C O U N C I L F O RC H E M I C A L R E S E A R C H

Influencing Government

Decisions from the Ivory Tower

Influencing Government

Decisions from the Ivory Tower

Terry A. Ring

Ch.E.

University of Utah

Terry A. Ring

Ch.E.

University of Utah

How Did I get Started?How Did I get Started? Volunteerism

High School Football Neighborhood Association Board

of Directors• Influence Zoning in Neighborhood

Ran International ACS meeting CCR

• Administration Committee• Government Relations Committee

Volunteerism High School Football Neighborhood Association Board

of Directors• Influence Zoning in Neighborhood

Ran International ACS meeting CCR

• Administration Committee• Government Relations Committee

Curiosity in GovernmentCuriosity in Government Student Offices

• High School• University

Boy’s State Politics in UK Politics of R&D Funding in England,

Switzerland and Japan CCR - Government Relations

Committee

Student Offices• High School• University

Boy’s State Politics in UK Politics of R&D Funding in England,

Switzerland and Japan CCR - Government Relations

Committee

C O U N C I L F O RC H E M I C A L R E S E A R C H

“An investment in knowledge always pays

the best interest.”

“An investment in knowledge always pays

the best interest.”Benjamin FranklinBenjamin Franklin

CCR Government Relations CommitteeCCR Government Relations Committee Agency Visits Budget Position Papers Congressional Visits Day

Tell them the importance of Chemical R&D on Utah’s Economy

Give Awards to Congressmen

Science & Technology Town Meetings Rep. Chris Cannon Rep. Merril Cook

Agency Visits Budget Position Papers Congressional Visits Day

Tell them the importance of Chemical R&D on Utah’s Economy

Give Awards to Congressmen

Science & Technology Town Meetings Rep. Chris Cannon Rep. Merril Cook

R&D Funding HistoryR&D Funding History 1996 - Newt Gingrich’s Contract With

America NIH 2x over 7 years Much of new medical technology is

built on traditional science and engineering!

Where is the equivalent funding increase for traditional science and engineering?

Government funding of R&D over the years has decreased significantly.

1996 - Newt Gingrich’s Contract With America NIH 2x over 7 years Much of new medical technology is

built on traditional science and engineering!

Where is the equivalent funding increase for traditional science and engineering?

Government funding of R&D over the years has decreased significantly.

Government Funding of R&D as % GDPGovernment Funding of R&D as % GDP

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2,00

0.0

Year

R&

D $

as

% o

f G

DP

Different PerspectiveDifferent Perspective Science and Engineering Funding in

Europe is Strong and Stable. Each country has its strengths that

are being maintained. Japanese Funding for Science and

Engineering is directed to areas where Japan will control the market.

USA thinks that it can do it all well and win them all.

Science and Engineering Funding in Europe is Strong and Stable. Each country has its strengths that

are being maintained. Japanese Funding for Science and

Engineering is directed to areas where Japan will control the market.

USA thinks that it can do it all well and win them all.

Richard Gross, CTO Dow ChemicalCCR President

Richard Gross, CTO Dow ChemicalCCR President

Move from anecdotes to statistical backed knowledge

Commission a Study of the Situation with respect to Chemical R&D and its effectiveness.

Council for Chemical Research as vehicle.

Move from anecdotes to statistical backed knowledge

Commission a Study of the Situation with respect to Chemical R&D and its effectiveness.

Council for Chemical Research as vehicle.

CCR Study-Phase I (2001)CCR Study-Phase I (2001)

David Sicilia U. of MD

Francis Narin CHI Research

Barouch Lev NYU

Ashish Arora Carnegie-

Mellon U.

David Sicilia U. of MD

Francis Narin CHI Research

Barouch Lev NYU

Ashish Arora Carnegie-

Mellon U.

History of Technology

Literature/Patent Analysis

Financial Analysis

Overview

CCR StudyCCR Study History of Economic Impact Follow Research to Patents

Importance of Research on Chemical Patents

Exploitation delay Follow R&D $ spent to Corporate

Profitability to Tax Revenue Chemical Technology Enables other

Industries. It is the most enabling of all industries!

History of Economic Impact Follow Research to Patents

Importance of Research on Chemical Patents

Exploitation delay Follow R&D $ spent to Corporate

Profitability to Tax Revenue Chemical Technology Enables other

Industries. It is the most enabling of all industries!

What to do with the Study?What to do with the Study?Rollout (my job)

Make this Public at the Highest Levels!

