[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2109 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 2109
To provide a national innovation initiative.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 15, 2005
Mr. Ensign (for himself, Mr. Lieberman, Mr. Lugar, Mr. DeWine, Mr.
Allen, Mr. Bingaman, Mr. Alexander, Mr. Chambliss, Mr. Bayh, Mr. Nelson
of Florida, Mr. Kohl, Mr. Cornyn, Mr. Isakson, Mr. Smith, Mr. Leahy,
and Mr. Nelson of Nebraska) introduced the following bill; which was
read twice and referred to the Committee on Finance
_______________________________________________________________________
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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``National
Innovation Act of 2005''.
(b) Table of Contents.--
The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
TITLE I--INNOVATION PROMOTION
Sec. 101. President's Council on Innovation.
Sec. 102. Innovation acceleration grants.
Sec. 103. A national commitment to basic research.
Sec. 104. Regional economic development.
Sec. 105. Development of advanced manufacturing systems.
Sec. 106. Study on service science.
TITLE II--MODERNIZATION OF SCIENCE, EDUCATION, AND HEALTHCARE PROGRAMS
Subtitle A--Science and Education
Sec. 201. Graduate fellowships and graduate traineeships.
Sec. 202. Professional science master's degree programs.
Sec. 203. Increased support for science education through the National
Science Foundation.
Sec. 204. Innovation-based experiential learning.
Subtitle B--21st Century Healthcare System
Sec. 211. Sense of Congress regarding 21st century healthcare system.
TITLE III--INCENTIVES FOR ENCOURAGING INNOVATION
Subtitle A--Research Credits
Sec. 301. Permanent extension of research credit.
Sec. 302. Increase in rates of alternative incremental credit.
Sec. 303. Alternative simplified credit for qualified research
expenses.
Subtitle B--Health and Education
Sec. 311. Study and report on catastrophic healthcare.
Sec. 312. Lifelong learning accounts.
Subtitle C--Savings and Investments
Sec. 321. Regulations relating to private foundation support of
innovations in economic development.
Sec. 322. Advisory group regarding valuation of intangibles.
TITLE IV--DEPARTMENT OF DEFENSE MATTERS
Subtitle A--Defense Research and Education
Sec. 401. Revitalization of frontier and multidisciplinary research.
Sec. 402. Enhancement of education.
Subtitle B--Defense Advanced Manufacturing
Sec. 411. Manufacturing research and development.
Sec. 412. Transition of transformational manufacturing processes and
technologies to the defense manufacturing
base.
Sec. 413. Manufacturing technology strategies.
Sec. 414. Planning for adoption of strategic innovation.
Sec. 415. Report.
Sec. 416. Authorization of appropriations.
TITLE V--JUDICIARY AND OTHER MATTERS
Sec. 501. Sense of Congress on retaining high-tech talent in the United
States.
Sec. 502. Study on barriers to innovation.
Sec. 503. Sense of Congress on patent reform.
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) develop greater numbers of American scientists,
mathematicians, and engineers;
(4) enhance the quality of math and science education at
all levels;
(5) increase the Federal Government's investment in basic
research, especially in the physical sciences;
(6) direct greater funding toward multidisciplinary and
frontier research where tomorrow's innovations are most likely
to occur;
(7) 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; and
(8) examine both the incentives for, and barriers to,
innovation to better understand what additional policy changes
are warranted.
SEC. 3. DEFINITIONS.
In this Act:
(1) Congressional defense committees.--The term
``congressional defense committees'' has the meaning given that
term in section 101(a)(16) of title 10, United States Code.
(2) Defense manufacturing base.--The term ``defense
manufacturing base'' includes any supplier of the Department of
Defense, including a supplier of raw materials.
(3) Executive agency.--The term ``Executive agency'' has
the meaning given that term in section 105 of title 5, United
States Code.
(4) 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.
(5) 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.
(6) Manufacturing extension partnership program.--The term
``Manufacturing Extension Partnership Program'' means the
Manufacturing Extension Partnership Program of the Department
of Commerce.
(7) Manufacturing technology program.--The term
``Manufacturing Technology Program'' means the Manufacturing
Technology Program under section 2521 of title 10, United
States Code.
