade, and 
        education that are proposed in this and other Acts;
            (2) in consultation with the Director of the Office of 
        Management and Budget, developing a process for using metrics 
        to assess the impact of existing and proposed policies and 
        rules that affect innovation capabilities in the United States;
            (3) identifying opportunities and making recommendations 
        for the heads of executive agencies to improve innovation, 
        monitoring, and reporting on the implementation of such 
        recommendations;
            (4) developing metrics for measuring the progress of the 
        Federal Government with respect to improving conditions for 
        innovation, including through talent development, investment, 
        and infrastructure improvements; and
            (5) submitting an annual report to the President and 
        Congress on such progress.
    (c) Membership and Coordination.--
            (1) Membership.--The Council shall be composed of the 
        Secretary or head of each of the following:
                    (A) The Department of Commerce.
                    (B) The Department of Defense.
                    (C) The Department of Education.
                    (D) The Department of Energy.
                    (E) The Department of Health and Human Services.
                    (F) The Department of Homeland Security.
                    (G) The Department of Labor.
                    (H) The Department of the Treasury.
                    (I) The National Aeronautics and Space 
                Administration.
                    (J) The Securities and Exchange Commission.
                    (K) The National Science Foundation.
                    (L) The Office of the United States Trade 
                Representative.
                    (M) The Office of Management and Budget.
                    (N) The Office of Science and Technology Policy.
            (2) Chairperson.--The Secretary of Commerce shall serve as 
        chairperson of the Council.
            (3) Coordination.--The chairperson of the Council shall 
        ensure appropriate coordination between the Council and the 
        National Economic Council and the National Security Council.
    (d) Development of Innovation Agenda.--
            (1) In general.--The Council shall develop a comprehensive 
        agenda for strengthening the innovation capabilities of the 
        Federal Government and State governments, academia, and the 
        private sector in the United States.
            (2) Consultation.--The comprehensive agenda required by 
        paragraph (1) shall be developed in consultation with 
        appropriate representatives of the private sector, scientific 
        organizations, and academic organizations.

SEC. 5. INNOVATION ACCELERATION GRANTS.

    (a) Grant Program.--The President shall establish a grant program, 
to be known as the ``Innovation Acceleration Grants Program'', to 
support and promote innovation in the United States. Priority in the 
awarding of grants shall be given to projects that meet fundamental 
technology challenges and that involve multidisciplinary work and a 
high degree of novelty.
    (b) Awarding of Grants Through Departments and Agencies.--
            (1) Funding goals.--The President shall ensure that it is 
        the goal of each Executive agency that finances research in 
        science, mathematics, engineering, and technology to allocate 
        at least 3 percent of the agency's total annual research and 
        development budget to funding grants under the Innovation 
        Acceleration Grants Program.
            (2) Administration.--
                    (A) In general.--Each head of an Executive agency 
                awarding grants under paragraph (1) shall submit a plan 
                for implementing the grant program within such 
                Executive agency to the Director of the Office of 
                Science and Technology Policy and the Director of the 
                Office of Management and Budget. The implementation 
                plan shall be submitted not later than 90 days after 
                the date of enactment of this Act. The implementation 
                plan may incorporate existing initiatives of the 
                Executive agencies that promote research in innovation 
                as described in subsection (a).
                    (B) Required metrics.--The head of each Executive 
                agency submitting an implementation plan pursuant to 
                this section shall include metrics upon which grant 
                funding decisions will be made and metrics for 
                assessing the success of the grants awarded.
                    (C) Grant duration and renewals.--
                            (i) In general.--Any grants issued by an 
                        Executive agency under this section shall be 
                        for a period not to exceed 3 years.
                            (ii) Evaluation.--Not later than 90 days 
                        prior to the expiration of a grant issued under 
                        this section, the Executive agency that 
                        approved the grant shall complete an evaluation 
                        of the effectiveness of the grant based on the 
                        metrics established pursuant to subparagraph 
                        (B). In its evaluation, the Executive agency 
                        shall consider the extent to which the program 
                        funded by the grant met the goals of quality 
                        improvement and job creation.
                            (iii) Publication of review.--The Executive 
                        agency shall publish and make available to the 
                        public the review of each grant approved 
                        pursuant to this section.
                            (iv) Failure to meet metrics.--Any grant 
                        that the Executive agency awarding the grant 
                        determines has failed to satisfy any of the 
                        metrics developed pursuant to subparagraph (B), 
                        shall not be eligible for a renewal.
                            (v) Renewal.--A grant issued under this 
                        section that satisfies all of the metrics 
                        developed pursuant to subparagraph (B), may be 
                        renewed once for a period not to exceed 3 
                        years. Additional renewals may be considered 
                        only if the head of the Executive agency makes 
                        a specific finding that the program being 
                        funded involves a significant technology 
                        advance that requires a longer timeframe to 
                        complete critical research, and the research 
                        satisfies all the metrics developed pursuant to 
                        subparagraph (B).

