1.This Act may be cited as
the National Innovation and Job
Creation Act of 2008
.
2.In this Act:
(1)The
term Board means the National Innovation Council Board appointed
under section 4.
(2)The
term CLIC means the CLUSTER Information Center established under
section 6.
(3)The term CLUSTER Initiative means a
formally organized effort to promote cluster growth and competitiveness through
collaborative activities among cluster participants.
(4)The term CLUSTER Program means the
Competitive Leadership for the United States Through its Economic Regions
Program established under this Act to create and sustain a series of
initiatives to promote economic growth in industry groups.
(5)The
term Council means the National Innovation Council established
under section 3.
(6)The term industry cluster means a geographic
concentration of interconnected businesses, suppliers, service providers, and
associated institutions in a particular field.
(7)Industry
Research CouncilThe term Industry Research Council
means an entity that—
(A)is organized for
the purpose of advancing innovation;
(B)is comprised of
at least 5 for profit entities; and
(C)contributes not
less than the minimum amount established by the Council toward any grant
awarded by the Council.
(8)The
term innovation means the achievement of meaningful increases in
productivity through the introduction or diffusion of a new or improved
product, service, process, source of supply of materials, business structure,
business practice, business model, or methods of production, delivery,
distribution, financing, marketing, packaging, promoting, or pricing.
(9)The
term productivity means the measure of the quality or quantity of
economic output relative to the input required to produce that output.
3.National
Innovation Council
(a)
(1)There is established
a council in the Executive Office of the President, to be known as the
National Innovation Council
, which shall coordinate Federal
innovation policy and provide financial assistance for State and local
innovation initiatives.
(2)The
Council shall be under the direction of a Director, who shall be appointed by
the President, with the advice and consent of the Senate.
(3)
(A)The Director shall, in accordance with such policies as
the Council shall from time to time prescribe, appoint and fix the compensation
of such personnel as may be necessary to enable the Council to perform its
duties under this Act.
(B)The Director may appoint, for a limited term or on a
temporary basis, such professional or technical staff as the Director
determines to be necessary to carry out specific functions under this Act for
which their expertise is required.
(b)Powers and
responsibilities
(1)Policy
formulation and advocacyThe Council shall be responsible for
formulating and advocating for the innovation policy of the Federal
Government.
(2)The
Council shall achieve the goal described in paragraph (1) by—
(A)providing
assistance to other Federal agencies with respect to innovation, upon
request;
(B)assisting the
Census Bureau, the Bureau of Economic Analysis, the Bureau of Labor Statistics,
other major Federal statistical agencies, and the National Science Foundation
in developing operational measures of innovation that can be included in new or
existing economic data sources, and provide funding to these agencies for this
purpose;
(C)providing Federal
agencies and companies with the information they need to promote innovation and
productivity; and
(D)assisting
companies with activities such as—
(i)joint
industry-university research partnerships;
(ii)technology
transfer from laboratories to businesses;
(iii)technology-based
entrepreneurship;
(iv)industrial
modernization through adoption of best practice technologies and business
practices; and
(v)incumbent worker
training.
(3)The Council shall create methods of measuring
innovation and productivity.
(4)The Council shall carry out a program of research on
innovation and productivity.
(5)The
Council shall recommend specific measures to improve innovation and
productivity in the United States.
(c)The Council shall collaborate with, and
provide funding to, the Census Bureau, the Bureau of Economic Analysis, the
Bureau of Labor Statistics, other major Federal statistical agencies, and the
National Science Foundation to develop—
(1)measures of productivity in the service
sector;
(2)measures of total factor productivity,
reflecting capital, materials, energy, and purchased services, labor, and other
relevant factors as productive inputs for all industries;
(3)measures of gross product and productivity
for counties and metropolitan areas; and
(4)measures of
private rates of return from research and development.
(d)Data collection
and analysisThe Council shall—
(1)collect and
analyze data necessary to evaluate the impact on productivity resulting from
the Council’s programs; and
(2)require
recipients of funding or other assistance from the Council to provide
information necessary to measure improvements in productivity resulting from
such funding or assistance.
(e)The Council shall annually submit to Congress a report, to
be known as the National Innovation Report, which shall set forth—
(1)the current and
foreseeable trends in innovation and productivity in the Nation;
(2)a review and
analysis of recent domestic and international developments affecting innovation
and productivity in the Nation;
(3)goals for
improved innovation and productivity in the Nation;
(4)a program
designed to improve innovation and productivity in the Nation; and
(5)such
recommendations for legislation as the President considers desirable.