Rollout (my job) Make this Public at the

Highest Levels!

Study Rollout TeamStudy Rollout Team Jim Albertine,

Albertine Enterprises

M. Smith, A. Rickard, Association Vision

P. & J. Garfinkel, Imagemaker Speeches

CCR Staff CCR Action Network W. Wachob, Dow

Jim Albertine, Albertine Enterprises

M. Smith, A. Rickard, Association Vision

P. & J. Garfinkel, Imagemaker Speeches

CCR Staff CCR Action Network W. Wachob, Dow

Gov’t. Relations

Press Relations

Report Editing/Writing

Layout & Printing Coordination

Coordination/Overview

Study Manager

Gov’t. Relations

Press Relations

Report Editing/Writing

Layout & Printing Coordination

Coordination/Overview

Study Manager

Study RolloutStudy Rollout Combine studies into

one coherent document Publish Report

Press Release Documentation Press Contacts

Meetings with • Business Week, Wall Street Journal• Chemical Week, C&E News

Government Release Congressional Briefing HB 153 & Dear Colleague Letter

• Work with Lobbyist & Congressional Staff

Combine studies into one coherent document Publish Report

Press Release Documentation Press Contacts

Meetings with • Business Week, Wall Street Journal• Chemical Week, C&E News

Government Release Congressional Briefing HB 153 & Dear Colleague Letter

• Work with Lobbyist & Congressional Staff

Study FindingsStudy Findings History of Impressive Impact

Balance of Trade 50% of GDP growth

Can Follow R&D spending to Profit Can Follow R to Patents and Products

(exploitation delay) Papers lead to patents in the same

states R&D is good for the economy (so we

should do more of it)

History of Impressive Impact Balance of Trade 50% of GDP growth

Can Follow R&D spending to Profit Can Follow R to Patents and Products

(exploitation delay) Papers lead to patents in the same

states R&D is good for the economy (so we

should do more of it)

Basic Research1) National Lab Research2) University Research ($29.5B in 2000)(87% Gov’t. Funded)

0 1yr 2yr 3yr 4yr 5yr 6yr 7yr 8yr 9yr 10yr 11yr 12yr 13 yr 14yr 15

ScientificPublication(s)

Proposal

~$300k

0.01 0.1 1 10 1001

10

100

1 103Number of Patents w Profit Greater Than

Profit (Millions $)

Data from Scherer, F., Ann Econ. & Statistic, 1998

Data from 5 years, 1013 patent disclosures @ University of Utah, Innovation, vol.12

~$15-$100k

ExploitationDelay

Technology Transfer

# Licenses >$1M=0.6%

125

20968

$(1.00)

$(0.50)

$-

$0.50

$1.00

$1.50

$2.00

1 2 3 4 5 6 7 8

Years

Barouch Lev, CCR Study-2001

$1-10M

TIME $After Tax ROI=17%

Research Drives EachInnovation CyclesResearch Drives EachInnovation Cycles

10 5 0 5 10 15 200.1

1

10

trace 1trace 2trace 3trace 4

Technology Business Cycle

Years

Exp

endi

ture

, P

rofi

t, T

axes

($

Mil

lion

)

Gov't. R&D ExpendituresBusiness ExpendituresProfitTaxes

Fundamental R&D

AppliedR&D

Sustaining R&D

Product LaunchPatentLicenseInvention

Profit

Taxes

Exploitation Delay

Freon

DDT

Streptomycin

NylonTerylene

TV

0

0.2

0.4

0.6

0.8

1

1.2

0 20 40 60 80 100

Years from Invention to Exploitation

Cu

mu

lati

ve

% o

f In

ve

nti

on

s

Fluorescent Lamp

Patent Life

Data from Birchall, J.D., Chemistry and Industry 7/18/1983.

Business Innovation Cycles – long viewBusiness Innovation Cycles – long view

40 35 30 25 20 15 10 5 00

1

2Business Cycles

Years

Pro

fit

($ m

illi

on)

Business Cycles are Shortening!!International Competition is heating up!