(8) Professional science masters program.--The term
``professional science masters program'' means a graduate
degree program in science and mathematics that extends science
training to strategic planning and business management and
focuses on multidisciplinary specialties such as business and
information technology (IT), biology and IT (bioinformatics),
and computational chemistry.
(9) 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.
(10) 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.
(11) 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.
(12) 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.
(13) 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.
TITLE I--INNOVATION PROMOTION
SEC. 101. 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. 102. 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. 103. 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. 104. 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. 105. 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. 106. 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.
TITLE II--MODERNIZATION OF SCIENCE, EDUCATION, AND HEALTHCARE PROGRAMS
Subtitle A--Science and Education
SEC. 201. GRADUATE FELLOWSHIPS AND GRADUATE TRAINEESHIPS.
(a) Graduate Research Fellowship Program.--
(1) In general.--During the 5-year period beginning on the
date of the enactment of this Act, the Director of the National
Science Foundation shall expand the Graduate Research
Fellowship Program of the Foundation so that an additional 1250
fellowships are awarded to United States citizens under such
Program during such period.
(2) Extension of fellowship period.--The Director of the
National Science Foundation is authorized to award fellowships
under the Graduate Research Fellowship Program for a period of
5 years, subject to funds being made available for such
purpose.
(3) Authorization of appropriations.--In addition to any
other amounts authorized to be appropriated, there are
authorized to be appropriated $34,000,000 for each of the
fiscal years 2007 through 2011 to provide an additional 250
fellowships under the Graduate Research Fellowship Program
during each such fiscal year.
(b) Integrative Graduate Education and Research Traineeship
Program.--
(1) In general.--During the 5-year period beginning on the
date of the enactment of this Act, the Director of the National
Science Foundation shall expand the Integrative Graduate
Education and Research Traineeship program of the Foundation so
that an additional 1,250 United States citizens are awarded
grants under such program during such period.
(2) Authorization of appropriations.--In addition to any
other amounts authorized to be appropriated, there are
authorized to be appropriated $57,000,000 for each of the
fiscal years 2007 through 2011 to provide grants to an
additional 250 individuals under the Integrative Graduate
Education and Research Traineeship program during each such
fiscal year
SEC. 202. PROFESSIONAL SCIENCE MASTER'S DEGREE PROGRAMS.
(a) Definition of Institution of Higher Education.--In this
section, the term ``institution of higher education'' has the meaning
given the term in section 101(a) of the Higher Education Act of 1965
(20 U.S.C. 1001(a)).
(b) Clearinghouse.--
(1) Development.--From amounts appropriated under
subsection (d), the Director of the National Science Foundation
shall establish a clearinghouse, in collaboration with 4-year
institutions of higher learning, industries, and Federal
agencies that employ science-trained personnel, to share
program elements used in successful professional science
master's degree programs.
(2) Availability.--The Director of the National Science
Foundation shall make the clearinghouse of program elements
developed under paragraph (1) available to institutions of
higher education that are developing professional science
master's degree programs.
(c) Pilot Programs.--
(1) Program authorized.--From amounts appropriated under
subsection (d), the Director of the National Science Foundation
shall award grants for pilot programs to 4-year institutions of
higher education to facilitate the institutions' creation or
improvement of professional science master's degree programs.
(2) Application.--A 4-year institution of higher education
desiring a grant under this section shall submit an application
at such time, in such manner, and accompanied by such
information as the Director of the National Science Foundation
may require. The application shall include--
(A) a description of the professional science
master's degree program that the institution of higher
education will implement;
(B) the amount of funding from non-Federal sources,
including from private industries, that the institution
of higher education shall use to support the
professional master's degree program; and
(C) an assurance that the institution of higher
education shall encourage students in the professional
science master's degree program to apply for all forms
of Federal assistance available to such students,
including applicable graduate fellowships and student
financial assistance under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070 et seq.).
(3) Preference for alternative funding sources.--The
Director of the National Science Foundation shall give
preference in making awards to 4-year institutions of higher
education seeking Federal funding to support pilot professional
science master's degree programs, to those applicants that
secure more than \2/3\ of the funding for such professional
science master's degree programs from sources other than the
Federal Government.
