II
110th CONGRESS
2d Session
S. 3078
IN THE SENATE OF THE UNITED STATES
June 3, 2008
Ms. Collins (for herself and Mrs. Clinton) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation
A BILL
To establish a National Innovation Council, to improve the coordination of innovation activities among industries in the United States, for other purposes.
Short title
This Act may be cited as
the National Innovation and Job
Creation Act of 2008
.
Definitions
In this Act:
Board
The term Board means the National Innovation Council Board appointed under section 4.
CLIC
The term CLIC means the CLUSTER Information Center established under section 6.
CLUSTER initiative
The term CLUSTER Initiative means a formally organized effort to promote cluster growth and competitiveness through collaborative activities among cluster participants.
CLUSTER program
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.
Council
The term Council means the National Innovation Council established under section 3.
Industry cluster
The term industry cluster means a geographic concentration of interconnected businesses, suppliers, service providers, and associated institutions in a particular field.
Industry Research Council
The term Industry Research Council means an entity that—
is organized for the purpose of advancing innovation;
is comprised of at least 5 for profit entities; and
contributes not less than the minimum amount established by the Council toward any grant awarded by the Council.
Innovation
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.
Productivity
The term productivity means the measure of the quality or quantity of economic output relative to the input required to produce that output.
National Innovation Council
Establishment
In general
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.
Director
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.
Staff
In general
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.
Temporary staff
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.
Powers and responsibilities
Policy formulation and advocacy
The Council shall be responsible for formulating and advocating for the innovation policy of the Federal Government.
Assistance
The Council shall achieve the goal described in paragraph (1) by—
providing assistance to other Federal agencies with respect to innovation, upon request;
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;
providing Federal agencies and companies with the information they need to promote innovation and productivity; and
assisting companies with activities such as—
joint industry-university research partnerships;
technology transfer from laboratories to businesses;
technology-based entrepreneurship;
industrial modernization through adoption of best practice technologies and business practices; and
incumbent worker training.
Innovation measurement
The Council shall create methods of measuring innovation and productivity.
Research program
The Council shall carry out a program of research on innovation and productivity.
Advocacy
The Council shall recommend specific measures to improve innovation and productivity in the United States.
Collaboration
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—
measures of productivity in the service sector;
measures of total factor productivity, reflecting capital, materials, energy, and purchased services, labor, and other relevant factors as productive inputs for all industries;
measures of gross product and productivity for counties and metropolitan areas; and
measures of private rates of return from research and development.
Data collection and analysis
The Council shall—
collect and analyze data necessary to evaluate the impact on productivity resulting from the Council’s programs; and
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.
Annual report
The Council shall annually submit to Congress a report, to be known as the National Innovation Report, which shall set forth—
the current and foreseeable trends in innovation and productivity in the Nation;
a review and analysis of recent domestic and international developments affecting innovation and productivity in the Nation;
goals for improved innovation and productivity in the Nation;
a program designed to improve innovation and productivity in the Nation; and
such recommendations for legislation as the President considers desirable.
National Innovation Council Board
Establishment
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.
Appointment criteria
Qualifications
Each voting member of the Board—
shall be eminent in the field of business, economic development, health care, applied sciences, engineering, education, or public affairs;
shall have a record of distinguished service in his or her field; and
shall have demonstrated knowledge and appreciation of the value of innovation.
Representation
In making appointments under this section, the President shall—
give due regard to equitable representation of members who are women or who represent minority groups;
provide representation of the views of leaders in economic development and innovation in all areas of the Nation; and
appoint not fewer than—
1 representative with a background in manufacturing;
1 representative with a background in the service industry;
1 representative of higher education;
1 representative of State and local government;
1 representative of organized labor;
1 representative of the nonprofit sector;
1 representative of economic development organizations;
1 representative of professional associations; and
1 recognized expert in innovation.
Terms
Voting members of the Board shall be appointed to 4-year terms.
Ex officio members
The Secretary of Commerce and the Secretary of Labor shall serve as ex officio members of the Board.
Transfer of programs and functions
There shall be transferred to the Council the functions, personnel, assets, and liabilities of—
the Manufacturing Extension Partnership Program of the National Institute of Standards and Technology;
the Technology Innovation Program of the National Institute of Standards and Technology;
the Office of Technology Partnerships of the National Institute of Standards and Technology;
the Partnerships for Innovation of the National Science Foundation;
the Industry-University Cooperative Research Center Program of the National Science Foundation;
the Engineering Research Center Program of the National Science Foundation; and
the Workforce Innovation in Regional Economic Development of the Department of Labor.
