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An Electronic Newsletter
for the International S&T Community

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ITRInews           September-October, 2002, No. 46
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Free newsletter on international S&T from ITRI, Inc.

To subscribe or unsubscribe, visit http://www.wtec.org/cgi-bin/mailman/listinfo/itrinews

Click on this link to see the present and past newsletters in color http://itri2.org/ITRInews/

A Mini Editorial:
This issue has some new data on whether the U.S. Goverment is meeting its fifty-year-old goal of "maintaining world leadership" in science and technology.  While there are many metrics that can be used, data here tends to show that the answer is "no."  There is no single national state that can challenge the U.S. for world leadership, but the European Union is evolving rapidly into a "United States of Europe" (http://news.independent.co.uk/europe/story.jsp?story=346857 ) that leads the United States of America in some of the most important metrics.  The planned expansion of the EU from 15 to 25 states is likely put the U.S. into second place by more measures within two years. "American Leadership of S&T: Reality or Myth?" presents two dozen metrics through 2000. http://justice.loyola.edu/~rds/myth.pdf
Duane Cassandra Shelton, Editor:  rds@itri2.org
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In This Issue of ITRInews
US High Technology Trade Surplus Disappears
US Trade Deficit in Goods Overall Nears $1/2 Trillion for 2002
US Publications Lead Declines to Only 7 of 20 S&T Fields
US Physical Science Funding Declines
US FY2003 S&T Budgets Still in Limbo

Featured Organizations in International S&T:
US Department of Commerce Reports on S&T Policy Posted
Technology Rating International
Kalba International
International Assessment of Agricultural Science and Technology
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U.S. Trade Surplus in High Tech Products Disappears
Although there are many other factors involved, one global measure of success in commercializing science is the balance of trade in the international marketplace.  Trade in high technology products alone is particularly interesting in this respect. The bar graph on the right shows the U.S. Census annual data for the balance of trade in high technology products for the last 12 years, plus the results for the first eight months of 2002.  Unless there is a sudden turnaround in the last four months of the year, the U.S. is headed for its first ever deficit in this measure of competitiveness. http://www.census.gov/foreign-trade/www/ 
 
 

 


 
US Trade Deficit in Goods Overall Nears $1/2 Trillion for 2002
Actually high technology products is one of the few sectors where the U.S. has been running a surplus at all. The last time that the U.S. actually had a positive trade surplus was in 1972. The overall U. S. trade deficit in goods ran $296.3 billion (Census basis) for the first eight months of 2002, and is nearing a half trillion dollars for all of 2002.  

The trade deficit with China alone is likely to be almost $100 billion in 2002; it was $63 billion through August.  Japan, which used to attract a lot of criticism for having the largest trade surplus with the U.S., now is far behind China at "only" $44 billion through August. 

The European Union has also emerged as a major contributor to the U.S. trade deficit with $52 in 2002 through August. Our neighbors in Mexico and Canada are enjoying the benefits of NAFTA to the tune of a $58 surplus through August (N. America bar).  In the graph the forecasted deficits for all of 2002 are annualized by multiplying those for the first eight months by 1.5. 

http://www.census.gov/foreign-trade/www/ 

US Publications Lead Declines to Only 7 of 20 S&T Fields
As late as 1991, the US led in placing its best S&T papers in the world's leading journals in 17 of the 20 fields tabulated by the Institute for Scientific Information.  This metric plummeted in the 1990s to a US lead in only 9 fields in 1999.  Now data through 2001 shows that the US has lost its lead in two additional fields to the EU, which now leads in 12 fields to the US's 7.  The Asia Pacific Region leads in one (materials sciences).  Extrapolation of trends and the expansion of the EU to 25 countries predict that the U.S. will lose leadership of three more fields to the EU by 2004.  The basic data comes from the ISI National Science Indicators CD (standard edition) available for sale at http://sunweb.isinet.com/isi/products/rsg/products/nsi/index.html  There is a pretty strong correlation between these sudden changes and the news item below.

US Physical Science Funding Declines
The President's Council of Advisors on Science and Technology (PCAST) has released a report documenting sharp declines in support of physical science R&D by the Federal Government.  "...federal R&D as a percentage of GDP has shrunk steadily to less than 0.7 percent of GDP in 2000, bringing the federal investment down to levels not seen since the early 1950s.  "Some fields continued to experience increases in federal funding between 1993 and 2000, such as biology (up 97 percent), computer sciences (up 77 percent), and math (up  31 percent).  Some fields continued to have less funding in 2000 than in 1993, including physics (down 20 percent), the geological sciences (down 30 percent), Ch.E. (down 30 percent), EE (down 26 percent), and ME (down 46 percent)."