(4) Number of grants; time period of grants.--
(A) Number of grants.--Subject to the availability
of appropriated funds, the Director of the National
Science Foundation shall award grants under paragraph
(1) to a maximum of 200 4-year institutions of higher
education.
(B) Time period of grants.--Grants awarded under
this section shall be for one 3-year term. Grants may
be renewed only once for a maximum of 2 additional
years.
(5) Evaluation and reports.--
(A) Development of performance benchmarks.--Prior
to the start of the grant program, the National Science
Foundation, in collaboration with 4-year institutions
of higher education, shall develop performance
benchmarks to evaluate the pilot programs assisted by
grants under this section.
(B) Evaluation.--For each year of the grant period,
the Director of the National Science Foundation, in
consultation with 4-year institutions of higher
education, industry, and Federal agencies that employ
science-trained personnel, shall complete an evaluation
of each pilot program assisted by grants under this
section. Any pilot program that fails to satisfy the
performance benchmarks developed under subparagraph (A)
shall not be eligible for further funding.
(C) Report.--Not later than 180 days after the
completion of an evaluation described in subparagraph
(A), the Director of the National Science Foundation,
in consultation with industries and Federal agencies
that employ science-trained personnel, shall submit a
report to Congress that includes--
(i) the results of the evaluation described
in subparagraph (A); and
(ii) recommendations for administrative and
legislative action that could optimize the
effectiveness of the pilot programs, as the
Director determines to be appropriate.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $20,000,000 for fiscal year 2007
and such sums as may be necessary for each succeeding fiscal year.
SEC. 203. INCREASED SUPPORT FOR SCIENCE EDUCATION THROUGH THE NATIONAL
SCIENCE FOUNDATION.
There are authorized to be appropriated to carry out the science,
mathematics, engineering, and technology talent expansion program under
section 8(7) of the National Science Foundation Authorization Act of
2002 (Public Law 107-368, 116 Stat. 3042) the following amounts:
(1) For fiscal year 2007, $35,000,000.
(2) For fiscal year 2008, $50,000,000.
(3) For fiscal year 2009, $100,000,000.
(4) For fiscal year 2010, $150,000,000.
SEC. 204. INNOVATION-BASED EXPERIENTIAL LEARNING.
(a) Pilot Program.--
(1) Program authorized.--The Director of the National
Science Foundation shall award grants to local educational
agencies to enable the local educational agencies to implement
innovation-based experiential learning in a total of 500
secondary schools and 500 elementary or middle schools in the
United States.
(2) Application.--A local educational agency desiring a
grant under this section shall submit an application at such
time, in such manner, and accompanied by such information as
the Director of the National Science Foundation may require.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $10,000,000 for fiscal year 2007
and $20,000,000 for each of the fiscal years 2008 and 2009.
Subtitle B--21st Century Healthcare System
SEC. 211. SENSE OF CONGRESS REGARDING 21ST CENTURY HEALTHCARE SYSTEM.
(a) Sense of Congress.--It is the sense of Congress that, in order
to improve the United States healthcare system for the 21st century,
the Federal Government should encourage the widespread adoption of
interoperable health information technology by--
(1) facilitating the creation of standards for
interoperable electronic reporting of healthcare data; and
(2) after such standards have been created, each Federal
agency or department that collects data for the purposes
described in subsection (b) should collect such data in a
manner that is consistent with such standards.
(b) Purposes Described.--The purposes described in this subsection
include quality reporting, surveillance, epidemiology, adverse event
reporting, research, or for other purposes determined appropriate by
the Secretary of Health and Human Services.
TITLE III--INCENTIVES FOR ENCOURAGING INNOVATION
Subtitle A--Research Credits
SEC. 301. PERMANENT EXTENSION OF RESEARCH CREDIT.
(a) In General.--Section 41 of the Internal Revenue Code of 1986
(relating to credit for increasing research activities) is amended by
striking subsection (h).
(b) Conforming Amendment.--Section 45C(b)(1) of the Internal
Revenue Code of 1986 is amended by striking subparagraph (D).
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act.
SEC. 302. INCREASE IN RATES OF ALTERNATIVE INCREMENTAL CREDIT.