4.National
Innovation Council Board
(a)The
Council shall be under the direction of the National Innovation Council Board,
which shall be comprised of 11 voting members to be appointed by the President,
with the advice and consent of the Senate.
(b)
(1)Each
voting member of the Board—
(A)shall be eminent
in the field of business, economic development, health care, applied sciences,
engineering, education, or public affairs;
(B)shall have a
record of distinguished service in his or her field; and
(C)shall have
demonstrated knowledge and appreciation of the value of innovation.
(2)In
making appointments under this section, the President shall—
(A)give due regard
to equitable representation of members who are women or who represent minority
groups;
(B)provide
representation of the views of leaders in economic development and innovation
in all areas of the Nation; and
(C)appoint not fewer
than—
(i)1
representative with a background in manufacturing;
(ii)1
representative with a background in the service industry;
(iii)1
representative of higher education;
(iv)1
representative of State and local government;
(v)1
representative of organized labor;
(vi)1
representative of the nonprofit sector;
(vii)1
representative of economic development organizations;
(viii)1
representative of professional associations; and
(ix)1 recognized
expert in innovation.
(3)Voting
members of the Board shall be appointed to 4-year terms.
(4)The Secretary of Commerce and the Secretary of Labor
shall serve as ex officio members of the Board.
5.Transfer of
programs and functionsThere
shall be transferred to the Council the functions, personnel, assets, and
liabilities of—
(1)the Manufacturing
Extension Partnership Program of the National Institute of Standards and
Technology;
(2)the Technology
Innovation Program of the National Institute of Standards and
Technology;
(3)the Office of
Technology Partnerships of the National Institute of Standards and
Technology;
(4)the Partnerships
for Innovation of the National Science Foundation;
(5)the
Industry-University Cooperative Research Center Program of the National Science
Foundation;
(6)the Engineering
Research Center Program of the National Science Foundation; and
(7)the Workforce
Innovation in Regional Economic Development of the Department of Labor.
6.Cluster
Information Center
(a)There is established within the Council the
CLUSTER Information Center (referred to in this section as the
CLIC
).
(b)The
purpose of the CLIC is to promote the collection, development, and
dissemination of data and analysis on industry clusters throughout the United
States.
(c)The
Director of the Council shall compile databases for the CLIC from existing
Federal data sets available from—
(1)the Census
Bureau;
(2)the Bureau of
Economic Analysis;
(3)the Bureau of
Labor Statistics;
(4)the International
Trade Administration;
(5)the Statistics of
Income Program of the Internal Revenue Service;
(6)the Office of
Patent Resource Administration in the United States Patent and Trademark
Office;
(7)the National
Science Foundation;
(8)the National
Innovation Council;
(9)other Federal
agencies; and
(10)non-Federal
sources, including private databases, as appropriate.
(d)
(1)The CLIC shall—
(A)support and
disseminate research on the formation and evolution of industry clusters,
CLUSTER Initiatives, and cluster programs;
(B)gather, analyze,
and disseminate information on the best practices for the development of
industry clusters, CLUSTER Initiatives, and cluster programs in the United
States and in other countries, specifically determining how productivity,
innovation, and competitive advantage can be maximized through industry
clusters, CLUSTER Initiatives, and cluster programs;
(C)develop technical
assistance guides for regional cluster analysis and CLUSTER Initiative and
initiative program development and operations; and
(D)bring together
representatives of industry clusters, CLUSTER Initiatives, and cluster
programs, experts, and scholars to disseminate developments in cluster
analysis, initiatives, and programs.
(2)The CLIC shall collect and make available data on
cluster activity showing—
(A)breadth, a
geographically-specific picture of the array of clusters in each key industry
throughout the United States, with data on size, specialization, and
competitiveness of the industry clusters in each State, region, and major
metropolitan area;
(B)depth, for each
cluster, detailed data such as regional domestic product contribution, total
jobs and earnings by key occupations, establishment size, nature of
specialization, patents, Federal research and development spending, citation
patterns, and trade; and
(C)flow, estimates
of supply chain product and service flows within and between industry
clusters.
