152 



And that is, when you see the rising new economy all over the 

 country and where it is being most productive and profitable, it is 

 usually tied to universities. 



If you talk to the people in the Silicon Valley, they all refer back 

 to the fact that Stanford has been a motivating influence on that. 



You talk to people in the Boston high-tech corridors, and they all 

 point to MIT. 



You talk to people down on the #202 corridor in Pennsylvania 

 and a lot of them point to the University of Pennsylvania. Or up 

 in Paul McHale's area, they'll point to what Lehigh has produced. 



Dr. Fox. Or even Austin, Texas. 



Chairman Walker. Austin, Texas is an excellent example. Or 

 the research triangle in North Carolina, and so on. 



It appears as though the regions and the communities that want 

 to be a part of the developing entrepreneurial high-tech economy 

 may want to look at attracting research universities and research 

 university laboratories into their areas as a way of spawning these 

 entrepreneurial firms in their areas. 



It's just something, I think, which we ought to look at, which is 

 something different than what we have tended to look at when we 

 looked towards business development in the past. 



Business development meant going out and seeking some indus- 

 try to come in and build a plant in your area. That may not be the 

 right way of looking at the future. It may well be that what you 

 want to attract in is an academic institution that then will spawn 

 lots of entrepreneurial activity off it. 



That would go back to the user-friendly question, but it's a phe- 

 nomenon which I don't think we can ignore very much longer. 



Going along with that, private foundations would seem to provide 

 an awful lot of funding for academic research in some specific 

 fields. Is there some way, or did you take a look at whether or not 

 there are ways that government could work cooperatively with 

 foundations in developing priorities for federally-funded R&D? 



Dr. Press. No. That might be explored. I'm on the board of the 

 Sloane Foundation and on several occasions, the Sloane Founda- 

 tion, in advance of the government, started a field. And then the 

 government saw that this was something that was very, very prom- 

 ising and they picked it up after a while. 



Foundations don't like to start something and keep doing it for- 

 ever. They like to move from project to project. 



And so, that might be an area of some possibility. The Hughes 

 Medical Institute is perhaps our largest foundation. 



Mrs. MORELLA. In my district. 



[Laughter.] 



Dr. Press. Right in your district. 



[Laughter.] 



And it's doing terrific work. And I'm sure that some of the results 

 of its research might be of interest to the government. It's also 

 doing a lot of important work in education, especially in the small 

 black colleges in the south and in other areas. 



So that is a potential resource, yes. 



Mrs. MoRELLA. Good. Well, thank you very much. We appreciate 

 your research and also your report. It is very helpful to the Com- 

 mittee. 