SEC. 6. A NATIONAL COMMITMENT TO BASIC RESEARCH.

    (a) Plan for Increased Research.--Not later than 180 days after the 
date of the enactment of this Act, the Director of the National Science 
Foundation shall submit to Congress a comprehensive, multiyear plan 
that describes how the funds authorized in subsection (b) shall be 
used. Such plan shall be developed with a focus on utilizing basic 
research in physical science and engineering to optimize the United 
States economy as a global competitor and leader in productive 
innovation.
    (b) Increased Funding for National Science Foundation.--There are 
authorized to be appropriated to the National Science Foundation for 
the purpose of doubling research funding the following amounts:
            (1) $6,440,000,000 for fiscal year 2007.
            (2) $7,280,000,000 for fiscal year 2008.
            (3) $8,120,000,000 for fiscal year 2009.
            (4) $8,960,000,000 for fiscal year 2010.
            (5) $9,800,000,000 for fiscal year 2011.
    (c) Recommendations for Research and Development Funding.--Not 
later than 1 year after the date of the enactment of this Act, the 
Director of the Office of Science and Technology Policy shall evaluate 
and, as appropriate, submit to Congress recommendations for an increase 
in funding for research and development in physical sciences and 
engineering in consultation with agencies and departments of the United 
States with significant research and development budgets.

SEC. 7. REGIONAL ECONOMIC DEVELOPMENT.