Cluster Information Center
Establishment
There is established within the Council the
CLUSTER Information Center (referred to in this section as the
CLIC
).
Purposes
The purpose of the CLIC is to promote the collection, development, and dissemination of data and analysis on industry clusters throughout the United States.
Databases
The Director of the Council shall compile databases for the CLIC from existing Federal data sets available from—
the Census Bureau;
the Bureau of Economic Analysis;
the Bureau of Labor Statistics;
the International Trade Administration;
the Statistics of Income Program of the Internal Revenue Service;
the Office of Patent Resource Administration in the United States Patent and Trademark Office;
the National Science Foundation;
the National Innovation Council;
other Federal agencies; and
non-Federal sources, including private databases, as appropriate.
Functions
In general
The CLIC shall—
support and disseminate research on the formation and evolution of industry clusters, CLUSTER Initiatives, and cluster programs;
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;
develop technical assistance guides for regional cluster analysis and CLUSTER Initiative and initiative program development and operations; and
bring together representatives of industry clusters, CLUSTER Initiatives, and cluster programs, experts, and scholars to disseminate developments in cluster analysis, initiatives, and programs.
Data collection
The CLIC shall collect and make available data on cluster activity showing—
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;
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
flow, estimates of supply chain product and service flows within and between industry clusters.
Report
The CLIC shall—
monitor the extent to which the data available to it is sufficient for proper analysis of cluster activity; and
submit a report to Congress that includes recommendations regarding further authorization for data collection, as necessary.
Limitation
The CLIC may not collect or analyze data which would otherwise be in violation of Federal privacy laws.
Dissemination of analyses
Data 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—
cluster development;
economic development;
workforce development;
research and development;
business site locations;
analysis of United States competitiveness, by industry, industry cluster, and geography; and
other appropriate activities.
Cluster Initiative and Cluster Program Registry
In general
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—
organizational structure;
membership;
activities;
funding; and
perceived impacts of registered CLUSTER Initiatives and Cluster Programs.
Information collected
At the time a CLUSTER Initiative is registered, the CLIC shall collect sufficient information to demonstrate that the CLUSTER Initiative—
is an industry-led effort with not fewer than 5 member firms and 1 lead organizing entity;
involves not fewer than 3 cluster support organizations, such workforce boards, community colleges, universities, and industry associations; and
has a strategy to enhance the competitive position of the cluster.
Priority funding
Registered CLUSTER Initiatives and cluster programs shall receive priority for funding from the Council and the CLIC.
Use of information
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.
Outside contracts
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.
Authorization of appropriations
There are authorized to be appropriated $20,000,000 to carry out this section.
Grant Programs
CLUSTER grant program
Authorization
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.
Eligible grantees
A grant may be awarded under this subsection to—
a State; or
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.
Use of grant funds
All entities receiving grant funds under this subsection shall ensure that CLUSTER Initiatives supported by such funds—
are operated in a
manner consistent with the best practices
established by the
CLUSTER Program;
are industry-led;
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;
encourage broad participation by and collaboration among all types of participants;
involve key State and local government actors; and
participate in the CLIC registry and research activities described in section 6(e).
Grant types
Feasibility study grants
In general
A grant in an amount not to exceed $250,000 shall be awarded to eligible grantees for Cluster Program feasibility studies, planning, and operations.
Conditions
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.
Start up and annual grants
Start up grant
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.
Annual grant
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.
Renewal
Grants awarded under clause (ii) may be renewed for a total period not to exceed 5 years (including any start up grant).
Matching funds requirement
Initial period
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.
Subsequent period
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.
Matching grants for cluster initiatives
In general
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.
Matching requirement
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.
Selection criteria
In selecting grant recipients under this subparagraph, the Council shall consider—
the probable impact of the proposed effort on the competitiveness of the area’s traded sector;
if the proposed effort fits within a broader achievable economic development strategy;
the capacity and commitment of the sponsoring organization;
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;
the eligible grantee's expected ability to access additional funds from Federal, State, and local sources;
the eligible grantee's capacity to sustain activities once grant funds have been expended; and
the extent to which economic diversity across regions of the United States would be increased through the grant.