(a) In General.--Subparagraph (A) of section 41(c)(4) of the
Internal Revenue Code of 1986 (relating to election of alternative
incremental credit) is amended--
(1) by striking ``2.65 percent'' and inserting ``3
percent'';
(2) by striking ``3.2 percent'' and inserting ``4
percent''; and
(3) by striking ``3.75 percent'' and inserting ``5
percent''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
SEC. 303. ALTERNATIVE SIMPLIFIED CREDIT FOR QUALIFIED RESEARCH
EXPENSES.
(a) In General.--Subsection (c) of section 41 of the Internal
Revenue Code of 1986 (relating to base amount) is amended by
redesignating paragraphs (5) and (6) as paragraphs (6) and (7),
respectively, and by inserting after paragraph (4) the following new
paragraph:
``(5) Election of alternative simplified credit.--
``(A) In general.--At the election of the taxpayer,
the credit determined under subsection (a)(1) shall be
equal to 12 percent of so much of the qualified
research expenses for the taxable year as exceeds 50
percent of the average qualified research expenses for
the 3 taxable years preceding the taxable year for
which the credit is being determined.
``(B) Special rule in case of no qualified research
expenses in any of 3 preceding taxable years.--
``(i) Taxpayers to which subparagraph
applies.--The credit under this paragraph shall
be determined under this subparagraph if the
taxpayer has no qualified research expenses in
any 1 of the 3 taxable years preceding the
taxable year for which the credit is being
determined.
``(ii) Credit rate.--The credit determined
under this subparagraph shall be equal to 6
percent of the qualified research expenses for
the taxable year.
``(C) Election.--An election under this paragraph
shall apply to the taxable year for which made and all
succeeding taxable years unless revoked with the
consent of the Secretary. An election under this
paragraph may not be made for any taxable year to which
an election under paragraph (4) applies.''.
(b) Coordination With Election of Alternative Incremental Credit.--
(1) In general.--Section 41(c)(4)(B) of the Internal
Revenue Code of 1986 (relating to election) is amended by
adding at the end the following: ``An election under this
paragraph may not be made for any taxable year to which an
election under paragraph (5) applies.''.
(2) Transition rule.--In the case of an election under
section 41(c)(4) of the Internal Revenue Code of 1986 which
applies to the taxable year which includes the date of the
enactment of this Act, such election shall be treated as
revoked with the consent of the Secretary of the Treasury if
the taxpayer makes an election under section 41(c)(5) of such
Code (as added by subsection (a)) for such year.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
Subtitle B--Health and Education
SEC. 311. STUDY AND REPORT ON CATASTROPHIC HEALTHCARE.
(a) Study.--The Secretary of Health and Human Services and the
Secretary of Labor (in this subsection referred to as the
``Secretaries'') jointly shall conduct a study to explore methods for
managing costs associated with catastrophic healthcare events and costs
associated with chronic disease. The Secretaries shall work with
healthcare providers, pharmaceutical manufacturers, large and small
employers, health plans, and other interested private and public sector
entities to develop a consensus regarding potential innovative
approaches for reducing the financial risks presented by such health
problems and improving such outcomes. The study shall consider, among
other factors, the role that best practices, health information
technology, evidence-based medicine, quality incentives, and
comparative clinical effectiveness research can play in improving
quality, value, and efficiency throughout the United States healthcare
system.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretaries shall submit a report to Congress on the
results of the study conducted under subsection (a), together with such
recommendations for administrative and legislative action as the
Secretaries determine to be appropriate.
SEC. 312. LIFELONG LEARNING ACCOUNTS.
(a) Study.--The Secretary of the Treasury, in collaboration with
the Secretary of Labor and the Secretary of Education, shall conduct a
study with recommendations for establishing lifelong learning accounts
which would be exempt from taxation under the Internal Revenue Code of
1986 and from which funds could only be used for educational or
training purposes. Such study shall consider whether individuals should
be allowed to transfer to such an account, without incurring tax
liability or penalties, funds which are--
(1) held in accounts established under a plan described in
section 401(k), 403(b), or 457 of the Internal Revenue Code of
1986; and
(2) held in a qualified tuition program under section 529
of such Code.
