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America's automakers realized last year that none of the Big Three had the resources to invent on its own the car battery of the future, explains John Wallace, director of electric vehicles for Ford. But each company had at least one poorly funded battery research project under way, which, if linked with the others, could be coordinated to eliminate overlap and speed a breakthrough. So Ford, GM and Chrysler joined forces and asked the government to match their efforts dollar for dollar. "We agreed to cooperate on batteries," added Wallace, "but compete on vehicles."
Some industrial leaders are underwhelmed by the Administration's helping hand. "It is so little, so wimpy," complains Andrew Grove, president of the semiconductor giant Intel. The Hudson Institute, a conservative think tank, proposes that Washington create a new federal science-and-technology agency that would coordinate the government's widely scattered $76 billion annual investment in R. and D. and make industry a partner at every level. "What we have now," says Hudson fellow Robert Costello, a former Pentagon official, "is a flea going up against an elephant, but the flea is growing."
Yet, as the economy staggers, Bush can be expected to move increasingly in Costello's direction. Next month the President will decide whether to double funds for the Commerce Department's advanced technology office, which dispenses grants to companies for promising technological breakthroughs. Meanwhile, Administration officials are examining the possibility of reinstating the Investment Tax Credit, killed in 1986, to boost private investment in research as well as new plant and equipment. "I want to emphasize," said Energy chief Watkins, "that this concept of a new partnership between government and industry is not about government attempting to substitute its judgment for that of experienced businessmen and free markets. It is about U.S. economic growth."
It's also about politics. Funding for basic research won't provide any quick fixes for the current recession. But at a time when Bush will have difficulty administering short-term economic remedies, notably any major tax cuts or spending increases, the President has good reason to be a visible advocate of any policy that improves the prospects for American's long-term economic future.
CHART: NOT AVAILABLE
CREDIT: TIME Chart by Steve Hart
CAPTION: AMERICA'S R&D GAP