(3)The
CLIC shall—
(A)monitor the
extent to which the data available to it is sufficient for proper analysis of
cluster activity; and
(B)submit a report
to Congress that includes recommendations regarding further authorization for
data collection, as necessary.
(4)The
CLIC may not collect or analyze data which would otherwise be in violation of
Federal privacy laws.
(5)Dissemination
of analysesData and analysis compiled by the CLIC shall be made
available to other Federal agencies, State and local governments, and nonprofit
and for-profit entities, to guide investments in industry cluster activities
that will lead to increased productivity, innovation, and competitive
advantage, including—
(A)cluster
development;
(B)economic
development;
(C)workforce
development;
(D)research and
development;
(E)business site
locations;
(F)analysis of
United States competitiveness, by industry, industry cluster, and geography;
and
(G)other appropriate
activities.
(e)Cluster
Initiative and Cluster Program Registry
(1)The CLIC shall maintain a publicly available registry of
CLUSTER Initiatives and cluster programs that contain information that is
useful to the study and analysis of CLUSTER Initiatives and cluster programs,
including—
(A)organizational
structure;
(B)membership;
(C)activities;
(D)funding;
and
(E)perceived impacts
of registered CLUSTER Initiatives and Cluster Programs.
(2)At the time a CLUSTER Initiative is registered, the
CLIC shall collect sufficient information to demonstrate that the CLUSTER
Initiative—
(A)is an
industry-led effort with not fewer than 5 member firms and 1 lead organizing
entity;
(B)involves not
fewer than 3 cluster support organizations, such workforce boards, community
colleges, universities, and industry associations; and
(C)has a strategy to
enhance the competitive position of the cluster.
(3)Registered CLUSTER Initiatives and cluster programs shall
receive priority for funding from the Council and the CLIC.
(4)Information contained in the CLUSTER Initiative and
Cluster Program Registry shall be made available to other Federal agencies,
State and local governments, and nonprofit and for-profit entities.
(f)The Director of the Council may contract out the
operation of the CLIC to an external organization such as another Federal
agency, a university, a nonprofit research entity, or a private company.
(g)Authorization
of appropriationsThere are authorized to be appropriated
$20,000,000 to carry out this section.
7.
(a)
(1)The
Council shall award grants to eligible grantees to operate a CLUSTER Grant
Program for the purpose of awarding grants to CLUSTER Initiatives in accordance
with the requirements under this subsection.
(2)A grant may be awarded under this subsection to—
(A)a State;
or
(B)an entity
designated by a State or a group of States, which may be a city, a county,
another political subdivision of a State, a nonprofit organization, or any
other economic development organization.
(3)All entities receiving grant funds under this subsection
shall ensure that CLUSTER Initiatives supported by such funds—
(A)are operated in a
manner consistent with the best practices
established by the
CLUSTER Program;
(B)are
industry-led;
(C)are inclusive,
seeking any and all organizations that might find benefit from participation,
including startups, firms not locally owned, and firms rival to existing
members;
(D)encourage broad
participation by and collaboration among all types of participants;
(E)involve key State
and local government actors; and
(F)participate in
the CLIC registry and research activities described in section 6(e).
(4)
(A)
(i)A grant in an amount not to exceed $250,000 shall be
awarded to eligible grantees for Cluster Program feasibility studies, planning,
and operations.
(ii)A
feasibility study grant shall be awarded to not fewer than 1 eligible grantee
in each State on a 1-time basis, with no matching funds required.
(B)Start up and
annual grants
(i)A 1-year grant in an amount not to exceed $1,000,000 shall
be awarded to not fewer than 1 new cluster program in each State to support
planning studies, provide technical assistance, and fund start-up
activities.
(ii)An annual grant shall be awarded to not fewer than 1
early-stage cluster programs in each State to provide technical assistance and
fund operating activities.
(iii)Grants
awarded under clause (ii) may be renewed for a total period not to exceed 5
years (including any start up grant).
(iv)Matching funds
requirement
(I)During the first 2 years in which an eligible entity
receives grant funding under this subparagraph, the eligible entity shall
provide matching funds in an amount equal to the amount of funds received under
this subparagraph.
(II)If the Council determines, in accordance with criteria
established by the CLUSTER Program, that an eligible grantee has demonstrated
greater effectiveness than other grant recipients during the period described
in subclause (I), the non-Federal matching requirement for such eligible
grantee in future years may be reduced.