(b) Report.--Not later than 1 year after the date of the enactment
of this Act, the Secretary of the Treasury shall submit to Congress a
report on the study conducted under subsection (a).
Subtitle C--Savings and Investments
SEC. 321. REGULATIONS RELATING TO PRIVATE FOUNDATION SUPPORT OF
INNOVATIONS IN ECONOMIC DEVELOPMENT.
The Secretary of the Treasury or the Secretary's delegate shall as
soon as practicable issue regulations under subchapter A of chapter 42
of the Internal Revenue Code of 1986 (relating to excise taxes on
private foundations) which--
(1) clearly identify when distributions by private
foundations for purposes of stimulating economic development
will be treated as made for an exempt purpose described in
section 170(c)(2)(B) of such Code; and
(2) clarify the circumstances under which private
foundations may make program-related investments described in
section 4944(c) of such Code in start-up ventures.
SEC. 322. ADVISORY GROUP REGARDING VALUATION OF INTANGIBLES.
(a) Establishment.--The Secretary of the Treasury shall establish
an advisory group consisting of representatives of the public and
private investment sector. The advisory group shall include
representatives from the Department of Commerce, the Securities and
Exchange Commission, the Commodity Futures Trading Commission, the
Board of Governors of the Federal Reserve System, the New York Stock
Exchange, the National Association of Securities Dealers Automatic
Quotation System, and significant industry sectors.
(b) Duties.--The advisory group established under subsection (a)
shall--
(1) examine and make recommendations of best practices for
valuation of intangibles in order to--
(A) provide investors with an improved method for
assessing the impact intangibles have on the accuracy
of a company's financial picture; and
(B) support industry trade associations in efforts
to adopt guidelines for intangibles appropriate to
particular industry sections; and
(2) submit to the Secretary of the Treasury a
recommendation regarding whether a litigation safe harbor
should be established for those companies that make good faith
estimates regarding the value of intangibles under the best
practice standards developed under paragraph (1).
(c) Research Network.--The Secretary of Commerce shall establish a
research network of industry and academic expertise to study metrics
and solutions for intangible disclosure, and provide such research
results to the advisory group.
(d) Accounting Standards.--The Secretary of the Treasury and the
advisory group shall encourage the Financial Accounting Standards Board
to reinstate its project on disclosure of information about intangible
assets not recognized in financial statements and to move expeditiously
toward issuance of a statement of financial accounting standards
concerning valuation and disclosure of key intangible assets.
(e) Report.--Not later than 2 years after the date of the enactment
of this Act, the advisory group shall submit to the Secretary of the
Treasury the results of the examination under subsection (b)(1) and the
recommendation under subsection (b)(2).
TITLE IV--DEPARTMENT OF DEFENSE MATTERS
Subtitle A--Defense Research and Education
SEC. 401. REVITALIZATION OF FRONTIER AND MULTIDISCIPLINARY RESEARCH.
It shall be the goal of the Department of Defense to allocate at
least 3 percent of the total Department of Defense budget to science
and technology. Of this amount, it shall be the goal of the Department
of Defense to allocate at least 20 percent to basic research.
SEC. 402. ENHANCEMENT OF EDUCATION.
(a) Science, Mathematics, and Research for Transformation (SMART)
Scholarships.--
(1) Extension of program.--Section 1105(a)(2) of the Ronald
W. Reagan National Defense Authorization Act for Fiscal Year
2005 (Public Law 108-375; 118 Stat. 2074; 10 U.S.C. 2192 note)
is amended by striking ``for three years beginning on the date
of the enactment of this Act'' and inserting ``through
September 30, 2011''.
(2) Expansion of program.--The Secretary of Defense shall,
utilizing amounts authorized to be appropriated by paragraph
(3), increase the number of participants in the Science,
Mathematics, and Research for Transformation (SMART) Defense
Scholarship Pilot Program under section 1105 of the Ronald W.
Reagan National Defense Authorization Act for Fiscal Year 2005
in each of fiscal years 2007 through 2011--
(A) by an additional 160 participants pursuing
doctoral degrees in each such fiscal year; and
(B) by an additional 60 participants pursuing
masters degrees in each such fiscal year.