    (a) Development of Funding Strategy.--
            (1) In general.--The Assistant Secretary for Economic 
        Development of the Department of Commerce shall review Federal 
        programs that support local economic development and prepare 
        and implement a strategy to focus funding on initiatives that 
        improve the ability of communities to participate successfully 
        in the modern economy through innovation. In preparing the 
        strategy, priority should be given to projects that--
                    (A) emphasize private sector cooperation with State 
                and local governments and nonprofit organizations 
                focused on regional economic development as the means 
                of achieving specific objectives related to the support 
                and promotion of innovation; and
                    (B) are the most successful in meeting the metrics 
                established under subsection (b).
            (2) Coordination.--The Assistant Secretary shall coordinate 
        the development and implementation of the strategy with the 
        activities carried out by the Under Secretary for Technology 
        under subsection (d).
    (b) Evaluation of Programs.--The Assistant Secretary for Economic 
Development of the Department of Commerce shall develop metrics to 
measure the success of Federal programs in supporting and promoting 
innovation at the local community level while minimizing bureaucracy 
and overhead expenses.
    (c) Promotion of Economic Development Opportunities.--The Assistant 
Secretary for Economic Development of the Department of Commerce should 
work with organizations focused on economic development to highlight 
opportunities for such organizations to serve local communities through 
grants focused on economic development and investment in companies 
pursuing innovation.
    (d) Regional Innovation Hot Spots.--
            (1) Promotion of regional innovation hot spots.--The Under 
        Secretary for Technology of the Department of Commerce shall 
        coordinate activities focused on promoting innovation through 
        the development of regional innovation hot spots.
            (2) Guide to developing successful regional innovation hot 
        spots.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Secretary of 
                Commerce, in consultation with representatives of 
                regional innovation hot spots, shall publish a report, 
                to be titled the ``Guide to Developing Successful 
                Regional Innovation Hot Spots'', that examines 
                successful regional innovation hot spots and includes 
                recommendations for establishing and fostering regional 
                innovation hot spots.
                    (B) Content.--The report required under 
                subparagraph (A) shall--
                            (i) include information on the evaluation 
                        of human capital;
                            (ii) include information on the role of 
                        sponsoring institutions, such as universities, 
                        nonprofit organizations, and laboratories, in 
                        establishing and fostering regional innovation 
                        hot spots;
                            (iii) include information on the role of 
                        State and local government leaders, leaders in 
                        the research and business communities, and 
                        community organizations in establishing and 
                        fostering regional innovation hot spots;
                            (iv) discuss the importance of 
                        collaboration by public and private sector 
                        leaders;
                            (v) identify sources of funding for these 
                        activities within Federal, State, and local 
                        governments and the private sector; and
                            (vi) include recommendations for developing 
                        strategic plans to stimulate innovation, 
                        including recommendations relating to knowledge 
                        transfer and commercialization, the support of 
                        regional entrepreneurship and increased 
                        innovation within existing regional firms, and 
                        the linking of primary institutions engaged in 
                        the innovation process.
            (3) Regional innovation hot spot metrics.--
                    (A) Development of metrics.--In conjunction with 
                publishing the report required under paragraph (2), the 
                Secretary of Commerce shall develop the following sets 
                of metrics:
                            (i) Metrics to be considered for 
                        identifying potential regional innovation hot 
                        spots (in this subsection referred to as 
                        ``identifying metrics'').
                            (ii) Metrics to be considered for 
                        evaluating the impact and effectiveness of 
                        established regional innovation hot spots (in 
                        this subsection referred to as ``evaluation 
                        metrics'').
                    (B) Use of metrics.--The Under Secretary of 
                Commerce for Technology shall use the identifying 
                metrics to conduct biannual assessments of potential 
                regional clusters and shall use the evaluation metrics 
                to assess the impact and effectiveness of established 
                regional innovation hot spots in improving the regional 
                economy and regional job market. The Under Secretary 
                shall also assess the cost effectiveness of operating 
                within each regional hot spot. The Under Secretary 
                shall report the biannual assessments to Congress.

SEC. 8. DEVELOPMENT OF ADVANCED MANUFACTURING SYSTEMS.