(C)Matching grants
for cluster initiatives
(i)A grant in an amount of between $1,000,000 and
$15,000,000 may be awarded, on a competitive basis, to Cluster Programs for the
purpose of supporting CLUSTER Initiatives.
(ii)An eligible entity receiving a grant under this
subparagraph shall provide matching funds in an amount equal to the amount of
grant funds received under this subparagraph.
(iii)In selecting grant recipients under this subparagraph,
the Council shall consider—
(I)the probable
impact of the proposed effort on the competitiveness of the area’s traded
sector;
(II)if the proposed
effort fits within a broader achievable economic development strategy;
(III)the capacity
and commitment of the sponsoring organization;
(IV)the degree of
support and involvement from relevant State and regional economic and workforce
development organizations, other public purpose institutions (such as
universities, community colleges, workforce boards), and the private sector,
including industry associations;
(V)the eligible
grantee's expected ability to access additional funds from Federal, State, and
local sources;
(VI)the eligible
grantee's capacity to sustain activities once grant funds have been expended;
and
(VII)the extent to
which economic diversity across regions of the United States would be increased
through the grant.
(5)The application process for grants awarded under this
subsection shall be on a rolling basis.
(6)Authorization
of appropriationsThere are authorized to be appropriated
$350,000,000 for fiscal year 2009 and each subsequent fiscal year to carry out
this subsection.
(b)National Sector
Research Grants
(1)The Council shall award competitive grants to eligible
companies and joint ventures to encourage innovation through research
partnerships between academic institutions in the United States and industry
research alliances.
(2)Each
company and joint venture desiring a grant under this subsection shall—
(A)submit an
application to the Council containing such information as the Council may
reasonably require;
(B)form an
industry-led research consortium consisting of at least 5 companies; and
(C)agree to develop
a 3- to 10-year technology roadmap that charts out generic science and
technology needs that the companies share.
(3)The Federal share of a project funded by a grant under this
subsection shall be not more than 50 percent of the total project costs.
(c)Productivity
enhancement research grantsThe Council shall award grants to
academic institutions in the United States and to joint ventures comprised of
academic institutions and private companies to support early-stage research
into methods of increasing productivity and innovation, with broad application
for a range of industries, including—
(1)automated
manufacturing or service processes;
(2)technology-enabled
remote service delivery;
(3)quality
improvement; and
(4)other methods of
improving productivity and innovation.
(d)State
innovation-based economic development partnership grants
(1)The Council shall award innovation-based economic
development partnership grants to State economic development entities
designated by each State.
(2)
(A)
(i)A grant in an amount not to exceed $250,000 shall be
awarded to States for feasibility studies, planning, and operations.
(ii)A
feasibility study grant shall be awarded to not fewer than 1 eligible grantee
in each State on a 1-time basis, with no matching funds required.
(B)Start-up and
annual grants
(i)A 1-year grant in an amount not to exceed $2,000,000 shall
be awarded to States to support planning studies, provide technical assistance,
and fund start-up activities.
(ii)In addition to the grants authorized under clause (i),
annual grants shall be awarded to States to provide technical assistance and
fund operating activities. Grants awarded under this clause may be renewed
indefinitely.
(iii)Each State shall be awarded not fewer than 1 grant under
this subparagraph.
(iv)Matching funds
requirementA State receiving a start-up grant under this
subparagraph shall provide—
(I)for the first
$1,000,000 in grant funds, a match of $1 for every $2 received in grant funds;
and
(II)for any
additional amount in grant funds, a match of $2 for every $1 received in grant
funds.
(3)
(A)Each State desiring a grant under this subsection shall
submit to the Council an initial innovation-based economic development plan
(referred to in this paragraph as the IBED plan
), which
describes—
(i)how
grant funds would be used to support the creation of alliances for the
dissemination of innovation among local governments, businesses, educational
institutions, and other institutions;
(ii)how companies
within the State would benefit from the activities funded through a grant under
this subsection; and
(iii)how innovation
would be disseminated through the activities described in paragraph (4) to
companies within the State.
(B)The
Council and an outside panel of experts shall—
(i)review the
initial IBED plans submitted under subparagraph (A); and
(ii)notify the
States of any suggested modifications to such plans.
(C)States may submit modified IBED plans to the
Council.