(3) Authorization of appropriations.--There is hereby
authorized to be appropriated to the Department of Defense for
each of fiscal years 2007 through 2011 the amount of
$41,300,000 for purposes of carrying out this subsection, of
which--
(A) $36,000,000 shall be available in each such
fiscal year for additional participants in the Science,
Mathematics, and Research for Transformation (SMART)
Defense Scholarship Pilot Program who are pursuing
doctoral degrees under paragraph (2)(A); and
(A) $5,300,000 shall be available in each such
fiscal year for additional participants in the Science,
Mathematics, and Research for Transformation (SMART)
Defense Scholarship Pilot Program who are pursuing
masters degrees under paragraph (2)(B).
(b) National Defense Science and Engineering Graduate
Fellowships.--
(1) Expansion of program.--The Secretary of Defense shall,
utilizing amounts authorized to be appropriated by paragraph
(2), increase the number of participants in the National
Defense Science and Engineering Graduate (NDSEG) fellowship
program in each of fiscal years 2007 through 2011 by an
additional 200 participants in each such fiscal year.
(2) Authorization of appropriations.--There is hereby
authorized to be appropriated to the Department of Defense for
each of fiscal years 2007 through 2011 the amount of
$45,000,000 for purposes of carrying out this subsection.
(c) Institution-Based Traineeships.--
(1) Program required.--The Secretary of Defense shall,
utilizing amounts authorized to be appropriated by paragraph
(4), carry out a program to award, on a competitive basis,
traineeships to undergraduate and graduate students at
institutions of higher education in order to permit such
students to pursue studies in areas of importance to the
Department of Defense in mathematics, science, or engineering
in settings or programs that provide such students exposure to
multidisciplinary studies, innovation-oriented studies, and
academic, private-sector, or government laboratories and
research. It shall be the goal of the traineeship program for a
trainee to work for the Department of Defense for 10 years
after completing his or her degree.
(2) Participants.--In each of fiscal years 2007 through
2011, the number of participants in the program required by
paragraph (1) shall be as follows:
(A) Not more than 30 participants pursuing doctoral
degrees.
(B) Not more than 30 participants pursuing masters
degrees.
(C) Not more than 20 participants pursuing
undergraduate degrees.
(3) Annual reports.--Not later than November 30 each year,
the Secretary of Defense shall submit to the Committees on
Armed Services of the Senate and the House of Representatives a
report on the carrying out of the program required by paragraph
(1) during the preceding fiscal year. The report shall describe
the participants, and the studies pursued by such participants,
in the program during the fiscal year covered by the report,
and shall include an assessment of the benefits of the program
to the Department of Defense.
(4) Authorization of appropriations.--There is hereby
authorized to be appropriated to the Department of Defense for
each of fiscal years 2007 through 2011 the amount of
$11,100,000 for purposes of carrying out the program required
by this subsection, of which--
(A) $7,000,000 shall be available in each such
fiscal year for participants in the program who are
pursuing doctoral degrees under paragraph (2)(A);
(B) $2,600,000 shall be available in each such
fiscal year for participants in the program who are
pursuing masters degrees under paragraph (2)(B); and
(C) $1,500,000 shall be available in each such
fiscal year for participants in the program who are
pursuing undergraduate degrees under paragraph (2)(C).
Subtitle B--Defense Advanced Manufacturing
SEC. 411. MANUFACTURING RESEARCH AND DEVELOPMENT.
(a) Identification of Enhanced Processes and Technologies.--The
Under Secretary of Defense for Acquisition, Technology, and Logistics,
acting through the Director of Defense Research and Engineering, shall
identify advanced manufacturing processes and technologies whose
utilization will achieve significant productivity and efficiency gains
in the defense manufacturing base.
(b) Research and Development.--The Under Secretary shall undertake
research and development on processes and technologies identified under
subsection (a) that addresses, in particular--
(1) innovative manufacturing processes and advanced
technologies; and
(2) the creation of extended production enterprises using
information technology and new business models.
(c) Defense Priorities.--In undertaking research and development
under subsection (b), the Under Secretary shall consider defense
priorities established in the most current Joint Warfighting Science
and Technology Plan.
