97 



VALUE OF THE SBIR PROGRAM 



QUESTION: The SBIR program has a statutory increase for FY 1997 that 

 brings the NSF SBIR program to $52 million. For NSF, this means that 6.6% 

 of the increased funding available for research accounts must be des- 

 ignated for SBIR. What are your views on the value of this program and 

 on the requirement for a fixed percentage of the research budget to go to 

 the program? Do you believe there are higher priority areas for use of 

 these resources in a time of constrained budgets? 



ANSWER: NSF strongly believes in the value of the Small Business Innovation 

 Research (SBIR) Program, which was conceived over a decade ago as a means for 

 facilitating the transition of fundamental research results into useful products to 

 benefit society. NSF-funded SBIR projects have resulted in new products, private in- 

 vestment, sales and a significant increase in jobs in SBIR companies. Experience 

 has demonstrated that the commercial concepts in SBIR proposals are often based 

 on new knowledge and ideas that result from previously funded fundamental re- 

 search grants. It is important to recognize that success in this endeavor has a multi- 

 plier effect in making university-based researchers aware of the advantages of work- 

 ing with small business, encouraging small business owners to look to universities 

 for ideas and expertise, and in making challenging, high technology jobs available 

 to new graduates. 



NSF believes that the FY 1997 allocation of 2.5 percent of the NSF external re- 

 search budget to SBIR activities is sufficient to carry out the objectives of the SBIR 

 Program. However, we believe that the future growth of the program should keep 

 pace with, but not outstrip, the growth of NSF's research activities. This will allow 

 NSF to carry out the objectives of the SBIR program without negatively impacting 

 its ability to support fundamental research and education. The value of the SBIR 

 investment would also be enhanced if the program provided greater flexibility to 

 award grants to universities. This would provide greater continuity in the commer- 

 cialization of NSF-funded research, most of which is conducted by universities. 



REDUCTION IN INFORMAL SCIENCE EDUCATION PROGRAM 



QUESTION: The Informal Science Education program in the education 

 directorate is targeted for a reduction of $10 million for FY 1997, which is 

 a decrease of 28%. This will reduce support for science museums and media 

 activities. NSF's budget explanation indicates that the reduction can be re- 

 covered by leveraging additional funds from corporate and other sponsors. 



a) Why are you confident that NSF can attract increased non-federal sup- 

 port for these informal science education activities? 



b) Will resources be restored to this area if additional funding from non- 

 federal sources does not materialize? 



ANSWER: The Informal Science Education (ISE) program is effective in promot- 

 ing public understanding of science, mathematics, and technology (SMT) and re- 

 mains an integral part of the agenda for the Education and Human Resources Di- 

 rectorate. In FY 1997, the ISE budget reduction reflects NSF's strategic planning 

 priorities and the realities of the current budget environment. Reductions in buying 

 power due to constraints on future budgets will affect NSF's research and education 

 programs broadly. In the Education and Human Resources account, as part of the 

 National Performance Review (NPR2) process, NSF placed priority on activities re- 

 lated to educational systemic reform. A reduction in the request for informal science 

 education activities was one consequence. 



NSF support for informal science activities has been highly effective in leveraging 

 support from outside sources. NSF funding of $36 million in FY 1995 leveraged 

 about $20 million from other sources. Typically, NSF provides about one-third of 

 total media project costs and two-thirds of museum project costs. NSF support guar- 

 antees involvement of both researchers and educators in development of projects to 

 ensure scientific accuracy, balance, and effective educational strategies. Collabora- 

 tion with NSF also opens opportunities for other sources of support. The NSF strate- 

 gic planning process is rigorous and its programming dynamic. NSF will evaluate 

 future ISE program funding in the context of the program's relative contribution in 

 supporting NSF's strategic goals vis-a-vis the availability of funds. 



ADVANCED TECHNOLOGY EDUCATION 



QUESTION: The NSF budget request provides for a $5 million increase 

 for the Advanced Technology Education Program which supports curricu- 

 lum and faculty development at 2-year colleges in order to improve edu- 



