The Federal government's research interests coincide with and complement RIUs' core com- 

 mitments in many areas. The government looks to the RIUs for expansion of the knowledge base 

 and investigation of specific research questions. The RIUs rely on Federal funding for financial 

 assistance in support of such research, with associated benefits to advanced training programs 

 and to their human and physical infrastructure. 



Some agencies, such as the Department of Agriculture, Department of Veterans Affairs, 

 Department of Defense, and NASA, emphasize academic research in areas where the resulting 

 new knowledge is judged most likely to contribute to specific agency missions. Other agencies, 

 such as the National Science Foundation, provide support across a broader spectrum of research 

 areas to advance fundamental understanding and to strengthen and expand American academic 

 infrastructure, while still other agencies, such as the National Institutes of Health, provide both. 

 The full range of these activities constitute a substantial investment in academic research capacity 

 and, therefore, in the Nation's future. 



The connections between the Federal agencies and the RIUs are complex, varying in 

 response to distinct missions, objectives, and processes among different agencies and even sub- 

 units within them. (Descriptions of individual agency relationships with the RIUs are provided in 

 Appendix B.) They are also modulated by diverse needs, operations, and opportunities among 

 RIUs. The pluralism in sources of funding and diversity of programmatic approaches contribute 

 to the flexibility and creativity of the system and its responsiveness to new opportunities. 



Agencies use a variety of mechanisms to support research at universities, including grants, 

 contracts, and cooperative agreements. The specific mechanism used is determined by agency re- 

 quirements and objectives, rather than whether the research is fundamental or applied. Grants and 

 cooperative agreements impose fewer requirements on researchers and rely more heavily on in- 

 vestigator initiative than do contracts. A "procurement" relationship between the Federal govern- 

 ment and universities is the consequence of the imposition of specific requirements on the 

 conduct and outcomes of research. In contrast, government support for a range of activities to ex- 

 pand the knowledge base of science, engineering, and technology and to strengthen the research 

 and education infrastructure constitutes an "investment." 



An essential component of the Federal/RIU relationship in research is its foundation in excel- 

 lence, regardless of the funding mechanism or objectives. The use of merit review for competi- 

 tive proposals has a demonstrated record of ensuring support for the highest quality research. 



ISSUES AND CHALLENGES 



X he Federal government exercises a substantial influence on RIUs through the impact of its 

 funding and its policies and regulations. The Federal agencies recognize that they need to focus 

 more sharply on the consequences of their policies and actions for universities. Federal actions 

 will be more effective if the RIUs, in parallel, develop a clearer definition of their missions and 

 strategies and adopt practices and processes that improve management, efficiency, and account- 

 ability. 