SEC. 412. TRANSITION OF TRANSFORMATIONAL MANUFACTURING PROCESSES AND
TECHNOLOGIES TO THE DEFENSE MANUFACTURING BASE.
(a) Acceleration of Transition from Science and Technology.--
(1) In general.--The Under Secretary of Defense for
Acquisition, Technology, and Logistics shall undertake
appropriate actions to accelerate the transition of
transformational manufacturing technologies and processes
(including processes and technologies identified under section
411) from the research stage to utilization by manufacturers in
the defense manufacturing base.
(2) Execution.--The actions undertaken under paragraph (1)
shall include a memorandum of understanding among the Director
of Defense Research and Engineering, other appropriate elements
of the Department of Defense, and the Joint Defense
Manufacturing Technology Panel to accelerate the transition of
technologies and processes as described in that paragraph.
(b) Prototypes and Test Beds.--
(1) In general.--The Under Secretary shall, utilizing the
Manufacturing Technology Program, undertake the development of
prototypes and test beds to promote the purposes of this
section.
(2) Coordination of activities.--The Under Secretary shall
coordinate activities under this subsection with activities
under the Small Business Innovation Research Program and the
Small Business Technology Transfer Program.
(c) Development of Improvement Process.--The Under Secretary shall,
in consultation with persons and organizations in the defense
manufacturing base, develop and implement a program to continuously
identify and utilize improvements and innovative processes in
appropriate defense acquisition programs and by manufacturers in the
defense manufacturing base.
(d) Diffusion of Enhancements Into Defense Manufacturing Base.--The
Under Secretary shall ensure the utilization in industry of
enhancements in productivity and efficiency identified by reason of
activities under this subtitle through the following:
(1) Research and development activities under the
Manufacturing Technology Program, including the establishment
of public-private partnerships.
(2) Outreach through the Manufacturing Extension
Partnership Program under memoranda of agreement, cooperative
programs, and other appropriate arrangements.
(3) Coordination with activities under such other current
programs for the dissemination of manufacturing technology as
the Under Secretary considers appropriate.
(4) Identification of incentives for contractors in the
defense manufacturing base to incorporate and utilize
manufacturing enhancements in manufacturing activities.
SEC. 413. MANUFACTURING TECHNOLOGY STRATEGIES.
(a) In General.--The Under Secretary of Defense for Acquisition,
Technology, and Logistics may--
(1) identify an area of technology where the development of
industry-prepared roadmaps for new manufacturing and technology
processes applicable to defense manufacturing requirements
would be beneficial to the Department of Defense; and
(2) establish a task force, and act in cooperation with the
private sector, to map the strategy for the development of
manufacturing processes and technologies needed to support
technology development in the area identified under paragraph
(1).
(b) Commencement of Roadmapping.--The Under Secretary shall
commence any roadmapping identified pursuant to subsection (a)(1) not
later than January 2007.
SEC. 414. PLANNING FOR ADOPTION OF STRATEGIC INNOVATION.
(a) In General.--The Secretary of Defense, acting through the Under
Secretary of Defense for Acquisition, Technology, and Logistics, shall
ensure that each contract of a value of $50,000,000 or more under a
technology or logistics program of the Department of Defense includes
requirements for planning by the contractor under such contract for the
adoption of innovative technologies under such contract.
(b) Particular Requirements.--The requirements included in a
contract under subsection (a) shall include--
(1) requirements for plans for the identification,
monitoring, and transition to the utilization under such
contract of applicable emerging technologies from the private
sector;
(2) requirements for plans for the identification,
monitoring, and development under such contract of emerging
research initiatives in academia; and
(3) a requirement to submit to the Under Secretary on an
annual basis a report on the implementation of the planning
carried out pursuant to the requirements included in such
contract.
SEC. 415. REPORT.
(a) In General.--Not later than December 31, 2008, the Under
Secretary of Defense for Acquisition, Technology, and Logistics shall
submit to the congressional defense committees a report on the actions
undertaken by the Under Secretary under this subtitle during fiscal
year 2007.
