America COMPETES? Of S.3605 and National Innovation Strategies

COMPETES Reauthorization Summary

Senate Version
Sponsor: Jay Rockefeller (D-WV)
Senate Number: S. 3605
Purpose: "To invest in innovation through research and development,
to improve the competitiveness of the United States,
and for other purposes."
Full Text: PDF @ GPO

S.3605 Highlights

• Creates a National Innovation Strategy
• Coordinates Federal Efforts to Promote STEM Education
• Orders a Comprehensive Study on CyberInfrastructure Improvement
• Establishes an Interagency Public Access Committee

Sec. 101 National Innovation and Competitiveness Strategy

Sec. 101 establishes that the U.S. create a National Innovation and Competitiveness Strategy, the likes of which have not been seen in the States since the 1983 Presidential Commission on Industrial Competitiveness (God Bless you, Ronald Reagan). While the 1983 Commission can be characterized as a response to perceived Japanese dominance in high-tech and auto manufacturing, the 2007 COMPETES Act (and by extension the Reauthorization) was in part spurred by a National Academy of Sciences Report: Rising Above the Gathering Storm, Download the Full Report Here (Be sure to look for The Science Politico's summary of Rising Above the Gathering Storm and its sister-report A New Biology of the 21st Century Coming Soon).

What the Bill now says Post-Warner Amendment

The Bill originally stated that the White House Office of Science and Technology Policy (OSTP) would create and submit the National Innovation Strategy to Congress after one year. However, Senator Mark Warner (D-VA) introduced an amendment that changes the game a little. The Warner amendment directs the Dept. of Commerce, not OSTP, to create a 10 year National Innovation and Competitiveness Strategy, after analyzing the U.S. Economy and Infrastructure.

Why Does the United States need a National Innovation and Competitiveness Strategy?

• The "Valley of Death" (early stage funding gap between federally funded basic research and later stage venture capital funded product development) has widened with the current economic decline. A National Innovation Strategy could help lessen the gap by targeting programs aimed at facilitating commercialization of federally funded research. (Like SBIR and STTR). 
• The United States has a STEM Education Problem. From Rising Above the Gathering Storm: "In South Korea, 38% of all undergraduates receive their degrees in natural science or engineering. In France, the figure is 47%, in China, 50%, and in Singapore, 67%. In the United States, the corresponding figure is 15%." But See: This Article. A National Innovation and Competitiveness Strategy coupled with an examination of the United States' innovation infrastructure could help align incentives to increase the number of U.S. STEM undergraduates. (If the above linked article is true, and the problem is on the demand side, then ostensibly a National Innovation Strategy could help align incentives so as to increase the demand of STEM graduates).
• The United States is falling behind its competitors in the Global Innovation Index, particularly to nations with national innovation strategies: 

The United States is ranked behind Finland, Hong Kong, and Singapore in terms of the Global Innovation Index. Finland and Singapore have much touted National Innovation Strategies. (Full Text of Finland's National Innovation Strategy Here). Germany, Britain, South Korea, and Japan also have National Innovation Strategies. Says the director of MIT's Washington Office William B. Bonvillian:

"The United States is one of the only countries among the world's leading economies that lack a true national innovation strategy and the institutional focus to coordinate it..."

Where S.3605 Stands Now & Final Thoughts

S.3605 was approved by the Senate Committee on Commerce, Science and Transportation unanimously on July 22nd 2010, and is now awaiting full confirmation by the Senate. The Senate is currently in recess until September 10th, and it is unknown when/whether the bill will be brought for a floor vote. However the committees ranking republican Senator Kay Bailey Hutchinson (R-TX) hinted at the bill's future:

While I appreciate the Chairman’s [Rockefeller] willingness to work with me to reduce the funding levels by about 10 percent from the measure introduced, I believe we will need to further adjust the funding levels before this bill can be joined with the Titles from the HELP [Health, Education, Labor and Pensions] and Energy [and Natural Resources] Committees and pass the full Senate. We’ve come a long way in streamlining the bill, but we have more work to do. But I will certainly join in supporting the bill being reported today and look forward to helping move it through the legislative process in a bipartisan manner

When/if the bill is passed by a Senate floor vote, the House and Senate must reconcile their versions before it is signed by President Obama. Let's hope that they do, and the United States will finally get a National Innovation Strategy of its own.
Further Reading:
Innovation Nation by John Kao
Why the Bill may not make it from the Senate