    (a) Research and Development.--The Director of the National 
Institute of Standards and Technology shall support research and 
development in collaboration with entities and organizations from the 
industrial sector to supplement and support work in the private sector 
on advanced manufacturing systems designed to increase productivity and 
efficiency and to create competitive advantages for United States 
businesses. These research and development activities should focus on 
the following activities:
            (1) Supporting industry efforts to develop innovative, 
        state-of-the-art manufacturing processes, advanced technologies 
        through interoperable standards, and related concepts, 
        including--
                    (A) advanced distributed and desktop manufacturing 
                linked to and made compatible with the extended 
                production enterprise system described in paragraph 
                (2);
                    (B) non-contact quality inspection processes linked 
                to and made compatible with the extended production 
                enterprise system;
                    (C) small lot manufacturing processes that are--
                            (i) as cost-effective as mass production 
                        processes; and
                            (ii) linked to and compatible with the 
                        extended production enterprise system; and
                    (D) the use of state-of-the-art materials and 
                processes at the nanotechnological level.
            (2) Supporting industry efforts to develop an extended 
        production enterprise system that integrates key entities, 
        including entities engaged in product design and development, 
        manufacturing, sourcing, distribution, and user entities, 
        including through the development of--
                    (A) interoperable software and standards designed 
                to maximize the compatibility of the design, modeling, 
                and manufacturing stages of the manufacturing process; 
                and
                    (B) supply chain software.
    (b) Coordination of Activities.--The Director of the National 
Institute of Standards and Technology shall coordinate activities under 
subsection (a) with activities under--
            (1) the Small Business Innovation Research Program;
            (2) the Small Business Technology Transfer Program; and
            (3) the Manufacturing Technology Program of the Department 
        of Defense.
    (c) Testing.--The Director of the National Institute of Standards 
and Technology shall support the work of entities and organizations 
from the industrial sector in developing prototypes and testing areas 
for testing and refining, in actual production conditions, the 
processes, technologies, and extended production enterprise system 
described in subsection (a)(2) in order to maximize productivity gains 
and cost efficiencies.
    (d) Development of Standards.--The Director of the National 
Institute of Standards and Technology, in coordination with entities 
and organizations from the industrial sector and the Manufacturing 
Technology Program, shall support standards to be used as manufacturing 
performance criteria to accelerate the adoption of improvements and 
innovative processes and protocols developed under subsection (a).
    (e) Pilot Test Beds of Excellence.--
            (1) Establishment.--The Director of the National Institute 
        of Standards and Technology shall, in collaboration with 
        entities and organizations from the industrial sector, support 
        not more than 3 pilot test beds of excellence in manufacturing 
        fields important to advanced technologies developed under 
        subsection (a), such as nanotechnology, to be used by the 
        public and private sector. The test beds of excellence shall 
        focus on production development, particularly the invention, 
        prototyping, and engineering development stages of the 
        manufacturing process.
            (2) Competition.--The Secretary of Commerce shall conduct a 
        competition to select the pilot test beds of excellence based 
        on criteria and metrics established by the Secretary prior to 
        the competition.
            (3) Funding.--The Secretary of Commerce may provide the 
        pilot test beds of excellence selected pursuant to the 
        competition set forth in paragraph (2) with an appropriate 
        level of funding if and only if the following conditions are 
        satisfied:
                    (A) No more than \1/3\ of the funding of each test 
                bed of excellence is provided by the Federal 
                Government.
                    (B) At least \1/3\ of the cost of each test bed of 
                excellence is provided by participants from the private 
                sector.
                    (C) At least \1/3\ of the cost of each test bed of 
                excellence is provided by State or local governments.
            (4) Review of funded test beds.--Within 3 years of the 
        start of Federal funding for any test bed of excellence 
        pursuant to this section, the Secretary of Commerce shall use 
        the metrics established pursuant to paragraph (2) and any 
        additional review metrics that the Secretary determines 
        appropriate to assess the performance of the federally funded 
        test beds of excellence. Any test bed of excellence that fails 
        to satisfy any of the performance metrics will be ineligible 
        for additional Federal funding.
            (5) Sunset provision.--Federal funding of any test bed of 
        excellence shall cease 5 years after the date of enactment of 
        this Act.
    (f) Manufacturing Extension Partnership Focus on Innovation.--The 
Director of the National Institute of Standards and Technology shall 
ensure that the Manufacturing Extension Partnership program develops a 
focus on innovation, including through technology diffusion, supply and 
distribution chain integration, and the dissemination of the processes, 
technologies, and extended production enterprise systems developed 
under this section.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of Commerce for the purpose of carrying 
out activities under this section the following amounts:
            (1) $20,000,000 for fiscal year 2007.
            (2) $40,000,000 for fiscal year 2008.
            (3) $60,000,000 for fiscal year 2009.
            (4) $80,000,000 for fiscal year 2010.
            (5) $100,000,000 for fiscal year 2011.

SEC. 9. STUDY ON SERVICE SCIENCE.

    (a) Sense of Congress.--It is the sense of Congress that, in order 
to strengthen the competitiveness of United States enterprises and 
institutions and to prepare the people of the United States for high-
wage, high-skill employment, the Federal Government should better 
understand and respond strategically to the emerging vocation and 
learning discipline known as service science.
    (b) Study.--Not later than 270 days after the date of the enactment 
of this Act, the Director of the National Science Foundation shall 
conduct a study and report to Congress regarding how the Federal 
Government should support, through research, education, and training, 
the new discipline of service science.
    (c) Outside Resources.--In conducting the study under subsection 
(b), the Director of the National Science Foundation shall consult with 
leaders from 2- and 4-year institutions of higher education (as defined 
in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)), 
leaders from corporations, and other relevant parties.
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