(b) Elements.--The report under subsection (a) shall include--
(1) a comprehensive description of the actions undertaken
under this subtitle during fiscal year 2007;
(2) an assessment of effectiveness of such actions in
enhancing research and development on manufacturing
technologies and processes, and the implementation of such
technologies and processes within the defense manufacturing
base; and
(3) such recommendations as the Under Secretary considers
appropriate for additional actions to be undertaken in order to
increase the effectiveness of the actions undertaken under this
subtitle in enhancing manufacturing activities within the
defense manufacturing base.
SEC. 416. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for the Department
of Defense for purposes of carrying out this subtitle for fiscal years
as follows:
(1) For fiscal year 2007, $20,000,000.
(2) For fiscal year 2008, $40,000,000.
(3) For fiscal year 2009, $60,000,000.
(4) For fiscal year 2010, $80,000,000.
(5) For fiscal year 2011, $100,000,000.
TITLE V--JUDICIARY AND OTHER MATTERS
SEC. 501. SENSE OF CONGRESS ON RETAINING HIGH TECH TALENT IN THE UNITED
STATES.
It is the sense of Congress that comprehensive immigration reform
should ensure that the United States retains foreign-born high-tech
talent educated in the United States and remains the leader in
innovation and technological development in an emerging global
marketplace. Such comprehensive reform should ensure--
(1) that the United States continues to retain foreign
nationals who have received master's or higher degrees in the
sciences, technology, engineering or mathematics from United
States institutions of higher education under either--
(A) the H-1B visa program; or
(B) as employment-based immigrants;
(2) that the United States must take a forward looking
approach with respect to any limitations on the H-1B visa
program; and
(3) that immigration reform should also include systematic
improvements to the Government's technology infrastructure in
order to eliminate delays in processing immigration
proceedings, including employment-based visa applications.
SEC. 502. STUDY ON BARRIERS TO INNOVATION.
(a) In General.--The National Academy of Sciences shall conduct and
complete a study to identify, and to review methods to mitigate, new
forms of risk for businesses beyond conventional operational and
financial risk that affect the ability to innovate, including studying
and reviewing--
(1) incentive and compensation structures that could
effectively encourage long-term value creation and innovation;
(2) methods of voluntary and supplemental disclosure by
industry of intellectual capital, innovation performance, and
indicators of future valuation;
(3) means by which government could work with industry to
enhance the legal and regulatory framework to encourage the
disclosures described in paragraph (2);
(4) practices that may be significant deterrents to United
States businesses engaging in innovation risk-taking compared
to foreign competitors, including tort litigation, the nature
and extent of any resulting defensive management practices, and
recommendations on practices to restore innovation risk-taking
and to overcome defensive practices;
(5) means by which industry, trade associations, and
universities could collaborate to support research on
management practices and methodologies for assessing the value
and risks of longer term innovation strategies; and
(6) means to encourage new, open, and collaborative
dialogue between industry associations, regulatory authorities,
management, shareholders, and other concerned interests to
encourage appropriate approaches to innovation risk-taking.
(b) Report Required.--The National Academy of Sciences shall, not
later than 1 year after the date of enactment of this Act, submit to
Congress a report on the study conducted under subsection (a).
(c) Authorizations of Appropriations.--There are authorized to be
appropriated to the National Academy of Sciences $1,000,000 for fiscal
year 2007 for the purpose of carrying out the study required under this
section.
SEC. 503. SENSE OF CONGRESS ON PATENT REFORM.
It is the sense of Congress that--
(1) to bolster the United States economy and strengthen
innovators in the United States, the patent system should be
reformed to enhance the quality of patents, to leverage patent
databases as innovation tools, and to create best practices for
global collaborative standard setting; and
(2) to achieve the objectives described in paragraph (1),
the Federal Government should--
(A) fully fund the Patent and Trademark Office and
enable the Office to direct its fees to fund process
improvements;
(B) improve compliance with existing patenting
requirements and create incentives for improved search
and disclosure of prior art;
(C) create new standards for searchability of
patent applications and new patents;
(D) establish a fair and balanced post-grant patent
review procedure for future patents and patent
applications;
(E) invest in retroactively creating searchable
keywords for a subset of the most highly cited
historical patents;
(F) secure reciprocal access to foreign patent
databases; and
(G) set best practices and processes for standards
bodies to align incentives for collaborative standard
setting, and to encourage broad participation.
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