[Congressional Record Volume 150, Number 94 (Friday, July 9, 2004)]
[Extensions of Remarks]
[Page E1347]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     PROVIDING SUPPORT FOR PUBLIC AND PRIVATE SECTOR RESEARCH AND 
                              DEVELOPMENT

                                 ______
                                 

                   HON. CHARLES W. ``CHIP'' PICKERING

                             of mississippi

                    in the house of representatives

                          Friday, July 9, 2004

   Mr. PICKERING. Mr. Speaker, I rise today to express support for one 
of government's most important contributions to the economic welfare of 
this nation: providing support for public and private sector research 
and development.
   U.S. businesses and industry have proven extremely adept at 
developing successful new products from cutting-edge technologies. Many 
of the technologies that underlie these products and spur economic 
growth were originally developed with federal support.
   The extent to which publicly funded research stimulates further 
innovation depends in large part on whether it is disseminated under 
terms that attract the private investment needed to commercialize the 
research. Private firms, however, are generally willing to 
commercialize publicly funded research only if they can protect the 
intellectual property they contribute to this process in a manner that 
allows them to secure a return on their investment.
   The importance of intellectual property rights in driving new 
research and its commercialization is illustrated by this Nation's own 
experience in funding university R&D activities. In the 1970s, too 
little federally funded research was being commercialized as a result 
of tight restrictions on licensing, varying patent protections among 
federal agencies, and the lack of exclusive manufacturing rights. 
Indeed, in 1980 only five percent of U.S. government-owned patents 
resulted in new or improved products.
   In response to this problem, the U.S. Congress in 1980 passed the 
Bayh-Dole Act, which established a uniform government patent policy and 
allowed universities and other nonprofits to retain title to federally-
funded inventions and to work with private-sector companies in bringing 
them to market.
  By any measure, the Bayh-Dole Act has been remarkably successful and 
today the federal government provides a majority of all university 
research funding. According to the last survey on the impact of the 
Bayh-Dole Act conducted by the U.S. Association of University 
Technology Managers, in 2000 alone this research spawned 347 new 
products, 13,032 invention disclosures, 6,375 U.S. patent applications, 
3,764 U.S. patents issued from previous applications, 4,362 new 
licenses, and the creation of 454 new companies. Moreover, universities 
received $1.26 billion in licensing revenue from these activities. Much 
of this money in turn is reinvested in further research and 
development.
  Technological innovation and government support for it are central 
not only to the Nation's economy, but also to the health and vitality 
of our citizens. With the continued support of the Federal Government--
both through funding and through licensing policies that promote 
commercialization such as those embodied in the Bayh-Dole Act--we can 
continue to ensure that technology is developed and made available to 
the private sector in a manner that spawns further innovation, for the 
benefit of our economy and the health and welfare of our citizens.

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