"Trends in federal funding of university research can affect graduate student enrollment by  providing support for graduate research assistantships and by shaping the job market in science and engineering fields."  "There were fewer graduate students in the physical sciences in 2000 than in 1993 - 21 percent fewer in physics and 9 percent fewer in chemistry," for example.  This RAND/AAAS report contains 60 pages of figures and other statistics http://www.rand.org/publications/MR/MR1639.0/  This summary was excerpted from Richard M. Jones's AIP FYI e-letter.  http://www.aip.org/gov

US FY2003 S&T Budgets Still in Limbo
AAAS monitors the progress of the Appropriations bills as they wind their way through the tortuous approval process in Congress.  Only two of the 13 appropriations bills to fund the U.S. Government starting October 1, 2002 have been signed into law, and the whole process has stalled until after the November elections.  All the other bills are in a deadlock condition because the President has said that he will veto any bills that put the discretionary budget over his request of $750 billion.  In R&D his budget calls for very meager increases; the Senate and House have proposed much larger increases in their bills, but such increases would cause the budget to exceed the President's limit.  The defense appropriations bills that have been completed do call for record increases in R&D.  So now what?  It may not even be possible to resolve the problem during the lame duck session after the election, and it may have to carry over until calendar year 2003 with the 108th Congress. http://www.aaas.org/spp/rd/approp03.htm
 

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FEATURED ORGANIZATIONS THIS MONTH

Department of Commerce Reports on Technology Transfer and Evaluation
The Technology Administration of the U.S. Department of Commerce now has posted over 30 major reports 1995-2002 on S&T policy including international S&T issues.  Some sample titles include: Singapore's Biomedicine Initiative: A Prescription for Growth? (2001), International S&T: Policies, Programs, and Investments (2000), Tech Transfer 2000: Making Partnerships Work (2000), Information Technology in the Development Strategies of Asia (1999) [prepared by WTEC], The Global Context for US Technology Policy (1997), Korea's Strategy for Leadership in R&D (1997), and Foreign Technology Information Sources in the Government and Selected Private Sector Organizations (1996).  http://www.ta.doc.gov/reports.htm

The Technology Transfer Commercialization Act of 2000 (15 USC 3710 (f)) now requires Federal agencies that operate national labs to report annually on their tech transfer activities.  The first Department of Commerce report was submitted in June 2002 as a part of their FY2003 budget request. It includes counts of patents, royalties, CRADAs, etc. for NIST, NOAA, and NTIA.   http://www.ta.doc.gov/reports/TechPolicy/TechTrans_2003.htm

Technology Rating International
This Dutch company provides an unbiased technology assessment of proposed high technology ventures on behalf of investors.  http://www.technologyrating.com/

Kalba International
This is a Massachusetts company that provides similar services for the investment community, particularly in communications and multimedia technologies.
http://www.kalbainternational.com/technology_assessment.html

International Assessment of Agricultural Science and Technology
This is a division of the World Bank that expects to use assessments to help poor nations improve their food supply.
http://www.agassessment.org/about/index.html
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Copyright © 2002 ITRI, Inc. Comments to rds@itri2.org please.

