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28 / IMPROVING THE ALLOCATION PROCESS 



tion. Public dissemination of the results of federally funded research and develop- 

 ment is an important element in achieving maximum return on public investment, 

 and it also contributes to defining for the public the value of that investment. 



If there is no regulation, the risk of abuse will rise, but regulation imposes 

 significant cost. In the past 2 decades, the trend has been toward increased paper- 

 work to comply with procurement regulations, fair hiring practices, restrictions on 

 drug use, and many other public concerns that are important but that impose con- 

 straints on the conduct of federally funded research and development.^** 



Because procedures intended to enhance accoimtability have become increas- 

 ingly burdensome, continued scrutiny of the purposes, effectiveness, costs, and 

 alternatives to current practices would be welcome, beginning with a thorough 

 overhaul of the regulations and followed by systematic, periodic reviews. The 

 Office of Management and Budget and the Office of Science and Technology Policy 

 should work together to target one or a few areas of regulation and accountabilin 

 assessment each year and should encourage agency innovation to streamline or 

 replace current practices. 



The effect of regulations and social mandates can be quite severe for perform- 

 ers of federally funded research and development. If regulations are reviewed and 

 either reduced, streamlined, or eliminated by the OMB-OSTP effort recommended, 

 the committee believes that the productivity of the research and development 

 system can be improved and costs can be reduced. For their part, universities and 

 other performers should review their own procedures and regulations. The Federal 

 Demonstration Project sponsored by the Academies' Government-Universir\-Indus- 

 IT\ Research Roundtable demonstrates that improvements can be made without 

 sacrificing important goals. ^'' 



RECOMMENDATION 13. The federal government should retain 

 the capacity to perform research and development within agen- 

 cies whose missions require it. The nation should maintain its 

 resulting flexible and pluralistic system of support. The execu- 

 tive and legislative branches should implement the procedures 

 outlined in the committee's Recommendations 1 through 4 to 

 ensure a more coherent FS&T budget process w^hether or not a 

 Department of Science is established. 



Any changes in the structure of federal support for science and technology 

 should take into account the linkage between research and development and agency 

 missions and the benefits derived from a robust and pluralistic R&D system. Most 

 federally funded research and development is conducted in pursuit of national goals 

 such as a strong defense, better health, exploration of space, wiser use of natural 

 resources, and greater agricultural production (see Supplements 1 and 2). This 

 linkage to government agency missions is a strength of the I '.S. research enterprise 

 and has produced a robust and pluralistic R&D support system. Other than basic 

 research programs at the National Science Foundation, few federal science and 