(D)The Council shall score IBED plans submitted under this
section and award competitive grants to States under this subsection, to the
extent available, on the basis of such scores. In scoring plans under this
subparagraph, the Council shall award additional points for multistate and
regional innovation-based economic development efforts.
(4)Grant funds received under this subsection may be used to
establish—
(A)technology
commercialization centers;
(B)industry-university
research centers;
(C)regional cluster
development programs;
(D)regional skills
alliances;
(E)entrepreneurial
support programs;
(F)science parks;
and
(G)related
activities to spur innovation or productivity.
(5)The Federal share of a project funded by a grant under this
subsection shall be not more than 1/3 of the total project
costs.
(6)The Council shall award noncompetitive planning and
technical assistance grants to States that do not receive a competitive grant
under this subsection, which shall be used to improve the quality of the
States’ proposals for subsequent grants under this section.
(e)Technology
Diffusion Grants
(1)The Council shall award grants to manufacturing
extension partnership centers in each State to promote the diffusion of
existing technological innovations to companies in which such innovations are
underutilized. Notwithstanding any other provision of law, a manufacturing
extension partnership may use grant funds awarded under this subsection for
activities in the service sector that comply with the requirements under this
subsection.
(2)
(A)
(i)A grant in an amount not to exceed $250,000 shall be
awarded to manufacturing extension partnership centers for feasibility studies,
planning, and operations.
(ii)A
feasibility study grant shall be awarded to not fewer than 1 eligible grantee
in each State on a 1-time basis, with no matching funds required.
(B)Start up and
annual grants
(i)A 1-year grant in an amount not to exceed $2,000,000 shall
be awarded to a manufacturing extension partnership center in each State to
support planning studies, provide technical assistance, and fund start-up
activities.
(ii)In addition to the grants authorized under clause (i),
annual grants shall be awarded to manufacturing extension partnership centers
in each State provide technical assistance and fund operating activities.
Grants awarded under this clause may be renewed indefinitely.
(iii)Matching
funds requirementA manufacturing extension partnership center
receiving a grant under this subparagraph shall provide—
(I)for the first
$1,000,000 in grant funds, a match of $1 for every $2 received in grant funds;
and
(II)for any
additional amount in grant funds, a match of $2 for every $1 received in grant
funds.
(3)Grants funds received under this subsection may be used
to—
(A)establish
manufacturing extension partnership centers in each State to provide—
(i)support for
manufacturing and services; and
(ii)innovation
awards; and
(B)support the
diffusion of innovation in any sector of the economy, including the service
sector.
(4)In evaluating proposals for grants under this subsection,
the Council shall—
(A)determine the
degree to which measurable productivity gains are expected to be achieved
through each applicant’s proposed diffusion of innovation;
(B)follow the 2-step
process established under subsection (d)(3) for grants to carry out the
activities described in paragraph (3)(A); and
(C)require
manufacturing extension partnership centers to submit a plan to carry out the
activities described in paragraph (3)(B).
(f)Grant funds received under this section shall be used
to—
(1)perform
Council-supported grant work in the United States; and
(2)promote the
production of any resulting goods or services in the United States.
(g)In evaluating proposals for grants under this section,
the Council shall—
(1)determine, as 1
award factor, the extent to which a grant to each State or manufacturing
extension partnership center is expected to increase production, wages, or
employment in the United States;
(2)not award any
grant which the Council believes could result in a decrease in production,
wages, or employment in the United States; and
(3)consult with
technology-specific boards staffed with experts in fields appropriate to the
proposals for grants being evaluated.
(h)
(1)For each of the grant programs established under
subsections (a), (d), and (e)—
(A)not fewer than 1
grant shall be awarded to a grantee in each State; and
(B)the amount of
each grant shall be not less than 80 percent of the average grant awarded in
such grant program.
(2)Population-based
allocationsIn each State, the total amount of grant funds
awarded to grantees in such State under subsections (a) through (e) shall be
not less than 50 percent of the product of—
(A)the percentage of
the population of the United States who are residents of such State, according
to the most recent decennial census; and
(B)the total amount
of grant funds awarded under subsections (a) through (e).
(i)Recipients of grants under this section may use, as
matching funds, amounts received from the agencies listed in section 5, to the
extent approved by the Council and such agencies.
8.Authorization of
appropriationsThere are
authorized to be appropriated to the National Innovation Council, for each of
the fiscal years 2009 through 2013, such sums as may be necessary to carry out
this Act.