Chances of Innovation Success Chances of Innovation Success Innovation ActivitySuccess Probability

Proposal Grant 1 in 10 Research Publ’cn, 1 in 2 Publ’cn Patent 1 in 100 Patent Profit 1 in 25 1 in 500,000

Within TTO Invention Patent App. 1 in 2 Patent App. Patent 1 in 2 Patent License ~1 in 1 License Royalty ~1 in 3 License Start-up

Innovation ActivitySuccess Probability Proposal Grant 1 in 10 Research Publ’cn, 1 in 2 Publ’cn Patent 1 in 100 Patent Profit 1 in 25 1 in 500,000

Within TTO Invention Patent App. 1 in 2 Patent App. Patent 1 in 2 Patent License ~1 in 1 License Royalty ~1 in 3 License Start-up

Odds are like Napoleon’s Russian CampaignOdds are like Napoleon’s Russian Campaign

Work After CCR StudyWork After CCR Study CCR Study Phase II

Chemistry is Enabling (2006) Government ROI

• $1B spent $8B Tax 20 years later

Annual Congressional Visits Pushing for more R&D

• Seed corn for the business in the next generation

Work with Gov’t Relations Staffer in Washington DC

NSF Doubling Bill Signed into Law in 2002

CCR Study Phase II Chemistry is Enabling (2006) Government ROI

• $1B spent $8B Tax 20 years later

Annual Congressional Visits Pushing for more R&D

• Seed corn for the business in the next generation

Work with Gov’t Relations Staffer in Washington DC

NSF Doubling Bill Signed into Law in 2002

NSF Doubling BillNSF Doubling Bill Initiated by calls by CCR Government

Relations Staffer Precipitated an Avalance of Support

ACS, APS, AAAS Success in politics is all about timing.

Read the sentiment• Needs bi-partisan support

– Many people need to look good

Acting only when sentiment is behind the initiative

Initiated by calls by CCR Government Relations Staffer

Precipitated an Avalance of Support ACS, APS, AAAS

Success in politics is all about timing. Read the sentiment

• Needs bi-partisan support– Many people need to look good

Acting only when sentiment is behind the initiative

NSF Doubling BillNSF Doubling Bill Signed into Law in 2002 No money in 2003,2004,2005,2006 What is going wrong?? Two Types of Bills

Authorization Bill• This is a good idea

Appropriations Bill• Fund it at $ level

Signed into Law in 2002 No money in 2003,2004,2005,2006 What is going wrong?? Two Types of Bills

Authorization Bill• This is a good idea

Appropriations Bill• Fund it at $ level

Making It HappenMaking It Happen “Rising Above the

Gathering Storm” Report 2005

State of the Union 2006

• American Competitiveness Initiative

Money in 2007 NSF, DOE-OS,

NIST

“Rising Above the Gathering Storm” Report 2005

State of the Union 2006

• American Competitiveness Initiative

Money in 2007 NSF, DOE-OS,

NIST

“Measure for Measure: Chemical R&D Powers The US Innovation Engine”

“Measure for Measure: Chemical R&D Powers The US Innovation Engine”

2006 Report Chemical

technology enables more industries than any other technology.

2006 Report Chemical

technology enables more industries than any other technology.

“Measure for Measure: Chemical R&D Powers The US Innovation Engine”

“Measure for Measure: Chemical R&D Powers The US Innovation Engine”

What have I learned about Government?What have I learned about Government?

Government is a study in dynamics!Government is a study in dynamics! Issues are constantly changingThe players are constantly

changingPolitical power is never real nor

constant. Political power is in the eye of

the beholder.

Issues are constantly changingThe players are constantly

changingPolitical power is never real nor

constant. Political power is in the eye of

the beholder.

What Have I learned about Government?What Have I learned about Government? You scratch my back, I’ll scratch

yours. Congressman Don Manzullo, Chair Small

Business Committee

“Government is a mile wide and a micron thick.” Kurt Markva, Chief of Staff for Don

Manzullo For success on any issue, keep the drum

beating! It does not matter how good the music is

just keep the drum beating.

You scratch my back, I’ll scratch yours. Congressman Don Manzullo, Chair Small

Business Committee

“Government is a mile wide and a micron thick.” Kurt Markva, Chief of Staff for Don

Manzullo For success on any issue, keep the drum

beating! It does not matter how good the music is

just keep the drum beating.

If you want government to do the right thing you must be talking to your legislators.

If you want government to do the right thing you must be talking to your legislators.

Help with campaign to get (re)elected Respond to questions from them

about upcoming legislation Go to Town Meetings and express

opinions

Help with campaign to get (re)elected Respond to questions from them

about upcoming legislation Go to Town Meetings and express

opinions

It doesn’t matter who you are, you can make a difference!

But you must be persistent!

It doesn’t matter who you are, you can make a difference!

But you must be persistent!