ITRI, Inc.
633A Main Street
Laurel, MD 20207
301-490-6835
 
 
DATE FEATURE ARTICLE URL
Sept/Oct 02 U.S. High Technology Trade Surplus Disappears http://itri2.org/ITRInews/N46.html
Jul/Aug 02 U. S. Internet Growth Halts http://itri2.org/ITRInews/N45.html
Jun 02 U.S. Raises the Stakes in the Supercomputer Game; 
Japan Raises that Raise
http://itri2.org/ITRInews/N44.html
May 02 Double-Double in U.S. S&T Investments http://itri2.org/ITRInews/N43.html
Apr 02 Japanese Lap the U.S. in the Supercomputer Race http://itri2.org/ITRInews/N42.html
Mar 02 Criteria for Basic Research Performance http://itri2.org/ITRInews/N41.html
Feb 02 Internet Growth Slows http://itri2.org/ITRInews/N40.html
Dec 01 /Jan 02 Japan Ups S&T Paper Quality and Quantity as U. S. Declines http://itri2.org/ITRInews/N39.html
Nov 01 Marburger Shakes Up OSTP http://itri2.org/ITRInews/N38.html
Oct 01 Impact of Terrorism on R&D http://itri2.org/ITRInews/N37.html
Sep 01 US Technologies Lead; 
US Technologists Lag
http://itri2.org/ITRInews/N36.html
Aug 01 Doctors of Economic Warfare http://itri2.org/ITRInews/N35.html
Jul 01 Marburger to be OSTP Director http://itri2.org/ITRInews/N34.html
Jun 01 Nano is Huge, and Getting Bigger http://itri2.org/ITRInews/N33.html
May 01 R&D Budget Crash http://itri2.org/ITRInews/N32.html
Apr 01 As DotComs Wilt, Internet Sprouts http://itri2.org/ITRInews/N31.html
Mar 01 Research Famines: FY2002 Budgets http://itri2.org/ITRInews/ITRInews30.html
Feb 01 Sherwood Boehlert: 
New Science Committee Chair
http://itri2.org/ITRInews/ITRInews29.html
Jan 01 Andreessen's Law for the Internet http://itri2.org/ITRInews/ITRInews28.html
Dec 00 S&T Policy of the Bush Administration  http://itri2.org/ITRInews/ITRInews27.html
Nov 00 Research Feasts: FY2001 Budgets http://itri2.org/ITRInews/ITRInews26.html
Oct 00 Gingrich Praises Clinton http://itri2.org/ITRInews/ITRInews25.html
Sep 00 Industry Leads U.S. R&D http://itri2.org/ITRInews/ITRInews24.html
Aug 00 
(Extra)
Americans Like Being No. 1 
and Want to Keep It That Way
http://itri2.org/ITRInews/ITRInews23.html
Aug 00 Pale Green Manufacturing: 
US is 3rd out of 3
http://justice.loyola.edu/~rds/ITRInews22.html
Jul 00 Science and Engineering Indicators 2000 Released by NSF http://justice.loyola.edu/~rds/ITRInews21.html
Jun 00  American Leadership of S&T: Reality or Myth? http://justice.loyola.edu/~rds/ITRInews20.html
May 00 Think That Government is Investing More in Research? Think Again. http://justice.loyola.edu/~rds/ITRInews19.html
Apr 00 Who's Getting U.S. Patents? http://justice.loyola.edu/~rds/ITRInews18.html
Mar 00 Bottom Line II: Trade Deficit Skyrocket Explodes http://justice.loyola.edu/~rds/ITRInews17.html
Feb 00  S&T: Ready for Prime Time? http://justice.loyola.edu/~rds/ITRInews16.html
Jan 00 / 
Dec 99
New Technology Czar(ina) http://justice.loyola.edu/~rds/ITRInews15.html
Nov 99 Output in Papers: We're Number One? http://justice.loyola.edu/~rds/ITRInews14.html
Oct 99  Is International S&T Assessment Needed? http://justice.loyola.edu/~rds/ITRInews13.html
Sep 99 200GB Disk: 40 Films on One CD http://justice.loyola.edu/~rds/ITRInews12.html
Aug 99 Rep. George Brown Adjourns http://justice.loyola.edu/~rds/ITRInews11.html
Jul 99 More Good News / Bad News 
from the Academy
http://justice.loyola.edu/~rds/ITRInews10.html
Jun 99 / 
May 99
Teraflops Computers Meet Gates' Law http://justice.loyola.edu/~rds/ITRInews9.html
Apr 99 GPRA Metastasizes Abroad http://justice.loyola.edu/~rds/ITRInews8.html
Mar 99 Who's On First? 
(US, But Not for Long)
http://justice.loyola.edu/~rds/ITRInews7.html
Feb 99 Who's the Bear, and Who's the Bull? Japan Doubles R&D; The US Cuts It http://justice.loyola.edu/~rds/ITRInews6.html
Jan 99 / 
Dec 98
The Bottom Line: 
US Trade Deficit Skyrockets
http://itri.loyola.edu/NEWS/ITRInews5.htm
Nov 98 NRC to State: 
Ignoring S&T is Ignorant
http://itri.loyola.edu/NEWS/ITRInews4.htm
Oct 98 Is S&T to Blame for the Asian Financial Crisis? http://itri.loyola.edu/NEWS/ITRInews3.htm
Sep 98 The Y1.998K Problem: Y2K Arrives 0.002K Early. Markets Crash, PMs Fired, Orioles 31 Games Behind http://itri.loyola.edu/NEWS/ITRInews2.htm
Aug 98 Left Hand/Right Hand: NSF and NAS Both Assess US Math Research http://itri.loyola.edu/NEWS/ITRInews1.htm