Application process
The application process for grants awarded under this subsection shall be on a rolling basis.
Authorization of appropriations
There are authorized to be appropriated $350,000,000 for fiscal year 2009 and each subsequent fiscal year to carry out this subsection.
National Sector Research Grants
Grants authorized
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.
Eligibility
Each company and joint venture desiring a grant under this subsection shall—
submit an application to the Council containing such information as the Council may reasonably require;
form an industry-led research consortium consisting of at least 5 companies; and
agree to develop a 3- to 10-year technology roadmap that charts out generic science and technology needs that the companies share.
Federal cost share
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.
Productivity enhancement research grants
The 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—
automated manufacturing or service processes;
technology-enabled remote service delivery;
quality improvement; and
other methods of improving productivity and innovation.
State innovation-based economic development partnership grants
Grants authorized
The Council shall award innovation-based economic development partnership grants to State economic development entities designated by each State.
Grant types
Feasibility study grants
In general
A grant in an amount not to exceed $250,000 shall be awarded to States for feasibility studies, planning, and operations.
Conditions
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.
Start-up and annual grants
Start up grant
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.
Annual grants
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.
Minimum grants
Each State shall be awarded not fewer than 1 grant under this subparagraph.
Matching funds requirement
A State receiving a start-up grant under this subparagraph shall provide—
for the first $1,000,000 in grant funds, a match of $1 for every $2 received in grant funds; and
for any additional amount in grant funds, a match of $2 for every $1 received in grant funds.
IBED plans
Initial plans
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—
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;
how companies within the State would benefit from the activities funded through a grant under this subsection; and
how innovation would be disseminated through the activities described in paragraph (4) to companies within the State.
Review
The Council and an outside panel of experts shall—
review the initial IBED plans submitted under subparagraph (A); and
notify the States of any suggested modifications to such plans.
Resubmission of plans
States may submit modified IBED plans to the Council.
Use of plans
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.
Use of funds
Grant funds received under this subsection may be used to establish—
technology commercialization centers;
industry-university research centers;
regional cluster development programs;
regional skills alliances;
entrepreneurial support programs;
science parks; and
related activities to spur innovation or productivity.
Federal cost share
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.
Noncompetitive grants
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.
Technology Diffusion Grants
Grants authorized
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.
Grant types
Feasibility study grants
In general
A grant in an amount not to exceed $250,000 shall be awarded to manufacturing extension partnership centers for feasibility studies, planning, and operations.
Conditions
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.
Start up and annual grants
Start up grant
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.
Annual grants
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.
Matching funds requirement
A manufacturing extension partnership center receiving a grant under this subparagraph shall provide—
for the first $1,000,000 in grant funds, a match of $1 for every $2 received in grant funds; and
for any additional amount in grant funds, a match of $2 for every $1 received in grant funds.
Use of funds
Grants funds received under this subsection may be used to—
establish manufacturing extension partnership centers in each State to provide—
support for manufacturing and services; and
innovation awards; and
support the diffusion of innovation in any sector of the economy, including the service sector.
Evaluation process
In evaluating proposals for grants under this subsection, the Council shall—
determine the degree to which measurable productivity gains are expected to be achieved through each applicant’s proposed diffusion of innovation;
follow the 2-step process established under subsection (d)(3) for grants to carry out the activities described in paragraph (3)(A); and
require manufacturing extension partnership centers to submit a plan to carry out the activities described in paragraph (3)(B).
Use of grants
Grant funds received under this section shall be used to—
perform Council-supported grant work in the United States; and
promote the production of any resulting goods or services in the United States.
Award criteria
In evaluating proposals for grants under this section, the Council shall—
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;
not award any grant which the Council believes could result in a decrease in production, wages, or employment in the United States; and
consult with technology-specific boards staffed with experts in fields appropriate to the proposals for grants being evaluated.
Minimum funding level
In general
For each of the grant programs established under subsections (a), (d), and (e)—
not fewer than 1 grant shall be awarded to a grantee in each State; and
the amount of each grant shall be not less than 80 percent of the average grant awarded in such grant program.
Population-based allocations
In 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—
the percentage of the population of the United States who are residents of such State, according to the most recent decennial census; and
the total amount of grant funds awarded under subsections (a) through (e).
Coordination of funds
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.
Authorization of appropriations
There 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.